Slide 1: Third Quarter 2020 Earnings
Third Quarter 2020 CREATING VALUE & IMPROVING LIVES Earnings THROUGH SUSTAINABLE, OCTOBER 29, 2020 RESPONSIBLE MINING THIRD QUARTER 2020 EARNINGS NEWMONT CORPORATION 1
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: Tom Palmer, President & Chief Executive Officer
Tom Palmer CREATING VALUE & IMPROVING LIVES PRESIDENT & CHIEF EXECUTIVE OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING THIRD QUARTER 2020 EARNINGS NEWMONT CORPORATION 3
Slide 4: Creating Value; Momentum into Q4 and 2021
Creating Value; Momentum into Q4 and 2021 Record Produced 1.5M attributable ounces of gold** & 273K GEOs from co-products Q3 results Generated $1.6B in Operating Cash Flow and $1.3B of Free Cash Flow* Strong Q3 performance, on track to achieve 2020 guidance Superior operational execution Adv
Slide 5: Newmont's Commitment to Improving Lives
Newmont’s Commitment to Improving Lives Our Commitments What We Value Most Ratings Health & safety Our People Inclusion & diversity MSCI Rating: A; Top quartile global gold mining company Sustainalytics ESG score: 91.9 Community relationships percentile relative to sector peers Local emp
Slide 6: Creating a Fatality, Injury & Illness-Free Environment
Creating a Fatality, Injury & Illness-Free Environment Significant Potential Event (SPE) Focused on eliminating fatalities through global 250 application of critical control management 200 >40,000 critical control-focused conversations in 150 the field this year 100 63% reduction in significan
Slide 7: The Industry's Best Portfolio in Top-Tier Jurisdictions
The Industry’s Best Portfolio in Top-Tier Jurisdictions World’s Leading Gold Company Eight world-class assets in top-tier Jurisdictions* Musselwhite Industry’s largest gold reserves of 95.7Moz and 63Moz in GEO reserves Nevada Gold Mines** Éléonore Stable production of >6Moz annually through 20
Slide 8: Steady Long-Term Production with Improving Costs
Steady Long-Term Production with Improving Costs INDICATIVE 10-YEAR GOLD PRODUCTION PROFILE * (ATTRIBUTABLE MOZ PER YEAR) 8 Total GEOs** 7 6 South America *** 5 Africa 4 Australia 3 2 North America*** 1 - 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 >7M GEO’s per year for the next decade *Indic
Slide 9: Project Pipeline to Sustain Production into 2040's
Project Pipeline to Sustain Production into 2040’s Scoping Prefeasibility Feasibility Definitive Feasibility Execution CC&V Underground Coffee Ahafo North Musselwhite Materials Handling Merian extension Pamour (Porcupine) Gold (Sabajo) Tanami Expansion 2 Oberon (Tanami) Ahafo UG (S
Slide 10: Superior Free Cash Flow Generation Across Cycles
Superior Free Cash Flow Generation Across Cycles ATTRIBUTABLE FREE CASH FLOW INCREASES WITH HIGHER GOLD PRICE* (INCREMENTAL FROM $1,200 BASE) >$19B >$17B +$2,800M >$15B +$2,400M >$13B +$2,000M >$11B +$1,600M >$9B +$1,200M >$7B +$800M >$5B +$400M (+40%) (+80%) (+120%) (+160%) (+200%) (+240%) (+280%)
Slide 11: Rob Atkinson, Chief Operating Officer
Rob Atkinson CREATING VALUE & IMPROVING LIVES CHIEF OPERATING OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING THIRD QUARTER 2020 EARNINGS NEWMONT CORPORATION 11
Slide 12: Australia Well-Positioned For Strong H2
Australia Well-Positioned For Strong H2 Shaft development at Tanami Expansion 2 New Camp Q3 2020 YTD 2020 2020E Boddington delivered solid Q3 despite inclement weather; mining higher grades through 2022 Gold production (Koz)* 309 861 1,180 Arrival of first Autonomous Haulage trucks at Boddington
Slide 13: Africa Continues to Deliver Solid Results
Africa Continues to Deliver Solid Results Improving lives at Akyem Planning at Subika UG Q3 2020 YTD 2020 2020E Akyem delivered higher mill throughput and recoveries * Ahafo production improving in H2 as increased tonnes from Gold production (Koz) 229 608 850 Subika underground offset ongoing st
Slide 14: South America Resilient in Q3
South America Resilient in Q3 Merian delivered solid Q3; expect higher grade in Q4 Yanacocha ramping up near full capacity; higher leach tonnes processed in Q3 Cerro Negro focused on operating efficiently; running mill in campaigns with mining focused on Marianas complex Yanacocha Sulfides a
Slide 15: North America Building Momentum into Q4
North America Building Momentum into Q4 Peñasquito delivered solid Q3; completed planned mill maintenance setting operation up for a solid Q4 Musselwhite conveyor on track for commissioning by year end; materials handling commissioning underway Éléonore lower mine materials handling project co
Slide 16: Nancy Buese, Chief Financial Officer
Nancy Buese CREATING VALUE & IMPROVING LIVES CHIEF FINANCIAL OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING THIRD QUARTER 2020 EARNINGS NEWMONT CORPORATION 16
Slide 17: Record Quarterly Free Cash Flow of $1.3 Billion
