First Quarter Earnings Update Friday, April 27, 2012
Cautionary Statement Cautionary Statement Regarding Forward Looking Statements, Including 2012 Outlook: This presentation contains “forward - looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amen ded, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by those sections and other applicable laws. Those forward-looking statements include (without limitation) estimates and expectations of, and statements regarding: (i) the Company’s strategy and plans; (ii) future equity gold and equity coppe r production; (iii) future operating, sales and other costs; (iv) future capital expenditures; (v) project returns; (vi) project start dates, ramp up, life, pipeline timelines, including commencement of mining, drilling and stage gate advancement and expansion opportunities; (vii) potential ounces or tons of reserves, NRM and potential resources; (viii) exploration pipeline, potential or upside, opportunities, growth and growth potential; (ix) dividend payments and increases; (x) future liquidity, cash and balance sheet expectations; and (xi) other financial outlook indicators relation to the Company’s operations and projects. Those forward - looking statements include (without limitation) statements that use forward- looking terminology such as “may”, “will”, “expect”, “predict”, “anticipate”, “believe”, “continue”, “potential”, “target”, “goal”, “opportunity”, “outlook”, or the negative or other variations of those terms or comparable terminology. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Those assumptions include (without limitation): (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s projects being consistent with c urrent expectations and mine plans; (iii) political, social and legal developments in any jurisdiction in which the Company conducts business being consistent with its current expectations; (iv) certain exchange rate assumptions for the Australian dollar to the U.S. dollar, as well as the other exchange rates being approximately consistent with current levels; (v) certain price assumptions for gold, copper and oil; (vi) prices for key supplies being approximately consistent with current levels and such supplies otherwise being available on bases consistent with the Company ’s current expectations; and (vii) the accuracy of our current mineral reserve and mineral resource estimates and exploration information. Where the Company expresses or implies an expectation or belief as to future events or results, that expectation or belief is expressed in good faith and is believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed, projected or implied by the “forward - looking statements”. Those risk s, uncertainties and other factors include (without limitation): (i) gold and other metals price volatility; (ii) currency fluctuations; (iii) increased capital and operating costs, and scarcity of and competition for required labor and supplies; (iv) variances in oregrade or recovery rates from those assumed in mining plans; (v) operating or technical difficulties; (vi) political and operational risks; (vii) community relations, conflict resolution and outcome of projects or oppositions; and (viii) governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s 2011 Annual Report on Form 10-K, filed on February 24, 2012, with the Securities and Exchange Commission (“SEC”), as well as the Company’s other SEC filings. These forward -looking statements are not guarantees of future performance, given that they involve risks and uncertainties. The Company does not undertake any obligation to release publicly revisions to any forward-looking statement except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued forward-looking statement constitutes a reaffirmation of that statement. Continued reliance on forward-looking statements is at investors' own risk. In addition, some of the statements in this presentation are based on assumptions or methodologies (such as commodity prices) or subject to cautionary statements that are discussed in the notes found at the end of this presentation. Newmont Mining Corporation | First Quarter 2012 Earnings Update | www.newmont.com 2 April 27, 2012
