Newmont Corporation · NYSE:NEM
Newmont — Q1 2023 Earnings Presentation
37 slides from Newmont's earnings presentation, Apr 27, 2023
Slide 1: First Quarter 2023 Earnings
First Quarter 2023 CREATING VALUE & IMPROVING LIVES Earnings THROUGH SUSTAINABLE, RESPONSIBLE MINING APRIL 27, 2023 FIRST QUARTER 2023 EARNINGS NEWMONT CORPORATION 1
Slide 2: Cautionary Statement Regarding Forward Looking Statements
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 to be covered by the
Slide 3: Tom Palmer, President & CEO
Tom Palmer CREATING VALUE & IMPROVING LIVES PRESIDENT & CHIEF EXECUTIVE OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING FIRST QUARTER 2023 EARNINGS NEWMONT CORPORATION 3
Slide 4: First Quarter 2023 Highlights
FIRST QUARTER 2023 HIGHLIGHTS Produced 1.3M attributable ounces of gold* Declared industry-leading dividend of and 288k GEOs from co-products**; 21% of $0.40 per share for Q1 from established total 2023 gold production as guided framework** Generated ~$1.0B in adjusted EBITDA; results Liquidity of $
Slide 5: Driving a Fatality, Injury & Illness-Free Workplace
DRIVING A FATALITY, INJURY & ILLNESS-FREE WORKPLACE SIGNIFICANT POTENTIAL EVENTS (SPEs) BUILDING A STRONG SAFETY CULTURE 30 ▪ Announced the 2022 CEO Safety Awards recipients, celebrating safety excellence and encouraging the replication of best practices 20 ▪ 53 nominations and 14 finalists all demo
Slide 6: 2022 Sustainability Report Highlights
2022 SUSTAINABILITY REPORT HIGHLIGHTS Experienced zero workplace fatalities at the Company’s managed operations for the fourth year in a row Added a new Senior Vice President of Workplace Responsibility focused on creating a safe, equitable and healthy workplace Continued to work toward conformance
Slide 7: Rob Atkinson, Chief Operating Officer
Rob Atkinson CREATING VALUE & IMPROVING LIVES CHIEF OPERATING OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING FIRST QUARTER 2023 EARNINGS NEWMONT CORPORATION 7
Slide 8: South America Delivers Solid Q1 Results as Guided
SOUTH AMERICA DELIVERS SOLID Q1 RESULTS AS GUIDED ▪ Peñasquito continued mining in the Chile Colorado pit, delivering lower gold grade and strong co-product production as planned; sales volumes impacted by the timing of concentrate sales ▪ Yanacocha remains a solid contributor; production expected t
Slide 9: Australia Focused on Future Growth and Profitability
AUSTRALIA FOCUSED ON FUTURE GROWTH AND PROFITABILITY ▪ Boddington delivered steady gold and copper production and progressed waste stripping in the South pit as planned ▪ Tanami experienced extreme rainfall and road closures, causing mill operations to cease for 32 days in Q1 ▪ Tanami team partnered
Slide 10: Africa Well-Positioned to Deliver Higher Ounces in H2
AFRICA WELL-POSITIONED TO DELIVER HIGHER OUNCES IN H2 ▪ Akyem progressed stripping of a new layback, resulting in planned lower production and higher unit costs compared to Q4 ▪ Ahafo South delivered a solid performance in Q1 despite failure of a conveyor; remain on track to achieve full-year guidan
Slide 11: North America Delivering on Commitments
NORTH AMERICA DELIVERING ON COMMITMENTS ▪ Canadian operations continued strong improvement trend, achieving 26% higher gold production compared to Q1 2022 with experienced leaders in place to safely deliver on 2023 commitments ▪ Éléonore delivered a strong performance from sustained productivity imp
Slide 12: Non-Managed Joint Ventures – Q1 Results
