Newmont Corporation · NYSE:NEM
Newmont — Q3 2023 Earnings Presentation
38 slides from Newmont's earnings presentation, Oct 26, 2023
Slide 1: Third Quarter 2023 Earnings
Third Quarter 2023 CREATING VALUE & IMPROVING LIVES Earnings THROUGH SUSTAINABLE, RESPONSIBLE MINING OCTOBER 26, 2023 THIRD QUARTER 2023 EARNINGS NEWMONT CORPORATION 1
Slide 2: Cautionary Statement Regarding Forward Looking Statements, Including Outlook
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS, INCLUDING OUTLOOK 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
Slide 3: Tom Palmer, President & Chief Executive Officer
Tom Palmer CREATING VALUE & IMPROVING LIVES PRESIDENT & CHIEF EXECUTIVE OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING THIRD QUARTER 2023 EARNINGS NEWMONT CORPORATION 3
Slide 4: Fatality Risk Management Program: A Five-Year Lookback
FATALITY RISK MANAGEMENT PROGRAM: A FIVE-YEAR LOOKBACK FOCUSING ON CRITICAL REDUCING SIGNIFICANT LOWER INJURIES STRIVING TO REMAIN CONTROL VERIFICATIONS POTENTIAL EVENTS RECORDED FOR SPEs FATALITY FREE 1.6M 73% 82% 5 Years Verifications conducted by leaders in the Decrease in significant potential e
Slide 5: Third Quarter 2023 Highlights
THIRD QUARTER 2023 HIGHLIGHTS Produced 1.3M attributable ounces of Advancing near-term development gold* and 10k tonnes from copper; projects and achieved significant building momentum for a strong Q4 project milestones in Q3 Generated $933M in Adjusted EBITDA Peñasquito workforce has begun the and
Slide 6: 2023 Outlook for Newmont Stand-Alone Portfolio
2023 OUTLOOK FOR NEWMONT STAND-ALONE PORTFOLIO*** ATTRIBUTABLE GOLD PRODUCTION FROM SUSTAINING PRODUCTION* OTHER METALS CAPITAL 5.3Moz $1.4B 100Mlbs Copper Produced 15Moz Silver Produced 100Mlbs Lead Produced Expecting to finish the year with the Higher spend anticipated in Q4, driven year’s stronge
Slide 7: Rob Atkinson, Chief Operating Officer
Rob Atkinson CREATING VALUE & IMPROVING LIVES CHIEF OPERATING OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING THIRD QUARTER 2023 EARNINGS NEWMONT CORPORATION 7
Slide 8: Boddington: A Cornerstone Gold-Copper Mine in Australia
BODDINGTON: A CORNERSTONE GOLD-COPPER MINE IN AUSTRALIA ATTRIBUTABLE COPPER GOLD PRODUCTION PRODUCTION 181 koz 23 Mlbs GOLD COSTS GOLD ALL-IN APPLICABLE TO SALES* SUSTAINING COSTS* $848/oz $1,123/oz ▪ Boddington continues to ramp up waste movement in the North and South pits as planned ▪ Progressing
Slide 9: Tanami: Investing in Future Growth and Profitability in Australia
TANAMI: INVESTING IN FUTURE GROWTH AND PROFITABILITY IN AUSTRALIA ATTRIBUTABLE GOLD PRODUCTION 123 koz GOLD COSTS GOLD ALL-IN APPLICABLE TO SALES* SUSTAINING COSTS* $655/oz $890/oz ▪ Tanami delivered consistently strong results following extreme rainfall in Q1, and remains on track to reach the year
Slide 10: Ahafo: Executing on District-Level Strategy in Ghana
AHAFO: EXECUTING ON DISTRICT-LEVEL STRATEGY IN GHANA ATTRIBUTABLE GOLD PRODUCTION 133 koz GOLD COSTS GOLD ALL-IN APPLICABLE TO SALES* SUSTAINING COSTS* $969/oz $1,208/oz ▪ Ahafo South delivered lower mill throughput due to remediation to the processing circuit; expected to replace girth gear and rea
Slide 11: Peñasquito: Safe and Orderly Ramp Up in Mexico
PEÑASQUITO: SAFE AND ORDERLY RAMP UP IN MEXICO ▪ Reached a definitive agreement with the labor union and received approval from the Mexican Labor Court ▪ Safely restarted operations, focused on returning workforce to full productivity ▪ Peñasquito is the largest employer in Zacatecas with a direct w
Slide 12: Non-Managed Joint Ventures – Q3 Results
NON-MANAGED JOINT VENTURES – Q3 RESULTS NEVADA GOLD MINES (38.5%) PUEBLO VIEJO (40%)** ATTRIBUTABLE GOLD COSTS GOLD ALL-IN ATTRIBUTABLE GOLD PRODUCTION APPLICABLE TO SALES* SUSTAINING COSTS* GOLD PRODUCTION 300 koz $992/oz $1,307/oz 52 koz *Non-GAAP measure, see endnotes. **Attributable production i
