First Quarter 2011 Earnings Call Thursday, April 21, 2011 - PowerPoint PPT Presentation

First Quarter 2011 Earnings Call Thursday, April 21, 2011

Cautionary Statement 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 copper production; (iii) future operating, sales and other costs; (iv) future capital expenditures; (v) project returns; (vi) project start dates, ramp up, life, pipeline timelines and expansion opportunities; (vii) potential ounces or tons of reserves, NRM and potential resources; (viii) exploration pipeline, potential or upside, opportunities, growth; (ix) dividend payments and increases; (x) future liquidity; and (xi) other financial outlook for 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”, “ goa l”, “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 current expectations and mine plans; (iii) political 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 other the exchangerates 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 risks, 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 in the countries in which we operate; and (vii) governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s 2010 Annual Report on Form 10 -K, filed on February 24, 2011, with the Securities and Exchange Commission, 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, certain 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 notes found at the end of this presentation. Newmont Mining Corporation | First Quarter Earning Call | www.newmont.com 2 April 21, 2011

Newmont Offers a Compelling Combination of Growth, Returns and Exploration Upside Newmont – Attributable Basis • Gold production growth potential to ~7 Moz by 2017 (~35%) Production ~3.2 Moz of potential new production targeted 1 to offset ~1.6 Moz of decline 2 Growth • Copper production expected to nearly double over same period • Double digit returns across the project pipeline • Estimated average project pipeline CAS of ~$575/oz 3 (midpoint of 3 rd quartile 4; not Project Returns adjusted for inflation or other cost pressures) Reserves and • 93.5 Moz Au and 9.4 Blbs Cu in Reserves at 12/31/2010 5 Exploration • Potential to add equivalent of current Au and Cu Reserves over the next decade 6 Upside • Balance Sheet Substantial liquidity and operating cash flow to fund growth and shareholder capital Strength return Gold Price- • Gold price-linked dividend – an industry first Linked Dividend Endnotes can be found at the end of this presentation on slide 26. Newmont Mining Corporation | First Quarter Earning Call | www.newmont.com 3 April 21, 2011

Q1 Operating and Financial Highlights Record Cash from Continuing Operations Q1 2010 Q1 2011 2010 vs. 2011 Average Realized Gold Price 7 ($/oz) $1,106 $1,382 25% Attributable Gold Production (Moz) 1.3 1.3 Average Realized Copper Price ($/lb) $3.34 $4.00 20% Attributable Copper Production (Mlbs) 90 57 37% Cash from Continuing Operations ($M) $728 $989 36% Adjusted Net Income 8 ($M) $408 $513 26% Adjusted Net Income per Share 9 $0.83 $1.04 25% Newmont Mining Corporation | First Quarter Earning Call | www.newmont.com 4 April 21, 2011

Q1 Operating and Financial Highlights Continued Q1 2010 Q1 2011 2010 vs. 2011 Revenue ($M) $2,242 $2,465 10% Gold CAS ($/oz) $476 $557 17% Attributable Gold CAS 10 ($/oz) $506 $562 11% Net Attributable Gold CAS 10 ($/oz) $349 $438 26% Copper CAS ($/lb) $0.78 $1.11 42% Attributable Copper CAS ($/lb) 10 $0.87 $1.23 41% Gold Operating Margin 11 ($/oz) $630 $825 31% Copper Operating Margin 12 ($/lb) $2.56 $2.89 13% Newmont Mining Corporation | First Quarter Earning Call | www.newmont.com 5 April 21, 2011

GFMS Year-on-Year Changes to Cash Costs $557 $478 Newmont Mining Corporation | First Quarter Earning Call | www.newmont.com 6 April 21, 2011

Margin Expansion Continues Gold Margin ($/oz ) Copper Margin ($/lb ) Avg. Realized Avg. Realized Gold Margin ($/oz) Gold CAS ($/oz) Copper Margin ($/lb) Copper CAS ($/lb) Gold Price Copper Price $1,600 $5.00 $1,382 $1,400 $825 $4.00 $4.00 $1,200 $1,106 $825 $3.34 $2.89 $1,000 $3.00 $630 31% $800 13% $2.56 increase $2.00 $600 increase in in margin margin $400 $476 $557 $1.00 $1.11 $200 $0.78 $0 $0.00 Q1 2010 Q1 2011 Q1 2010 Q1 2011  31% Increase in Gold Margin on 25% Increase in Gold Price Newmont Mining Corporation | First Quarter Earning Call | www.newmont.com 7 April 21, 2011

Strong Balance Sheet and Operating Cash Flows Balance Sheet and Available Revolver ($B) 13 Q1 Cash from Continuing Operations ($M) $6.3B Consolidated Cash & Cash Equivalents and Marketable Securities $1,200 $1,000 $989 Undrawn $800 Revolver ~$1.8 + 36% $728 $600 Cash & Cash $400 Equivalents 13 Marketable ~$4.5 Securities $200 ~$1.8 $0 Q1 2010 Q1 2011 Ample Liquidity to Fund:  Project pipeline  Opportunistic M&A  Exploration  Gold price-linked dividend Cash balance shown as of 3/31/2011 and prior to purchase of Fronteer Gold for $2.3B on April 6, 2011. Newmont Mining Corporation | First Quarter Earning Call | www.newmont.com 8 April 21, 2011

Gold at Record Highs Source: Dundee Wealth Economics, April 13, 2011 Newmont Mining Corporation | First Quarter Earning Call | www.newmont.com 9 April 21, 2011

Gold at Record Highs “We are convinced that gold has effectively ceased being a mere commodity; it is now a currency and it is a currency rivaling the EUR for second spot amongst the world’s reservable assets. ” -Gartman Letter, April 19 Source: GFMS, European Gold Forum, April 13, 2011 Newmont Mining Corporation | First Quarter Earning Call | www.newmont.com 10 April 21, 2011

Gold Price-Linked Dividend 14 Q2 2011 Dividend increased to $0.20, up 100% from a year ago At high $1,400/oz gold and today’s stock prices, annualized dividend yield equates to ~1.7% vs. ~0.9% peer average, assuming a $60/share NEM $1.80 Annual Dividends Per Share ($) $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 $1,600 $1,700 $1,100 $1,200 $1,300 $1,400 $1,500 to $1,699 to $1,199 to $1,299 to $1,399 to $1,499 to $1,599 to $1,799 Trailing Quarter Average Realized Gold Price  Q2 2011 Gold price-linked dividend will be $0.20 per share , based on Q1 2011 Average Realized Gold Price of $1,382 per ounce − 33% increase from Q1 2011 and a 100% increase over Q2 2010 − Payable on June 29, 2011 to shareholders of record on June 16, 2011 Sample dividend payout table can be found on slide 32 in the appendix. Newmont Mining Corporation | First Quarter Earning Call | www.newmont.com 11 April 21, 2011