Newmont Corporation · NYSE:NEM
Newmont — Newmont Mining — Merger or Acquisition (February 2019)
18 slides from Newmont's merger presentation, Feb 25, 2019
Slide 1: Capturing the Missing Billions
Capturing the Missing Billions Unlocking Over $7 Billion NPV of Real Synergies Unprecedented Value Creation Opportunity for Barrick and Newmont Shareholders
Slide 2: Cautionary Statements
Cautionary Statements 1 Non-Solicitation This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale wou
Slide 3: Barrick Newmont Merger Offers Shareholders Unprecedented Value Creation
Free Cash Flow Uplift Drives Future Growth and Sustainable Shareholder Returns Over $7 Billion NPV (Pre-Tax) of Real Synergies2 Best-in-Class Management Team With Track Record of Delivering Significant Shareholder Value Unrivaled Position in Long-Life, Low Cost Nevada Assets with 20+ Year Mine Life
Slide 4: Few Mining M&A Transactions Create Significant Real and Long-Term Value
Few Mining M&A Transactions Create Significant Real and Long-Term Value Premiums Paid Negate Potential Value Creation for Shareholders O Size for the Sake of Size Only O Transaction Rationale Based On Short-Term Share Price Movements and Trading Multiple Differences O Operations Too Distant Or Dissi
Slide 5: Potential to Unlock ~$5 Billion NPV of Real Synergies From Nevada
Potential to Unlock ~$5 Billion NPV (Pre-Tax) of Real Synergies From Nevada1 Only Gold District With Multi-Billion Dollar Synergies 4 Twin Creeks TurquoiseRidge Phoenix Cortez Goldrush / Fourmile Goldstrike Carlin Long Canyon Producing Mine Heap Leach SX-EW Plant Barrick Land Holding Newmont Land Ho
Slide 6: Nevada Operations – Obvious Synergies
Barrick has the majority of high-grade reserves and resources and Newmont has the majority of processing plant capacity and infrastructureCombination of Barrick and Newmont’s highly complementary assets enables optimisation across the complex, providing the opportunity to unlock 20+ years of profita
Slide 7: Creating a Virtuous Cycle of Value Creation
… Creating a Virtuous Cycle of Value Creation Unprecedented Opportunity for Immediate, Meaningful Synergies… Ensuring 20+ Years of Profitable and Responsible Production in Nevada 6 … Maximizing Nevada’s Potential Optimised Operations Lower Costs / Higher Free Cash Flow Lower Cut-Off Grades Increased
Slide 8: Capturing the Missing Billions – Over $7 Billion NPV of Real Synergies
NPV ( Pre-Tax) of Real Synergies1 1 2 3 4 Integration and optimisation of Nevada assets will allow for 20+ years of profitable production through enhanced mine planning, processing and logistics Nevada Complex 1 Reduction in corporate and regional G&A through elimination of redundancies and decentra
Slide 9: Barrick's Recent Value Creation Track Record
Barrick’s Recent Value Creation Track Record Since closing of the Barrick Randgold Merger:Implemented “Miner’s, not Manager’s” ethosIntegrated Barrick / Randgold management teamsRationalised and re-purposed head officeEmpowered regional management structure focused on operationsDeployed mineral reso
Slide 10: The Proposal to Newmont
Proposal To Newmont Key Conditions Newmont / Goldcorp transaction terminatedApprovals from shareholders of Barrick and NewmontRegulatory clearance from relevant authoritiesNo financing condition Dividends1 The combined company intends to match Newmont’s annual dividend of $0.56 per share which, base
Slide 11: A Merger With Barrick Creates Far More Real Value for Newmont Shareholders
Source: Thomson One Analytics, company reports and announcements.See Endnote 1.Stated US$100 million pre-tax synergies.Annual average pre-tax synergies for first five full years (2020 – 2024). A Merger With Barrick Creates Far More Real Value for Newmont Shareholders Newmont
Slide 12: Value Creation for All Shareholders Driven by Synergies
Value Creation for All ShareholdersDriven by Synergies 11 Source: Thomson One Analytics and Factset as of February 20, 2019.Based on research analyst consensus NAV estimates. Pro forma Barrick Newmont share price incorporates the effect of the NPV of post-tax synergies projected over a twenty year p
Slide 13: Benefits of the Proposed Merger
Benefits of the Proposed Merger 12 Financial Benefits Operational Benefits Increases Number of Tier One Gold Assets2 High Quality Exploration and Development Pipeline Creates Nevada Mining Powerhouse with Fully Optimised Nevada Operations Best Assets Run by Best Management Adds High Quality
Slide 14: Leading Portfolio of Eight Tier One Gold Assets
Leading Portfolio of Eight Tier One Gold Assets1 13 Majority of combined gold asset value would be comprised of Tier One Gold Assets:CortezGoldstrike / CarlinTurquoise Ridge / Twin CreeksPueblo Viejo Merian Loulo-GounkotoKibali Newmont GhanaOne Tier One Gold Asset expected to be created by the merge
Slide 15: Maintains Balanced Political Risk Exposure
Maintains Balanced Political Risk Exposure 14 Barrick Newmont Pro Forma Barrick Newmont Based on company disclosure. 2018 production shown on an attributable basis. Barrick’s production figure include Randgold’s 2018 production figure which was separately reported.Based on company disclosure. Proven
Slide 16: Barrick Newmont Merger Offers Shareholders Unprecedented Value Creation
Barrick Newmont Merger Offers Shareholders Unprecedented Value Creation 15 See Endnote 1.Represents the NPV of pre-tax synergies projected over a twenty year period, assuming analyst consensus commodity prices and a 5% discount rate. Free Cash Flow Uplift Drives Future Growth and Sustainable Shareho
Slide 17: Disclaimer
Disclaimer 16 Technical InformationThe scientific and technical information contained in this presentation in respect of Barrick has been reviewed and approved for release by Rodney Quick, Mineral Resource Management and Evaluation Executive of Barrick and Rick Sims, Registered Member SME, Vice Pres
Slide 18: Endnotes
Endnotes 1. A Tier One Gold Asset is a mine with a stated mine life in excess of 10 years with annual production of at least five hundred thousand ounces of gold and total cash cost per ounce within the bottom half of Wood Mackenzie’s cost curve (excluding state-owned and privately owned mines). Tot
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