Record Quarterly Free Cash Flow of $1.3 Billion FINANCIAL METRIC Q3 2019 Q3 2020 Revenue ($M) $2,713 $3,170 +17% Adjusted Net Income ($M) * $292 $697 +139% Adjusted Net Income ($/diluted share) * $0.36 $0.86 +139% Adjusted EBITDA ($M)* $1,079 $1,663 +54% Cash from continuing operations ($M) $793 $1,
Slide 18: Q3 Adjusted Net Income of 86 cents per Share
Q3 Adjusted Net Income of 86 cents per Share GAAP TO ADJUSTED NET INCOME ($/DILUTED SHARE) ** $0.07 $0.10 $0.03 ($0.03) ($0.07) $0.76 $0.86 GAAP Net income Change in fair value COVID-19 specific Pension settlement Tax adjustments Other* Adjusted net from continuing of investments costs and valuation
Slide 19: Tom Palmer, President & Chief Executive Officer
Tom Palmer CREATING VALUE & IMPROVING LIVES PRESIDENT & CHIEF EXECUTIVE OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING THIRD QUARTER 2020 EARNINGS NEWMONT CORPORATION 19
Slide 20: Disciplined Capital Allocation Priorities
Disciplined Capital Allocation Priorities RESILIENT AND FLEXIBLE CAPITAL STRUCTURE ACROSS CYCLES Returning cash to shareholders Strengthening our balance sheet Investing in organic growth Declared third quarter dividend of Liquidity of $7.8B; cash position Progressing study work for Ahafo $0.4
Slide 21: Increasing Industry-Leading Dividend
Increasing Industry-Leading Dividend NEWMONT DIVIDEND FRAMEWORK Incremental Attributable Annual Free Cash Flow above $1,200/oz gold price* Maintains leading $1.00/share sustainable base dividend Targeting 40% – 60% of incremental attributable Free Cash +$3,600M Flow above $1,200/oz returned to s
Slide 22: The World's Leading Gold Company
The World’s Leading Gold Company #1 gold producer with >7M GEOs/yr through 2029 and significant exposure to other metals Industry’s best portfolio of world-class assets in top-tier jurisdictions Recognized sustainability leader committed to creating value and improving lives Proven operating mod
Slide 23: Appendix
Appendix CREATING VALUE & IMPROVING LIVES THROUGH SUSTAINABLE, RESPONSIBLE MINING THIRD QUARTER 2020 EARNINGS NEWMONT CORPORATION 23
Slide 24: 2020 Outlook by Region
2020 Outlooka by Region Consolidated Attributable Consolidated All-In Consolidated Consolidated Attributable Attributable b Production (Koz, GEOS Production (Koz, GEOs Consolidated CAS ($/ Sustaining Costs ($/ Sustaining Capital Development Capital Sustaining Capital Development Capital 2020 Outlook
Slide 25: 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 26: 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 27: 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 28: 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 29: All-in Sustaining Costs
All-in Sustaining Costs Advanced Projects, Care and Sustaining Costs Research and Maintenance Treatment Capital All-In Applicable Development and Other and and Lease All-In Ounces Sustaining Three Months Ended to Reclamation and General and Expense, Refining Related Sustaining (000) Costs Per (1)(2)
Slide 30: All-in Sustaining Costs
All-in Sustaining Costs Advanced Projects, Care and Sustaining Costs Research and Maintenance Treatment Capital All-In Applicable Development and Other and and Lease All-In Ounces Sustaining Nine Months Ended to Reclamation and General and Expense, Refining Related Sustaining (000) Costs Per (1)(2)(
Slide 31: Gold All-in Sustaining Costs - 2020 Outlook
Gold All-in Sustaining Costs - 2020 Outlook A reconciliation of the 2020 Gold AISC outlook to the 2020 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 Sec
Slide 32: Co-Product All-in Sustaining Costs - 2020 Outlook
Co-Product All-in Sustaining Costs - 2020 Outlook A reconciliation of the 2020 Co-products AISC outlook to the 2020 Co-Products CAS outlook is provided below. The estimates in the table below are considered “forward-looking statements” within the 27A of the Securities Act of 1933, as amended, and Se
Slide 33: Net Debt to Adjusted EBITDA Ratio
Net Debt to Adjusted EBITDA Ratio Management uses net debt to Adjusted EBITDA as non-GAAP measures to evaluate the Company’s operating performance, including our ability to generate earnings sufficient to service our debt. Net debt to Adjusted EBITDA represents the ratio of the Company’s debt, net o
Slide 34: Endnotes
Endnotes Investors are encouraged to read the information contained in this presentation in conjunction with the most recent Form 10-Q for the quarter ended September 30, 2020, and with the Cautionary Statement on slide 2 and the following notes below Outlook Assumptions. Outlook and projections use
Slide 35: Endnotes
Endnotes Adjusted Net Income is a non-GAAP metric. Adjusted Net Income per share refers to Adjusted Net Income per diluted share. See appendix or more information and reconciliation to the nearest GAAP metric. Free Cash Flow. FCF or Free cash flow are used herein is a forward-looking statement and i