Slide 1: Full Year and Q4 2016 earnings
Full Year and Q4 2016 earnings February 22, 2017
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: Gary Goldberg, President and CEO
Gary Goldberg, President and CEO
Slide 4: Continuing to execute strategy and create value
Continuing to execute strategy and create value Industry leader in safety and sustainability performance Improve the underlying AISC1 down 2% to $912/oz – through cost and capital discipline business Gold production up 7% to 4.9Moz – with steady production profile Built 2 new mines in prospective di
Slide 5: Leading safety and sustainability performance
Leading safety and sustainability performance Injury rates (total recordable injuries per 200,000 hours worked) 0.8 0.6 0.65 0.4 0.47 0.39 0.32 0.32 0.2 Injury rates down ~50% 0 2012 2013 2014 2015 2016 Investing in training and technology Fatigue events down 87% February 22, 2017 Newmont Mining Cor
Slide 6: Superior operational performance
Superior operational performance Gold all-in sustaining cost ($/ounce) Cost saving sources (%) $1,300 $1,200 $1,170 Input Cost and costs $1,098 $1,100 efficiency improvements $996 $1,000 $933 $912 $900 $800 AISC down 22% $700 $600 2012A 2013A 2014A 2015A 2016A Results exclude PTNNT February 22, 2017
Slide 7: Portfolio optimization improves value and risk profile
Portfolio optimization improves value and risk profile Divested Reinvested PTNNT, Midas, Merian, Long Assets Jundee, Penmont, Canyon, CC&V Waihi Costs1 $800 – $900/oz Below $700/oz AISC down >$100/oz Production 630Koz/year ~800Koz/year Mine life < 5 years > 10 years Mine life doubled Higher technica
Slide 8: Proven record of project delivery across the cycle
Proven record of project delivery across the cycle Mine life Cost Production Capital IRR Project (years) (AISC/oz) (Koz/yr) ($M) (%) Merian (75%)* + 13 $650 – $750 300 – 375 ~$525 >25% Long Canyon Ph 1 +8 $500 – $600 100 – 150 ~$225 >26% Northwest Exodus +7 ~$25 lower 50 – 75 $50 – $70 >30% Tanami e
Slide 9: Long-term value requires investment through cycle
Long-term value requires investment through cycle Merian case study: • Investment – entered Suriname in 2004 to establish prospective district • Exploration – grown to 5Moz Reserve & Resource2 base by 2016 • Partnership – government of Suriname buys in as 25% owner in 2014 • Projects – delivered $15
Slide 10: Delivered 4.1 Moz of Reserves, 6.1 Moz of Resources
Delivered 4.1 Moz of Reserves, 6.1 Moz of Resources 2016 attributable gold Reserves (Moz) Reserve sensitivity to gold price (Moz) ~77 ~68 ~71 ~64 ~59 $1,000 $1,100 $1,200 $1,300 $1,400 2.6 0.6 4.1 73.7 71.1 68.5 6.0 0.1 Actual 2015 PTNNT sale* Revised Price Depletion Revisions Additions Actual 2016
Slide 11: Streamlined portfolio across four regions
Streamlined portfolio across four regions Operations 2016 year-end Current projects $18B+ market capitalization Mid-term projects S&P 500 gold stock Steady 4.5 – 5.0Moz/yr producer $5.7B liquidity North America Investment grade credit rating Carlin − NW Exodus − Goldstar Twin Creeks − Twin Creeks UG
Slide 12: Nancy Buese, EVP and CFO
Nancy Buese, EVP and CFO
Slide 13: Q4 income and cash flow up 200% vs prior year
Q4 income and cash flow up 200% vs prior year Financial metric Q4 2015* Q4 2016* Change Attributable gold production (Koz) 1,129 1,323 +17% CAS ($/oz) $718 $681 -5% AISC ($/oz) $1,036 $918 -11% Adjusted Net Income ($M)6 $(9) $133 >200% Adjusted Net Income ($/ diluted share)6 $(0.03) $0.25 >200% Adju
Slide 14: Q4 Adjusted EBITDA up 115% vs prior year
Q4 Adjusted EBITDA up 115% vs prior year GAAP to adjusted net income ($/share) $0.13 $0.22 $0.63 $0.25 -$0.73 Net income from Impairments Tax adjustments Loss on debt Adjusted net income continuing operations repayment, reclamation and other EBITDA to adjusted EBITDA ($M) $51 6 $973 $88 $629 -$489 E
Slide 15: All full year financials outperform prior year
All full year financials outperform prior year Financial metric FY 2015* FY 2016* Change Attributable gold production (Koz) 4,584 4,898 +7% CAS ($/oz) $663 $682 +3% AISC ($/oz) $933 $912 -2% Adjusted Net Income ($M) $327 $619 +89% Adjusted Net Income ($/ diluted share) $0.63 $1.16 +84% Adjusted EBIT
Slide 16: Full year adjusted EBITDA up 25% vs prior year
Full year adjusted EBITDA up 25% vs prior year GAAP to adjusted net income ($/diluted share) $0.94 $1.16 $0.63 -$0.41 Net income from continuing Impairments Tax adjustments Adjusted net income operations EBITDA to adjusted EBITDA ($M) $977 $88 $55 $74 $108 $2,365 $1,279 EBITDA Impairments Reclamatio
Slide 17: Financial flexibility to execute capital priorities
Financial flexibility to execute capital priorities Funding profitable growth projects • Cash on hand of $2.8B funds future growth Maintaining financial flexibility • Asset sales of $1.1B repays debt of $1.3B* • Reduced net debt to adjusted EBITDA to 0.8x Returning cash to shareholders • Dividend po
Slide 18: Competitive financial performance
Competitive financial performance Comparative performance indicators Newmont Competitor Average $1.47 +89% 1.1X $1.03 +65% 0.8X Free Cash Flow per share Net debt to Adjusted EBITDA 2016 share price performance * Competitive Average includes Agnico Eagle, AngloGold, Barrick, Gold Fields, Goldcorp, Ki
Slide 19: Gary Goldberg, President and CEO
Gary Goldberg, President and CEO
Slide 20: Creating long-term shareholder value
Creating long-term shareholder value • Steady long-term gold production while maintaining cost and capital discipline • Ongoing investment in profitable growth; next generation projects represent upside • Generate top quartile returns while sustaining investment grade balance sheet • Positioned to m
