Slide 1: Full Year and Q4 2017 Earnings
Full Year and Q4 2017 Earnings February 22, 2018
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 Chief Executive Officer
Gary Goldberg President and Chief Executive Officer
Slide 4: Leading operational and financial performance
Leading operational and financial performance Delivered AISC1 of $924/oz on back of significant Full Potential improvements Superior operational Increased gold production 8% to 5.3Moz via lower cost production from new mines execution Completed digital assessments to prioritize technology investment
Slide 5: Leading sustainability performance
Leading sustainability performance Total injury rates (total recordable injuries per 200,000 hours worked) 1 0.8 0.90 0.6 0.72 0.58 0.4 0.44 0.46 0.46 0.2 0 2012 2013 2014 2015 2016 2017 Sustainability leader Best managed Most admired ESG leader February 22, 2018 Newmont Mining Corporation I Full Ye
Slide 6: Investing in next generation of profitable production
Investing in next generation of profitable production Project Mine life (yrs) Cost (AISC/oz) Production (Koz/yr) Capital ($M) IRR (%) Northwest Exodus +10 ~$25 lower 50 – 75 $50 – $70 >40% Ahafo Mill Expansion – 75 – 100 $140 – $180 >20% reduced by $250 – $350** Subika Underground 11 150 – 200 $160
Slide 7: Five-year guidance reflects steady performance
Five-year guidance reflects steady performance Guidance5 metric 2018E 2019E 2020E – 2022E Gold production (Moz) 4.9 – 5.4 Moz 4.9 – 5.4 Moz 4.6 – 5.1 Moz CAS ($/oz) $700 – $750 $620 – $720 $650 – $750 AISC ($/oz) $965 – $1,025 $870 – $970 $870 – $970 Sustaining capital ($M) $600 – $700 $600 – $700 $
Slide 8: Progressing long-term growth options
Progressing long-term growth options • North America – UG expansions (Carlin, Twin, Long Canyon); Greenfields (Canada, US) • South America – Expansions (Yanacocha, Sabajo); Greenfields (Andes, Guiana Shield) • Africa – UG expansions (Ahafo, Akyem); Greenfields (Ethiopia) • Australia – UG expansions
Slide 9: Acquisitions
Offset Reserves depletion and grew Resource base 2017 attributable gold Reserves (Moz) Sensitivity to gold price 80 $1,000 ~58Moz $1,100 ~63Moz 46% – North America 37% – Australia $1,200 ~68Moz 75 12% – Africa $1,300 ~73Moz 5% – South America $1,400 ~80Moz 70 0.1 1.9 65 6.4 4.4 68.5 68.5 60 55 Actua
Slide 10: Nancy Buese, EVP and Chief Financial Officer
Nancy Buese EVP and Chief Financial Officer
Slide 11: Generated $736M of adjusted EBITDA in Q4
Generated $736M of adjusted EBITDA in Q4 Financial metric Q4 2016 Q4 2017 Change Attributable gold production (Koz) 1,323 1,341 +1% CAS ($/oz) $681 $693 +2% AISC ($/oz) $918 $968 +5% Adjusted net income ($M)6 $133 $216 +62% Adjusted net income ($/diluted share)6 $0.25 $0.40 +60% Adjusted EBITDA ($M)
Slide 12: Q4 adjusted EBITDA up 17% vs prior year
Q4 adjusted EBITDA up 17% vs prior year GAAP to adjusted net income ($/diluted share) $1.30 $0.11 $0.02 ($0.04) $0.31 $0.40 ($0.99) Net loss from Tax Net income Reclamation Other* Tax effect of Adjusted net continuing adjustments from continuing and adjustments income operations and valuation operat
Slide 13: Delivered $1.5 billion of free cash flow in 2017
Delivered $1.5 billion of free cash flow in 2017 Financial metric FY 2016 FY 2017 Change Attributable gold production (Koz) 4,898 5,266 +8% CAS ($/oz) $682 $691 +1% AISC ($/oz) $912 $924 +1% Adjusted Net Income ($M) $619 $780 +26% Adjusted Net Income ($/diluted share) $1.16 $1.46 +26% Adjusted EBITD
Slide 14: Full year adjusted EBITDA up 12% vs prior year
Full year adjusted EBITDA up 12% vs prior year GAAP to adjusted net income ($/diluted share) $0.12 ($0.04) $0.03 ($0.03) $1.49 $1.38 $1.46 ($0.11) Net loss from Tax Net income Reclamation Gain on asset Other* Tax effect of Adjusted net continuing adjustments from and and adjustments income operation
Slide 15: Balance sheet among the best in the gold sector
Balance sheet among the best in the gold sector Maintaining investment grade balance sheet • Liquidity of $6.2B as of Q4 2017 Net debt to adjusted EBITDA of 0.3x • $580M of gross debt repaid in 2017 Growing margins, Reserves and Resources • Continued investment in profitable projects Returning cash
Slide 16: Dividend aligned to long-term value creation
Dividend aligned to long-term value creation Stable and sustainable dividend Quarterly dividend ($/share) • Reinforces confidence in cash flow stability $0.14 • Reflects stable long-term production $0.12 • Removes gold price-link Aligns with capital priorities $0.10 • Incorporates ongoing investment
Slide 17: Impact of changes to US tax legislation
Impact of changes to US tax legislation • Income tax rate reduction benefits North America operations; percentage depletion retained • Elimination of alternative minimum tax (AMT) favorable, earned credits refundable over 5 years • Re-measurement of 2017 deferred tax position results in one-time non
Slide 18: Tom Palmer, EVP and Chief Operating Officer
Tom Palmer EVP and Chief Operating Officer
Slide 19: North America sustaining solid performance
North America sustaining solid performance • Carlin delivering strong performance – Leeville piloting autonomous fleet • Silverstar de-weighting underway – expecting to access ore in Q4 2018 • Mined first stope at Twin UG • Progressing Long Canyon Phase 2 Long Canyon Carlin Operating autonomous load
Slide 20: South America progressing next generation mines
South America progressing next generation mines • Merian delivering improved mine and mill performance – launched Full Potential in Q4 2017 • Yanacocha overcame weather challenges and impacts of transitional ore • Quecher Main progressing – engineering completed, production expected early 2019 • Yan
