Newmont Corporation · NYSE:NEM
Newmont — Investor Presentation (April 2021)
51 slides from Newmont's investor presentation, April 2021
Slide 1: Investor Presentation
Investor Presentation CREATING VALUE & IMPROVING LIVES APRIL 2021 THROUGH SUSTAINABLE, RESPONSIBLE MINING APRIL 2021 INVESTOR PRESENTATION 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: World-Class Assets in Top-Tier Jurisdictions
World-Class Assets in Top-Tier Jurisdictions World’s Leading Gold Company Nine world-class assets in top-tier jurisdictions* Musselwhite Industry’s largest gold reserves of 94Moz 20% and 65Moz in GEO reserves Éléonore Nevada Gold Mines*** Stable production of ~8M GEOs* annually Turquoise Ridge
Slide 4: Largest Gold Reserves in Top-Tier Jurisdictions
Largest Gold Reserves in Top-Tier Jurisdictions REPLACED 80 PERCENT OF DEPLETION IN 2020 GOLD GOLD EQUIVALENT OUNCES Africa Silver 12% 12% North America 35% Other Australia 94 Moz 65 Moz 13% 20% Gold Reserves* & GEO Reserves* & 101 Moz 107 Moz Gold Resources** GEO Resources** Copper South America 75
Slide 5: Nine World-Class Assets in Top-Tier Jurisdictions
Nine World-Class Assets in Top-Tier Jurisdictions Carlin Turquoise Ridge Cortez Boddington Tanami Ahafo Yanacocha Peñasquito Nevada (38.5%) >1 Moz GEOs* ~550 Kozs* >800Kozs** ~500 Koz GEOs*** ~1.7Moz GEOs* ~1.4 Mozs* AISC of ~$800/oz* AISC of $650/oz* AISC of $800/oz** AISC of
Slide 6: Project Pipeline to Sustain Production into 2040's
Project Pipeline to Sustain Production into 2040’s 7+ YEARS 4 TO 7 YEARS 0 TO 3 YEARS EXECUTION Yanacocha Sulfides Tanami Expansion 2 Australia – Gold Definitive Peru – Gold/Copper Feasibility Ahafo North Goldrush Declines Ghana – Gold (NGM JV) Pueblo Viejo Expansion JV USA – Gold Dominican Republic
Slide 7: Developing Mining Districts Through Exploration
Developing Mining Districts Through Exploration UNMATCHED LAND POSITION OF 59,000 KM 2* IN TOP PROSPECTIVE EXPLORATION DOMAINS SUPERIOR PROVINCE TINTINA PROVINCE TANAMI Porcupine Coffee Tanami Borden Triumph Gold Prodigy Gold JV Éléonore Independence Gold Musselwhite Éléonore South JV CENTRALIAN GOL
Slide 8: Steady production through industry-best portfolio
Steady production through industry-best portfolio INDICATIVE 10-YEAR GOLD PRODUCTION PROFILE * (ATTRIBUTABLE MOZ PER YEAR) 9 Total GEOs ** 8 7 6 South America*** 5 Africa 4 Australia 3 2 North America*** 1 - 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 ~ 8 MILLION GOLD EQUIVALENT OUNCES FOR THE
Slide 9: Improving Margins and Investing in Our Future
Improving Margins and Investing in Our Future ATTRIBUTABLE PRODUCTION & AISC * (MOZ & $/OZ) $1,500 2020 delivered 5.9 million 8.0 ounces** with AISC of $1,045/oz Total GEOs $1,300 6.2 – 7.0 million ounces per 7.0 year for 2021 through 2025* * $1,100 AISC Ahafo North and Yanacocha 6.0 Sulfides
Slide 10: 2020 Key Accomplishments
2020 Key Accomplishments SETTING RECORDS DESPITE A CHALLENGING YEAR PROTECTED OUR DELIVERED SUPERIOR CONTINUED INDUSTRY- ACHIEVED RECORD PROVIDED LEADING WORKFORCE & OPERATIONAL LEADING ESG PRACTICES FINANCIAL PERFORMANCE SHAREHOLDER RETURNS COMMUNITIES PERFORMANCE Navigating Covid from Set targ
Slide 11: Record Financial Performance in the Fourth Quarter
Record Financial Performance in the Fourth Quarter METRICS Q4 2019 Q4 2020 FY 2019 FY 2020 Profit Metrics Revenue ($M) $2,967 $3,381 +14% $9,740 $11,497 +18% Adjusted Net Income ($M)* $410 $856 +109% $970 $2,140 +121% Adjusted Net Income ($/diluted share)* $0.50 $1.06 +112% $1.32 $2.66 +102% Adjuste
Slide 12: Disciplined Capital Allocation Priorities
Disciplined Capital Allocation Priorities RESILIENT AND FLEXIBLE CAPITAL STRUCTURE ACROSS CYCLES INVESTING IN RETURNING CASH MAINTAINING ORGANIC GROWTH TO SHAREHOLDERS FINANCIAL FLEXIBILITY Sustaining capital of ~$1B per year Industry-leading dividend and Liquidity of $8.5B and cash position o
Slide 13: 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) ~$21.5B +$3,600M ~$15.5B +$2,400M ~$9.5B +$1,200M ~$3.5B (+171%) (+343%) (+514%) $1,200 $1,500 $1,800 $2,100 5 Year Cumulative Attributable Free Cash Flow** *
Slide 14: Industry-leading Dividend Framework
Industry-leading Dividend Framework Leading $1.00/share sustainable base dividend ANNUALIZED DIVIDEND PAYOUT $2.80 - $3.70 Targeting 40% – 60% of incremental attributable Free Cash Flow above $1,200/oz returned to shareholders Evaluating gold price increments of ~$300/oz $2.20 - $2.80 Approv
Slide 15: The World's Leading Gold Company
The World’s Leading Gold Company #1 gold producer with ~8M GEOs* per year through 2030 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 op
