Newmont Corporation · NYSE:NEM
Newmont — Newmont Mining — Denver Gold Show 2008
23 slides from Newmont's conference presentation, Sep 10, 2008
Slide 1: Denver Gold Show
Exhibit 99.1 Denver Gold Show September 10, 2008
Slide 2: Cautionary Statement
Cautionary Statement 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, that are intended to be covered by the safe harbor created by such sections. S
Slide 3: The Year In Review
The Year In Review New management team in place Renewed focus on core business Continued to establish operating performance record Demonstrated leadership in safety, sustainability and environmental responsibility Deliver Yanacocha gold mill Deliver Nevada power plant Continue to deliver consistentl
Slide 4: Operational Execution
Operational Execution In the last 12 months: Leeville – At Full Production Phoenix – Revised Plan Complete Peer Average – More than 25% $425 - $450 $389 Up ~12% NEM 2007 NEM 2008 Guidance Where we want to be in 12 months: Continue to deliver consistently strong operating performance Execute on revis
Slide 5: Project Pipeline
Project Pipeline Project Execution Gate 1 Gate 2 Gate 3 Gate 4 Advance viable Determine if a Select a single Ensure single option is business Business Case option to achieve optimized, predictable opportunities exists Business Case and competitive Stage 1 Gate Stage 2 Gate Stage 3 Gate Stage 4 Gate
Slide 6: Boddington
Boddington Project Execution Boddington Stage 1 Gate Stage 2 Gate Stage 3 Gate Stage 4 Gate Execution Operations • ~83% complete as of August 31st • Upon completion, will be Australia’s largest gold producer and a major contributor to Newmont’s annual gold production — First 5 year average annual eq
Slide 7: Nevada Exploration Target: Turf
Nevada Exploration Target: Turf Exploration and Growth Turf Stage 1 Gate Stage 2 Gate Stage 3 Gate Stage 4 Gate Execution Operations Turf • ~1 km NW of Leeville • Driving drift over top of target • Prospect is larger than surface drilling indicated • High-grade (+15 g/t) upside potential • 2008 budg
Slide 8: Callie Deeps, Australia
Callie Deeps, Australia Exploration and Growth Callie Deeps Stage 1 Gate Stage 2 Gate Stage 3 Gate Stage 4 Gate Execution Operations • Drilling for NRM and reserve conversion • Base case of ~25 million tonnes at 4.5 grams per tonne Selected Auron and Asok Intersections • Located in AAA-rated country
Slide 9: Hope Bay, Canada
Hope Bay, Canada Exploration and Growth Hope Bay Stage 1 Gate Stage 2 Gate Stage 3 Gate Stage 4 Gate Execution Operations Project Status • Year-round airstrip and Doris road complete • Camp infrastructure under construction • Drilling campaign targeting NRM in 2009 2 ~$30 million budget in 2008 • St
Slide 10: H1 2008 Highlights
H1 2008 Highlights • Adjusted net income (1) of $616 M ($1.36/share) • GAAP net income of $647 M ($1.43/share) • Net cash provided from continuing operations of $976 M ($2.15/share) • Equity gold sales of 2.56 Mozs at CAS of $417/oz • Commercial production at Nevada power plant and Yanacocha gold mi
Slide 11: Why Newmont?
