Slide 1: Fourth Quarter and 2011 Earnings and Exploration Update
Fourth Quarter and 2011 Earnings and Exploration Update Friday, February 24, 2012
Slide 2: Cautionary Statement
Cautionary Statement Cautionary Statement Regarding Forward Looking Statements, Including 2012 Outlook: This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amen
Slide 3: Building on Strong Operating Performance
Building on Strong Operating Performance Newmont Offers a Compelling Combination of Growth, Returns and Exploration Upside Attributable Basis • Gold production growth potential to ~7 Moz by 2017 (~35%)1 Production Growth • Copper production to potentially double over same period Project Returns • Co
Slide 4: Growth Potential
Growth Potential 2012-2017 Projected Pipeline Growth, Net of Depletion 2017 Potential Africa: Production ~0.8 Moz (Moz)5 7.0 ~0.4 Akyem APAC: ~0.3 Moz ~0.2 Subika S America: ~0.2 Ahafo Mill 6.0 ~0.1 APAC Other ~1.3 Moz ~0.2 Aust. Exp. N America ~0.3 Merian Depletion ~0.2 Yan Exp. ~5.2 Moz3 S America
Slide 5: Q4 and FY 2011 Financial Highlights
Q4 and FY 2011 Financial Highlights Record Revenue, Cash from Continuing Operations and Adjusted Net Income 2010 2011 YOY Q4 2010 Q4 2011 Q4 YOY Revenue ($M) $9,540 $10,358 9% $2,548 $2,765 9% Adjusted Net Income ($M)6 $1,893 $2,170 15% $574 $577 1% Adjusted Net Income per Share 7 $3.85 $4.39 14% $1
Slide 6: Q4 and 2011 Operating Highlights
Q4 and 2011 Operating Highlights In Line with Outlook 2010 2011 YOY Q4 2010 Q4 2011 Q4 YOY Attributable Gold Production (Moz) 5.4 5.2 -4% 1.4 1.3 -7% 10 Average Realized Gold Price ($/oz) $1,222 $1,562 28% $1,366 $1,670 22% Attributable Copper Production (Mlbs) 327 206 -37% 74 48 -35% Average Realiz
Slide 7: Key Impacts for 2011
Key Impacts for 2011 CAS Waterfall; Adjusted Net Income Reconciliation CAS Waterfall Adjusted Net Income Reconciliation 2011 Record Adjusted Net Income partially offset by impairment on Hope Bay assets $700 Years ended A$ - 1.03 vs. 0.95 December 31, $650 (in millions except per share, after-tax) 20
Slide 8: 2011 v 2012 Gold CAS ($/oz)
2011 v 2012 Gold CAS ($/oz) Rising APAC, Labor and Consumables Costs are Key Drivers Changes in Consolidated Gold CAS ($/oz) by Region $700 $680 $660 ~$10 ~$10 ~$0 ~$650 $640 ~$40 $620 CAS ($/oz) $600 $591 $580 $560 $540 $520 $500 2011 Actual APAC N America Africa S America 2012 Gold CAS (Midpt) Cha
Slide 9: Industry Leading Gold Price-Linked Dividend
Industry Leading Gold Price-Linked Dividend11 Paid $1.00 per Share in 2011 $5.00 Dividend increases / Dividend Dividend increases / decreases decreases by $0.20/share increases / by $0.40/share for every $100/oz $4.70 $4.50 for every $100/oz change decreases by change in the gold price in the gold p
Slide 10: Returns: Delivering Per Share Leadership
Returns Delivering Per Share Leadership Gold Reserves per Thousand Shares Attributable Gold Production per Share 250 12.0 2011 2010 2009 2011 2010 2009 10.0 200 8.0 150 6.0 100 4.0 50 2.0 0 0.0 NEM ABX AEM GG KGC IMG NEM ABX AEM GG KGC IMG Consolidated OCF per Share Dividends Paid per Share $9.00 $1
Slide 11: 2011 Operational Performance
2011 Operational Performance 5.2Moz at CAS of $591/oz Consolidated 2010 Attributable Gold Production 2011 Attributable Gold Production Africa Africa ~550Koz ~570Koz (10%) (11%) N America ~1,910Koz N America N America (36%) ~1,950Koz S America (38%) APAC APAC ~2,160Koz APAC ~1,940Koz (40%) Africa (37
Slide 12: North America Operating Highlights
