Newmont Corporation · NYSE:NEM
Newmont — Investor Presentation (December 2021)
50 slides from Newmont's investor presentation, Dec 2, 2021
Slide 1: 2022 Guidance Webcast
2022 Guidance Webcast CREATING VALUE & IMPROVING LIVES DECEMBER 2, 2021 THROUGH SUSTAINABLE AND RESPONSIBLE MINING 2022 GUIDANCE WEBCAST 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 & CREATING VALUE & IMPROVING LIVES THROUGH SUSTAINABLE AND CHIEF EXECUTIVE OFFICER RESPONSIBLE MINING 2022 GUIDANCE WEBCAST NEWMONT CORPORATION 3
Slide 4: Values-Based Approach to Combat Covid-19
Values-Based Approach to Combat Covid-19 NEWMONT’S CORE VALUES SAFETY INTEGRITY SUSTAINABILITY INCLUSION RESPONSIBILITY PUTTING THE HEALTH AND SAFETY OF OUR WORKFORCE AND HOST COMMUNITIES FIRST ▪ Pandemic response has been guided by Newmont’s core values, including safety and responsibility ▪ Newmon
Slide 5: Building Pathways to Decarbonization
Building Pathways to Decarbonization STRATEGIC ALLIANCE WITH CATERPILLAR TO ACHIEVE ZERO EMISSIONS MINING ▪ Strategic alliance will transform the industry with a comprehensive mining system, including the rapid deployment of an all-electric autonomous haulage fleet ▪ The alliance intends to deliver
Slide 6: 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 ▪ Robust gold reserves of 94Moz and 65Moz 20% in GEO reserves* Éléonore Nevada Gold Mines*** ▪ Stable production of average ~8M GEOs* Turquoise Ridge/Twin Creeks
Slide 7: Project Pipeline to Sustain Production into 2040's
Project Pipeline to Sustain Production into 2040’s 7+ YEARS 4 TO 7 YEARS 0 TO 4 YEARS EXECUTION Feasibility Tanami Expansion 2 Definitive Yanacocha Sulfides Peru – Gold (~45%), Copper (~45%), Australia – Gold Silver (~10%) Ahafo North Pueblo Viejo Expansion JV Ghana – Gold Dominican Republic – Gold
Slide 8: Investing in Exploration to Extend Mine Life
Investing in Exploration to Extend Mine Life Exploration Investment** Coffee Galore Creek 20% Saddle North Musselwhite Éléonore $300M Japan Porcupine in 2022 Nevada Gold Mines* CC&V 80% 80% Peñasquito Mexico Pueblo Viejo* Merian Espérance Akyem Ahafo Yanacocha Tanami Andes Centralian LEGEND Boddingt
Slide 9: Steady Production Through Industry-Best Portfolio
Steady Production Through Industry-Best Portfolio INDICATIVE 10-YEAR PRODUCTION PROFILE* (Attributable Moz per Year) 10 9 Total GEO Production** 8 7 Gold Production** 6 SOUTH AMERICA*** 5 AFRICA 4 3 AUSTRALIA 2 NORTH AMERICA*** 1 - 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 ~8 Million Gold Eq
Slide 10: Focused on Value, Driven by Purpose
Focused on Value, Driven by Purpose 2021 HIGHLIGHTS On track to deliver attributable Protecting the wellbeing of our Generated $1.7B in attributable gold production of 6.0 million workforce and communities free cash flow* and >$250 million ounces at all-in sustaining cost of throughout Covid respons
Slide 11: Basis for 2022+ Outlook
Basis for 2022+ Outlook* APPLYING NEWMONT DISCIPLINE AND RIGOR Maintaining discipline with $1,200/oz gold price assumption for reserves and long-term mine planning Assuming $1,800/oz revenue gold price for CAS and AISC to reflect higher costs from inflation, royalties and production taxes Incorporat
Slide 12: Increasing Production and Investing in Our Future
Increasing Production and Investing in Our Future ATTRIBUTABLE PRODUCTION* (MOZ) Gold Production* UNDERPINNED BY THE Co-Product GEO Production** INDUSTRY’S BEST PORTFOLIO 8.0 Total GEO Production ▪ 7.5 – 8.3 million GEOs per year through 2026* 7.0 Gold ▪ Includes 6.0 – 6.8 million ounces Production