NON-MANAGED JOINT VENTURES – Q1 RESULTS Q1 2023 METRICS NEVADA GOLD MINES (38.5%) PUEBLO VIEJO (40%)** Attributable Gold Production (Koz) 261 60 Gold CAS ($/oz) $1,109 – Gold AISC ($/oz)* $1,405 – *AISC is a non-GAAP measure, see endnotes. **Attributable production includes Newmont’s 40% interest in
Slide 13: Brian Tabolt, Interim Chief Financial Officer
Brian Tabolt CREATING VALUE & IMPROVING LIVES INTERIM CHIEF FINANCIAL OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING FIRST QUARTER 2023 EARNINGS NEWMONT CORPORATION 13
Slide 14: First Quarter Financial Performance
FIRST QUARTER FINANCIAL PERFORMANCE GAAP REVENUE NET INCOME $2.7B $0.42/share ADJUSTED ADJUSTED EBITDA* NET INCOME* $1.0B $0.40/share CASH FROM FREE CASH CONTINUING OPS FLOW* $481M $(45)M CASH AND CASH NET DEBT TO EQUIVALENTS** ADJUSTED EBITDA* $3.5B 0.6x *See endnotes. **As of Q1 2023; Cash balance
Slide 15: Q1 Adjusted Net Income of $0.40 per Share
Q1 ADJUSTED NET INCOME OF $0.40 PER SHARE GAAP TO ADJUSTED NET INCOME ($/DILUTED SHARE) * SOLID Q1 PRODUCTION AS EXPECTED ▪ Delivered 21% of total 2023 gold production $0.08 ▪ Sales volumes impacted by the planned timing of concentrate sales at Peñasquito ($0.05) ($0.05) HIGHER AVERAGE REALIZED GOLD
Slide 16: Declared Q1 Dividend of $0.40/Share
DECLARED Q1 DIVIDEND OF $0.40/SHARE ▪ Base dividend provides a $1.00/share payment at base gold 2023 DIVIDEND PAYOUT RANGE* price assumption $2.00 – 3.00 ▪ Incremental payment based on incremental attributable FCF above base gold price assumption ▪ Reviewed and approved quarterly by Board of Directo
Slide 17: Tom Palmer, President & CEO
Tom Palmer CREATING VALUE & IMPROVING LIVES PRESIDENT & CHIEF EXECUTIVE OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING FIRST QUARTER 2023 EARNINGS NEWMONT CORPORATION 17
Slide 18: Overview of Proposal to Acquire Newcrest
OVERVIEW OF PROPOSAL TO ACQUIRE NEWCREST FEBRUARY 5 MARCH 13 APRIL 10 Newmont confirms non- Face-to-face meeting Newcrest agrees to grant binding proposal to with Newmont and period of confirmatory combine with Newcrest Newcrest Management due diligence to enable team Newmont to put forward a bindin
Slide 19: Newmont & Newcrest – A Powerful Value Proposition
NEWMONT & NEWCREST – A POWERFUL VALUE PROPOSITION The New World-Class Delivering Driving ESG STANDARD PORTFOLIO SYNERGIES CAPITAL ALLOCATION Newmont is the Gold Sector’s Portfolio of Tier 1 Operations with Proven Track Record of Newmont Newmont Returned $7.0B to Recognized Sustainability Leader Gold
Slide 20: Proven Track Record of Value Delivery
PROVEN TRACK RECORD OF VALUE DELIVERY ANNUAL SYNERGIES FROM GOLDCORP ACQUISITION Cost Efficiency and Productivity Improvements ▪ Proven Full Potential program delivered $845M of synergies* $1.1B $345M Total Synergies* – $500M from mining improvements – $345M from processing improvements Processing $
Slide 21: Goldcorp Acquisition: A Four-Year Look Back
GOLDCORP ACQUISITION: A FOUR-YEAR LOOK BACK VALUE DELIVERED SINCE ACQUISITION CLOSED APRIL 18, 2019 SYNERGIES FROM PROCEEDS FROM GOLDCORP ASSETS PORTFOLIO OPTIMIZATION $1.1B $2.2B Annual value, surpassing initial Includes $1.5B in disposals within the first commitment of $365M in first 18 months 12
Slide 22: Appendix
Appendix FIRST QUARTER 2023 EARNINGS NEWMONT CORPORATION 22
Slide 23: Five Year Outlook: Gold & Consolidated Metrics
Five Year Outlook: Gold & Consolidated Metrics GUIDANCE METRIC 2023E 2024E 2025E 2026E 2027E Gold ($1,700/oz price assumption) Attributable Gold Production (Moz) 5.7 – 6.3 5.9 – 6.5 5.9 – 6.5 6.1 – 6.7 6.1 – 6.7 Gold CAS ($/oz)* $870 – $970 $850 – $950 $780 – $880 $750 – $850 $750 – $850 Gold AISC (
Slide 24: Five Year Outlook: Copper, Silver, Lead & Zinc
