Slide 1: Q2 2016 Results
a NEWMONT. Q2 2016 Results July 21, 2016
Slide 2: Cautionary statement
Cautionary statement 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 to be covered by the safe harbor created by such sections a
Slide 3: Overview – Gary Goldberg
Overview – Gary Goldberg
Slide 4: Continuing to improve performance and portfolio
Continuing to improve performance and portfolio 6% reduction in total injury rates from prior year quarter Improve the $876/oz AISC1 down 4% from prior year quarter; 2016 outlook lowered $10/oz underlying business 1.3 Moz of attributable gold production up 7% from prior year quarter $2.8B in non-cor
Slide 5: Recognized leaders in safety and sustainability
Recognized leaders in safety and sustainability Injury rates (total recordable injuries per 200,000 hours worked) 0.80 0.65 0.60 0.47 0.39 0.40 0.32 0.31 0.20 Down 54% since 2012 0.00 2012 2013 2014 2015 2016YTD Phoenix maintenance crew reaches 3 years working without injury July 21, 2016 Newmont Mi
Slide 6: Steady trajectory of cost improvement continues
Steady trajectory of cost improvement continues Gold all-in sustaining cost ($/ounce)1 $1,200 $1,177 $1,113 Down 30% since 2012 $1,100 $1,002 $1,000 $898 $900 $852 $800 $700 $600 2012 2013 2014 2015 2016YTD AISC down 28% since 2012 July 21, 2016 Newmont Mining Corporation I Q2 2016 earnings I Slide
Slide 7: Higher production at Tanami, KCGM and Ahafo
Higher production at Tanami, KCGM and Ahafo Q2 attributable gold production* (Moz) 2016 outlook – initial and w/o Batu Hijau 1,400 1.3 Moz 1.2 Moz 4.8 – 5.3 Moz 5,000 4.7 – 5.0 Moz 1,200 1,000 4,000 800 3,000 600 2,000 400 1,000 200 0 0 Q2 2015 Q2 2016 2016 outlook 2016 outlook (initial) (w/o Batu H
Slide 8: Sale of PTNNT aligns with strategic goals
4 Sale of PTNNT aligns with strategic goals • Monetizes future cash flow • Total consideration of $1.3B = $920M gross cash proceeds + $403M contingent payments • Transaction anticipated to close in Q3 2016 subject to conditions precedent • Post-close position – 92% of reserve base is gold6 Proceeds
Slide 9: Adding profitable production from two new mines
Adding profitable production from two new mines Merian ~ 90% complete Long Canyon ~ 80% complete Production 400 – 500 Koz (100%) Production 100 – 150 Koz AISC $650 – $700/oz AISC $500 – $600/oz Commercial start H2 2016 Commercial start H1 2017 Expected average for first five years of production. See
Slide 10: Extending life of lower cost operations
Extending life of lower cost operations Cripple Creek & Victor ~ 50% complete Tanami Expansion ~ 35% complete Production 350 – 400Koz Production 80 Koz incremental AISC $600 – $650/oz AISC $50/oz reduction First production March 2016 (leach pad) First production Mid-2017 Expected 2016. See Endnote 5
Slide 11: Financial results – Laurie Brlas
Financial results – Laurie Brlas
Slide 12: Strong Q2 adjusted net income
Strong Q2 adjusted net income GAAP to adjusted net income ($/share)7 $0.34 $0.01 $0.44 $0.05 $0.09 $0.04 Net income Loss from Income from Tax valuation Restructuring and Adjusted net attributable discontinued contininuing allowance other income to NEM operations operations stockholders July 21, 2016
Slide 13: Operations continue to outperform
Operations continue to outperform Q2 2016 Q2 2015 Change Average Realized Gold Price, Net ($/oz) $1,260 $1,179 +7% Attributable Gold Production (Koz) 1,285 1,203 +7% Attributable Gold Sales (Koz) 1,279 1,157 +11% Gold CAS ($/oz) $637 $642 -1% Gold AISC ($/oz) $876 $909 -4% Ahafo July 21, 2016 Newmon
Slide 14: Exceptional financial performance
Exceptional financial performance Q2 2016 Q2 2015 Change Revenue ($M) $2,038 $1,908 +7% Adjusted Net Income ($M) $231 $131 +76% Adjusted Net Income ($ per share) $0.44 $0.26 +69% Adjusted EBITDA ($M) $804 $692 +16% Cash from Continuing Operations ($M) $780 $441 +77% Free Cash Flow ($M) $486 $119 +30
Slide 15: Executing capital priorities
Executing capital priorities Year to date change in ending consolidated cash balance ($M) $1,304 ($591) $75 $2,902 $2,782 ($641) ($27) Cash Net cash from Capital Debt repayment Dividend Other Cash (12/31/2015) continuing expenditures (06/30/2016) operations July 21, 2016 Newmont Mining Corporation I
Slide 16: PTNNT sale close expected to improve liquidity
