Newmont Corporation · NYSE:NEM
Newmont — Q1 2021 Earnings Presentation
37 slides from Newmont's earnings presentation, Apr 29, 2021
Slide 1: First Quarter 2021 Earnings
First Quarter 2021 CREATING VALUE & IMPROVING LIVES Earnings THROUGH SUSTAINABLE, APRIL 29, 2021 RESPONSIBLE MINING FIRST QUARTER 2021 EARNINGS 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: Tom Palmer
Tom Palmer CREATING VALUE & IMPROVING LIVES PRESIDENT & CHIEF EXECUTIVE OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING FIRST QUARTER 2021 EARNINGS NEWMONT CORPORATION 3
Slide 4: 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 5: Journey to Fatality and Injury-Free Environment
Journey to Fatality and Injury-Free Environment FIRST QUARTER SAFETY PERFORMANCE SPOTLIGHT: REDUCING FATIGUE-RELATED INCIDENTS ✓ Focused on eliminating fatalities through global application of critical control management ✓ 65,000 critical control-focused conversations in the field during Q1 2021 ✓ R
Slide 6: 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 7: 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 8: 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 9: Investing in our Future with the GT Gold Acquisition
Investing in our Future with the GT Gold Acquisition HIGHLY PROSPECTIVE GOLD AND COPPER DEPOSIT IN TOP -TIER JURISDICTION SUPPORTING NEWMONT’S LONG-TERM STRATEGY CREATING VALUE THROUGH THE TATOGGA PROJECT ▪ Located in the prospective Golden Triangle, a highly sought- ▪ Significant gold and copper pr
Slide 10: Rob Atkinson
Rob Atkinson CREATING VALUE & IMPROVING LIVES CHIEF OPERATING OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING FIRST QUARTER 2021 EARNINGS NEWMONT CORPORATION 10
Slide 11: Africa Delivers Strong Q1 Performance
Africa Delivers Strong Q1 Performance ▪ Strong performance from Akyem from higher grades and mill productivity improvements ▪ Ahafo delivered higher tons mined from Awonsu; positioned to reach higher grades in H2 2021 ▪ Advancing Subika underground mining method change, improving grade throughout 20
Slide 12: South America Managing Covid Challenges
South America Managing Covid Challenges ▪ Merian increases throughput due to ore blending strategy; positioned to reach higher grades in H2 2021 ▪ Cerro Negro remains focused on operating efficiency as the site manages ongoing Covid-related impacts; resumed underground development of San Marcos decl
Slide 13: North America Delivers Solid Q1 Results
North America Delivers Solid Q1 Results ▪ Strong performance from Peñasquito due to record co-product sales and Full Potential improvements to truck payloads ▪ CC&V experienced lower grade and geochemistry challenges; grades to improve in H2 2021 ▪ Musselwhite impacted by Covid, resulting in changes
Slide 14: Australia Reaches Project Milestones
Australia Reaches Project Milestones ▪ Tanami generated consistent performance, despite mine sequencing challenges from record rainfall ▪ Tanami Expansion 2 project progressing; completed mine shaft excavation and camp construction ▪ Boddington positioned to reach higher grades and tons mined in H2
Slide 15: First Production from Boddington AHS
First Production from Boddington AHS THE GOLD INDUSTRY’S FIRST AUTONOMOUS HAULAGE FLEET ✓ Deployed first eight trucks in March 2021, ramping up to full conversion by Q3 2021 ✓ Moved over one million tons within the first month of operation ✓ Safety controls reduce employee exposure to potential vehi
Slide 16: Nancy Buese
Nancy Buese CREATING VALUE & IMPROVING LIVES CHIEF FINANCIAL OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING FIRST QUARTER 2021 EARNINGS NEWMONT CORPORATION 16
Slide 17: 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 ope
Slide 18: Q1 Adjusted Net Income of $0.74 per Share
Q1 Adjusted Net Income of $0.74 per Share GAAP TO ADJUSTED NET INCOME ($/DILUTED SHARE) * $0.14 $0.01 ($0.05) ($0.03) $0.67 $0.74 GAAP Net income from Fair value of marketable Gain on asset and Reclamation and Tax adjustments and Adjusted net income continuing operations equity securities investment
Slide 19: 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 20: 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 21: 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 22: Tom Palmer
Tom Palmer CREATING VALUE & IMPROVING LIVES PRESIDENT & CHIEF EXECUTIVE OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING FIRST QUARTER 2021 EARNINGS NEWMONT CORPORATION 22
Slide 23: 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 24: Appendix
Appendix CREATING VALUE & IMPROVING LIVES THROUGH SUSTAINABLE, RESPONSIBLE MINING FIRST QUARTER 2021 EARNINGS NEWMONT CORPORATION 24
Slide 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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 37: 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