Newmont Corporation · NYSE:NEM
Newmont — Newmont Mining — Merger or Acquisition (January 2019)
28 slides from Newmont's merger presentation, Jan 14, 2019
Slide 1: Cautionary statement regarding forward looking statements
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 to be covered by the
Slide 2: Additional information about the proposed transaction and where to find it
Additional information about the proposed transaction and where to find it This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vo
Slide 3: Newmont Goldcorp: The World's Leading Gold Company
Newmont Goldcorp The World’s Leading Gold Company
Slide 4: Creating the world's leading gold company
Creating the world’s leading gold company 14 January 2019 Newmont Goldcorp Investor Presentation - Slide 5 Powerful combination with a world-class portfolio Strongest portfolio of operating gold mines and projects in favorable jurisdictions Targeting sustainable production of 6 to 7 million ounces o
Slide 5: Transaction highlights
Transaction highlights Recommended share-for-share transaction Newmont to acquire all outstanding Goldcorp equity at an exchange ratio of 0.3280 of a Newmont share and $0.02 for each Goldcorp share Goldcorp equity value of $10 billion, including premium, and enterprise value of $12.5 billion A 17% p
Slide 6: Committed to Canada
Committed to Canada 14 January 2019 Newmont Goldcorp Investor Presentation - Slide 7 Large Canadian gold producer Establishes Goldcorp’s current Vancouver headquarters as new North America regional office Vancouver office will oversee gold production of more than 3 million ounces per year Prospect f
Slide 7: Global portfolio of world-class operating mines
Global portfolio of world-class operating mines 14 January 2019 Newmont Goldcorp Investor Presentation - Slide 8 Ahafo Akyem KCGM Boddington Tanami Carlin CC&V Long Canyon Phoenix Twin Creeks Yanacocha Merian Cerro Negro Peñasquito Éléonore Musselwhite Porcupine Newmont Operations Goldcorp Operation
Slide 8: Industry-leading project pipeline and flexibility
Pete Bajo Expansion Musselwhite Expansion Saddle Underground Sabajo Subika UG Growth Golden Mile Growth Industry-leading project pipeline and flexibility Cochenour Norte Abierto JV Coffee Borden Galore Creek JV CC&V Underground Long Canyon Ph 2 Chaquicocha Oxides Conceptual/ Scoping Prefeasibility F
Slide 9: Unmatched exploration potential across portfolio
Unmatched exploration potential across portfolio 14 January 2019 Newmont Goldcorp Investor Presentation - Slide 10 Near mine exploration Greenfield exploration Near mine exploration at 17 primary locations Greenfield exploration at 14 primary locations Strategic investments
Slide 10: Largest Reserve base in favorable jurisdictions
Largest Reserve base in favorable jurisdictions Newmont Reserves3 Goldcorp Reserves3 Combined Portfolio Reserves 14 January 2019 Newmont Goldcorp Investor Presentation - Slide 11 68.5 Moz 52.8 Moz Latin America , 50% Canada , 33% Mexico , 17% USA , 42% Australia , 31% Ghana , 18% Suriname 6% Peru 3%
Slide 11: Well positioned to deliver long-term value
Well positioned to deliver long-term value 14 January 2019 Newmont Goldcorp Investor Presentation - Slide 12 *Data is sourced from Newmont and Goldcorp company filings. Newmont reports under US GAAP and Goldcorp reports under IFRS. Certain metrics are presented on an adjusted non-GAAP basis includin
Slide 12: Building a sustainable future
Building a sustainable future Leveraging best of existing operating models, systems and technologies Targeting sustainable production of 6 to 7 million ounces of gold annually1 Disciplined process to optimize portfolio production levels Continuing to maintain balance sheet strength and shareholder r
Slide 13: Newmont Goldcorp focused on employees
Newmont Goldcorp focused on employees Employees Nearly 20,000 employees and a total workforce of approximately 38,000 people Total recordable injury frequency rate* of 0.56 compared to industry average of 0.79 Alignment of values and high-performing organizational practices Strong employee engagemen
Slide 14: Newmont Goldcorp the world's leading gold company
Newmont Goldcorp the world’s leading gold company Enterprise Value ($M)* Free Cash Flow ($M)** 14 January 2019 Newmont Goldcorp Investor Presentation - Slide 15 *Source: Bloomberg as of 1/11/19; **Source: Bloomberg for most recent fiscal year; see endnote 9 for cautionary language regarding third pa
Slide 15: Governance and management
