Second Quarter Earnings Friday, July 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 | Second Quarter 2012 Earnings | www.newmont.com 2 July 27, 2012
Enhancing Value Through Profitable Growth, Disciplined Returns and Exploration Potential Attributable Basis Profitable Profitable gold production potential of 6-7Moz by 2017 1 Growth Disciplined risk- adjusted returns in excess of the Company’s average cost Disciplined Returns of capital Exploration Option to add ~90 Moz Au and ~9 Blb Cu reserves between 2011-2020 2 Potential Balance Sheet Access to capital with an investment grade balance sheet and strong Strength operating cash flows to support profitable growth Industry- Leading Committed to returning capital to shareholders Dividend Newmont Mining Corporation | Second Quarter 2012 Earnings | www.newmont.com 3 July 27, 2012
Our Current Growth Potential, Adjusted for Delays of our Peruvian Projects, is Between 6 and 7 Million Ounces by 2017 Profitable Growth with Disciplined Returns 2017 8.0 Attributable Production Potential 6-7 Moz 4 7.0 2012 Attributable Production 6.0 Rescheduled Batu, Akyem ~0.4 Outlook N America Projects Jundee Subika ~0.2 S America ~5.0-5.1 Decline Ahafo Mill ~0.2 Decline ~0.2 Waihi GL Moz 3 (~0.1 Moz) APAC Au Production (Moz) Africa ~0.2 Other/Ext. (~0.5 Moz) 5.0 Lone Tree Decline Africa ~0.8 Moz APAC Merian ~0.3 (~0.4 Moz) ~0.6 Moz Long Canyon ~0.3 Moz ~0.2 S America NV Exp./Other ~0.3 ~0.3 Moz N America 4.0 ~0.5 Moz APAC ~1.9 Moz 3.0 Base: ~4.1 S America ~0.7 Moz 2.0 1.0 N America ~1.9 Moz 0.0 Newmont Mining Corporation | Second Quarter 2012 Earnings | www.newmont.com 4 July 27, 2012
Further development of Conga is contingent upon capital cost reductions required to generate acceptable project returns AND local community and government support Community unrest and protests delaying further progress on Conga Work Completion Status: − Engineering 95% complete − Procurement 66% complete at end of June − Downsizing the Owner’s team − Refining development cost reduction opportunities for Conga 2012-2013 revised attributable spending (~ 2/3 less than originally planned) of $440M contains: − ~$90M Engineering − ~$270M Equipment and Owner Costs − ~$60M Reservoir Construction − ~$20M Camp Construction Cabinet changes Newmont Mining Corporation | Second Quarter 2012 Earnings | www.newmont.com 5 July 27, 2012
Q2 and YTD Financial Highlights YTD YTD Q2 2011 Q2 2012 2011 2012 Attributable Gold Sales (Moz) 1.19 1.14 2.49 2.40 Attributable Copper Sales (Mlbs) 46 30 103 66 Revenue ($M) $2,384 $2,229 $4,849 $4,912 Net Income ($M) $523 $279 $1,037 $840 Net Income per Share $1.06 $0.56 $2.10 $1.69 Adjusted Net Income ($M) 5 $445 $294 $958 $872 Adjusted Net Income per Share 6 $0.90 $0.59 $1.94 $1.76 Cash from Continuing Operations ($M) $414 $351 $1,401 $956 Dividends per share $0.20 $0.35 $0.35 $0.70 Newmont Mining Corporation | Second Quarter 2012 Earnings | www.newmont.com 6 July 27, 2012
Q2 and YTD Operating Highlights YTD YTD Q2 2011 Q2 2012 2011 2012 Attributable Gold Production (Moz) 1.22 1.18 2.56 2.49 Attributable Copper Production (Mlbs) 42 38 96 73 Average Realized Gold Price 7 ($/oz) $1,501 $1,598 $1,440 $1,643 Average Realized Copper Price ($/lb) $3.78 $2.85 $3.91 $3.49 Gold CAS ($/oz) $583 $681 $570 $649 Copper CAS ($/lb) $1.34 $2.35 $1.21 $2.14 Gold Operating Margin ($/oz) 8 $918 $917 $870 $994 Copper Operating Margin ($/lb) 9 $2.44 $0.50 $2.70 $1.35 Newmont Mining Corporation | Second Quarter 2012 Earnings | www.newmont.com 7 July 27, 2012
Gold Price-Linked Dividend Eliminating “Noise” and Uncertainty/Basis Risk Source: NEM 10Q Filed on 7/26/2012 Source: NEM 10Q Filed on 7/26/2012 Newmont Mining Corporation | Second Quarter 2012 Earnings | www.newmont.com 8 July 27, 2012 Newmont Mining Corporation – Strictly Confidential
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