Slide 13: Improved Production Volumes From Remaining Portfolio
IMPROVED PRODUCTION VOLUMES FROM REMAINING PORTFOLIO ▪ Remaining portfolio contributed ~500koz of profitable gold production in Q3, an increase of >100koz from Q2 ▪ Anticipate solid results from these assets through the rest of the year, driven by: – Higher grade at Akyem – Ramp up to full productiv
Slide 14: Reaching Milestones at Key Development Projects
REACHING MILESTONES AT KEY DEVELOPMENT PROJECTS ✓ Completed the concrete lining of the upper production shaft at the Tanami Expansion 2 project ✓ Received critical parcels to commence construction of the processing and tailings storage facilities at the Ahafo North project ✓ Declared commercial prod
Slide 15: Karyn Ovelmen, Chief Financial Officer
Karyn Ovelmen CREATING VALUE & IMPROVING LIVES CHIEF FINANCIAL OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING THIRD QUARTER 2023 EARNINGS NEWMONT CORPORATION 15
Slide 16: Third Quarter Financial Performance
THIRD QUARTER FINANCIAL PERFORMANCE CASH FROM REVENUE CONTINUING OPS $2.5B $1.0B ADJUSTED CAPITAL EBITDA* SPEND $933M $604M CASH & CASH FREE CASH EQUIVALENTS FLOW* $3.2B $397M *See endnotes. Maintained Net Debt to Adjusted EBITDA Ratio of 0.7x* and Received First-Time A- Rating From Fitch THIRD QUAR
Slide 17: Q3 Adjusted Net Income of $0.36 Per Share
Q3 ADJUSTED NET INCOME OF $0.36 PER SHARE GAAP TO ADJUSTED NET INCOME * HIGHER Q3 PRODUCTION VOLUMES ($/Diluted Share) ▪ Strong production from global portfolio more than $0.01 offset impact from Peñasquito $0.02 $0.05 ▪ Sales volumes largely in line with production $0.14 $(0.06) MAINTAINED SOLID MA
Slide 18: Declared Q3 Dividend of $0.40/Share
DECLARED Q3 DIVIDEND OF $0.40/SHARE ▪ Base dividend provides a $1.00/share payment at base gold 2023 DIVIDEND PAYOUT RANGE* price assumption $2.00 – 3.00 ▪ Incremental payment based on attributable FCF above base gold price assumption ▪ Reviewed and approved quarterly by Board of Directors $1.40 – 1
Slide 19: Considerations for 2024 Outlook
CONSIDERATIONS FOR 2024 OUTLOOK 2024 outlook for the combined portfolio to be provided in February 2024 with Q4 2023 earnings 2024 dividend payout range to be calibrated based on 2024 outlook; assessed annually and effective for the Q4 dividend declared Taking time to assess and integrate the Newcre
Slide 20: Tom Palmer, President & Chief Executive Officer
Tom Palmer CREATING VALUE & IMPROVING LIVES PRESIDENT & CHIEF EXECUTIVE OFFICER THROUGH SUSTAINABLE, RESPONSIBLE MINING THIRD QUARTER 2023 EARNINGS NEWMONT CORPORATION 20
Slide 21: Tier 1 Operations With Gold & Copper Exposure
TIER 1 OPERATIONS WITH GOLD & COPPER EXPOSURE PORTFOLIO OF STABLE MINING ROBUST COPPER BRUCEJACK TIER 1 ASSETS JURISDICTIONS PRODUCTION MUSSELWHITE RED CHRIS 10 ~80% ~150ktonnes ÉLÉONORE Tier 1 District Golden Triangle ~2/3 of total gold production from Gold and copper production from the Annual cop
Slide 22: Experienced Leaders With a Proven Track Record
EXPERIENCED LEADERS WITH A PROVEN TRACK RECORD GLOBAL BUSINESS SUBJECT MATTER AROUND THE CLOCK UNITS EXPERTS TECHNICAL SUPPORT 6 1,000+ 24/7 Each with a dedicated regional platform Technical team with ~75 centuries of Continuous monitoring and support to NORTH AMERICA and Managing Director combined
Slide 23: Integration Focused on Three Key Systems
INTEGRATION FOCUSED ON THREE KEY SYSTEMS FATALITY RISK MANAGEMENT PROGRAM Eliminating the risks that could lead to a fatality with a laser focus on disciplined safety fundamentals RESPECT AT WORK PROGRAM Taking action to create a workplace where everyone is welcomed and safe FULL POTENTIAL PROGRAM I
Slide 24: Sustainable Business. Enduring Value.
