Newmont Corporation · NYSE:NEM
Newmont — Investor Presentation (May 2021)
48 slides from Newmont's investor presentation, May 2021
Slide 1: Investor Presentation
Investor Presentation CREATING VALUE & IMPROVING LIVES MAY 2021 THROUGH SUSTAINABLE, RESPONSIBLE MINING MAY 2021 INVESTOR PRESENTATION NEWMONT CORPORATION 1
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: World-Class Assets in Top-Tier Jurisdictions
World-Class Assets in Top-Tier Jurisdictions World’s Leading Gold Company ▪ Nine world-class assets in top-tier jurisdictions* Musselwhite ▪ Industry’s largest gold reserves of 94Moz 20% and 65Moz in GEO reserves* Éléonore Nevada Gold Mines*** ▪ Stable production of ~8M GEOs* annually Turquoise Ridg
Slide 4: Nine World-Class Assets in Top-Tier Jurisdictions
Nine World-Class Assets in Top-Tier Jurisdictions Carlin Turquoise Ridge Cortez Boddington Tanami Ahafo Yanacocha Peñasquito Nevada (38.5%) ✓ >1 Moz GEOs* ✓ ~550 Kozs* ✓ >800Kozs** ✓ ~500 Koz GEOs*** ✓ ~1.7Moz GEOs* ✓ ~1.4 Mozs* ✓ AISC of ~$800/oz* ✓ AISC of $650/oz* ✓ AISC of $800/oz** ✓ AISC of ✓
Slide 5: Steady production through industry-best portfolio
Steady production through industry-best portfolio INDICATIVE 10-YEAR GOLD PRODUCTION PROFILE * (ATTRIBUTABLE MOZ PER YEAR) 9 Total GEOs ** 8 7 6 South America*** 5 Africa 4 Australia 3 2 North America*** 1 - 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 ~8 million Gold Equivalent Ounces per Year
Slide 6: Improving Margins and Investing in Our Future
Improving Margins and Investing in Our Future ATTRIBUTABLE PRODUCTION & AISC * (MOZ & $/OZ) $1,500 ▪ 2020 delivered 5.9 million 8.0 ounces** with AISC of $1,045/oz Total GEOs $1,300 ▪ 6.2 – 7.0 million ounces per 7.0 year for 2021 through 2025* * $1,100 AISC ▪ Ahafo North and Yanacocha 6.0 Sulfides
Slide 7: Project Pipeline to Sustain Production into 2040's
Project Pipeline to Sustain Production into 2040’s 7+ YEARS 4 TO 7 YEARS 0 TO 3 YEARS EXECUTION Feasibility Yanacocha Sulfides Tanami Expansion 2 Definitive Peru – Gold (~65%) Copper (~35%) Australia – Gold Ahafo North Goldrush Declines (NGM JV) Ghana – Gold USA – Gold Pueblo Viejo Expansion JV Domi
Slide 8: Largest Gold Reserves in Top-Tier Jurisdictions
Largest Gold Reserves in Top-Tier Jurisdictions REPLACED 80 PERCENT OF DEPLETION IN 2020 GOLD GOLD EQUIVALENT OUNCES Africa Silver 12% 12% North America 35% Other Australia 94 Moz 65 Moz 13% 20% Gold Reserves* & GEO Reserves* & 101 Moz 107 Moz Gold Resources** GEO Resources** Copper South America 75
Slide 9: Developing Mining Districts Through Exploration
Developing Mining Districts Through Exploration UNMATCHED LAND POSITION OF 59,000 KM 2* IN TOP PROSPECTIVE EXPLORATION DOMAINS SUPERIOR PROVINCE TINTINA PROVINCE TANAMI Porcupine Coffee Tanami Borden Triumph Gold Prodigy Gold JV Éléonore Independence Gold Musselwhite Éléonore South JV CENTRALIAN GOL
Slide 10: First Quarter Accomplishments
First Quarter Accomplishments POSITIONED TO DELIVER STRONG PERFORMANCE IN 2021 ESG EMBEDDED IN BUSINESS WORLD-CLASS PORTFOLIO IN TOP- MOMENTUM FROM DISCIPLINED STRATEGY AND GOVERNANCE TIER JURISDICTIONS CAPITAL ALLOCATION STRATEGY ✓ Focus remains on protecting the health and ✓ Produced 1.5M attribut
Slide 11: Solid Financial Performance in the First Quarter
Solid Financial Performance in the First Quarter METRICS Q1 2020 Q1 2021 Profit Metrics Revenue ($M) $2,581 $2,872 +11% * Adjusted Net Income ($M) $326 $594 +82% * Adjusted Net Income ($/diluted share) $0.40 $0.74 +85% * Adjusted EBITDA ($M) $1,118 $1,457 +30% Cash Flow Metrics Cash from continuing
