Slide 1: Full year and Q4 2018 Earnings
Full year and Q4 2018 Earnings February 21, 2019
Slide 2: Cautionary statement
Cautionary statement Cautionary statement regarding forward looking statements: 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 amended, which are intended
Slide 3: Additional information
Additional information Additional information about the proposed transaction and where to find it This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the
Slide 4: Gary Goldberg
Gary Goldberg Chief Executive Officer
Slide 5: Leading operational and financial performance
Leading operational and financial performance Delivered AISC of $909/oz – through continued cost and capital discipline Superior operational Produced 5.1Moz of gold – lower cost production from projects offset stripping execution Full Potential11 improvements of $640M – helping to more than offset i
Slide 6: Leading sustainability performance
Leading sustainability performance Total injury rates (total recordable injuries per 200,000 hours worked) 1.0 0.8 0.6 0.4 0.40 0.2 0.0 2012 2013 2014 2015 2016 2017 2018 Top sustainability performance in mining sector for four consecutive years February 21, 2019 Newmont Mining Corporation I Full Ye
Slide 7: Full potential drives improved cost performance
Full potential drives improved cost performance All-in sustaining cost2 ($/oz) $1,111 $1,069 $969 $909 $935 $901 $880 $890 2012 2013 2014 2015 2016 2017 2018 2019E Attributable gold production (Moz) 5.3 5.1 5.2 4.9 5.0 4.9 4.7 4.6 2012 2013 2014 2015 2016 2017 2018 2019E February 21, 2019 Newmont Mi
Slide 8: On track to deliver three profitable projects in 2019
On track to deliver three profitable projects in 2019 Project Mine life (yrs) Cost† (AISC/oz) Production (Koz/yr) Capital ($M) IRR (%) Subika Underground 11 150 – 200 ~$185 >20% reduced by $250 – $350* Ahafo Mill Expansion – 75 – 100 $140 – $180 >20% Quecher Main** 8 $900 – $1,000 ~200 $250 – $300
Slide 9: Added 6.7Moz of Reserves, 9.5Moz of Resources
Added 6.7Moz of Reserves, 9.5Moz of Resources 3 2018 attributable gold Reserves3 (Moz) Sensitivity to gold price $1,000 ~50Moz 75 $1,100 ~57Moz $1,300 ~70Moz 70 -0.1$1,400 ~75Moz 3.6 65 6.1 6.7 0.1 60 South America – 39% North America – 30% 55 Australia – 21% 68.5 Africa – 10% 65.4 50 45 40 2017 Dep
Slide 10: Nancy Buese
Nancy Buese EVP and Chief Financial Officer
Slide 11: Strong Q4 results consistent with back-half weighting
Strong Q4 results consistent with back-half weighting Financial metric Q4 2017 Q4 2018 Change Revenue ($M) $1,935 $2,048 +6% Adjusted Net Income7 ($M) $206 $214 +4% Adjusted Net Income ($/diluted share) $0.39 $0.40 +3% Adjusted EBITDA5 ($M) $721 $759 +5% Cash from continuing operations ($M) $748 $74
Slide 12: Q4 adjusted net income of 40 cents per share
Q4 adjusted net income of 40 cents per share GAAP to adjusted net income ($/diluted share) $0.09 $0.23 $0.40 $0.08 $0.00 Net loss from Impairment of long- Tax adjustments Other** Adjusted net continuing lived assets & and valuation income operations investments* allowance *Primarily related to impai
Slide 13: Delivered $2.6B of Adjusted EBITDA in 2018
Delivered $2.6B of Adjusted EBITDA in 2018 Financial metric 2017 2018 Change Revenue ($M) $7,379 $7,253 -2% Adjusted Net Income7 ($M) $774 $718 -7% Adjusted Net Income ($/diluted share) $1.45 $1.34 -8% Adjusted EBITDA5 ($M) $2,650 $2,584 -2% Cash from continuing operations ($M) $2,139 $1,837 -14% Di
Slide 14: Full year adjusted net income of $1.34 per share
