Newmont Corporation · NYSE:NEM

Newmont — Bernstein 36th Annual Strategic Decisions Conference 2020

47 slides from Newmont's conference presentation, May 2020

  1. Slide 1: Bernstein 36th Annual Strategic Decisions Conference

    Bernstein 36th Annual Strategic Decisions Conference MAY 2020 BERNSTEIN 36TH ANNUAL STRATEGIC DECISIONS CONFERENCE NEWMONT CORPORATION 1

  2. 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

  3. Slide 3: Responding to COVID-19 from Position of Strength

    Responding to COVID-19 from Position of Strength COMMITTED TO THE HEALTH, SAFETY AND WELLBEING OF OUR EMPLOYEES & COMMUNITIES Taking an Informed, Resilient Operating Model Global Standards to Caring for our Workforce Supporting Local Proactive Approach & Robust Systems Manage Health & Hygiene Commun

  4. Slide 4: 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

  5. Slide 5: 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 revenue

  6. Slide 6: 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

  7. Slide 7: Industry-Leading Returns to Shareholders

    Industry-Leading Returns to Shareholders STRONG FINANCIAL POSITION AND DISCIPLINED CAPITAL ALLOCATION PRIORITIES Strengthening our balance sheet  Liquidity of ~$6.6B – strong cash position of $3.7B  Net debt to adjusted EBITDA** ratio of 0.7x  Generated $1.4B cash proceeds from divestitures  Ref

  8. Slide 8: What We Promised and What We Are Delivering

    What We Promised and What We Are Delivering Commitments Realized Cash Flow Improvements* ($M)  Portfolio of world-class assets in = Original run-rate commitment top-tier jurisdictions $240 $500 >6Mozs/year through 2029  Industry-leading 96Moz in gold reserves* Exceeding synergy targets by $120 $

  9. Slide 9: The World's Leading Gold Company

    The World’s Leading Gold Company INDUSTRY’S BEST PORTFOLIO #1 GOLD PRODUCER LEADING SUSTAINABILITY PERFORMANCE  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

  10. Slide 10: Appendix

    Appendix BERNSTEIN 36TH ANNUAL STRATEGIC DECISIONS CONFERENCE NEWMONT CORPORATION 10

  11. Slide 11: Creating a Fatality, Injury & Illness Free Environment

    Creating a Fatality, Injury & Illness Free Environment ADAPTING INCENTIVE PROGRAM TO PROMOTE FATALITY-FREE WORK ENVIRONMENT 15 2.50 From 2012 to 2018: 12 2.00  ICMM member companies have averaged 65 9 1.50 fatalities per annum with no change in the trend 6 7 1.00 5  Over that same time 4 4 period

  12. Slide 12: Intensive Focus on Responsible Business Practices

    Intensive Focus on Responsible Business Practices TARGETS RECOGNITION Water Climate Transparency Climate 5% 16.5% #3 B reduction in GHG CDP Climate assessment Reduction in freshwater Most transparent score reflective of * emissions intensity by consumption by YE 2019 ** company in the S&P 500 coordi

  13. Slide 13: Sustainability Program Aligned to Best Practice

    Sustainability Program Aligned to Best Practice Accountability and transparency in setting public sustainability targets E Water – reduce freshwater consumption by 5% by YE 2019  Climate change – reduce GHG emissions intensity by 16.5% by YE 2020  Environmental Closure – achieve 90% of planned rec

  14. Slide 14: Strength and Resilience in First Quarter 2020

    Strength and Resilience in First Quarter 2020  Produced 1.5M attributable ounces of gold** and reported CAS* of $781/oz and AISC* of $1,030/oz Reported solid Q1 results:  Produced 339K gold equivalent ounces* from co-product metals  Generated $939M in Operating Cash Flow and Free Cash Flow* of $6

  15. Slide 15: Generated Strong Q1 Free Cash Flow of $611 million

    Generated Strong Q1 Free Cash Flow of $611 million FINANCIAL METRIC Q1 2019 Q1 2020 Revenue ($M) $1,803 $2,581 +43% * Adjusted Net Income ($M) $176 $326 +85% * Adjusted Net Income ($/diluted share) $0.33 $0.40 +21% * Adjusted EBITDA ($M) $687 $1,118 +63% Cash from continuing operations ($M) $574 $93

  16. Slide 16: >95Moz in Gold Reserves with Substantial Resources

    >95Moz in Gold Reserves with Substantial Resources Largest gold reserves in the industry Percent of Gold Reserves by Jurisdiction 2019 Reserve Highlights North America* South America Australia Africa 95.7 MOZ 63 MOZ Industry’s largest gold Gold equivalents from copper, 13% Reserves** silver, zinc, a

