Slide 1: Q1 2015 Earnings Call
Q1 2015 Earnings Call April 24, 2015
Slide 2: Cautionary statement
Cautionary statement Cautionary statement regarding forward looking statements, including outlook: 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,
Slide 3: Overview – Gary Goldberg
Overview – Gary Goldberg
Slide 4: Sustaining leading safety performance
Sustaining leading safety performance Total Recordable Incident Frequency Rate (TRIFR) (per 200,000 hours worked) 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2013 2014 2015 Newmont’s 2014 total injury rates were among the industry’s lowest April 24, 2015 Newmont
Slide 5: Delivering our strategy
Delivering our strategy AISC1 of ~$849/ounce – down 18% from Q1 2014 Improve the underlying 1.2 Moz of attributable gold – equal to Q1 2014 offsetting divestments business Total injury rates of 0.43 – down 9% from Q1 2014 Turf Vent Shaft – producing in 2015 Strengthen Merian – producing in 2016 the
Slide 6: Production increases offset divestments
Production increases offset divestments Attributable gold production (Moz) Attributable copper production (kt) 1,250 1.2 Moz 1.2 Moz 60 Asset sales 0.1 Moz 1.1 Moz 1,000 40 37 kt 24 kt 750 20 500 0 Q1 2015 Q1 2014 Q1 2015 Q1 2014 April 24, 2015 Newmont Mining Corporation | Q1 2015 Earnings Call | 6
Slide 7: Third consecutive quarter of cost improvement
Third consecutive quarter of cost improvement Gold all-in sustaining cost ($/ounce) $1,200 $1,063 $1,034 $995 $1,000 $927 $849 $800 $600 $400 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q1 2015 AISC below $1,000 per ounce at all managed operations April 24, 2015 Newmont Mining Corporation | Q1 2015 Earn
Slide 8: AISC benefits from lower costs and capital timing
AISC benefits from lower costs and capital timing Gold all-in sustaining cost per ounce savings from prior year quarter Other ~5% Due primarily to: FX and Oil ~30% • Cost and efficiency CAS* improvements ~50% • Grade improvements at Capex and Batu Hijau, Twin Creeks and Advanced Yanacocha Projects ~
Slide 9: Opportunities and challenges
Opportunities and challenges • Long Canyon – construction starts in April • Merian – pre-production mining ahead of schedule • Batu Hijau – negotiating Contract of Work and labor agreement • Waihi – surface slip not affecting underground operations • Akyem and Ahafo – producing at capacity despite l
Slide 10: Financial Results – Laurie Brlas
Financial Results – Laurie Brlas
Slide 11: Gold AISC driven down by 18%
Gold AISC driven down by 18% Gold CAS down* Gold AISC down* 19% 18% Q1 2015 vs. prior year Q1 2015 Q1 2014 Average Realized Gold Price, Net ($/oz) $1,203 $1,293 Average Realized Copper Price, Net ($/lb) $2.34 $2.50 Attributable Gold Production (Koz) 1,213 1,210 Gold CAS ($/oz) $609 $751 Gold AISC1 (
Slide 12: Fourth consecutive quarter of positive free cash flow
Fourth consecutive quarter of positive free cash flow Adjusted EBITDA up* Cash from continuing operations up* Free cash flow up* 65% 243% $396M Q1 2015 vs. prior year Q1 2015 Q1 2014 Revenue ($M) $1,972 $1,764 Adjusted Net Income4 ($M) $229 $121 Adjusted Net Income4 ($ per share) $0.46 $0.24 Adjuste
Slide 13: Adjusted Q1 2015 income above consensus
Adjusted Q1 2015 income above consensus 4 Adjusted net income ($/share) $0.09 $0.46 $0.37 $0.06 $0.07 $0.01 Q1 2015 Asset Sales Discontinued Impairments Tax valuation Q1 2015 Adj Net Net Income Operations and allowances Income restructuring April 24, 2015 Newmont Mining Corporation | Q1 2015 Earning
Slide 14: Clear capital allocation priorities
Clear capital allocation priorities Improving financial flexibility • $6B in cash, marketable securities and revolver capacity* $0.2B Marketable • $628M in Q1 2015 cash from continuing operations Securities • $344M in Q1 2015 free cash flow De-levering the balance sheet • Pre-paid $200M in debt in Q
Slide 15: Strengthening the balance sheet
Strengthening the balance sheet • Revolver has one financial covenant: maximum net debt to book capital of 62.5%; compared to 22.7% as of 31 March 2015 • Prepaid ~$300M since November 2014; potential to repay up to ~$750M of debt in 2015 • Extended revolving credit facility to 2020 Scheduled debt ma
Slide 16: Industry leading net debt to EBITDA
Industry leading net debt to EBITDA Net debt to EBITDA* 3.0x 2.5x 2.0x 1.5x 1.0x 0.5x 0.0x Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2013 2014 2015 Newmont Competitor average *Competitors include Barrick, Goldcorp and AngloGold Ashanti; net debt to EBITDA utilizes trailing 12-month EBITDA. All figures sourced from
