Newmont Corporation · NYSE:NEM
Newmont — Investor Presentation (March 2022)
57 slides from Newmont's investor presentation, March 2022
Slide 1: Investor Presentation
Investor Presentation CREATING VALUE & IMPROVING LIVES MARCH 2022 THROUGH SUSTAINABLE, RESPONSIBLE MINING MARCH 2022 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: Newmont is the World's Leading Gold Company
Newmont is the World’s Leading Gold Company COMMITMENT TO INDUSTRY PROVEN DISCIPLINED CAPITAL LEADING ESG PRACTICES LEADING PORTFOLIO OPERATING MODEL ALLOCATION STRATEGY Creating value and improving lives World-class assets in top-tier Experienced leaders with strong Balanced approach to deliver for
Slide 4: 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 ▪ Robust gold reserves of 96Moz and 68Moz 20% in GEO reserves** Éléonore Nevada Gold Mines**** ▪ Stable production of average ~8M GEOs* Turquoise Ridge annually
Slide 5: Robust Gold Reserves in Top-Tier Jurisdictions
Robust Gold Reserves in Top-Tier Jurisdictions Africa 9% Other North America 11% 35% Australia Silver 13% 12% GOLD RESERVES* GEO RESERVES* 96 Moz 68 Moz + + GOLD RESOURCES** GEO RESOURCES** 112 Moz 112 Moz Copper 77% South America 43% ✓ 91% Reserves and Resources located in the Americas & Australia
Slide 6: Project Pipeline to Sustain Production into 2040's
Project Pipeline to Sustain Production into 2040’s 7+ YEARS 4 TO 7 YEARS 0 TO 4 YEARS EXECUTION Feasibility Tanami Expansion 2 Definitive Yanacocha Sulfides Peru – Gold (~45%), Copper (~45%), Australia – Gold Silver (~10%) Ahafo North Pueblo Viejo Expansion JV Ghana – Gold Dominican Republic – Gold
Slide 7: Steady Production Through Industry-Best Portfolio
Steady Production Through Industry-Best Portfolio INDICATIVE 10-YEAR PRODUCTION PROFILE* (Attributable Moz per Year) 10 9 Total GEO Production** 8 Gold Production** 7 6 SOUTH AMERICA*** 5 AFRICA 4 3 AUSTRALIA 2 NORTH AMERICA*** 1 - 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 ~8 Million Gold Eq
Slide 8: Increasing Production and Investing in Our Future
Increasing Production and Investing in Our Future ATTRIBUTABLE PRODUCTION* (MOZ) Gold Production* UNDERPINNED BY THE Co-Product GEO Production** INDUSTRY’S BEST PORTFOLIO 8.0 Total GEO Production ▪ 7.5 – 8.3 million GEOs per year * through 2026 7.0 Gold ▪ Includes 6.0 – 6.8 million ounces Production
Slide 9: Reducing Costs and Improving Margin
Reducing Costs and Improving Margin DECLINING COSTS OVER ALL-IN SUSTAINING COST ($/OZ) Gold AISC* TIME Co-Product GEO AISC $1,200 Total GEO ▪ Gold AISC improves to $920 – AISC* $1,020/oz and co-product GEO $1,100 AISC improves to $800 – $900/oz $1,000 ▪ Improving total GEO AISC to between $880 - $98
Slide 10: Operating Model Drives Continuous Improvement
Operating Model Drives Continuous Improvement LEVERAGING PROVEN WORLD-CLASS PROGRAM AND TECHNICAL EXPERTISE Diagnose Design Deliver Refresh ~15% EXTERNAL ~55% MINING SPEND & OTHER IMPROVEMENT ✓ Proven integrated operating model with deep bench Supply Chain, Asset Optimizing Fleet and of experienced
Slide 11: Diverse, Global Portfolio of World-Class Assets
Diverse, Global Portfolio of World-Class Assets 2022 ALL-IN SUSTAINING COSTS ($/GEO) World-Class Assets $1,600 $1,400 Yanacocha $1,200 Total GEO AISC* $1,000 $800 Pueblo Viejo** Ahafo Merian Tanami CC&V Akyem Peñasquito Boddington Porcupine Yanacocha Musselwhite Éléonore Cerro Negro Nevada Gold $600
Slide 12: Focused on Value, Driven by Purpose: 2021 Highlights
Focused on Value, Driven by Purpose 2021 HIGHLIGHTS Delivered attributable gold Protecting the wellbeing of our Generated $2.6B in attributable production of 6.0M ounces* at workforce and communities free cash flow** and >$250M from all-in sustaining cost of $1,062 per throughout Covid response non-
Slide 13: Full-Year and Fourth Quarter Financial Performance
Full-Year and Fourth Quarter Financial Performance METRICS Q4 2020 Q4 2021 FY 2020 FY 2021 Profit Metrics Revenue ($M) $3,381 $3,390 $11,497 $12,222 * Adjusted Net Income ($M) $856 $624 $2,140 $2,371 * Adjusted Net Income ($/diluted share) $1.06 $0.78 $2.66 $2.96 * Adjusted EBITDA ($M) $1,772 $1,599