Slide 12: Delivering on Capital Allocation Strategy
Delivering on Capital Allocation Strategy INVESTING IN ORGANIC GROWTH RETURNING CASH TO SHAREHOLDERS MAINTAINING FINANCIAL FLEXIBILITY ✓ Delivering first Autonomous Haulage ✓ Maintained industry-leading dividend ✓ Liquidity of $8.5B and net debt to Fleet to the gold mining industry framework, provid
Slide 13: Superior Free Cash Flow Generation Across Cycles
Superior Free Cash Flow Generation Across Cycles ATTRIBUTABLE FREE CASH FLOW INCREASES WITH HIGHER GOLD PRICE * (INCREMENTAL FROM $1,200 BASE) ~$21.5B +$3,600M ~$15.5B +$2,400M ~$9.5B +$1,200M ~$3.5B (+171%) (+343%) (+514%) $1,200 $1,500 $1,800 $2,100 5 Year Cumulative Attributable Free Cash Flow**
Slide 14: Industry-leading Dividend Framework
Industry-leading Dividend Framework ▪ Leading $1.00/share sustainable base dividend ANNUALIZED DIVIDEND PAYOUT $2.80 - $3.70 ▪ Targeting 40% – 60% of incremental attributable Free Cash Flow above $1,200/oz returned to shareholders ▪ Evaluating gold price increments of ~$300/oz $2.20 - $2.80 ▪ Approv
Slide 15: The World's Leading Gold Company
The World’s Leading Gold Company #1 GOLD WORLD-CLASS LARGEST GOLD EXPOSURE TO PRODUCER ASSETS* RESERVES* OTHER METALS* ~8M 9 94 MOZ 65 MOZ GEOs* per year through World-class assets in top- Gold Reserves primarily in GEO Reserves including 2030+ tier jurisdictions Americas and Australia copper, lead,
Slide 16: Appendix
Appendix MAY 2021 INVESTOR PRESENTATION NEWMONT CORPORATION 16
Slide 17: Five Year Cost and Production Outlook
Five Year Cost and Production Outlook Guidance metric (+/- 5%) 2021E 2022E 2023E 2024E 2025E * Gold production (Mozs) 6.5 6.2 – 6.7 6.2 – 6.7 6.5 – 7.0 6.5 – 7.0 ** Other metal production (Mozs) 1.3 1.2 – 1.4 1.4 – 1.6 1.4 – 1.6 1.4 – 1.6 Total GEO production (Mozs) 7.8 7.5 – 8.0 7.7 – 8.2 8.0 – 8.5
Slide 18: Well-Positioned with Industry-Leading Portfolio
Well-Positioned with Industry-Leading Portfolio AUSTRALIA NORTH AMERICA SOUTH AMERICA AFRICA NEVADA GOLD MINES Growing Margins & Unlocking Value Investing in Future Growth Investment to Deliver Record (38.5%) Production Performance ▪ Boddington sustains strong ▪ Peñasquito delivers ▪ Cerro Negro imp
Slide 19: Tanami Growing Position as a World-Class Asset
Tanami Growing Position as a World-Class Asset OPERATIONAL EFFICIENCY IMPROVES MARGINS TANAMI EXPANSION 2 BUILDING ON SOLID BASE ✓ Replicating successes & leveraging best practices ✓ Supports Tanami’s future as a long-life, low-cost producer ✓ Optimized mine plans, improved throughput & recovery ✓ E
Slide 20: Yanacocha Sulfides Advances Towards 2021 Approval
Yanacocha Sulfides Advances Towards 2021 Approval INDICATIVE YANACOCHA PRODUCTION PROFILE * ▪ First phase focuses on Yanacocha (GEO ** KOZS, 100%) Verde and Chaquicocha deposits to profitably extend Yanacocha 800 operations beyond 2040 700 ▪ Decision to proceed expected in H2 600 2021 with three yea
Slide 21: Ahafo North – Best Unmined Deposit in West Africa
Ahafo North – Best Unmined Deposit in West Africa INDICATIVE AHAFO NORTH PRODUCTION PROFILE (KOZS) ▪ Open pit mine, stand-alone mill for processing 3.5Mozs of Reserve and 1.0Mozs of Resource* 1,600 ▪ Full funds decision expected July 1,400 2021 1,200 ▪ Investment of $700-$800M with 1,000 three year
Slide 22: Twenty Years of Newmont's Corporate Responsibility
Twenty Years of Newmont’s Corporate Responsibility 2000 - 2005 2005 - 2010 2010 - 2015 2015 - 2020 Founding member of ICMM (2001) Initial signatory of the International Adopted Conflict-Free Gold Standard Sustainability and safety targets Cyanide Management Code (2005) (2013) included in compensatio