Slide 16: Appendix
Appendix APRIL 2021 INVESTOR PRESENTATION NEWMONT CORPORATION 16
Slide 17: Five Year Cost and Production Outlook
Five Year Cost and Production Outlook Guidance metric (+/- 5%) 2021E 2022E 2023E 2024E 2025E * Gold production (Mozs) 6.5 6.2 – 6.7 6.2 – 6.7 6.5 – 7.0 6.5 – 7.0 ** Other metal production (Mozs) 1.3 1.2 – 1.4 1.4 – 1.6 1.4 – 1.6 1.4 – 1.6 Total GEO production (Mozs) 7.8 7.5 – 8.0 7.7 – 8.2 8.0 – 8.5
Slide 18: Well-Positioned with Industry-Leading Portfolio
Well-Positioned with Industry-Leading Portfolio AUSTRALIA NORTH AMERICA SOUTH AMERICA AFRICA NEVADA GOLD MINES Growing Margins & Unlocking Value Investing in Future Growth Investment to Deliver Record (38.5%) Production Performance Boddington sustains strong Peñasquito delivers Cerro Negro imp
Slide 19: Tanami Growing Position as a World-Class Asset
Tanami Growing Position as a World-Class Asset OPERATIONAL EFFICIENCY IMPROVES MARGINS TANAMI EXPANSION 2 BUILDING ON SOLID BASE Replicating successes & leveraging best practices Supports Tanami’s future as a long-life, low-cost producer Optimized mine plans, improved throughput & recovery E
Slide 20: Yanacocha Sulfides Advances Towards 2021 Approval
Yanacocha Sulfides Advances Towards 2021 Approval INDICATIVE YANACOCHA PRODUCTION PROFILE * First phase focuses on Yanacocha (GEO ** KOZS, 100%) Verde and Chaquicocha deposits to profitably extend Yanacocha 800 operations beyond 2040 700 Decision to proceed expected in H2 600 2021 with three yea
Slide 21: 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 1.0Mozs of Resource* 1,600 Full funds decision expected H1 2021 1,400 Investment of $700-$800M with 1,200 three year developm
Slide 22: Twenty Years of Newmont's Corporate Responsibility
Twenty Years of Newmont’s Corporate Responsibility 2000 - 2005 2005 - 2010 2010 - 2015 2015 - 2020 Founding member of ICMM (2001) Initial signatory of the International Adopted Conflict-Free Gold Standard Sustainability and safety targets Cyanide Management Code (2005) (2013) included in compensatio
Slide 23: Intensive Focus on Responsible Business Practices
Intensive Focus on Responsible Business Practices TARGETS RECOGNITION Water Climate Transparency Climate 5% 30% #2 A- reduction in freshwater CDP Climate assessment reduction in absolute and consumption by 2019: most transparent score reflective of intensity based GHG exceeded target - company in th
Slide 24: Sustainability Program Aligned to Leading Practices
Sustainability Program Aligned to Leading Practices Accountability and transparency in setting public sustainability targets – 2021 targets * E Climate – By 2030, reduce emissions by 30%; reduce Scope 3 by 15%, increase renewables to 10% Water – Improve water efficiency; increase multi-stakeholder w
Slide 25: Leading Approach to Climate Resiliency
Leading Approach to Climate Resiliency Climate Commitments by 2030* 1. Absolute Emissions: 30% reduction of combined emissions (Scope 1 & 2) 2. Emissions Intensity: 30% reduction of combined emissions intensity (Scope 1 & 2) 3. Scope 3 Emissions: 15% reduction from supply chain and partnerships 4. E
Slide 26: Directing $500M to Climate Initiatives over 5 Years
Directing $500M to Climate Initiatives over 5 Years Renewable energy Energy efficiency Fuel switching Carbon capture PATHWAYS TO LOWER CARBON FOOTPRINT INITIATIVES UNDER CONSIDERATION Funds directed to support 2030 climate targets and Solar projects at Peñasquito, Ahafo and Boddington goal of ne
Slide 27: Exploration is a Core Expertise and Investment Priority
Exploration is a Core Expertise and Investment Priority EXPLORATION IS THE FOUNDATION FOR GROWING RESERVES AND SUSTAINING PRODUCTION 28 Exploration Success Discoveries 338 Geoscientists Sector-Leading Team Underpinned by a Proven Operating Model Technology Cutting Edge Exploration Technologies Safet
Slide 28: Growth Focused on Value
Growth Focused on Value PROJECT PIPELINE TO SUSTAIN PRODUCTION INTO 2040’S Greenfield Opportunities Brownfield Opportunities District-creating potential Organic extension of production Exploration Budget: ~$50M Exploration Budget: ~$200M 17 MOZ 39 MOZ 77 MOZ 62 MOZ RESERVES RESOURCES* RESERVES RESOU
Slide 29: Robust Near-Mine Exploration Opportunities
Robust Near-Mine Exploration Opportunities NORTH AMERICA Peñasquito: Large resource base and prospective land package with potential to extend mine life to 2040 Éléonore: New district targets for 2021 with <20% property drill tested to date CC&V Underground: Significant potential to extend mine life