SUSTAINABLE BUSINESS. ENDURING VALUE. COMMITMENT TO INDUSTRY PROVEN DISCIPLINED CAPITAL LEADING ESG PRACTICES LEADING PORTFOLIO OPERATING MODEL ALLOCATION STRATEGY Creating value and improving lives Tier 1 assets in favorable Experienced leaders with strong Balanced approach to deliver for all stake
Slide 25: Third Quarter 2023 Earnings
THIRD QUARTER 2023 EARNINGS NEWMONT CORPORATION 25
Slide 26: 2023 Standalone Newmont Outlook
2023 Standalone Newmont Outlooka Guidance Metrics 2023E a 2023 outlook projections are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of October 26, Gold ($1,900/oz price assumption) 2023, excluding Newcrest Minin
Slide 27: Adjusted net income (loss)
Adjusted net income (loss) Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows: (1) Per share measures may not recalculate due to rounding. (2) Reclamation and remediation charges, included in Reclamation and remediation, represent revisions
Slide 28: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA Net income (loss) attributable to Newmont stockholders is reconciled to EBITDA and Adjusted EBITDA as follows: (1) Reclamation and remediation charges, included in Reclamation and remediation, represent revisions to reclamation and remediation plans at the Company's former
Slide 29: Free cash flow
Free cash flow The following table sets forth a reconciliation of Free Cash Flow to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow, as well as information regarding Net cash provided by (used
Slide 30: 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 31: Costs Applicable to Sales
Costs Applicable to Sales Costs applicable to sales per ounce/gold equivalent ounce are calculated by dividing the costs applicable to sales of gold and other metals by gold ounces or gold equivalent ounces sold, respectively. These measures are calculated for the periods presented on a consolidated
Slide 32: All-in Sustaining Costs
All-in Sustaining Costs All-in sustaining costs represent the sum of certain costs, recognized as GAAP financial measures, that management considers to be associated with production. All-in sustaining costs per ounce amounts are calculated by dividing all-in sustaining costs by gold ounces or gold e
Slide 33: All-in Sustaining Costs
All-in Sustaining Costs All-in sustaining costs represent the sum of certain costs, recognized as GAAP financial measures, that management considers to be associated with production. All-in sustaining costs per ounce amounts are calculated by dividing all-in sustaining costs by gold ounces or gold e
Slide 34: Gold All-In Sustaining Costs - 2023 Outlook
Gold All-In Sustaining Costs - 2023 Outlook A reconciliation of the 2023 Gold AISC outlook to the 2023 Gold CAS outlook is 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 Sec
Slide 35: 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 36: 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 September 30, 2023 filed with the SEC on October 26, 2023. Investors are reminded that expectations regarding outlook and guidance, including f
Slide 37: Endnotes
Endnotes Adjusted Net Income. 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. FCF is a non-GAAP metric and is generated from Net ca
Slide 38: Endnotes
Endnotes Cautionary Statement Regarding Mineral Reserve and Resource Estimates. The mineral reserve and resource estimates herein with respect to Newmont represent estimates at December 31, 2022, which could be economically and legally extracted or produced at the time of their determination. Estima