Slide 1: Second Quarter 2020 Earnings
Second Quarter 2020 Earnings JULY 30, 2020 SECOND 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
Tom Palmer PRESIDENT & CHIEF EXECUTIVE OFFICER SECOND QUARTER 2020 EARNINGS NEWMONT CORPORATION 3
Slide 4: Solid Q2 Results Highlight Resilient Operating Model
Solid Q2 Results Highlight Resilient Operating Model Reported solid Delivered superior Strengthened Leading in stewardship Q2 results operational execution balance sheet and returns Produced 1.3M attributable Resumed operations at all Reported total liquidity of Published 16th annual ounces
Slide 5: Managing Covid-19 with Resolve & Agility
Managing Covid-19 with Resolve & Agility COMMITTED TO THE HEALTH, SAFETY AND WELLBEING OF OUR EMPLOYEES & COMMUNITIES Robust protocols and systems in place across the business Deep bench of experienced leaders, resilient operating model and mature systems Wide-ranging protocols in place to prote
Slide 6: Eight World-Class Assets in Top-Tier Jurisdictions
Eight World-Class Assets in Top-Tier Jurisdictions Musselwhite Newmont world-class assets • +500k GEO’s/year consolidated Éléonore Nevada Gold Mines** • <$900/koz AISC Turquoise Ridge/Twin Creeks • Mine life >10 years Goldstrike/Carlin Porcupine Cortez • Top-Tier Jurisdictions* Pueblo Viejo** CC&V M
Slide 7: Industry-Leading Production Drives Long Term Value
Industry-Leading Production Drives Long Term Value INDICATIVE 10-YEAR GOLD PRODUCTION PROFILE * (ATTRIBUTABLE MOZ PER ANNUM) Total GEOs ** 8 7 6 5 4 3 6 to 7 Moz of stable production for the next decade 2 1 - 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 ~$1.5 billion in additional GEO reve
Slide 8: Superior Free Cash Flow Generation Across Cycles
Superior Free Cash Flow Generation Across Cycles FREE CASH FLOW INCREASES WITH HIGHER GOLD PRICE* (INCREMENTAL FROM $1,200 BASE) Assumptions and Indicative Sensitivities Attributable Base Price Change FCF ($M) >$17B Gold ($/oz) $1,200 +$100 +$400 >$15B +$2,400M AUD $0.75 -$0.05 +$40 >$13B +$2,000M C
Slide 9: Rob Atkinson
Rob Atkinson CHIEF OPERATING OFFICER SECOND QUARTER 2020 EARNINGS NEWMONT CORPORATION 9
Slide 10: Operations Positioned for Strong Second Half
Operations Positioned for Strong Second Half Q1 Q2 Days on C&M Ramp-up date Peñasquito ~35 Executed safe and efficient restart plans at Cerro Negro, Yanacocha, Éléonore and Peñasquito and Musselwhite Cerro Negro ~60 Yanacocha ~60 Robust protocols continue at all sites to ensure health and safety
Slide 11: Australia Delivers Solid Q2 Performance
Australia Delivers Solid Q2 Performance Boddington reaching higher grade and positioned for strong second half Tanami delivered solid quarter with higher ore tons mined Tanami Expansion 2 development progressing well; boxcut complete and established second raisebore on surface 2020 productio
Slide 12: Africa Well-Positioned for Strong H2 2020
Africa Well-Positioned for Strong H2 2020 Ahafo Mill Expansion Q2 2020 YTD 2020 2020E Akyem sustained mill throughput and productivity improvements * Ahafo progressing stripping in Awonsu and Subika open pits Gold production (Koz) 193 379 850 Subika underground sub-level shrinkage development
Slide 13: Ahafo North - Best Unmined Deposit in West Africa
Ahafo North - Best Unmined Deposit in West Africa INDICATIVE AHAFO NORTH PRODUCTION PROFILE (KOZS) Open pit mine, stand-alone mill for processing 3.5Mozs of Reserve and 1,200 1.0Mozs of Resource* 1,000 Full funds decision expected 2021 800 Investment of $700-$800M with three year development t
Slide 14: North America Overcoming Near-Term Challenges
North America Overcoming Near-Term Challenges Peñasquito achieved pre-Covid record levels by mid June Porcupine and CC&V delivered solid Q2 performance Musselwhite on track to complete conveyor in 2020; mill restarted in late June to process stockpiles Éléonore ramping up to full production
Slide 15: South America Ramping Up & Preparing for Growth
South America Ramping Up & Preparing for Growth Yanacocha Q2 2020 YTD 2020 2020E Merian transitioning to harder rock in Merian 2 pit Yanacocha began placing new ore on leach pads in June; * Gold production (Koz) 210 540 1,135 ramping up to full operations in September Gold Costs Applicable to Sa
Slide 16: Yanacocha Sulfides Advances Towards 2021 Approval
Yanacocha Sulfides Advances Towards 2021 Approval INDICATIVE YANACOCHA PRODUCTION PROFILE * (GEO ** KOZS, 100%) First phase focused on developing most profitable deposits to optimize risk and returns 800 Potential to extend operational life 600 to 2041; favorable drilling at Chaqui Central and N