North America Operating Highlights Attributable Production (Koz) Phoenix Mill 2010 1,909 2011 1,953 Consolidated CAS ($/oz) 2010 $551 2011 $594 Q4 Attributable Gold Production (Koz) 700 La Herradura Nevada 600 2011 gold production higher due to the 500 commencement of underground mining at Exodus
Slide 13: South America Operating Highlights
South America Operating Highlights Attributable Production (Koz) Yanacocha, Peru 2010 751 2011 728 Consolidated CAS ($/oz) 2010 $431 2011 $560 Q4 Attributable Gold Production (Koz) 200 La Zanja Yanacocha 180 160 140 2011 gold production lower at Yanacocha due to 120 lower leach placement, partiall
Slide 14: Asia Pacific Operating Highlights
Asia Pacific Operating Highlights Attributable Gold Consolidated 2011 gold production lower due to Production (Koz) Gold CAS ($/oz) stripping at Batu Hijau and lower 2010 2,167 $474 throughput at Tanami and Waihi, 2011 1,938 $639 partially offset by higher mill throughput Attributable Copper Conso
Slide 15: Batu Hijau Update
Batu Hijau Update Batu Hijau Batu Hijau Tanami Jundee KCGM Boddington Waihi Batu Hijau 2012 Outlook Attributable Production Copper (Mlbs) 80 - 90 Phase 6 stripping campaign underway Gold (koz) 45 - 55 Batu Hijau Consolidated CAS Stripping will continue through 2013 Copper ($/lb) $1.80 - $2.20 Go
Slide 16: Africa Operating Highlights
Africa Operating Highlights Attributable Production (Koz) Ahafo Mill 2010 545 2011 566 Consolidated CAS ($/oz) 2010 $450 2011 $474 Q4 Attributable Gold Production (Koz) 160 Ahafo 140 2011 gold production higher due to higher 120 mill throughput and recovery and a full year 100 of production at Amo
Slide 17: Exploration Upside: Gold Reserves Increase to Record Levels
Exploration Upside Gold Reserves Increase to Record Levels 2011 Attributable Gold 2011 Attributable Gold Proven and Proven and Probable Reserves Probable Reserve Additions by Region Million Ounces ~0.9 ~6.3 ~7.4 ~0.3 ~2.2 Million Ounces ~2.9 ~3.3 98.8 ~6.2 93.5 N. America Africa 2010 Gold Price Addi
Slide 18: Exploration Upside: Copper Reserves Increase to Record Levels
Exploration Upside Copper Reserves Increase to Record Levels 2011 Attributable Copper 2011 Attributable Copper Proven and Proven and Probable Reserves Probable Reserve Additions by Region ~0.03 Billion Pounds ~0.1 ~0.3 ~0.1 ~0.4 Billion Pounds ~0.2 9.7 ~0.5 9.4 N. America Asia Pacific 2010 Cu Price
Slide 19: Exploration Upside: Long Canyon
Exploration Upside Long Canyon Project Description A Carlin-Type trend with potential for significant development and operating synergies 2011 Outcomes Completed 278 drill holes; ~59 km Infill drilling extended mineralization by ~25% Step out drilling extended mineralization North Encouraging
Slide 20: Project Plan Progressing
Project Plan Progressing12 Tangible Steps in Advancing the Project Portfolio Akyem Conga Tanami Shaft Average annual production Potential annual production Average annual production (1st 5 years): ~350 - 450 Koz (1st 5 years): ~300 - 350Moz (1st 5 years): ~60 - 90 Koz gold; initial production
Slide 21: Building on Strong Operating Performance
Building on Strong Operating Performance Newmont Offers a Compelling Combination of Growth, Returns and Exploration Upside Attributable Basis • Gold production growth potential to ~7 Moz by 2017 (~35%)1 Production Growth • Copper production to potentially double over same period Project Returns • Co
Slide 22: Questions?