Slide 30: 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
Slide 31: Executive Leadership Team
Broad Management Experience Executive Leadership Team Tom Palmer Rob Atkinson Nancy Buese President and CEO EVP and COO EVP and CFO Dean Gehring Steve Gottesfeld Nancy Lipson Jen Cmil EVP and CTO EVP and CSO EVP General Counsel EVP HR Board of Directors Noreen Doyle, Greg Boyce Bruce R. Brook Maura
Slide 32: Diverse Board Led by Independent Chair
Diverse Board Led by Independent Chair Independent Directors 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 Maura Clark Gregory Boyce (VC) Gregor
Slide 33: 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
Slide 34: 2021 Strategy Map
2021 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 • Culture is a competitive • Access to land, resources and OBJECTIVES To create value and STRAT
Slide 35: 2021 Outlook by Region
2021 Outlooka by Region Consolidated Attributable Consolidated All-In Consolidated Consolidated Attributable Attributable Production (Koz, GEOs Production (Koz, GEOs Consolidated CAS Sustaining Costs b Sustaining Capital Development Capital Sustaining Capital Development Capital 2021 Outlook (+/-5%)
Slide 36: 2021 Site Outlook
2021 Site Outlooka Consolidated a 2021 outlook projections used in this presentation are considered forward-looking statements Consolidated Attributable Consolidated Consolidated Consolidated Development and represent management’s good faith estimates or expectations of future production results Pro
Slide 37: Longer-term Outlook
Longer-term Outlooka Outlook 2021E (+/- 5%) 2022E 2023E 2024E 2025E Attributable Production (koz) 6,500 6,200 - 6,700 6,200 - 6,700 6,500 - 7,000 6,500 - 7,000 Attributable Co-products (GEOs Koz) 1,300 1,200 - 1,400 1,400 - 1,600 1,400 - 1,600 1,400 - 1,600 Consolidated Gold CAS ($/oz) 750 650 - 750
Slide 38: 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 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
Slide 40: 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 41: Attributable free cash flow
Attributable free cash flow Management uses Attributable Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations that are attributable to the Company. Attributable Free Cash Flow is Net cash provided by (used in) operating activities after deducting net cash flows from o
Slide 42: Attributable free cash flow
Attributable free cash flow Three Months Ended December 31, 2019 Year Ended December 31, 2019 Attributable to Attributable to Attributable to Attributable to noncontrolling Newmont noncontrolling Newmont Consolidated interests (1) Stockholders Consolidated interests (1) Stockholders Net cash provide
Slide 43: 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 44: All-in Sustaining Costs
All-in Sustaining Costs Advanced Projects, Care and Sustaining Costs Research and Maintenance Treatment Capital and All-In Applicable Development and Other and Lease All-In Ounces Sustaining Three Months Ended to Reclamation and General and Expense, Refining Related Sustaining (000) Costs Per Decemb
Slide 45: All-in Sustaining Costs
All-in Sustaining Costs Advanced Projects, Care and Sustaining Costs Research and Maintenance Treatment Capital and All-In 1. Excludes Depreciation and amortization and Reclamation and remediation. Applicable Development and Other and Lease All-In Ounces Sustaining 2. Includes by-product credits of
Slide 46: Gold All-in Sustaining Costs - 2021 Outlook
Gold All-in Sustaining Costs - 2021 Outlook A reconciliation of the 2021 Gold AISC outlook to the 2021 Gold CAS outlook are 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 Se
Slide 47: Co-Product All-in Sustaining Costs - 2021 Outlook
Co-Product All-in Sustaining Costs - 2021 Outlook A reconciliation of the 2021 Co-products AISC outlook to the 2021 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 48: 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 49: 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, 2020 filed with the SEC on February 18, 2021 (including without limitation the risks related to COVID-19 under the heading “Risk Fact
Slide 50: Endnotes
Endnotes Reserves Estimates: The reserves stated in this presentation were prepared in compliance with Industry Guide 7 published by the United States SEC and represent the amount of gold, copper, silver, lead and zinc that we estimated, at December 31, 2020, could be economically and legally extrac
Slide 51: 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