Slide 14: Disciplined Capital Allocation Priorities
Disciplined Capital Allocation Priorities INVESTING IN ORGANIC RETURNING CASH TO MAINTAINING FINANCIAL GROWTH SHAREHOLDERS FLEXIBILITY ✓ Sustaining capital of ~$1B per year ✓ Industry-leading dividend framework ✓ Liquidity of $8.0B and cash position of $5.0B at Q4 ✓ Average attributable development
Slide 15: Free Cash Flow Increases with Higher Gold Price
Free Cash Flow Increases with Higher Gold Price ANNUAL INCREMENTAL FREE CASH FLOW* +$4.8B +$3.6B INCREMENTAL FCF +$2.4B +$1.2B $1,200 $1,500 $1,800 $2,100 $2,400 +$400M FCF per annum for every $100/oz increase in gold price *Free Cash Flow assumptions as of December 2, 2021; Includes impacts from ap
Slide 16: 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 17: Delivering on Capital Allocation Strategy
Delivering on Capital Allocation Strategy ✓ Delivered first Autonomous Haulage Fleet to gold mining industry ✓ Approved full funds for Ahafo North and progressing Tanami Expansion 2 INVESTING IN ORGANIC ✓ Progressing Yanacocha Sulfides; full funds decision expected in late-2022 GROWTH ✓ Progressed d
Slide 18: External Recognition for Responsible Business Practices
External Recognition for Responsible Business Practices ESG RATINGS ESG RECOGNITION SAM S&P (DJSI) SUSTAINALYTICS TRANSPARENCY CLIMATE 99% Percentile ranking 23 ESG Risk Rating measures exposure and #2 Most transparent company in B CDP Climate Scores reflective of global metals and mining sector man
Slide 19: Focused on Value, Driven by Purpose
Focused on Value, Driven by Purpose 2020 SUSTAINABILITY REPORT 2020 CLIMATE STRATEGY REPORT STANDARDS AND PERFORMANCE EXPECTATIONS ADDITIONAL REPORTS ON OUR WEBSITE ▪ Sustainability Accounting Standards Board (SASB) ▪ 2020 SASB Index ▪ Task Force on Climate-related Financial Disclosures (TCFD) ▪ 202
Slide 20: Leading Change. Focused on Value.
– 100 YEARS – #1 gold producer with ~8M Proven operating model and GEOs* per year and significant deep bench of experienced exposure to copper and leaders with strong track record other metals Strong free cash flow Industry’s leading portfolio of generation and margins with world-class assets in top
Slide 21: Appendix
Appendix CREATING VALUE & IMPROVING LIVES THROUGH SUSTAINABLE, RESPONSIBLE MINING MARCH 2022 INVESTOR PRESENTATION NEWMONT CORPORATION 21
Slide 22: Five Year Outlook: $1,800/oz Gold Price Assumption
Five Year Outlook: $1,800/oz Gold Price Assumption GUIDANCE METRIC (+/- 5%) 2022E 2023E 2024E 2025E 2026E Gold production* (Mozs) 6.2 6.0 – 6.6 6.2 – 6.8 6.2 – 6.8 6.2 – 6.8 Other metal production** (Mozs) 1.3 1.4 – 1.6 1.4 – 1.6 1.4 – 1.6 1.4 – 1.6 Total GEO production* (Mozs) 7.5 7.5 – 8.1 7.7 – 8
Slide 23: Five Year Outlook: $1,200/oz Gold Price Assumption
Five Year Outlook: $1,200/oz Gold Price Assumption GUIDANCE METRIC (+/- 5%) 2022E 2023E 2024E 2025E 2026E Gold production* (Mozs) 6.2 6.0 – 6.6 6.2 – 6.8 6.2 – 6.8 6.2 – 6.8 Other metal production** (Mozs) 1.3 1.4 – 1.6 1.4 – 1.6 1.4 – 1.6 1.4 – 1.6 Total GEO production* (Mozs) 7.5 7.5 – 8.1 7.7 – 8
Slide 24: Industry-Leading Portfolio Delivers Long-Term Value
Industry-Leading Portfolio Delivers Long-Term Value AUSTRALIA NORTH AMERICA SOUTH AMERICA AFRICA NEVADA GOLD MINES Growing Profitable Extending Mine Life Preparing for Future Growth Maintaining Strong (38.5%) Production Performance ▪ Boddington adds ▪ Peñasquito continues ▪ Cerro Negro improves ▪ Ak
Slide 25: Tanami Growing Position as a World-Class Asset
Tanami Growing Position as a World-Class Asset OPERATIONAL EFFICIENCY IMPROVES MARGINS PROGRESSING TANAMI EXPANSION 2 ✓ Delivers a 1.5 km deep production shaft, reducing ✓ Supports Tanami’s future as a long-life, low-cost producer operating costs by ~10% through efficiency improvements and unlocks o
Slide 26: Ahafo North – Best Unmined Deposit in West Africa
Ahafo North – Best Unmined Deposit in West Africa EXPANDING CURRENT FOOTPRINT IN GHANA PROGRESSING AHAFO NORTH ✓ Open pit mine, stand-alone mill for processing 3.5Mozs of ✓ Investment of $750-$850M with three-year development Reserve and 1.0Mozs of Resource timeline ✓ 13-year mine life with ~300Koz