Full year adjusted net income of $1.34 per share GAAP to adjusted net income ($/diluted share) $0.02 $0.76 $0.03 $1.34 $0.53 Net income from Impairment of long- Tax adjustments Other** Adjusted net continuing lived assets & and valuation income operations investments* allowance *Primarily related to
Slide 15: Financial flexibility to execute capital priorities
Financial flexibility to execute capital priorities Maintaining investment grade balance sheet • Liquidity of $6.3B as of Q4 2018 • Net debt to adjusted EBITDA of 0.3x Growing margins, Reserves and Resources Returning cash to shareholders • Dividends of $0.56/share or ~$300M in 20188 • Repurchased ~
Slide 16: Tom Palmer
Tom Palmer President and Chief Operating Officer
Slide 17: Global portfolio of long-life assets
Global portfolio of long-life assets 65.4 million ounces in total 2018 Reserves3 Improvements since 2012 % of Reserves: >70% in US and Australia 3 new lower cost mines 10 profitable expansions Average project IRR >30% $2.8B in non-core asset sales North America Improved value and risk profile Carlin
Slide 18: North America finishes strong overcoming headwinds
North America finishes strong overcoming headwinds • Carlin performance improves with higher grades at Leeville; managing geotechnical challenges • CC&V delivers strong Q4 with concentrate processing and recovery of deferred leach production • Phoenix and Twin Creeks sustain performance with continu
Slide 19: South America improves profitability through execution
South America improves profitability through execution • Yanacocha’s optimized mill strategy improved grades and recoveries • Merian delivers continued improvements in mill performance and mine productivity • Quecher Main development continues; commercial production expected in H2 2019 • Yanacocha S
Slide 20: Australia delivers solid 2018, advancing future growth
Australia delivers solid 2018, advancing future growth • Tanami performance driven by higher grades from stope sequencing in Q4 • Tanami Power Project nearing completion; advancing TE2 studies and shaft sinking • Boddington delivers record mill throughput; stripping campaign continues through 2019 •
Slide 21: Africa projects adding profitable production
Africa projects adding profitable production • Akyem delivers steady performance; Ahafo increases tons and grade from Subika open pit • Subika Underground reached commercial production on schedule and within budget • Ahafo Mill Expansion construction progressing; commercial production expected in H2
Slide 22: Leading project pipeline and track record
Leading project pipeline and track record Long-term projects (>3 years; not in outlook) Mid-term projects (<3 years; not in outlook) Greenfields Sustaining projects (in outlook) Conceptual/ Current projects (in outlook) Scoping Prefeasibility/ Canadian Yukon Feasibility Definitive CC&V Underground F
Slide 23: Stability extends beyond five year outlook
Stability extends beyond five year outlook Indicative attributable production profile (Moz)* 6.0 Current Mid-term Long-term Divested projects projects** projects*** 5.0 4.0 3.0 Existing assets and sustaining projects 2.0 1.0 - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 *Se
Slide 24: Gary Goldberg
Gary Goldberg Chief Executive Officer
Slide 25: Newmont Goldcorp strategic combination
Newmont Goldcorp strategic combination Creating the world’s leading gold company: • Strongest portfolio of operating gold mines, projects, and Reserves in favorable jurisdictions • Targeting sustainable production of 6 to 7 million ounces of gold annually1 • Industry-leading dividend and investment-
Slide 26: Questions?
Questions?
