Slide 1: Q2 2017 earnings
Q2 2017 earnings July 25, 2017
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: Gary Goldberg, President and CEO
Gary Goldberg, President and CEO
Slide 4: Exceptional execution in second quarter
Exceptional execution in second quarter Leading safety and sustainability performance Improve the underlying Q2 AISC1 down 3% to $884/oz on strong operational execution business Attributable gold production up 13% to 1.4 Moz on grades and throughput Twin Underground approved, improving profitability
Slide 5: Ongoing safety, efficiency and sustainability gains
Ongoing safety, efficiency and sustainability gains Injury rates (total recordable injuries per 200,000 hours worked) 2016 injury rates 0.80 0.79 0.8 0.62 0.6 0.51 0.38 0.36 0.36 0.36 0.4 0.2 2012 2013 2014 2015 2016 2017 YTD ICMM Newmont average Stack emissions virtually eliminated Mill throughput
Slide 6: Continuous cost and efficiency improvements
Continuous cost and efficiency improvements Gold all-in sustaining cost ($/ounce) $1,170 $1,099 $996 $900 – 950 $933 $912 H1 = $892/oz 3 2012A 2013A 2014A 2015A 2016A 2017E July 25, 2017 Newmont Mining Corporation I Q2 2017 earnings I Slide 6
Slide 7: Production improves on grades and throughput
Production improves on grades and throughput Attributable gold production (Moz) 5.0 – 5.4 4.9 5.0 4.9 4.7 4.6 H1 = 2.6Moz 3 2012A 2013A 2014A 2015A 2016A 2017E July 25, 2017 Newmont Mining Corporation I Q2 2017 earnings I Slide 7
Slide 8: Twin Underground adds higher grades at lower costs
Twin Underground adds higher grades at lower costs • Profitable expansion adds higher grade ore and extends processing life at well-known deposit • First production expected in Q4 2017; commercial production forecast for mid-2018 • Adds 30 – 40Koz per year at CAS of $525 – $625/oz and AISC of $650 –
Slide 9: Expanding portfolio of long-term growth options
Expanding portfolio of long-term growth options • Continental Gold (19.9% stake) – exposure to high grade Buriticá project and exploration prospects − Project permitted for construction; commercial production expected in 2020 • Plateau (up to 80%) – additional claims staked for 570 km2 and geophysic
Slide 10: Improving 2017 outlook by $45/oz and 70Koz
Improving 2017 outlook by $45/oz and 70Koz Guidance metric 2017E 2018E 2019E – 2021E Gold production (Moz) 5.0 – 5.4 Moz (+70 Koz) 4.7 – 5.2 Moz 4.7 – 5.2 Moz CAS ($/oz) $675 – $715 (-$30/oz) $700 – $800 $650 – $750 AISC ($/oz) $900 – $950 (-$45/oz) $950 – $1,050 $870 – $970 Sustaining Capital ($M)
Slide 11: Nancy Buese, EVP and CFO
Nancy Buese, EVP and CFO
Slide 12: Adjusted EBITDA up 16%
Adjusted EBITDA up 16% Financial metric Q2 2016 Q2 2017 Change Revenue ($M) $1,669 $1,875 +12% Adjusted Net Income ($/diluted share)4 $0.29 $0.46 +59% Adjusted EBITDA ($M) $600 $698 +16% Cash from continuing operations ($M) $668 $529 -21% Free Cash Flow ($M)5 $385 $346 -10% Yanacocha July 25, 2017 N
Slide 13: Q2 adjusted net income of 46 cents per share
Q2 adjusted net income of 46 cents per share GAAP to adjusted net income ($/diluted share) $0.12 $0.01 $0.03 $0.46 $0.36 Net income from Gain on asset and Acquisition costs Valuation allowance Adjusted net income continuing operations investment sales and other tax adjustments July 25, 2017 Newmont
Slide 14: Financial flexibility to execute capital priorities
Financial flexibility to execute capital priorities Investing in profitable growth • Growing margins, Reserves and Resources Returning cash to shareholders • Q2 dividend increases to $0.075 Improving balance sheet fundamentals • Net debt to adjusted EBITDA of 0.6x • $3B revolver extended at competit
Slide 15: Tom Palmer, EVP and COO
Tom Palmer, EVP and COO
Slide 16: Continued strong performance across North America
Continued strong performance across North America • Silverstar geotechnical studies complete – remediation underway, representing upside in 2018 • Twin UG adds high-grade, low-cost production – ore blending to improve recoveries and extend life • CC&V valley leach and Long Canyon outperforming as ra
Slide 17: Regaining momentum in South America
Regaining momentum in South America • Strong mill performance continues at Merian – primary crusher installation on schedule • Overcoming extreme weather impacts on Yanacocha leach pads • Advancing development of Quecher Main oxide deposit – decision expected in H2 2017 • Drilling and process testin
Slide 18: Setting new mill throughput records in Australia
Setting new mill throughput records in Australia • Record mill throughput at Boddington – improved costs and efficiency enables profitable laybacks • Tanami recovering from record Q1 rainfall – expansion on track for Q3 2017 completion • Work to remediate west wall of KCGM pit underway – no impact t
Slide 19: Driving strong performance and prospects in Africa
Driving strong performance and prospects in Africa • Continued strong results with ongoing mill throughput and recovery improvements • Reduced cost guidance due to improved production at Akyem, lower direct costs at Ahafo • Commenced construction at Ahafo Mill Expansion – mined first ore at Subika U