Slide 13: Reducing Costs and Improving Margin
Reducing Costs and Improving Margin DECLINING COSTS OVER ALL-IN SUSTAINING COST ($/OZ) Gold AISC* TIME Co-Product GEO AISC $1,100 Total GEO ▪ Gold AISC improves to $920 – AISC* $1,020/oz and co-product GEO $1,000 AISC improves to $800 – $900/oz $900 ▪ Improving total GEO AISC to between $880 - $980/
Slide 14: Operating Model Drives Continuous Improvement
Operating Model Drives Continuous Improvement LEVERAGING PROVEN WORLD-CLASS PROGRAM AND TECHNICAL EXPERTISE Diagnose Design Deliver Refresh ~15% EXTERNAL ~55% MINING SPEND & OTHER IMPROVEMENT ✓ Proven integrated operating model with deep bench Supply Chain, Asset Optimizing Fleet and of experienced
Slide 15: Diverse, Global Portfolio of World-Class Assets
Diverse, Global Portfolio of World-Class Assets 2022 ALL-IN SUSTAINING COSTS ($/GEO) World-Class Assets $1,600 $1,400 Yanacocha $1,200 Total GEO AISC* $1,000 $800 Pueblo Viejo** Yanacocha Ahafo CC&V Akyem Tanami Merian Boddington Éléonore Peñasquito Porcupine Musselwhite Nevada Gold Cerro Negro $600
Slide 16: Rob Atkinson
Rob Atkinson CREATING VALUE & IMPROVING LIVES CHIEF OPERATING OFFICER THROUGH SUSTAINABLE AND RESPONSIBLE MINING 2022 GUIDANCE WEBCAST NEWMONT CORPORATION 16
Slide 17: Industry-Leading Portfolio Delivers Long-Term Value
Industry-Leading Portfolio Delivers Long-Term Value AUSTRALIA NORTH AMERICA SOUTH AMERICA AFRICA NEVADA GOLD MINES Growing Profitable Extending Mine Life Preparing for Future Growth Maintaining Strong (38.5%) Production Performance ▪ Boddington adds ▪ Peñasquito continues ▪ Cerro Negro improves ▪ Ak
Slide 18: Australia Growing Profitable Production
Australia Growing Profitable Production ▪ Boddington accessing higher gold and copper grades and improved efficiency from Autonomous Haulage in 2022; expanding North and South pits through laybacks in 2023 ▪ Tanami maintains steady production through 2023, ramping up in 2024 from Tanami Expansion 2
Slide 19: Tanami Growing Position as a World-Class Asset
Tanami Growing Position as a World-Class Asset OPERATIONAL EFFICIENCY IMPROVES MARGINS PROGRESSING TANAMI EXPANSION 2 ✓ Delivers a 1.5 km deep production shaft, reducing ✓ Supports Tanami’s future as a long-life, low-cost producer operating costs by ~10% through efficiency improvements and unlocks o
Slide 20: North America Extending Mine Life
North America Extending Mine Life ▪ Stripping in Chile Colorado and Peñasco through 2023; higher silver, lead & zinc starting in 2023 ▪ Porcupine delivers higher grade in 2022; Hollinger and Hoyle ramping down ▪ Pamour project to extend mine life Peñasquito at Porcupine and maintain production begin
Slide 21: Porcupine Adds Profitable Production With Pamour
Porcupine Adds Profitable Production With Pamour EXTENDING MINE LIFE IN A PROVEN DISTRICT EXISTING INFRASTRUCTURE IMPROVES RETURNS ✓ Pamour layback adds 1.6 Moz gold production to Porcupine, ✓ ~$400 million development capital with a full funds decision extending mine life through 2035 expected in t
Slide 22: South America Preparing for Future Growth
South America Preparing for Future Growth ▪ Merian delivers higher grade and steady throughput in 2022; mining harder, lower-grade ore starting in 2023 ▪ Cerro Negro improves mine productivity, including higher throughput and development rates ▪ Cerro Negro progressing expansions from the Marianas a