  17. Slide 17: Eight World-Class Assets in Top-Tier Jurisdictions

    Eight World-Class Assets in Top-Tier Jurisdictions Carlin Turquoise Ridge Cortez Boddington Tanami Ahafo Peñasquito Nevada (38.5%)  >1 Million GEOs*  500–600,000 ozs*  ~700,000 ozs**  >1.5 Million GEOs*  ~1.5Moz gold in 2019  AISC of ~$800/oz*  AISC of ~$650/oz*  AISC of ~$800/oz**  AISC of

  18. Slide 18: Sustainable, Stable Production Profile

    Sustainable, Stable Production Profile ATTRIBUTABLE PRODUCTION (MOZ * )  Stable production 8.0 outlook of 6.2 – 6.7M Total GEOs 7.0 ounces per year (#1 in industry) 6.0  Additional 1.2 to 1.4M 5.0 gold equivalent ounces produced per year 4.0  ~$1.5B in additional 3.0 revenue per year generated fr

  19. Slide 19: Culture of Cost Discipline and Productivity

    Culture of Cost Discipline and Productivity CAS & AISC ($/OZ * )  Delivered $430M of $1,100 sustainable value from Full Potential program in $1,000 2019 $900  AISC declining to $800- $800 $900/oz by 2023 $700  Capital discipline maintained with $600 ~$1.0B of sustaining 2020E 2021E 2022E 2023E 20

  20. Slide 20: Five Year Cost and Production Outlook

    Five Year Cost and Production Outlook Guidance metric 2020E 2021E 2022E 2023E 2024E * Gold production (Mozs) 6.0 6.2 – 6.7 6.2 – 6.7 6.2 – 6.7 6.2 – 6.7 ** Other metal production (Mozs) 0.95 1.0 – 1.2 1.1 – 1.3 1.3 – 1.5 1.3 – 1.5 Total GEO production (Mozs) 7.0 7.3 – 7.8 7.3 – 7.8 7.6 – 8.1 7.6 – 8

  21. Slide 21: Recent Capital and Financing Activities

    Recent Capital and Financing Activities DEBT REPAYMENT SCHEDULE * ($M)  Industry-leading quarterly dividend increased by 79% to $0.25/share  Initiated $1 billion share repurchase plan - $800M $1,000 executed since December $1,000 $874  Refinanced 2019 debt $700 $600 with 10-year notes at $550 $49

  22. Slide 22: Leading Project Pipeline and Track Record

    Leading Project Pipeline and Track Record Scoping Prefeasibility Feasibility Definitive Feasibility Execution  CC&V Underground  Century  Nueva Unión JV  Yanacocha Sulfides  Musselwhite Materials Handling  Merian extension  Coffee  Ahafo North (Sabajo)  Tanami Expansion 2  Galore Creek JV

  23. Slide 23: Tanami Expansion 2 Increases Profitable Production

    Tanami Expansion 2 Increases Profitable Production INDICATIVE TANAMI PRODUCTION PROFILE (KOZS)  Supports 550 – 600kozs at $600 – $700/oz AISC 800  Provides platform for future 600 growth at world-class asset * Production 150 – 200kozs 400 Unit cost ** >10% improvement 200 Capital $700 – $800M Inte

  24. Slide 24: Ahafo Projects Extend Life, Improve Costs

    Ahafo Projects Extend Life, Improve Costs Subika Underground Updated Mining Method Extends life with Safely captures Mining cost per ton Lower near-term higher underground higher efficiencies improvements production tons (2020 – 2021) 2020 – 2024 metrics Ahafo with investment Production (kozs) 550 –

  25. Slide 25: 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 1,200 Reserve and 1.0Mozs of 1,000 Resource* 800  Investment of $700 to $800 million with a three year 600 development timeline 400  Increm

  26. Slide 26: Yanacocha Sulfides Optimizing Approach

    Yanacocha Sulfides Optimizing Approach INDICATIVE YANACOCHA PRODUCTION PROFILE * (GEO ** KOZS, 100%)  First phase focuses on developing most profitable deposits to 800 optimize risk and returns  Potential to extend operational 600 life to 2041; favorable drilling at Chaqui Central and North 400 

  27. Slide 27: Exploration Strength Through Investments

    Exploration Strength Through Investments Triumph Gold Independence Gold Golden Sky Minerals Colorado Resources Aurion Resources TMAC* Mawson Resources Auryn Resources Independence Gold GT Gold Azimut Exploration Quebec Precious Sirios Resources Probe Irving Resources Contact Gold Pure Gold Japan Gol

  28. Slide 28: Nevada Joint Venture Processes

    Nevada Joint Venture Processes For contributing excluded assets Four Mile (Barrick), Fiberline (Newmont) and Mike (Newmont):  Party that owns asset has obligation to contribute upon completion of successful Feasibility Study, which requires a project IRR of at least 15%  Feasibility Study must be