Building on Strong Operating Performance Newmont Offers a Compelling Combination of Growth, Returns and Exploration Upside Attributable Basis • Gold production growth potential to ~ 6 - 7 Moz by 2017 1 Production Growth ( Growth potential dependent on outcomes of Conga EIA review and the on-going dialogue with Peruvian government and communities) • Copper production to potentially double over same period • Project Returns Competitive returns across the pipeline • Potential to add equivalent of 90 Moz Au and 9 Blbs Cu reserves Exploration Upside between 2011 and 2020 2 Balance Sheet • Investment grade balance sheet and strong operating cash flows Strength Gold Price-Linked • Returning capital to shareholders through gold price-linked dividend Dividend Newmont Mining Corporation | First Quarter 2012 Earnings Update | www.newmont.com 3 April 27, 2012
Growth Potential 2012-2017 Projected Pipeline Growth, Net of Depletion 2017 Potential Africa: Production ~0.8 Moz (Moz) 5 7.0 ~0.4 Akyem APAC: ~0.2 Subika ~0.3 Moz ~0.2 S America: Ahafo Mill ~0.1 6.0 APAC Other ~1.3 Moz ~0.2 Aust. Exp. ~0.3 Merian N America ~0.2 Depletion Yan Exp. ~5.2 Moz 3 S America Cerro ~0.3 5.0 Depletion Africa Quilish N America: ~0.6 Moz APAC (~0.3 Moz) ~0.8 Moz ~0.4 Conga Depletion Au Production (Moz) Africa ~0.2 Long Canyon Depletion 4.0 Progress dependent on (~0.5 Moz) APAC ~0.6 NV Exp. outcomes of Conga EIA ~1.9 Moz (~0.4 Moz) review and the on-going (~0.2 Moz) dialogue with Peruvian government and 3.0 communities 4 Base: S America ~3.6 ~0.7Moz 2.0 N America 1.0 ~1.9 Moz 2017 2011 0.0 Newmont Mining Corporation | First Quarter 2012 Earnings Update | www.newmont.com 4 April 27, 2012
First Quarter Financial Highlights Q1 2011 vs. Q1 2011 Q1 2012 Q1 2012 Revenue ($M) $2,465 $2,683 9% Adjusted Net Income ($M) 6 $513 $578 13% Adjusted Net Income per Share 7 $1.04 $1.17 13% Net Income per Share $1.04 $0.99 -5% Cash from Continuing Operations ($M) $989 $613 -38% 75% Dividends per share $0.20 $0.35 Newmont Mining Corporation | First Quarter 2012 Earnings Update | www.newmont.com 5 April 27, 2012
First Quarter Operating Highlights Operating Margin Expands 29% on Gold Price Increase of 22% Q1 2011 vs. Q1 2011 Q1 2012 Q1 2012 Attributable Gold Production (Moz) 1.3 1.3 0% Attributable Copper Production (Mlbs) 54 35 -35% Average Realized Gold Price 8 ($/oz) $1,382 $1,684 22% Average Realized Copper Price ($/lb) $4.00 $4.01 0% Gold CAS ($/oz) $557 $620 11% Copper CAS ($/lb) $1.11 $1.98 78% Gold Operating Margin ($/oz) 9 29% $825 $1,064 Copper Operating Margin ($/lb) 10 -30% $2.89 $2.03 Newmont Mining Corporation | First Quarter 2012 Earnings Update | www.newmont.com 6 April 27, 2012
First Quarter Financial Highlights Cash Flow from Continuing Operations $1,500 $407 $189 $1,250 $377 ($million) $1,000 $989 $989 $65 $50 $750 $37 $25 $20 $715 $20 $678 $653 $613 $500 $250 Newmont Mining Corporation | First Quarter 2012 Earnings Update | www.newmont.com 7 April 27, 2012 Newmont Mining Corporation – Strictly Confidential
CAS - Gold Q1 Cost Drivers $700 $650 $7 $9 $9 $620 $10 $613 $600 $604 $12 $595 $16 $585 CAS ($/oz) $573 $550 $557 $557 $500 $450 $400 Newmont Mining Corporation | First Quarter 2012 Earnings Update | www.newmont.com 8 April 27, 2012 Newmont Mining Corporation – Strictly Confidential
Industry Leading Gold Price-Linked Dividend 11 Up 75% from Prior Year Quarter $5.00 Dividend increases / Dividend Dividend increases / decreases $4.70 decreases by $0.20/share increases / by $0.40/share for every $100/oz for every $100/oz change decreases by change in the gold price $4.50 $4.30 in the gold price $0.30/share for every $100/oz $4.00 change in gold $3.90 price Annualized Dividend per Share ($) $3.50 Q2 2012 Dividend $3.50 Declared: $0.35 $3.10 $3.00 $2.70 $2.50 $2.30 $2.00 $2.00 $1.70 $1.50 $1.40 $1.20 $1.00 $1.00 $0.80 $0.60 $0.50 $0.40 $0.00 $1,100 $1,200 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000- $2,100- $2,200- $2,300- $2,400- $2,500 -$1,199 -$1,299 -$1,399 -$1,499 -$1,599 -$1,699 -$1,799 -$1,899 -$1,999 $2,099 $2,199 $2,299 $2,399 $2,499 -$2,599 Trailing Quarter Realized Gold Price ($/oz) Newmont Mining Corporation | First Quarter 2012 Earnings Update | www.newmont.com 9 April 27, 2012
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