NEWMONT. Questions? GOLD i tines COUNCIL MEMBER
Slide 23: Appendix
NEWMONT. Appendix GOLD i tines COUNCIL MEMBER
Slide 24: 2012 Outlook
2012 Outlook13 Attributable Production Consolidated CAS Consolidated Capital Attributable Capital Region (Kozs, Mlbs) ($/oz, $/lb) Expenditures ($M) Expenditures ($M) Nevada 1,725 - 1,800 $575 - $625 $650 - $750 $650 - $750 La Herradura 200 - 240 $460 - $510 $80 - $130 $80 - $130 North America 1,900
Slide 25: Reconciliation – Adjusted Net Income to GAAP Net Income
Reconciliation – Adjusted Net Income to GAAP Net Income Non-GAAP Financial Measures Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by Generally Accepted Accounting Principles (“GAAP”). These measures should not be consi
Slide 26: Attributable and Net Attributable CAS - Annual
Attributable and Net Attributable CAS - Annual Costs Applicable to Sales per Ounce/Pound Costs applicable to sales per ounce/pound are non-GAAP financial measures. These measures are calculated by dividing the costs applicable to sales of gold and copper by gold ounces or copper pounds sold, respect
Slide 27: Attributable and Net Attributable CAS - Quarterly
Attributable and Net Attributable CAS - Quarterly Costs applicable to sales per ounce/pound Gold Copper Three Months Ended December 31, Three Months Ended December 31, 2011 2010 2011 2010 Costs applicable to sales: Consolidated $ 899 $ 775 $ 126 $ 101 Noncontrolling interests (1) (109) (110) (47) (3
Slide 28: Attributable Proven, Probable and Combined Gold Reserves
Attributable Proven, Probable and Combined Gold Reserves (1) Attributable Proven, Probable, and Combined Gold Reserves December 31, 2011 December 31, 2010 Proven and Probable Metallurgical Proven Reserves Probable Reserves Proven + Probable Reserves Reserves Recovery Deposits/Districts by Reporting
Slide 29: Attributable Copper Reserves
Attributable Copper Reserves (1) Attributable Copper Reserves December 31, 2011 December 31, 2010 Proven Reserves Probable Reserves Proven + Probable Reserves Proven + Probable Reserve Newmont Tonnage Grade Copper Tonnage Grade Copper Tonnage Grade Copper Metallurgical Tonnage Grade Copper Deposits/
Slide 30: Attributable Silver Reserves
Attributable Silver Reserves Attributable Proven, Probable, and Combined Silver Reserves (1) December 31, 2011 Proven and Probable Metallurgical Proven Reserves Probable Reserves Reserves Recovery Deposits/Districts by Reporting Unit Newmont Tonnage Grade Silver Tonnage Grade Silver Tonnage Grade Si
Slide 31: Non-Reserve Gold Mineralization Supplemental Information
Non-Reserve Gold Mineralization Supplemental Information (1)(2) Attributable Gold Mineralized Material Not in Reserves December 31, 2011 Measured + Measured Material Indicated Material Inferred Material Deposits/Districts Indicated Material Newmont Tonnage Grade Tonnage Grade Tonnage Grade Tonnage G
Slide 32: Non-Reserve Copper Mineralization Supplemental Information
Non-Reserve Copper Mineralization Supplemental Information Attributable Copper Mineralized Material Not in Reserves (1)(2) December 31, 2011 Measured + Indicated Deposits/Districts Measured Material Indicated Material Material Inferred Material Newmont Share Tonnage Grade Tonnage Grade Tonnage Grade
Slide 33: Non-Reserve Silver Mineralization Supplemental Information
Non-Reserve Silver Mineralization Supplemental Information Attributable Silver Mineralized Material Not in Reserves (1)(2) December 31, 2011 Measured + Measured Material Indicated Material Inferred Material Deposits/Districts Indicated Material Newmont Tonnage Grade Tonnage Grade Tonnage Grade Tonna
Slide 34: Non-Reserve Mineralization Definitions Supplemental Information (continued)
Non-Reserve Mineralization Definitions Supplemental Information (continued) Defined terms and Statement Regarding Reserves and NRM: Ian Douglas, Newmont’s Group Executive of Reserves and Geostatistics, is the qualified person responsible for the preparation of the reserve and NRM estimates in this p
Slide 35: Increased Gold Price-Linked Dividend: Indicative Payout Table
Increased Gold Price-Linked Dividend11 Indicative Payout Table Q4’2011 Avg. Realized Gold Price $1,670/oz Gold Price $1,100- $1,200- $1,300- $1,400- $1,500- $1,600- $1,700- $1,800- $1,900- $2,000- ($/oz) $1,199 $1,299 $1,399 $1,499 $1,599 $1,699 $1,799 $1,899 $1,999 $2,199 Dividend per Share ($/qtr)
Slide 36: Endnotes
Endnotes Investors are encouraged to read the information contained in this presentation in conjunction with the following notes footnotes, the Cautionary Statement on slide 2 and the factors described under the “Risk Factors” section of the Company’s most recent Form 10-K, filed with the SEC on Feb