  29. Slide 29: Executive Leadership Team

    Broad Management Experience Executive Leadership Team Tom Palmer Rob Atkinson Nancy Buese Jen Cmil President and CEO EVP and COO EVP and CFO EVP HR Dean Gehring Randy Engel Steve Gottesfeld Nancy Lipson EVP and CTO EVP Strategic Dev EVP and CSO EVP General Counsel Board of Directors Noreen Doyle, Gr

  30. Slide 30: Diverse Board Led by Independent Chair

    Diverse Board Led by Independent Chair Board Committees Audit Leadership Safety & Corporate Development & Sustainability Governance & Compensation Nominating Bruce R. Brook (C) Veronica Hagen (C) Jane Nelson (C) Noreen Doyle (C) Maura Clark Noreen Doyle Gregory Boyce (VC) Gregory Boyce (VC) René Méd

  31. Slide 31: Executive Compensation Structure

    Executive Compensation Structure Incentive vehicles balance key performance elements Pay mix (CEO % shown) Objectives/Alignment Personal Stock Price  Value varies with NEM performance Bonus Performance  Retention component 6% Base Salary Relative Long-term incentive to outperform gold 14% Stock co

  32. Slide 32: 2020 Short-Term Incentive Plan

    2020 Short-Term Incentive Plan  Focus on metrics of high priority to improve focus and ability to execute  Aligns with the strategy map and the mining business cycle  Functional/personal goals cover additional annual strategic priorities Metrics Weighting Rationale Health & Safety • Focus on core

  33. Slide 33: 2020 Strategy Map

    2020 Strategy Map Environment, Social Health & Safety Operational Excellence Growth People and Governance OUR PURPOSE • A fatality, injury and illness free • Culture of continuous • Value accretive growth • Competitive advantage through • Access to land, resources and To create value and OBJECTIVES

  34. Slide 34: 2020 Outlook

    a 2020 Outlook Outlook (+/-5%) a2020 outlook projections used in this presentation are considered forward-looking statements and represent Consolidated Production (koz) 5,900 management’s good faith estimates or expectations of future production results as of May 19, 2020. Outlook is b based upon ce

  35. Slide 35: Longer-term Outlook

    Longer-term Outlook Outlook (+/-5%) 2020E 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) 950 1,000 - 1,200 1,100 - 1,300 1,300 - 1,500 1,300 - 1,500 Consolidated Gold CAS ($/oz) 775 650 - 750 650

  36. Slide 36: 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

  37. Slide 37: 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

  38. Slide 38: 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

  39. Slide 39: 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

  40. Slide 40: 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

  41. Slide 41: All-in Sustaining Costs

    All-in Sustaining Costs Advanced Sustaining Projects, Capital Costs Research and Treatment and All-In Applicable General Other and All-In Ounces Sustaining Development Lease Three Months Ended to Reclamation and and Expense, Refining Related Sustaining (000) Costs per March 31, 2020 Sales (1)(2)(3)

  42. Slide 42: All-in Sustaining Costs

    All-in Sustaining Costs Advanced Projects, Sustaining Costs Research and Treatment Capital All-In Applicable General Other and and Lease All-In Ounces Sustaining Development Three Months Ended to Reclamation and and Expense, Refining Related Sustaining (000) Costs per March 31, 2019 Sales (1)(2)(3)

  43. Slide 43: All-in Sustaining Costs

    All-in Sustaining Costs 2020 Outlook - Gold7,8 Outlook Estimate (1) Excludes Depreciation and amortization and Reclamation and remediation. (2) Includes stockpile and leach pad inventory adjustments. (3) Reclamation costs include operating accretion and amortization of asset retirement costs. (4) Ad

  44. Slide 44: All-in Sustaining Costs

    All-in Sustaining Costs 2020 Outlook - Co-Product7,8 Outlook Estimate (1) Excludes Depreciation and amortization and Reclamation and remediation. (2) Includes stockpile and leach pad inventory adjustments. (3) Reclamation costs include operating accretion and amortization of asset retirement costs.

  45. Slide 45: Net Debt to Pro Forma Adjusted EBITDA Ratio

    Net Debt to Pro Forma Adjusted EBITDA Ratio Three months Three months Three months Three months Management uses net debt to Pro forma Adjusted EBITDA as non-GAAP measures to evaluate the ended ended ended ended Company’s operating performance, including our ability to generate earnings sufficient to

  46. Slide 46: Endnotes

    Endnotes Investors are encouraged to read the information contained in this presentation in conjunction with the most recent Form 10-K for the year ended December 31, 2019 filed with the SEC on February 20, 2020, and with the Cautionary Statement on slide 2 and following notes below. Outlook Assumpt

  47. Slide 47: Endnotes

    Endnotes All-in Sustaining Cost. AISC or All-in sustaining cost is a non-GAAP metric. See slides 41-45 for more information and a reconciliation to the nearest GAAP metric. AISC as used in the Company’s outlook is a forward-looking statement and is therefore subject to uncertainties. AISC a non-GAAP

Newmont — Bernstein 36th Annual Strategic Decisions Conference 2020 on 6ix