Newmont Corporation · NYSE:NEM
Newmont — Newmont Mining — Merrill Lynch Global Metals & Mining Conference 2006
18 slides from Newmont's conference presentation, May 10, 2006
Slide 1: Investing in the 21st Century
INVESTING IN THE 21 ST CENTURY Merrill Lynch Merrill Lynch Global Metals & Mining Global Metals & Mining Conference Conference Wayne W. Murdy Chairman & Chief Executive Officer May 2006 May 2006
Slide 2: Cautionary Statement
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, that are intended to be covered by the safe harbor create
Slide 3: Gold Is Rising in all Major Currencies
Gold Is Rising in all Major Currencies -20% 0% 20% 40% 60% 80% 100% 120% 140% 160% Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 A True Gold Bull Market Gold Is Rising in all Major Currencies $655/oz ¥74,260/oz €520/oz USD Gold Yen Gold Euro Gold Source: Bloomberg (as of May 1, 2006
Slide 4: Slide 4
Slide 5: Commodity Demand Driven by Growth in Emerging Markets
Commodity Demand Driven by Growth in Emerging Markets China, India, Russia, and Brazil On Track to Equal G7 Consumption by 2010 China On Track to Over Quarter of World Consumption by 2010 China’s Consumption On Track to Rival the G7 Within a Decade Expanding Metal Consumption Growth Source: Merrill
Slide 6: Growing Physical Gold Supply Deficit
Growing Physical Gold Supply Deficit Total Demand Up 5% From 2004 to 2005 Total Demand Exceeded Physical Supply by Over 15% from 2001- 2005 - 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 *Supply Deficit Scrap Supply Mine Supply 2,621 2,588 2,592 2,470 2,519 Total Demand 3,887 3,975 4,153 3,846 4,
Slide 7: 2005 Production and Reserves
2005 Production and Reserves 2005 Production and Reserves Over 32 Million Acres of Land in the World’s Best Gold Districts 2005 Production: 6.5 million ounces North America (8.0 million Acres) • 2.7 mil oz sold in 2005 • 34 mil oz in Reserves • $31 mil 2006 Exploration Operations Major Projects Addi
Slide 8: Proven Reserve Growth Record
Proven Reserve Growth Record 3.6 million ounces from additional interest in Akyem and Boddington ¹ Fourth Straight Year of Reserves Growth Finding Cost of $13 per ounce since 1986 96.8 Million Ounces of Total Reserves Proven Reserve Growth Record 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 (1)
Slide 9: Financial and Operating Highlights
Financial and Operating Highlights Financial (in millions, except per share) First Quarter 2006 Full Year 2005 Operating First Quarter 2006 Full Year 2005 Financial and Operating Highlights Ongoing Solid Earnings and Cash Flow Generation 1. First Quarter 2006 Income from continuing operations includ
Slide 10: 2005 Industry Cost Curve
2005 Industry Cost Curve Industry Cost Curve up 50% since 2002 16% Newmont improvement in competitive cost position from 2002 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2005 Industry Cost Curve Source: GFMS NEM NEM th Percentile on Industry Cost Curve 2005 2002
Slide 11: 2006 Costs Applicable to Sales vs. 2005
2006 Costs Applicable to Sales vs. 2005 2006 Costs Applicable to Sales vs. 2005 CAS Per Ounce Change $8 $9 $15 $5 $12 $239 $288 $100 $150 $200 $250 $300 2005 Actual Lower Grade Ore Accounting Changes Labor & Benefits Electrical Other, Commodity & Diesel 2006 Guidance (1) Newmont estimates as of Apri
Slide 12: Gold Leverage & Margin Expansion
$178 $187 $196 $216 $236 $275 $288 Gold Leverage & Margin Expansion $93 $126 $170 $196 $205 $280 $367 $271 $313 $366 $412 $441 $555 $655 $- $100 $200 $300 $400 $500 $600 $700 2001 2002 2003 2004 2005 1Q06 FY06f CAS/Oz Cash Operating Margin per Ounce Realized Price Gold Leverage & Margin Expansion *F
Slide 13: Improving Gold and Copper Cash Flows
Improving Gold and Copper Cash Flows 1,392 1,425 1,575 1,700 Improving Gold and Copper Cash Flows • 2006 Gold Sales Weighted to 2 nd Half • Copper Hedges Run Off Next Year Hedge Price - 1,000 1,200 1,400 1,600 1,800 2,000 Q106 A Q206 F Q306 F Q406 F 1,480 1,625 1,750 $1.35 $1.35 $1.40 0% 10% 20% 30%
Slide 14: 2006 Project Pipeline Highlights
2006 Project Pipeline Highlights 5 New Highly Capital Efficient Projects 2.5 Million Ounces per Year of New Gold Production Balanced Political Risk Profile 2006 Project Pipeline Highlights • Nevada - Leeville Underground & Phoenix Gold/Copper Mines • Ghana – Ahafo (2006) & Akyem (2009) Gold Mines •
Slide 15: Advanced & Emerging Projects (2009+)
Advanced & Emerging Projects (2009+) Nevada Peru Ghana Advanced & Emerging Projects (2009+) • Power Plant (2008) – Completion, Up to $25/oz Cost Savings • Phoenix Copper Oxide - Large Scale, Low Cost, High Return Project • Mike - Large Scale Oxide Gold/Copper Deposit • Gold Mill (2009) – Significant
Slide 16: Newmont: The World's Leading Gold Company
Newmont: The World’s Leading Gold Company Newmont: The World’s Leading Gold Company Silver Gold Copper • Expanding Margins • Improving Cost Profile • Growing Reserves • New Mines
Slide 17: Newmont: The World's Leading Gold Company
Newmont: The World’s Leading Gold Company 1. Leading Land Position & Balanced Political Risk Exposure 32 Million Acres in the World’s Best Gold Districts Over Half of Reserves & Production in Developed Countries 2. Proven Reserve Growth 5% Growth in 2005, 4 th Straight Year of Growth 3. Environmenta
Slide 18: Investing in the 21st Century
INVESTING IN THE 21 ST CENTURY Merrill Lynch Merrill Lynch Global Metals & Mining Global Metals & Mining Conference Conference Wayne W. Murdy Chairman & Chief Executive Officer May 2006 May 2006
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