Slide 23: Yanacocha Sulfides Advances Towards 2022 Approval
Yanacocha Sulfides Advances Towards 2022 Approval NEXT CHAPTER IN YANACOCHA’S LONG HISTORY PROFITABLE PRODUCTION WITH FURTHER UPSIDE ✓ First phase includes Yanacocha Verde and Chaquicocha deposits ✓ First five-year average CAS of $500- $600/GEO and AISC of to profitably extend Yanacocha operations b
Slide 24: Expanding the Cerro Negro District in Argentina
Expanding the Cerro Negro District in Argentina UP TO 50% INCREASE IN ANNUAL PRODUCTION SIGNIFICANT EXPLORATION UPSIDE ✓ The project is expected to improve annual production to above ✓ Highly prospective and underexplored gold district 350 Koz beginning in 2024 ✓ Among the top land packages in Newmo
Slide 25: Africa Maintaining Strong Performance
Africa Maintaining Strong Performance ▪ Ahafo reaching higher grades in Subika open pit beginning in 2022; Subika underground mining method change improves grade and tons mined through 2024 ▪ Ahafo North approved for full funds in 2021, adding production and improving unit costs beginning in 2024 ▪
Slide 26: Ahafo North – Best Unmined Deposit in West Africa
Ahafo North – Best Unmined Deposit in West Africa EXPANDING CURRENT FOOTPRINT IN GHANA PROGRESSING AHAFO NORTH ✓ Open pit mine, stand-alone mill for processing 3.5Mozs of ✓ Investment of $750-$850M with three-year development Reserve and 1.0Mozs of Resource timeline ✓ 13-year mine life with ~300Koz
Slide 27: Nevada Gold Mines (38.5% Ownership)
Nevada Gold Mines (38.5% Ownership) 2022 METRICS (+/- 5%) NEVADA GOLD MINES Gold production (Koz)* 1,250 Carlin Gold CAS ($/oz) $825 Gold AISC ($/oz)** $1,050 *Gold production shown on an attributable basis; **AISC is a Non-GAAP measure, see endnotes 2022 GUIDANCE WEBCAST NEWMONT CORPORATION 27
Slide 28: Nancy Buese
Nancy Buese CREATING VALUE & IMPROVING LIVES CHIEF FINANCIAL OFFICER THROUGH SUSTAINABLE AND RESPONSIBLE MINING 2022 GUIDANCE WEBCAST NEWMONT CORPORATION 28
Slide 29: Investing in our Future through Projects and Exploration
Investing in our Future through Projects and Exploration CONSOLIDATED CAPITAL & EXPENSE OUTLOOK (+/-5%) 2021E 2022E Sustaining Capital ($M) $1,000 $1,000 Development Capital ($M) $750 $1,400 Exploration and Advanced Projects Spend ($M) $390 $450 General and Administrative ($M) $260 $260 Interest Exp
Slide 30: Disciplined Capital Allocation Priorities
Disciplined Capital Allocation Priorities INVESTING IN ORGANIC RETURNING CASH TO MAINTAINING FINANCIAL GROWTH SHAREHOLDERS FLEXIBILITY ✓ Sustaining capital of ~$1B per year ✓ Industry-leading dividend framework ✓ Liquidity of $7.6B and cash position of $4.6B at Q3 ✓ Average attributable development
Slide 31: Free Cash Flow Increases with Higher Gold Price
Free Cash Flow Increases with Higher Gold Price ANNUAL INCREMENTAL FREE CASH FLOW* +$4.8B +$3.6B INCREMENTAL FCF +$2.4B +$1.2B $1,200 $1,500 $1,800 $2,100 $2,400 +$400M FCF per annum for every $100/oz increase in gold price *Free Cash Flow assumptions as of December 2, 2021; Includes impacts from ap
Slide 32: 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 - $2.80 ▪ Approv
Slide 33: Tom Palmer
Tom Palmer CREATING VALUE & IMPROVING LIVES PRESIDENT & CHIEF EXECUTIVE OFFICER THROUGH SUSTAINABLE AND RESPONSIBLE MINING 2022 GUIDANCE WEBCAST NEWMONT CORPORATION 33
Slide 34: #1 gold producer with an average ~8M GEOs