Slide 23: Intensive Focus on Responsible Business Practices
Intensive Focus on Responsible Business Practices TARGETS RECOGNITION Water Climate Transparency Climate 5% 30% #2 A- reduction in freshwater CDP Climate assessment reduction in absolute and consumption by 2019: most transparent score reflective of intensity based GHG exceeded target - company in S&
Slide 24: Sustainability Program Aligned to Leading Practices
Sustainability Program Aligned to Leading Practices Accountability and transparency in setting public sustainability targets – 2021 targets* Climate – By 2030, reduce Scope 1 and 2 emissions by 30%; reduce Scope 3 by 15%, increase E renewables to 10% Water – Improve water efficiency; increase multi-
Slide 25: Leading Approach to Climate Resiliency
Leading Approach to Climate Resiliency Climate Commitments by 2030* 1. Absolute Emissions: 30% reduction of combined emissions (Scope 1 & 2) 2. Emissions Intensity: 30% reduction of combined emissions intensity (Scope 1 & 2) 3. Scope 3 Emissions: 15% reduction from supply chain and partnerships 4. E
Slide 26: Directing $500M to Climate Initiatives over 5 Years
Directing $500M to Climate Initiatives over 5 Years Renewable energy Energy efficiency Fuel switching Carbon capture PATHWAYS TO LOWER CARBON FOOTPRINT INITIATIVES UNDER CONSIDERATION ▪ Funds directed to support 2030 climate targets and ▪ Solar projects at Peñasquito, Ahafo and Boddington goal of ne
Slide 27: Exploration is a Core Expertise and Investment Priority
Exploration is a Core Expertise and Investment Priority EXPLORATION IS THE FOUNDATION FOR GROWING RESERVES AND SUSTAININ G PRODUCTION 28 Exploration Success Discoveries 338 Geoscientists Sector-Leading Team Underpinned by a Proven Operating Model Technology Cutting Edge Exploration Technologies Safe
Slide 28: Growth Focused on Value
Growth Focused on Value PROJECT PIPELINE TO SUSTAIN PRODUCTION INTO 2040’S Greenfield Opportunities Brownfield Opportunities District-creating potential Organic extension of production Exploration Budget: ~$50M Exploration Budget: ~$200M 17 MOZ 39 MOZ 77 MOZ 62 MOZ RESERVES RESOURCES* RESERVES RESOU
Slide 29: Robust Near-Mine Exploration Opportunities
Robust Near-Mine Exploration Opportunities NORTH AMERICA Peñasquito: Large resource base and prospective land package with potential to extend mine life to 2040 Éléonore: New district targets for 2021 with <20% property drill tested to date CC&V Underground: Significant potential to extend mine life
Slide 30: Broad Management Experience
Broad Management Experience EXECUTIVE LEADERSHIP TEAM BOARD OF DIRECTORS Tom Palmer Rob Atkinson Nancy Buese Greg Boyce, Chair Bruce R. Brook Maura Clark Matthew Coon Come President and CEO EVP and COO EVP and CFO Steve Gottesfeld Nancy Lipson René Médori Julio Quintana Susan Story EVP and CSO EVP G
Slide 31: Executive Compensation Structure
Executive Compensation Structure BALANCED AND WEIGHTED TOWARD DELIVERY OF RESULTS MAY 2021 INVESTOR PRESENTATION NEWMONT CORPORATION 31
Slide 32: 2021 Strategy Map
2021 Strategy Map Environment, Social Health & Safety Operational Excellence Growth People and Governance OUR PURPOSE • A fatality, injury and illness free • Culture of continuous • Value accretive growth • Culture is a competitive • Access to land, resources and OBJECTIVES To create value and STRAT
Slide 33: Nevada Joint Venture Processes