Five Year Outlook: Copper, Silver, Lead & Zinc GUIDANCE METRIC 2023E 2024E 2025E 2026E 2027E Copper ($3.50/lb price assumption) Copper Production (Mlbs) 95 – 105 85 – 95 45 – 55 45 – 55 55 – 65 Copper CAS ($/lb)* $1.85 – $2.15 Copper AISC ($/lb)* $2.35 – $2.65 Silver ($20/oz price assumption) Silver
Slide 25: 2023 Outlook as of February 23, 2023
2023 Outlooka as of February 23, 2023 Consolidated Attributable Production Consolidated All-In Attributable Sustaining Attributable Development 2023 Outlook Production (Koz) (Koz) Consolidated CAS ($/oz) Sustaining Costsb ($/oz) Capital Expenditures ($M) Capital Expenditures ($M) CC&V 160 – 180 160
Slide 26: Adjusted Net Income (Loss)
Adjusted net income (loss) Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows: 1. Per share measures may not recalculate due to rounding. Three Months Ended 2. Change in fair value of investments, included in Other income (loss), net, primar
Slide 27: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA Net income (loss) attributable to Newmont stockholders is reconciled to EBITDA and Adjusted EBITDA as follows: Three Months Ended 1. Change in fair value of investments, included in Other income (loss), net, primarily March 31, represents unrealized gains and losses relate
Slide 28: Free Cash Flow
Free cash flow The following table sets forth a reconciliation of Free Cash Flow to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow, as well as information regarding Net cash provided by (used
Slide 29: 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 30: All-in Sustaining Costs
All-in Sustaining Costs All-in sustaining costs represent the sum of certain costs, recognized as GAAP financial measures, that management considers to be associated with production. All-in sustaining costs per ounce amounts are calculated by dividing all-in sustaining costs by gold ounces or gold e
Slide 31: Gold All-In Sustaining Costs - 2023 Outlook
Gold All-In Sustaining Costs - 2023 Outlook A reconciliation of the 2023 Gold AISC outlook to the 2023 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 32: 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 33: 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 March 31, 2023 filed with the SEC on April 27, 2023. Investors are reminded that expectations regarding outlook and guidance, including future
Slide 34: Endnotes
Endnotes Cautionary Statement Regarding Reserve and Resource Estimates: The reserves stated herein were prepared in compliance with Subpart 1300 of Regulation S-K adopted by the United States Securities and Exchanges Commission (the “SEC”) and represent the amount of gold, copper, silver, lead, zinc
Slide 35: Endnotes
Endnotes Reserve and Resource Estimates (cont.): Estimates of Proven and Probable reserves are subject to considerable uncertainty. Such estimates are, or will be, to a large extent, based on the prices of gold, silver, copper, zinc, lead and molybdenum and interpretations of geologic data obtained
Slide 36: Endnotes
Endnotes Full Potential. Full Potential improvement value creation is considered an operating measure provided for illustrative purposes, and should not be considered GAAP or non-GAAP financial measures. Full Potential amounts are estimates utilized by management that represent estimated cumulative
Slide 37: Endnotes
Endnotes Proposed Newcrest Transaction: Statements relating to the proposed transaction to acquire the share capital of Newcrest, expectations regarding the potential value proposition, a binding proposal and the potential for synergies from the proposed transaction, or similar statements, constitut