#1 gold producer with an Proven operating model and Focused on industry-leading average ~8M GEOs* per year deep bench of experienced returns to shareholders with through 2031 and significant leaders with strong track record disciplined capital allocation exposure to other metals through the cycle St
Slide 35: Appendix
Appendix 2022 GUIDANCE WEBCAST NEWMONT CORPORATION 35
Slide 36: Free Cash Flow Sensitivities
Free Cash Flow Sensitivities* FCF ATTRIBUTABLE PRICE CHANGE ($M) FCF ($M) Gold ($/oz) $1,800 +$100 +$400 +$400 Australian Dollar $0.75 -$0.05 +$50 +$50 Canadian Dollar $0.80 -$0.05 +$30 +$30 Oil ($/bbl) $60 -$10 +$20 +$15 Copper ($/lb) $3.25 +$0.25 +$20 +$20 Zinc ($/lb) $1.15 +$0.10 +$25 +$25 Silver
Slide 37: Five Year Outlook: $1,800/oz Gold Price Assumption
Five Year Outlook: $1,800/oz Gold Price Assumption GUIDANCE METRIC (+/- 5%) 2022E 2023E 2024E 2025E 2026E Gold production* (Mozs) 6.2 6.0 – 6.6 6.2 – 6.8 6.2 – 6.8 6.2 – 6.8 Other metal production** (Mozs) 1.3 1.4 – 1.6 1.4 – 1.6 1.4 – 1.6 1.4 – 1.6 Total GEO production* (Mozs) 7.5 7.5 – 8.1 7.7 – 8
Slide 38: Five Year Outlook: $1,200/oz Gold Price Assumption
Five Year Outlook: $1,200/oz Gold Price Assumption GUIDANCE METRIC (+/- 5%) 2022E 2023E 2024E 2025E 2026E Gold production* (Mozs) 6.2 6.0 – 6.6 6.2 – 6.8 6.2 – 6.8 6.2 – 6.8 Other metal production** (Mozs) 1.3 1.4 – 1.6 1.4 – 1.6 1.4 – 1.6 1.4 – 1.6 Total GEO production* (Mozs) 7.5 7.5 – 8.1 7.7 – 8
Slide 39: 2022 Consolidated Expense and Capital Outlook
2022 Consolidated Expense and Capital Outlook GUIDANCE METRIC ($M) (+/- 5%) 2022 2023 2024 2025 2026 Consolidated Sustaining Capital $1,000 $900 – $1,100 $900 – $1,100 $900 – $1,100 $900 – $1,100 Consolidated Development Capital $1,400 $1,300 – $1,500 $1,100 – $1,300 $400 – $600 $100 – $300 Total Co
Slide 40: 2022 Site Outlook as of December 2, 2021
2022 Site Outlooka as of December 2, 2021 a) 2022 outlook projections are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of December 2, 2021. Outlook is based upon certain assumptions, including, but not limited t
Slide 41: 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 42: 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 43: 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 44: 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 45: Gold All-in Sustaining Costs – 2022 Outlook
Gold All-in Sustaining Costs – 2022 Outlook A reconciliation of the 2022 Gold AISC outlook to the 2022 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 46: Co-Product All-in Sustaining Costs – 2022 Outlook
Co-Product All-in Sustaining Costs – 2022 Outlook A reconciliation of the 2022 Co-product AISC outlook to the 2022 Co-Product 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 Sect
Slide 47: Total GEO All-in Sustaining Costs – 2022 Outlook
Total GEO All-in Sustaining Costs – 2022 Outlook A reconciliation of the 2022 Total GEO AISC outlook to the 2022 Total GEO 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 Section
Slide 48: 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 September 30, 2021, and with the Cautionary Statement on slide 2 and the following notes below Outlook Assumptions. Outlook and projections use
Slide 49: 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 50: Endnotes
Endnotes Free Cash Flow. Free cash flow or FCF is a non-GAAP metric and is generated from Net cash provided from operating activities of continuing operations less Additions to property, plant and mine development. See appendix for more information and for a reconciliation to the nearest GAAP metric