Slide 27: 2019 Newmont outlook by region
2019 Newmont outlooka by region Consolidated Consolidated Consolidated Sustaining Development Consolidated Attributable Consolidated All-in Sustaining Capital Capital 2019 Outlook +/- 5% Production Production CAS Costsb Expenditures Expenditures (Koz, Kt) (Koz, Kt) ($/oz, $/lb) ($/oz, $/lb) ($M) ($M
Slide 28: Adjusted net income (loss)
Adjusted net income (loss) Management uses Adjusted net income (loss) to evaluate the Company’s operating performance and for planning and forecasting future business operations. The Company believes the use of Adjusted net income (loss) allows investors and analysts to understand the results of the
Slide 29: Adjusted net income (loss)
Adjusted net income (loss) Three Months Ended Years Ended December 31, December 31, (1) Net loss (income) from discontinued operations relates to (i) adjustments in our Holt royalty obligation, presented net of tax 2018 2017 2018 2017 expense (benefit) of $-, $1, $15, and $(24), respectively, and (i
Slide 30: Free cash flow
Free cash flow Management uses Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations. Free Cash Flow is Net cash provided by (used in) operating activities less Net cash provided by (used in) operating activities of discontinued operations less Additions to property, p
Slide 31: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA Management uses Earnings before interest, taxes and depreciation and amortization (“EBITDA”) and EBITDA adjusted for non-core or certain items that have a disproportionate impact on our results for a particular period (“Adjusted EBITDA”) as non-GAAP measures to evaluate th
Slide 32: All-in sustaining costs
All-in sustaining costs Newmont has developed a metric that expands on GAAP measures, such as cost of goods sold, and non-GAAP measures, such as Costs applicable to sales per ounce, to provide visibility into the economics of our mining operations related to expenditures, operating performance and t
Slide 33: All-in sustaining costs
All-in sustaining costs Advanced (1) Excludes Depreciation and amortization and Projects, Research and Treatment All-In Reclamation and remediation. Costs Development General Other and All-In Ounces Sustaining (2) Includes by-product credits of $9 and Three Months Ended Applicable Reclamation and an
Slide 34: All-in sustaining costs
All-in sustaining costs Advanced (1) Excludes Depreciation and amortization and Projects, Research and Treatment All-In Reclamation and remediation. Costs Development General Other and All-In Ounces Sustaining (2) Includes by-product credits of $10 and Three Months Ended Applicable Reclamation and a
Slide 35: All-in sustaining costs
All-in sustaining costs Advanced (1) Excludes Depreciation and amortization and Projects, Research and Treatment All-In Reclamation and remediation. Costs Development General Other and All-In Ounces Sustaining (2) Includes by-product credits of $53 and Years Ended Applicable Reclamation and and Expe
Slide 36: All-in sustaining costs
All-in sustaining costs Advanced (1) Excludes Depreciation and amortization and Projects, Research and Treatment All-In Reclamation and remediation. Costs Development General Other and All-In Ounces Sustaining (2) Includes by-product credits of $55 and Years Ended Applicable Reclamation and and Expe
Slide 37: All-in sustaining costs
All-in sustaining costs Advanced Projects, (1) Excludes Depreciation and amortization and Research and Treatment All-In Reclamation and remediation. Costs Development General Other and All-In Ounces Sustaining (2) Includes by-product credits of $50 and Year Ended Applicable Reclamation and and Expen
Slide 38: All-in sustaining costs
All-in sustaining costs Advanced Projects, (1) Excludes Depreciation and amortization and Research and Treatment All-In Reclamation and remediation. Costs Development General Other and All-In Ounces Sustaining (2) Includes by-product credits of $45 and Year Ended Applicable Reclamation and and Expen
Slide 39: All-in sustaining costs
All-in sustaining costs Advanced Projects, (1) Excludes Depreciation and amortization and Research and Treatment All-In Reclamation and remediation. Costs Development General Other and All-In Ounces Sustaining (2) Includes by-product credits of $78 and excludes Year Ended Applicable Reclamation and
Slide 40: All-in sustaining costs – 2019 outlook
All-in sustaining costs – 2019 outlook A reconciliation of the 2019 Gold AISC outlook to the 2019 Gold CAS outlook is provided below. The estimates in the table below are considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section
Slide 41: Endnotes
Endnotes Investors are encouraged to read the information contained in this presentation in conjunction with the following notes, the Cautionary Statement on slide 2 and the factors described under the “Risk Factors” section of the Company’s Form 10-K, filed with the SEC on February 21, 2019 and dis
Slide 42: Endnotes
Endnotes 7. Adjusted Net Income is a non-GAAP metric. Adjusted Net Income per share refers to Adjusted Net Income per diluted share. See slides 28-29 for more information and reconciliation to the nearest GAAP metric. 8. 2019 dividends beyond Q1 2019 have not yet been approved or declared by the Boa