Why Newmont? • Most value per share in the peer group 2 Highest NA senior gold sales per share in H1 2008 2 Highest EPS and CFPS in H1 2008 2 Highest per share leverage to the gold price (RBC, BMO, CIBC, JPMorgan) 2 Only NA senior to maintain gold sales and cost guidance through Q2 2008 Adjusted Cas
Slide 12: Leading the Peers in Cost Containment
Leading the Peers in Cost Containment Cost inflation from 2007 actual costs to latest 2008 guidance ($/oz) 90% 80% 70% 60% Lowest forecasted cost inflation in peer group 50% 84% 40% 30% 20% 24% 27% 27% 10% 18% 12% 0% Newmont Kinross(1) Barrick AngloGold Gold Goldcorp(3) Fields(2) Source: Company rep
Slide 13: Another View of Costs
Another View of Costs First Half 2008 Managing gold production costs Avg. Realized Gold Price = $917 • Canadian Oil Sands Trust 2 Unrealized gain of ~$1.1 B (2) 2 Cash distributions of ~$120 M in 2008(3) $500 $616 $634 2 Distributions offset ~25% of COS Newmont’s oil exposure(3) Income Copper • Neva
Slide 14: Superior Per Share Leverage
Superior Per Share Leverage RBC Estimated Cash Flow per Share Leverage to the Gold Price $7.00 $6.36 $6.00 2009E CFPS @ $800 gold $5.00 2009E CFPS @ $1000 gold $3.94 $3.92 $4.00 $4.25 $3.00 $2.99 $2.77 $2.26 $2.21 $2.00 $1.49 $1.51 $1.46 $1.00 $1.21 $0.00 Newmont Barrick Agnico-Eagle Kinross Goldcor
Slide 15: Financial Strength and Flexibility
Financial Strength and Flexibility In the last 12 months: Divested non-core royalty assets for ~$1.3 billion Eliminated hedge book at ~$655/oz Nearing completion of 5 year intensive capital reinvestment period Holding Canadian Oil Sands Where we want to be in 12 months: Continue to deliver consisten
Slide 16: Gold Price Outlook
Gold Price Outlook Short-Term Fluctuations Expected • Despite the gold price decline in early August, gold continues to trade within expected range (approx. $800 – $1000/oz) • 16 month consolidation period with reduced volatility should revive jewelry demand $1,300 ~$1,300 - $1,400/oz $1,200 $1,100
Slide 17: Gold Price Outlook
Gold Price Outlook Bullish Long-Term Expectations • Declining mine production, total cost of production rising 2 “Big Four” mine production down 28% from 2001 2 Total mine production down 6% from 2001 2 Lead time for new projects has lengthened, costs escalated 4,500 Total Demand 4,000 3,500 Deficit
Slide 18: Gold Price Outlook
Gold Price Outlook Bullish Long-Term Expectations • Gold remains negatively correlated to US dollar — Dollar should decline against emerging currencies — Current account and trade deficits imply further dollar weakness 66 $1,025 69 $950 US Trade-Weighted Dollar Index (Major Currencies) 72 $875 GOLD
Slide 19: Reference Slides
Reference Slides Newmont... anew day dawning NEWMONT.
Slide 20: Reconciliation from Adjusted Net Income to GAAP Net Income
Reconciliation from Adjusted Net Income to GAAP Net Income Q2 2008 Q2 2007 Description ($ million except per share, after-tax) YTD Per Share YTD Per Share Adjusted net income $ 616 $ 1.36 $ 143 $ 0.32 Income taxes $ 129 $ 0.28 $ - $ - Reclamation obligations $ (41) $ (0.09) $ (11) $ (0.02) Write-dow
Slide 21: Reconciliation from Adjusted Net Cash Provided from Continuing Operations to GAAP
Reconciliation from Adjusted Net Cash Provided from Continuing Operations to GAAP Net Cash Provided from (used in) Operations Q2 2008 Q2 2007 Description ($ million except per share) YTD Per Share YTD Per Share Adjusted net cash provided from continuing operations $ 976 $ 2.15 $ 230 $ 0.51 Pre-tax s
Slide 22: Reconciliation from CAS per Ounce to CAS per Ounce, Net of Copper By-Products and COS Income
Reconciliation from CAS per Ounce to CAS per Ounce, Net of Copper By-Products and COS Income June Description ($ per ounce) 2008 YTD GAAP Costs applicable to sales – gold $ 417 Copper credits (copper revenues less costs applicable to sales – copper) $ (116) Costs applicable to sales – gold, net of c
Slide 23: Footnotes
Footnotes 1. “Operating Margin – Gold” defined as average realized price per ounce less costs applicable to sales per ounce, excluding amortization and accretion September 10, 2008 23