Slide 21: Leading project pipeline and track record
Leading project pipeline and track record Sustaining projects (in outlook) Current projects (in outlook) Greenfields Mid-term projects (<3 years; not in outlook) Conceptual/ Long-term projects (>3 years; not in outlook) Scoping Prefeasibility/ Feasibility Definitive Eastern Great Basin Feasibility E
Slide 22: Focused on delivering long-term value
Focused on delivering long-term value Projected production profile (Koz) Industry-leading long-term pipeline Divestments Current projects Mid-term projects 5,000 4,000 3,000 Existing assets and sustaining projects 2,000 1,000 0 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E 2021E 2022E 2023E Febru
Slide 23: Future savings, investments incremental to outlook
Future savings, investments incremental to outlook Guidance metric 2017 2018 2019 – 2021 Gold production (Moz)* 4.9 – 5.4 4.6 – 5.1 4.5 – 5.0 AISC ($/oz)* $940 – $1,000 $950 – $1,050 $880 – $980 Capital expenditure ($M)* $800 – $900 $700 – $800 $600 – $700 Consolidated gold all-in sustaining cost pe
Slide 24: Tom Palmer, EVP and COO
Tom Palmer, EVP and COO
Slide 25: North America generates steady production, cash
North America generates steady production, cash • Commissioned Long Canyon Phase I ahead of schedule and $50M under budget • Delivered CC&V investment case and expansion – mill optimization continues • Overcoming geotechnical challenges and commencing stripping campaign at Carlin • Advancing next wa
Slide 26: Progressing growth options in South America
Progressing growth options in South America • Delivered Merian on schedule and $150M under budget • Lower cost production from Merian offsetting maturing oxide deposits at Yanacocha • Advancing development of Quecher Main oxide deposit • Advancing business case for Yanacocha Sulfides – declared firs
Slide 27: Australia delivering profitable growth
Australia delivering profitable growth • Exceptional 2016 performance at Boddington, KCGM and Tanami • Tanami Expansion on track; advancing studies for next stage of expansion • Addressing impacts of record high rainfalls in Tanami region • Boddington stripping in 2018 and 2019; production returns t
Slide 28: Strong performance and prospects in Africa
Strong performance and prospects in Africa • Strong safety, mill throughput and recovery improvements in 2016 • Engaging government to secure permits for Ahafo expansions; forecast to start in H1 2017 • Investing in next phase of stripping at Ahafo; accessing higher grades 2019 – 2023 • Prospective
Slide 29: Delivering long-term value
Delivering long-term value Where are we today? Where are we heading? Safety & Leading in mining sector World class performance sustainability Costs AISC down 22% since 2012 Continued cost and capital discipline Portfolio Streamlined portfolio Building and reinvesting in portfolio Production Projects
Slide 30: Questions?
Questions?
Slide 31: 2017 Outlook
2017 Outlooka Consolidated All-in Consolidated Consolidated Attributable Consolidated Sustaining Total Capital Production Production CAS Costsb Expenditures a2017 Outlook in the table above are considered “forward-looking (Koz, Kt) (Koz, Kt) ($/oz, $/lb) ($/oz, $/lb) ($M) statements” and are based u
Slide 32: Adjusted net income
Adjusted net income 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 contin
Slide 33: Adjusted net income
Adjusted net income Three Months Ended Years Ended Loss (income) from discontinued operations relates to (i) adjustments in our Holt property royalty, December 31, December 31, 1) presented net of tax expense (benefit) of $13, $(4),$(19) and $11, respectively, (ii) Batu Hijau operations, 2016 2015 2
Slide 34: 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 less Net cash provided by operating activities of discontinued operations less Additions to property, plant and mine develo
Slide 35: 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 36: 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 performan
Slide 37: All-in sustaining costs
All-in sustaining costs Advanced Projects, Research and Treatment All-In Costs Development General Other and All-In Ounces Sustaining Three Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per December 31, 2016 to Sales (1)(2)(3) Costs (4) Explor
Slide 38: All-in sustaining costs
All-in sustaining costs Advanced Projects, Research and Treatment All-In Costs Development General Other and All-In Ounces Sustaining Three Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per December 31, 2015 to Sales (1)(2)(3) Costs (4) Explor
Slide 39: All-in sustaining costs
All-in sustaining costs Advanced Projects, Research and Treatment All-In Costs Development General Other and All-In Ounces Sustaining Years Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per December 31, 2016 to Sales (1)(2)(3) Costs (4) Exploration A
Slide 40: All-in sustaining costs
All-in sustaining costs Advanced Projects, Research and Treatment All-In Costs Development General Other and All-In Ounces Sustaining Years Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per December 31, 2015 to Sales (1)(2)(3) Costs (4) Exploration A
Slide 41: All-in sustaining costs – 2017 outlook
All-in sustaining costs – 2017 outlook Similar to the historical AISC amounts presented above, AISC outlook is also a non-GAAP financial measure. A reconciliation of the 2017 Gold AISC outlook range to the 2017 CAS outlook range is provided below. The estimates in the table below are considered “for
Slide 42: 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 February 21, 2017 and dis