Slide 21: Africa outperforming and advancing projects
Africa outperforming and advancing projects • Ahafo outperformed in 2017 on back of Full Potential improvements • Akyem delivered steady performance despite reaching harder ore • Progressing Subika Underground and Ahafo Mill Expansion – tracking on schedule and budget • Advancing investment in Ahafo
Slide 22: Australia progressing next wave of profitable growth
Australia progressing next wave of profitable growth • Region set new records for mill throughput and recovery • KCGM west wall remediation continues through H1 with expected production increase in Q4 • Commencing Boddington’s next layback – pre-stripping begins in Q1 • Executed contracts for Tanami
Slide 23: Tanami Power Project lowers costs and emissions
Tanami Power Project lowers costs and emissions • 450km natural gas pipeline, 2 power stations • Expected to lower CO2 emissions by up to 20% Darwin • Expected to reduce power costs by ~20% • Mitigates fuel supply risks • Facilitates future expansion Completion date H1 2019 Existing Amadeus Pipeline
Slide 24: 2018 earnings and cash flow weighted to Q4
2018 earnings and cash flow weighted to Q4 • North America – higher stripping and maintenance in first half; Silverstar production in Q4 • Australia – stable production with Tanami and KCGM offsetting Boddington stripping campaign • South America – mine sequencing in first three quarters; reaching h
Slide 25: Gary Goldberg, President and Chief Executive Officer
Gary Goldberg President and Chief Executive Officer
Slide 26: Global portfolio of long-life assets
Global portfolio of long-life assets Operations and sustaining projects Improvements since 2012 Current projects 3 new lower cost mines Mid-term projects Long-term projects 9 profitable expansions Average project IRR >20% $2.8B in non-core asset sales North America Carlin Improved value and risk pro
Slide 27: Leading project pipeline and track record
Leading project pipeline and track record Long-term projects (>3 years; not in outlook) Mid-term projects (<3 years; not in outlook) Greenfields Sustaining projects (in outlook) Conceptual/ Scoping Current projects (in outlook) Prefeasibility/ Colombia Feasibility Definitive Long Canyon Ph 2 Feasibi
Slide 28: Stability extends beyond five year outlook
Stability extends beyond five year outlook Projected production profile (Moz)* Industry-leading long-term pipeline 6.0 Divested Current Mid-term Prefeasibility projects projects projects** 5.0 4.0 3.0 Existing assets and sustaining projects 2.0 1.0 - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 29: Superior Reserves and returns
Superior Reserves and returns 128oz 12yrs 73% 1.14g/t Reserves per Kshare Operating Reserves Reserves based in Reserve grade vs gold sector vs gold sector US, Australia, vs 2017 mined grade average of 77oz/Kshares* average of 9.9 yrs** Canada and Western of 1.16 g/tonne vs gold sector Europe vs gold
Slide 30: Questions?
Questions?
Slide 31: 2018 Outlook
2018 Outlooka Consolidated a2018 Outlook in the table above are considered “forward- All-in Consolidated looking statements” and are based upon certain assumptions, Consolidated Attributable Consolidated Sustaining Total Capital including, but not limited to, metal prices, oil prices, certain Produc
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 (1) Net loss (income) from discontinued operations relates to (i) adjustments in our Holt royalty obligation, presented December 31, December 31, net of tax expense (benefit) of $1, $13, $(24) and $(19), respectively, and (ii) Batu Hijau operations,
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 (used in) operating activities less Net cash provided by (used in) operating activities of discontinued operations less Additions to property, p
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 (1) Excludes Depreciation and Projects, Research and Treatment All-In amortization and Reclamation and Costs Development General Other and All-In Ounces Sustaining remediation. Three Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining
Slide 38: All-in sustaining costs
All-in sustaining costs Advanced (1) Excludes Depreciation and Projects, amortization and Reclamation and Research and Treatment All-In Costs Development General Other and All-In Ounces Sustaining remediation. Three Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining
Slide 39: All-in sustaining costs
All-in sustaining costs Advanced (1) Excludes Depreciation and Projects, Research and Treatment All-In amortization and Reclamation and Costs Development General Other and All-In Ounces Sustaining remediation. Years Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/P
Slide 40: All-in sustaining costs
All-in sustaining costs Advanced (1) Excludes Depreciation and Projects, Research and Treatment All-In amortization and Reclamation and Costs Development General Other and All-In Ounces Sustaining remediation. Years Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/P
Slide 41: All-in sustaining costs – 2018 outlook
All-in sustaining costs – 2018 outlook Similar to the historical AISC amounts presented above, AISC outlook is also a non-GAAP financial measure. A reconciliation of the 2018 Gold AISC outlook range to the 2018 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 22, 2018 and dis
Slide 43: Endnotes
Endnotes 7. The Board of Directors has authorized a new stock repurchase program, under which the Company may repurchase up to $90 million of its outstanding common stock to offset the dilutive impact of employee restricted stock vesting in 2018. Under this new stock repurchase program, the Company