Governance and management Proportional Board representation of 2/3 Newmont, 1/3 Goldcorp Chair – Noreen Doyle (Newmont) Deputy Chair – Ian Telfer (Goldcorp) CEO – Gary Goldberg (Newmont) President & COO – Tom Palmer (Newmont) Headquarters in Denver, Colorado Proven operating model with four regional
Slide 16: Newmont Goldcorp – The World's Leading Gold Company
Newmont Goldcorp – The World’s Leading Gold Company 14 January 2019 Newmont Goldcorp Investor Presentation - Slide 17 Powerful combination with a world-class portfolio Strongest portfolio of operating gold mines and projects in favorable jurisdictions Targeting sustainable production of 6 to 7 milli
Slide 17: Newmont Goldcorp — The World's Leading Gold Company
Newmont Goldcorp — The World’s Leading Gold Company Vv Nel JOLDCORP Powerful combination with a world-class portfolio + Strongest portfolio of operating gold mines and projects in favorable jurisdictions + Targeting sustainable production of 6 to 7 million ounces of gold annually’ + Unparalleled exp
Slide 18: All-in sustaining costs
All-in sustaining costs 14 January 2019 Newmont Goldcorp Investor Presentation - Slide 19 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 mini
Slide 19: All-in sustaining costs (cont.)
All-in sustaining costs (cont.) 14 January 2019 Newmont Goldcorp Investor Presentation - Slide 20 General and administrative. Includes costs related to administrative tasks not directly related to current production, but rather related to support Newmont’s corporate structure and fulfill our obligat
Slide 20: Illustration of AISC definition
Illustration of AISC definition 14 January 2019 Newmont Goldcorp Investor Presentation - Slide 21 Newmont recently revised its calculation of AISC to exclude development expenditures related to developing new or major projects at existing operations where these projects will materially benefit the o
Slide 21: Illustration of AISC - 2017
Illustration of AISC - 2017 14 January 2019 Newmont Goldcorp Investor Presentation - Slide 22 Excludes Depreciation and amortization and Reclamation and remediation. Includes by-product credits of $55 and excludes co-product copper revenues of $315. Includes stockpile and leach pad inventory adjustm
Slide 22: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA 14 January 2019 Newmont Goldcorp Investor Presentation - Slide 23 Newmont 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
Slide 23: Adjusted net income (loss)
Adjusted net income (loss) Newmont uses Adjusted net income (loss) to evaluate the company’s operating performance and for planning and forecasting future business operations. Newmont believes the use of Adjusted net income (loss) allows investors and analysts to understand the results of the contin
Slide 24: Adjusted net income (loss) (cont.)
Adjusted net income (loss) (cont.) 14 January 2019 Newmont Goldcorp Investor Presentation - Slide 25 Loss (gain) on asset and investment sales, included in Other income, net, primarily represents a gain from the exchange of our interest in the Fort á la Corne joint venture for equity ownership in Sh
Slide 25: Caution Regarding Projections
Caution Regarding Projections: Projections used in this presentation are considered forward-looking statements. Forward-looking information representing post-closing expectations is inherently uncertain. Estimates such as expected future production, internal rate of return, asset sales and synergies
Slide 26: Endnotes (continued)
(continued) Future adjustment may occur due to differing standards, required study levels, price assumptions, future divestments and acquisitions and other factors. Expectations regarding future reserves and resource declarations should be considered “forward-looking statements” within the meaning o
Slide 27: Adjusted EBITDA
Adjusted EBITDA: Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) amounts presented on slide 12 for Newmont and Goldcorp are non-GAAP/non-IFRS financial performance measures with no standardized meaning under U.S. GAAP or IFRS and therefore may not be comparable to si
Slide 28: Endnotes (cont.)
Endnotes (cont.) Newsionr.=GOLDCORP 7. Adjusted EBITDA: Adjusted EBITDA (earings befor intrest, tas, dpreiation and amorizaton) amounts presenod on side 12 for Newmont and Godcarp are non- CGAAPnor IFRS fnancil parermance measures wth no slandasized tearing under US. GAAP or IFRS and Hwrefore may no
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