PTNNT sale close expected to improve liquidity Cash balance post PTNNT transaction4 ($M) $920 $2,902 $2,758 ($349) $2,187 ($715) Consolidated cash Cash attributable Cash attributable Gross cash PTNNT attributable Adjusted (06/30/2016) to noncontrolling to Newmont proceeds to cash attributable cash i
Slide 17: Leading balance sheet
Leading balance sheet Net debt reduction 3% Since 2013 49% Net debt to EBITDA 1.9x 12-month trailing average 1.0x Competitor average* Newmont Debt Schedule as of June 30, 2016 2016 2017 2018 2019 2022 2035 2039 2042 PTNNT debt Convertibles Term loan Other corporate debt *Competitor average represent
Slide 18: Leading free cash flow generation
Leading free cash flow generation ROCE 5.3% 12-month trailing average8 8.7% Free cash flow per share $0.91 12-month trailing average2 $1.89 Competitor average* Newmont Cumulative free cash flow 2013 to 20152 ($M) $800 $0.8B $600 $400 $200 $- $(200) $(400) $(600) $(800) ($2.1B) $(1,000) Goldcorp Aver
Slide 19: Outlook – Gary Goldberg
Outlook – Gary Goldberg
Slide 20: Cost improvements are sustained
Cost improvements are sustained Consolidated gold all-in sustaining costs – outlook without Batu Hijau ($/oz)4,5 $880 – $980 $870 – $930 $850 – $950 2016E 2017E 2018E 2019E 2020E July 21, 2016 Newmont Mining Corporation I Q2 2016 earnings I Slide 20
Slide 21: Steady attributable gold production maintained
Steady attributable gold production maintained Attributable gold production – outlook without Batu Hijau (Moz)4,5 4.9 – 5.4 4.5 – 5.0 4.7 – 5.0 2016E 2017E 2018E 2019E 2020E July 21, 2016 Newmont Mining Corporation I Q2 2016 earnings I Slide 21
Slide 22: Disciplined capital expenditure continues
Disciplined capital expenditure continues Consolidated capital expenditure – outlook without Batu Hijau ($M)4,5 $1,400 Development capital $1,055 – $1,270 Sustaining capital $1,200 $1,000 $900 – $1,000 $700 – $800 $800 $600 $400 $200 $0 2016E 2017E 2018E 2019E 2020E July 21, 2016 Newmont Mining Corp
Slide 23: Project pipeline represents near term upside
Project pipeline represents near term upside July 21, 2016 Newmont Mining Corporation I Q2 2016 earnings I Slide 23
Slide 24: Northwest Exodus extends life and access
Northwest Exodus extends life and access • Extends mine life by 7 years, produces 700Koz, lowers Carlin AISC by $25/oz • IRR of >30% at flat $1,200/oz gold price • Creates platform for future growth in highly prospective Carlin underground Lantern Exodus NW Exodus July 21, 2016 Newmont Mining Corpor
Slide 25: Ahafo projects offset harder ore and lower grades
Ahafo projects offset harder ore and lower grades Ahafo Mill Expansion Subika Underground Production 75 – 100Koz Production 150 – 200Koz AISC First quartile AISC First quartile Decision H2 2016 Decision H2 2016 Expected average for first five years of production. See Endnote 5. Expected life of mine
Slide 26: Assessing options to profitably extend Yanacocha
Assessing options to profitably extend Yanacocha • Quecher Main oxides extend life to 2024 with ~200Koz average annual production • Prefeasibility studies underway to further optimize sulfide development (Estudio Integral) • Potential to extend profitable production starting in 2022 (pending IRR of
Slide 27: Inflation outpacing interest rate hikes by US Fed
Inflation outpacing interest rate hikes by US Fed • Negative real interest rates lower opportunity costs for holding gold • Inflation likely to outpace US interest rate hikes • US inflation low but increasing on strong consumer demand and rising wages Real interest rates* (%) US Inflation rates (%)
Slide 28: Investors turning to bonds and gold as safe havens
Investors turning to bonds and gold as safe havens • Higher bond prices and lower yields can be bullish for gold • Global ETF holdings have increased by more than 17 Moz in 2016 YTD (nearly 40%) US bond yields (%) Gold ETF holdings (Moz) and gold price ($/oz) 3.5 100 $1,750 Dec. 31, 2015 3.0 Current
Slide 29: Positioned for long-term value creation
Positioned for long-term value creation Where are we today? Where are we heading? Safety Industry leading performance Zero injuries and illnesses Sustainability Industry leading performance Improved country risk profile Costs AISC down 28% since 2012 Ongoing savings to offset inflation Portfolio $2.