Slide 17: Outlook – Gary Goldberg
Outlook – Gary Goldberg
Slide 18: Long Canyon represents upside to production outlook
Long Canyon represents upside to production outlook 5 Attributable gold production 2015 – 2017 outlook 4.7 – 5.1 Moz 4.6 – 4.9 Moz South America – Merian offsets Yanacocha declines Africa – lower grades at Ahafo APAC – higher grades at Batu Hijau, and higher productivity at Tanami North America – Tu
Slide 19: Maintaining cost outlook
Maintaining cost outlook Gold All-in sustaining cost per ounce outlook ($/oz) $960 – $1,020/oz $925 – $1,025/oz South America – lower cost production from Merian Africa – increased stripping and lower grades APAC – higher grades at Batu Hijau, higher grades and productivity at Tanami North America –
Slide 20: Capital outlook including Long Canyon
Capital outlook including Long Canyon Total Consolidated Capex ($M) $1,800 $1,600 Sustaining $1,400 capital $850 – $950M $1,200 $1,000 $800 $600 $400 $200 $0 2015 2016 2017 Sustaining capital Merian Turf Vent Shaft Long Canyon April 24, 2015 Newmont Mining Corporation | Q1 2015 Earnings Call | 20
Slide 21: Strong pipeline drives long-term value creation
Strong pipeline drives long-term value creation April 24, 2015 Newmont Mining Corporation | Q1 2015 Earnings Call | 21
Slide 22: Long Canyon opens new district in established region
Long Canyon opens new district in established region • Capital – $250M to $300M with IRR of ~17% at current gold price • Production – 100 Koz to 150 Koz per year starting in 2017 • Costs – CAS of $400 to $500 per ounce LOM; AISC of $500 to $600 per ounce LOM • Gold reserves – 1.2 Moz at 2.29 g/t ver
Slide 23: Exploration focused on near-mine expansions
Exploration focused on near-mine expansions Carlin Long Canyon Tanami Merian Yanacocha Ahafo Waihi April 24, 2015 Newmont Mining Corporation | Q1 2015 Earnings Call | 23
Slide 24: Capturing gold sector leadership
Capturing gold sector leadership Where Where is Newmont Newmont is Today today? Where is Newmont Where Newmont heading? is Heading Safety Industry-leading safety performance Zero injuries and illnesses AISC $849/oz, down 18% from Q1 2014 At or below $1,000/oz Portfolio $1.4B in non-core asset sales
Slide 25: Questions
Questions April 24, 2015 Newmont Mining Corporation | Q1 2015 Earnings Call | 25
Slide 26: Appendix
Appendix
Slide 27: 2015 Outlook
2015 Outlooka a2015 Outlook projections used in this presentation Consolidated Consolidated Consolidated Attributable Consolidated All-in Sustaining Total Capital (“Outlook”) are considered “forward-looking statements” and represent management’s good faith Production Production CAS Costsb Expenditur
Slide 28: Adjusted net income
Adjusted net income Adjusted net income (loss) Management of the Company 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 analy
Slide 29: Adjusted net income
Adjusted net income Three Months Ended March 31, 2015 2014 Net income (loss) attributable to Newmont stockholders $ 183 $ 100 Loss (income) from discontinued operations (1) (8) 17 Impairments and loss provisions (2) 37 1 Tax valuation allowance 44 13 Restructuring and other (3) 2 3 Asset sales (4) (
Slide 30: Adjusted EBITDA
Adjusted EBITDA We also present adjusted earnings before interest, taxes, depreciation, and amortization ("adjusted EBITDA") as a non-GAAP measure. Our management uses adjusted net income, adjusted net income per diluted share and adjusted EBITDA as measures of operating performance to assist in com
Slide 31: 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 to provide visibility into the economics of our gold mining operations related to expenditures, operating performance and the ability to generate cash flow fr
Slide 32: All-in sustaining costs
All-in sustaining costs (1) Excludes Depreciation and Ounces Costs Advanced Treatment (000)/ All-In amortization and Reclamation and Applicable Projects Other and All-In Pounds Sustaining remediation. to Sales (1) Remediation and General and Expense, Refining Sustaining Sustaining (millions) Costs p
Slide 33: All-in sustaining costs
All-in sustaining costs Ounces (1) Excludes Depreciation and Costs Advanced Treatment (000)/ All-In Applicable Projects Other and All-In Pounds Sustaining amortization and Reclamation and to Sales (1) Remediation and General and Expense, Refining Sustaining Sustaining (millions) Costs per remediatio
Slide 34: 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 most recent Form 10-K, filed with the SEC on February 20,