Slide 27: Yanacocha Sulfides Advances Towards 2022 Approval
Yanacocha Sulfides Advances Towards 2022 Approval NEXT CHAPTER IN YANACOCHA’S LONG HISTORY PROFITABLE PRODUCTION WITH FURTHER UPSIDE ✓ First phase includes Yanacocha Verde and Chaquicocha deposits ✓ First five-year average CAS of $500- $600/GEO and AISC of to profitably extend Yanacocha operations b
Slide 28: Porcupine Adds Profitable Production With Pamour
Porcupine Adds Profitable Production With Pamour EXTENDING MINE LIFE IN A PROVEN DISTRICT EXISTING INFRASTRUCTURE IMPROVES RETURNS ✓ Pamour layback adds 1.6 Moz gold production to Porcupine, ✓ ~$400 million development capital with a full funds decision extending mine life through 2035 expected in t
Slide 29: Expanding the Cerro Negro District in Argentina
Expanding the Cerro Negro District in Argentina UP TO 50% INCREASE IN ANNUAL PRODUCTION SIGNIFICANT EXPLORATION UPSIDE ✓ The project is expected to improve annual production to above ✓ Highly prospective and underexplored gold district 350 Koz beginning in 2024 ✓ Among the top land packages in Newmo
Slide 30: Significant Milestones in Our ESG Journey
Significant Milestones in Our ESG Journey 2001 2004 2007 2013 2016 2020 Founding member Established Safety Appointed Adopted Conflict-Free Sustainability and Implementing Global of ICMM & Sustainability Company’s first Gold Standard safety targets Industry Standard on Board committee Chief Sustainab
Slide 31: Reducing Our Carbon Footprint
Reducing Our Carbon Footprint >30% REDUCTION 30% REDUCTION 100% CARBON NEUTRAL Absolute GHG Emissions Absolute GHG Emissions of joint 2050 Ambition and Intensity by 2030 (Scope 1 and 2) venture assets and supply chain by 2030 (Scope 3) ▪ Targets will be delivered from our current ▪ Reduction targets
Slide 32: Pathway to Achieving Climate Change Goals
Pathway to Achieving Climate Change Goals 10+ YEARS NEXT 10 YEARS IN EXECUTION Battery Electric Haul Trucks Less Energy Intensive Ore Fleet Electrification Mine Electrification All Sites and Projects – Global Separation (Tanami Expansion 2) (Borden) All Sites – Global Tanami – Australia Porcupine –
Slide 33: Social Acceptance Built on Trust and Engagement
Social Acceptance Built on Trust and Engagement KEY PRINCIPLES ▪ Proactively engage stakeholders ▪ Develop relationships based on inclusion, transparency and integrity ▪ Act with humility and a willingness to listen MINE LIFECYCLE ▪ Integrate stakeholder considerations into managing risks ▪ Develop
Slide 34: Governance Underpins Sustainability Strategy
Governance Underpins Sustainability Strategy SUSTAINABILITY GOVERNANCE AT NEWMONT SHORT-TERM INCENTIVE PLAN BOARD OF DIRECTORS ▪ Oversight, advice and counsel on key sustainability matters ▪ Dedicated Safety & Sustainability Committee Environment, 20% Health and Safety Sustainability & Governance EX
Slide 35: 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 Jane Nelson EVP a
Slide 36: Executive Compensation Structure
Executive Compensation Structure BALANCED AND WEIGHTED TOWARD DELIVERY OF RESULTS MARCH 2022 INVESTOR PRESENTATION NEWMONT CORPORATION 36
Slide 37: Investing in Exploration to Extend Mine Life
Investing in Exploration to Extend Mine Life Exploration Investment** Coffee Galore Creek 20% Saddle North Musselwhite Éléonore $300M Japan Porcupine in 2022 Nevada Gold Mines* CC&V 80% 80% Peñasquito Mexico Pueblo Viejo* Merian Espérance Akyem Ahafo Yanacocha Tanami Andes Centralian LEGEND Lachlan
Slide 38: Exploration is a Core Expertise and Investment Priority
Exploration is a Core Expertise and Investment Priority EXPLORATION IS THE FOUNDATION FOR GROWING RESERVES AND SUSTAININ G PRODUCTION 28 Exploration Success Discoveries 338 Geoscientists Sector-Leading Team Underpinned by a Proven Operating Model Technology Cutting Edge Exploration Technologies Safe
Slide 39: Developing Mining Districts Through Exploration