Nevada Joint Venture Processes For contributing excluded assets Four Mile (Barrick), Fiberline (Newmont) and Mike (Newmont): ▪ Party that owns asset has obligation to contribute upon completion of successful Feasibility Study, which requires a project IRR of at least 15% ▪ Feasibility Study must be
Slide 34: 2021 Outlook by Region
2021 Outlooka by Region Consolidated Attributable Consolidated All-In Consolidated Consolidated Attributable Attributable Production (Koz, GEOs Production (Koz, GEOs Consolidated CAS Sustaining Costs b Sustaining Capital Development Capital Sustaining Capital Development Capital 2021 Outlook (+/-5%)
Slide 35: 2021 Site Outlook
2021 Site Outlooka Consolidated Consolidated a) 2021 outlook projections shown above are considered forward-looking statements and represent Consolidated All- Sustaining Development management’s good faith estimates or expectations of future production results as of December 8, Consolidated Attribut
Slide 36: Longer-term Outlook
Longer-term Outlooka Outlook 2021E (+/- 5%) 2022E 2023E 2024E 2025E Attributable Production (koz) 6,500 6,200 - 6,700 6,200 - 6,700 6,500 - 7,000 6,500 - 7,000 Attributable Co-products (GEOs Koz) 1,300 1,200 - 1,400 1,400 - 1,600 1,400 - 1,600 1,400 - 1,600 Consolidated Gold CAS ($/oz) 750 650 - 750
Slide 37: Adjusted net income (loss)
Adjusted net income (loss) 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
Slide 38: 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 39: 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 40: 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 41: All-in Sustaining Costs
All-in Sustaining Costs Newmont has developed 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 performance and t
Slide 42: All-in Sustaining Costs
All-in Sustaining Costs Advanced Projects, Sustaining Costs Research and Treatment Capital and All-In Applicable Development Other and Lease All-In Ounces Sustaining Three Months Ended to Reclamation and General and Expense, Refining Related Sustaining (000) Costs Per March 31, 2021 Sales(1)(2)(3) C
Slide 43: Gold All-in Sustaining Costs - 2021 Outlook
Gold All-in Sustaining Costs - 2021 Outlook A reconciliation of the 2021 Gold AISC outlook to the 2021 Gold CAS outlook are 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 Se
Slide 44: Co-Product All-in Sustaining Costs - 2021 Outlook
Co-Product All-in Sustaining Costs - 2021 Outlook A reconciliation of the 2021 Co-products AISC outlook to the 2021 Co-Products CAS outlook is provided below. The estimates in the table below are considered “forward-looking statements” within the 27A of the Securities Act of 1933, as amended, and Se
Slide 45: 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 46: 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, 2021 filed with the SEC on April 29, 2021, and with the Cautionary Statement on slide 2 and the following notes below Outlook Assumpt
Slide 47: Endnotes
Endnotes Reserves Estimates: The reserves stated in this presentation were prepared in compliance with Industry Guide 7 published by the United States SEC and represent the amount of gold, copper, silver, lead and zinc that we estimated, at December 31, 2020, could be economically and legally extrac
Slide 48: Endnotes
Endnotes Adjusted Net Income is a non-GAAP metric. Adjusted Net Income per share refers to Adjusted Net Income per diluted share. See appendix for more information and reconciliation to the nearest GAAP metric. Free Cash Flow. FCF or Free cash flow are used herein is a forward-looking statement and