Slide 17: Solid 2020 Outlook and Safely Managing Operations
Solid 2020 Outlook and Safely Managing Operations 2020 Outlook 6.0MOZ $760/OZ $1,015/OZ Gold Production Gold Costs Applicable to Sales Gold All-In Sustaining Costs (CAS) (AISC) 1.0MOZ $605/OZ $945/OZ Co-product GEO Production GEO CAS GEO AISC $900M $475M $350M Consolidated Sustaining Consolidated De
Slide 18: Nancy Buese
Nancy Buese CHIEF FINANCIAL OFFICER SECOND QUARTER 2020 EARNINGS NEWMONT CORPORATION 18
Slide 19: Generated Q2 Free Cash Flow of $388 million
Generated Q2 Free Cash Flow of $388 million FINANCIAL METRIC Q2 2019 Q2 2020 Revenue ($M) $2,257 $2,365 +5% * Adjusted Net Income ($M) $92 $261 +184% * Adjusted Net Income ($/diluted share) $0.12 $0.32 +167% * Adjusted EBITDA ($M) $679 $984 +45% Cash from continuing operations ($M) $301 $668 +122% *
Slide 20: Q2 Adjusted Net Income of 32 cents per Share
Q2 Adjusted Net Income of 32 cents per Share GAAP TO ADJUSTED NET INCOME ($/DILUTED SHARE) ** $0.03 $0.02 $0.51 $0.04 ($0.28) $0.32 GAAP Net income from Change in fair value of COVID-19 specific costs Tax adjustments and Other* Adjusted net income continuing operations investments valuation allowanc
Slide 21: Industry-Leading Returns to Shareholders
Industry-Leading Returns to Shareholders STRONG FINANCIAL POSITION AND DISCIPLINED CAPITAL ALLOCATION PRIORITIES Strengthening our balance sheet Cumulative Returns since January 2019* (US$B) Liquidity of ~$6.7B; cash position of $3.8B $2.0 >$2.0 Net debt to adjusted EBITDA** ratio of 0.6x $1.8 I
Slide 22: Tom Palmer
Tom Palmer PRESIDENT & CHIEF EXECUTIVE OFFICER SECOND QUARTER 2020 EARNINGS NEWMONT CORPORATION 22
Slide 23: The World's Leading Gold Company
The World’s Leading Gold Company INDUSTRY’S BEST PORTFOLIO #1 GOLD PRODUCER SUSTAINABILITY LEADER 8 world-class assets +6Mozs/year through 2029 #1 gold mining company in DJSI 2 emerging world-class assets 1.2-1.4M GEO/year #1 gold company in the Corporate +90% in Top-Tier Jurisdictions
Slide 24: Appendix
Appendix SECOND QUARTER 2020 EARNINGS NEWMONT CORPORATION 24
Slide 25: 2020 Outlook by Region
2020 Outlooka by Region Consolidated Consolidated Attributable Attributable Consolidated All- Sustaining Development Sustaining Development Consolidated Attributable Consolidated in Sustaining Capital Capital Capital Capital b 2020 Outlook +/- 5% Production Production CAS Costs Expenditures Expendit
Slide 26: 2020 Site Outlook as of July 30, 2020
2020 Site Outlooka as of July 30, 2020 Consolidated Consolidated a) 2020 outlook projections used in this presentation are considered forward-looking Consolidated All- Sustaining Development statements and represent management’s good faith estimates or expectations of Consolidated Attributable Conso
Slide 27: Longer-term Outlook
Longer-term Outlooka Outlook 2020E (+/-5%) 2021E 2022E 2023E 2024E Attributable Production (koz) 6,000 6,200 - 6,700 6,200 - 6,700 6,200 - 6,700 6,200 - 6,700 Attributable Co-products (GEOs Koz) 1,010 1,000 - 1,200 1,100 - 1,300 1,300 - 1,500 1,300 - 1,500 Consolidated Gold CAS ($/oz) 760 650 - 750
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: 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 30: 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 31: 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 32: All-in Sustaining Costs
All-in Sustaining Costs Advanced Projects, Care and Sustaining Costs Research and Maintenance Treatment Capital All-In Three Months Applicable Development and Other and and Lease All-In Ounces Sustaining Ended to Reclamation and General and Expense, Refining Related Sustaining (000) Costs Per June 3
Slide 33: 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 Six Months Ended to Reclamation and General and Expense, Refining Related Sustaining (000) Costs Per June 30,
Slide 34: 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 35: 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 36: 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 37: 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 June 30, 2020 filed with the SEC on July 30, 2020 (including without limitation the risks related to COVID-19 under the heading “Risk Factors”)
Slide 38: Endnotes
Endnotes Adjusted Net Income is a non-GAAP metric. Adjusted Net Income per share refers to Adjusted Net Income per diluted share. See slides 28 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