Newmont Corporation · NYSE:NEM
Newmont — Investor Presentation (August 2021)
50 slides from Newmont's investor presentation, August 2021
Slide 1: Investor Presentation
Investor Presentation CREATING VALUE & IMPROVING LIVES AUGUST 2021 THROUGH SUSTAINABLE, RESPONSIBLE MINING AUGUST 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 ▪ Robust gold reserves of 94Moz and 65Moz 20% in GEO reserves* Éléonore Nevada Gold Mines*** ▪ Stable production of ~8M GEOs* annually Turquoise Ridge/Twin Creek
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 ✓ AIS
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 Tanami Expansion 2 Definitive Yanacocha Sulfides Peru – Gold (~65%) Copper (~35%) Australia – Gold Ahafo North Pueblo Viejo Expansion JV Ghana – Gold Dominican Republic – Gold Goldrush Decline
Slide 8: Robust Reserves in Top-Tier Jurisdictions
Robust 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% 33%
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: The World's Leading Gold Company Second Quarter Highlights
The World’s Leading Gold Company SECOND QUARTER HIGHLIGHTS Produced 1.45M attributable Declared industry-leading Published Annual Sustainability ounces of gold* and over 300k dividend of $0.55 per share Report, a transparent review of our GEOs from co-products for Q2** ESG performance Generated $578
Slide 11: External Recognition for Responsible Business Practices
External Recognition for Responsible Business Practices ESG RATINGS ESG RECOGNITION SAM S&P (DJSI) SUSTAINALYTICS TRANSPARENCY CLIMATE 99% Percentile ranking 23.22 ESG Risk Rating measures exposure and #2 Most transparent company in A- CDP Climate Scores reflective of global metals and mining sector
Slide 12: Focused on Value, Driven by Purpose
Focused on Value, Driven by Purpose 2020 SUSTAINABILITY REPORT 2020 CLIMATE STRATEGY REPORT STANDARDS AND PERFORMANCE EXPECTATIONS ADDITIONAL REPORTS ON OUR WEBSITE ▪ Sustainability Accounting Standards Board (SASB) ▪ 2020 SASB Index ▪ Task Force on Climate-related Financial Disclosures (TCFD) ▪ 202
Slide 13: Strong Financial Performance in the Second Quarter
Strong Financial Performance in the Second Quarter METRICS Q2 2020 Q2 2021 Profit Metrics Revenue ($M) $2,365 $3,065 +30% * Adjusted Net Income ($M) $261 $670 +157% * Adjusted Net Income ($/diluted share) $0.32 $0.83 +159% * Adjusted EBITDA ($M) $984 $1,591 +62% Cash Flow Metrics Cash from continuin
Slide 14: Superior Free Cash Flow Across Cycles
Superior Free Cash Flow Across Cycles ATTRIBUTABLE FREE CASH FLOW INCREASES WITH HIGHER GOLD PRICE* 5-Year Cumulative Attributable Free Cash Flow ** ~$21.5B +$3,600M Per Year ~$15.5B INCREMENTAL FCF +$2,400M Per Year ~$9.5B +$1,200M Per Year ~$3.5B BASE $1,200 $1,500 $1,800 $2,100 +$400M FCF per ann
Slide 15: 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 16: Delivering on Capital Allocation Strategy
Delivering on Capital Allocation Strategy ✓ Delivering first Autonomous Haulage Fleet to gold mining industry ✓ Approved full funds for Ahafo North INVESTING IN ORGANIC GROWTH ✓ Yanacocha Sulfides expected to be approved in December 2021 ✓ Completed GT Gold transaction, increasing our interest in th
Slide 17: #1 gold producer with ~8M GEOs per year through 2030
#1 gold producer with ~8M Proven operating model and Focused on industry-leading GEOs* per year through 2030 and deep bench of experienced returns to shareholders with significant exposure to other leaders with strong track record disciplined capital allocation metals through the cycle Strong Free C
Slide 18: Appendix
Appendix CREATING VALUE & IMPROVING LIVES THROUGH SUSTAINABLE, RESPONSIBLE MINING AUGUST 2021 INVESTOR PRESENTATION NEWMONT CORPORATION 18
Slide 19: 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 20: 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 21: 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 22: 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 600 December 2021 with thr
Slide 23: 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 ▪ Received full funds approval in July 1,400 2021 1,200 ▪ Investment of $750-$850M with 1,000 three yea
Slide 24: 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 25: 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 26: Targeted Strategy to Reduce Scope 1 & 2 Emissions
Targeted Strategy to Reduce Scope 1 & 2 Emissions PROJECTS IDENTIFIED OPPORTUNITIES THROUGH RENEWABLES OPERATIONAL ~10% YANACOCHA CHANGES Evaluating a wind project >30% ~10% TANAMI >800 KtCO2e Reduction from Reduction in Scope Evaluating future wind and solar projects Renewable Energy 1 & 2 Emission
Slide 27: 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 28: 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 29: 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 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 AUGUST 2021 INVESTOR PRESENTATION NEWMONT CORPORATION 31
Slide 32: 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 33: 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: ~$200M 17 MOZ 39 MOZ 77 MOZ 62 MOZ RESERVES RESOURCES* RESERVES RESOU
Slide 34: Robust Near-Mine Exploration Opportunities
Robust Near-Mine Exploration Opportunities NORTH AMERICA Peñasquito: Large resource base and prospective land package with potential to extend mine life to 2040 Éléonore: New district targets for 2021 with <20% property drill tested to date CC&V Underground: Significant potential to extend mine life
Slide 35: 2021 Strategy Map
2021 Strategy Map Environment, Social Health & Safety Operational Excellence Growth People and Governance OUR PURPOSE • A fatality, injury and illness free • Culture of continuous • Value accretive growth • Culture is a competitive • Access to land, resources and OBJECTIVES To create value and STRAT
Slide 36: Nevada Joint Venture Processes
Nevada Joint Venture Processes For contributing excluded assets Four Mile (Barrick), Fiberline (Newmont) and Mike (Newmont): ▪ Party that owns asset has obligation to contribute upon completion of successful Feasibility Study, which requires a project IRR of at least 15% ▪ Feasibility Study must be
Slide 37: Outlook
Outlooka *Attributable basis; **Attributable co-product gold equivalent ounces; includes copper, silver, lead and zinc; ***Consolidated basis for gold 2021 Consolidated Expense Outlook ($M) (+/-5%) a 2021 outlook projections used in this presentation are considered forward-looking statements and rep
Slide 38: 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 others to understand the results of the c
Slide 39: 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 40: 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 41: 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 42: 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 43: All-in Sustaining Costs
All-in Sustaining Costs Care and Sustaining Advanced Projects, Maintenance Treatment Capital and All-In Costs Research and and Other and Lease All-In Ounces Sustaining Three Months Ended Applicable to Reclamation Development and General and Expense, Refining Related Sustaining (000) Costs Per June 3
Slide 44: All-in Sustaining Costs
All-in Sustaining Costs Care and Sustaining Advanced Projects, Maintenance Treatment Capital and All-In Costs Research and and Other and Lease All-In Ounces Sustaining Six Months Ended Applicable to Reclamation Development and General and Expense, Refining Related Sustaining (000) Costs Per June 30,
Slide 45: 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 46: 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 47: 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 48: 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 June 30, 2021 filed with the SEC on July 22, 2021, and with the Cautionary Statement on slide 2 and the following notes below Outlook Assumptio
Slide 49: 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 50: 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