Slide 30: Appendix
Appendix
Slide 31: 2016 Outlook
2016 Outlooka Consolidated All- Consolidated Consolidated Attributable Consolidated in Sustaining Total Capital Production Production CAS Costsb Expenditures a2016 Outlook in the table above are considered “forward-looking (Koz, Kt) (Koz, Kt) ($/oz, $/lb) ($/oz, $/lb) ($M) North America statements”
Slide 32: 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 operating activities plus Net cash used in discontinued operations less Additions to property, plant and mine development as presented on the Co
Slide 33: Free cash flow
Free cash flow Free cash flow per share; 12-month trailing Three Months Ended 6/30/2016 3/31/2016 12/31/2015 9/30/2015 Net cash provided by operating activitites $ 777 $ 522 $ 272 $ 810 Plus: Net cash used in discontinued opeartions 3 2 3 3 Net cash provided by continuing operations 780 524 275 813
Slide 34: 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 35: Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) Management uses Return on Capital Employed (“ROCE”) as a non-GAAP measure to evaluate the Company’s operating performance. ROCE does not represent, and should not be considered an alternative to, net earnings (loss), operating earnings (loss), or cash flow from oper
Slide 36: Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) Thre e Months Ende d June 3 0 , Ma r 3 1, De c 3 1, S e pt 3 0 , 2 0 16 2 0 16 2 0 15 2 0 15 Net income (loss) attributable to Newmont stockholders $ 23 $ 52 $ (254) $ 219 Net income (loss) attributable to noncontrolling interests 39 83 (104) 66 Loss (income) from d
Slide 37: Adjusted net income
Adjusted net income Adjusted net income (loss) Management of the Company 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 analy
Slide 38: Adjusted net income
Adjusted net income (1) Loss (income) from discontinued operations relates to adjustments in our Holt property royalty and is presented net of tax expense (benefit) of $(12), $4, $(23) Three Months Ended Six Months Ended and $8, respectively. June 30, June 30, (2) Impairment of investments, included
Slide 39: 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 performance
Slide 40: All-in sustaining costs
All-in sustaining costs Advanced Treatment All-In Costs Projects General Other and All-In Ounces Sustaining (1) Excludes Depreciation and Three Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per amortization and Reclamation and (1)(2)(3) (4) (5
Slide 41: All-in sustaining costs
All-in sustaining costs Advanced Treatment All-In (1) Excludes Depreciation and Costs Projects General Other and All-In Ounces Sustaining amortization and Reclamation and Three Months Ended Applicable Reclamation (1)(2)(3) (4) and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per (5
Slide 42: All-in sustaining costs
All-in sustaining costs Advanced Treatment All-In (1) Excludes Depreciation and Costs Projects General Other and All-In Ounces Sustaining amortization and Reclamation and Six Months Ended Applicable Reclamation (1)(2)(3) (4) and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per (5)
Slide 43: All-in sustaining costs
All-in sustaining costs Advanced Treatment All-In (1) Excludes Depreciation and Costs Projects General Other and All-In Ounces Sustaining amortization and Reclamation and Six Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per remediation. (1)(2
Slide 44: 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 17, 201