Slide 20: Investing in technologies based on value and viability
Investing in technologies based on value and viability Enhanced Automation Advanced analytics Enhanced Advanced process productivity planning control Btag sensors on Autonomous/ Rolling out Centralized data Leveraging Virtual haul truck tires to remotely operated advanced process monitoring to Reali
Slide 21: Gary Goldberg, President and CEO
Gary Goldberg, President and CEO
Slide 22: Geographically diverse portfolio
Geographically diverse portfolio Operations As of July 24, 2017 Current projects ~$18B market capitalization Mid-term projects S&P 500 gold stock Stable production profile ~$5.5B liquidity North America Investment grade credit rating Carlin − NW Exodus Twin Creeks − Twin UG Phoenix Long Canyon CC&V
Slide 23: Investing in profitable growth across the cycle
Investing in profitable growth across the cycle Mine life* Production Capital IRR Project Cost (AISC/oz) (years) (Koz/yr) ($M) (%) Merian (75%) 13 $650 – $750 300 – 375 ~$525 >25% Long Canyon Phase 1 8 $500 – $600 100 – 150 ~$225 >26% Cripple Creek & Victor+ 11 $680 – $730 420 – 470 ~$185 >15% North
Slide 24: Leading project pipeline and track record
Leading project pipeline and track record Sustaining projects (in outlook) Current projects (in outlook) Greenfields Mid-term projects (<3 years; not in outlook) Conceptual/ Scoping Long-term projects (>3 years; not in outlook) Prefeasibility/ Feasibility Colombia Definitive Feasibility Long Canyon
Slide 25: Differentiated long-term production profile
Differentiated long-term production profile Projected production profile (Koz)3 Industry-leading long-term pipeline Divestments Current projects Mid-term projects 5,000 4,000 3,000 Existing assets and sustaining projects Existing assets and sustaining projects 2,000 1,000 0 2012 2013 2014 2015 2016
Slide 26: Leading Reserves profile
Leading Reserves profile 2016 Reserves statistics6 Newmont Competitor Average 129 11.8 9.9 72% 77 29% Reserve ounces per Operating Reserve life (years)** Reserves in thousand shares* US/Canada/Australia Western Europe* * Competitor average includes Agnico Eagle, AngloGold, Barrick, Gold Fields, Gold
Slide 27: Creating long-term value
Creating long-term value Culture of value over volume Improve the underlying Proven track record of continuous cost and efficiency improvement business Optimized portfolio based in lower-risk jurisdictions Focus on growing margins, Reserves and Resources Strengthen the Robust organic growth pipeline
Slide 28: Questions?
Questions?
Slide 29: 2017 Outlook
2017 Outlooka Consolidated All-in Consolidated Consolidated Attributable Consolidated Sustaining Total Capital Production Production CAS Costsb Expenditures (Koz, Kt) (Koz, Kt) ($/oz, $/lb) ($/oz, $/lb) ($M) North America a2017 Outlook in the table are considered “forward-looking Carlin 935 – 1,000
Slide 30: Adjusted net income
Adjusted net income 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 contin
Slide 31: Adjusted net income
Adjusted net income Three Months Ended Six Months Ended June 30, June 30, 1) Net loss (income) attributable to Newmont stockholders from discontinued 2017 2016 2017 2016 operations relates to (i) adjustments in our Holt royalty obligation, presented net of Net income (loss) attributable to Newmont s
Slide 32: 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 33: 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 34: All-in sustaining costs
All-in sustaining costs Newmont has worked to develop 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 performan
Slide 35: All-in sustaining costs
All-in sustaining costs Advanced Projects, Research and Treatment All-In Costs Development General Other and All-In Ounces Sustaining Three Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per 1) Excludes Depreciation and June 30, 2017 to Sales (
Slide 36: All-in sustaining costs
All-in sustaining costs Advanced Projects, Research and Treatment All-In Costs Development General Other and All-In Ounces Sustaining Six Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per 1) Excludes Depreciation and June 30, 2017 to Sales (1)
Slide 37: All-in sustaining costs – 2017 outlook
All-in sustaining costs – 2017 outlook Similar to the historical AISC amounts presented above, AISC outlook is also a non-GAAP financial measure. A reconciliation of the 2017 Gold AISC outlook range to the 2017 CAS outlook range is provided below. The estimates in the table below are considered “for
Slide 38: 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 or about February 21, 201
Slide 39: Endnotes - continued
Endnotes - continued 7. Sourced from Continental’s technical report entitled “Buriticá Project NI 43-101 Technical Report Feasibility Study Antioquia, Colombia” dated March 29, 2016 with an effective date of February 24, 2016. A copy of the technical report can be accessed under Continental’s SEDAR