Developing Mining Districts Through Exploration UNMATCHED LAND POSITION OF ~59,000 KM 2* IN TOP PROSPECTIVE EXPLORATION DOMAINS Gold Terra JV SUPERIOR PROVINCE TINTINA PROVINCE TANAMI Porcupine Coffee Tanami Borden Triumph Gold Prodigy Gold JV Éléonore Independence Gold Musselwhite Éléonore South JV
Slide 40: Nevada Joint Venture Processes
Nevada Joint Venture Processes For contributing excluded assets Four Mile (Barrick), Fiberline (Newmont) and Mike (Newmont): ▪ Party that owns asset has obligation to contribute upon completion of successful Feasibility Study, which requires a project IRR of at least 15% ▪ Feasibility Study must be
Slide 41: 2022 Consolidated Expense and Capital Outlook
2022 Consolidated Expense and Capital Outlook GUIDANCE METRIC ($M) (+/- 5%) 2022 2023 2024 2025 2026 Consolidated Sustaining Capital $1,000 $900 – $1,100 $900 – $1,100 $900 – $1,100 $900 – $1,100 Consolidated Development Capital $1,400 $1,300 – $1,500 $1,100 – $1,300 $400 – $600 $100 – $300 Total Co
Slide 42: 2022 Outlook by Site
2022 Outlooka by Site Consolidated Consolidated Sustaining Development Consolidated Attributable Consolidated All- Capital Capital Production Production Consolidated CAS In Sustaining Expenditures Expenditures 2022 Outlook (+/-5%) (Koz, GEOs Koz) (Koz, GEOs Koz) ($/oz) Costs b ($/oz) ($M) ($M) a 202
Slide 43: 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 44: 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 45: 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 46: 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 47: Attributable free cash flow
Attributable free cash flow Three Months Ended December 31, 2020 Year Ended December 31, 2020 Attributable to Attributable to Attributable to Attributable to noncontrolling Newmont noncontrolling Newmont Consolidated interests (1) Stockholders Consolidated interests (1) Stockholders Net cash provide
Slide 48: 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 49: All-in Sustaining Costs
All-in Sustaining Costs Advanced Projects, Sustaining Research and Care and Capital and All-In Costs Development Maintenance Treatment Lease All-In Sustaining Three Months Ended Applicable to Reclamation and General and and Other and Refining Related Sustaining Ounces Costs Per December 31, 2021 Sal
Slide 50: All-in Sustaining Costs
All-in Sustaining Costs Advanced Projects, Care and Sustaining Research and Maintenance Capital and All-In Costs Development and Other Treatment Lease All-In Sustaining Year Ended Applicable Reclamation and General and Expense, and Refining Related Sustaining Ounces Costs Per December 31, 2021 to Sa
Slide 51: Gold All-in Sustaining Costs - 2022 Outlook
Gold All-in Sustaining Costs - 2022 Outlook A reconciliation of the 2022 Gold AISC outlook to the 2022 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 52: Co-Product All-in Sustaining Costs - 2022 Outlook
Co-Product All-in Sustaining Costs - 2022 Outlook A reconciliation of the 2022 Co-Product AISC outlook to the 2022 Co-Product 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 Sect
Slide 53: Total GEO All-in Sustaining Costs - 2022 Outlook
Total GEO All-in Sustaining Costs - 2022 Outlook A reconciliation of the 2022 Total GEO AISC outlook to the 2022 Total GEO 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 Section
Slide 54: 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 55: Endnotes
Endnotes Investors are encouraged to read the information contained in this presentation in conjunction with the most recent Form 10-K for the year ended December 31, 2021 filed with the SEC on February 24, 2022 (including without limitation the risks related to COVID-19 under the heading “Risk Fact
Slide 56: Endnotes
Endnotes Reserves and Resources: Proven and Probable reserves are based on extensive drilling, sampling, mine modeling and metallurgical testing from which we determine economic feasibility. The price sensitivity of reserves depends upon several factors including grade, metallurgical recovery, opera
Slide 57: 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 or more information and reconciliation to the nearest GAAP metric. Free Cash Flow. Attributable FCF is a non-GAAP metric and is generated from Net cash provi