Second Quarter Earnings Call | July 30, 2014
Cautionary Statement 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 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 such sections and other applicable laws. Such forward-looking statements may include, without limitation: (i) estimates of future production and sales; (ii) estimates of future costs applicable to sales and All-in sustaining costs; (iii) estimates of future consolidated and attributable capital expenditures; (iv) plans and expectations relating to saving or reductions in costs and expenditures; (v) expectations regarding decisions regarding future exploration or development projects and the development, growth and funding potential of the projects including, without limitation, Merian; (vi) expectations regarding future dividend payments, and (vii) expectations regarding future asset sales and financial flexibility. Forward-looking statements often include words such as "anticipates," "estimates," "expects," "projects," "intends," "plans," "believes" and words and terms of similar substance in connection with discussions of future operating or financial performance. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions, include, but are not limited to: (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 jurisdictio n in which the Company operates 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 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 (vii) the accuracy of our current mineral reserve and mineral resource estimates. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the “forward -looking statements ”. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks, community relations, conflict resolution and outcome of projects or oppositions and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s 2013 Annual Report on Form 10 -K, filed on February 21, 2014, with the Securities and Exchange Commission, as well as the Company’s other SEC filings. The Company does not undertake any obligation to release publicly revisions to any “forward -looking statement,” including, without limitation, outlook, to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, 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 -look ing statements” is at investors' own risk. This presentation should be read in conjunction with Newmont’s Second Quarter Form 10 -Q filed with the Securities and Exchange Commission on or about July 29, 2014 (available at www.newmont.com). July 30, 2014 Newmont Mining Corporation Slide 2
Overview
Maintaining safe and efficient operations Total Accident Frequency Rate (per 200,000 hours worked) 0.50 0.49 0.49 0.47 0.46 0.40 0.32 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Yanacocha Truck Shop Carlin welding shop, Nevada July 30, 2014 Newmont Mining Corporation Slide 4
Continuing to deliver on our commitments Improving the business Decreased gold AISC 1 and CAS by 17%* • • Increased attributable gold production by 5% Improved 2014 outlook 2 • Strengthening the portfolio Approved the Merian project • Turf Vent Shaft on budget and schedule • • Completed sale of Jundee for $94M on July 1 Maintaining financial flexibility Generated $124M in free cash flow • 58% capex reduction • Surface facilities at Turf Vent Shaft * Percent decrease is on a per ounce basis July 30, 2014 Newmont Mining Corporation Slide 5
Trajectory of improved cost and efficiency continues Gold All-in sustaining costs (AISC) ($/oz) Q2 1,063 Gold All-in 2014 sustaining costs down 17% Q2 1,283 2013 Attributable gold production (Koz) Q2 1,220 2014 Gold production Q2 up 5% 1,167 2013 July 30, 2014 Newmont Mining Corporation Slide 6
Gold production across the regions Q2 attributable gold production (koz) 468 437 418 401 238 167 139 106 7 6 North America South America Australia/NZ Indonesia Africa 2014 2013 Gold pour at Ahafo Mining at Akyem July 30, 2014 Newmont Mining Corporation Slide 7
Gold all-in sustaining costs driven down 17% Q2 regional gold AISC ($/oz) Q2 company gold AISC ($/oz) 5,917 $39 $1,283 $4 $23 $3 $152 1,556 1,398 1,425 1,095 $7 1,035 1,032 926 949 $1,063 688 America America Australia/NZ Indonesia Africa Q2 2013 Remediation Sustaining Capital Adv. Projects & Expl. G&A CAS Other Q2 2014 South North 2014 2013 July 30, 2014 Newmont Mining Corporation Slide 8
Capital spending down 58% Consolidated capital expenditures ($M) • Sustaining capital down 25% versus Q2 2013 Q2 2014 development capital primarily for • 254 2014 Turf Vent Shaft Akyem delivered on time and below • budget Q2 • Phoenix Copper Leach delivered on 610 2013 time and on budget Sustaining capital Development capital July 30, 2014 Newmont Mining Corporation Slide 9
Delivered $454M YTD of cost and efficiency improvements Vision for the future Cash AISC 3 savings ($M) $450 $400 • Improved truck and shovel utilization • Improved mill utilization and recovery rates CAS improvements $350 • Headcount and productivity improvements $224 $300 • Optimized mine plans Sustaining Capital $250 $200 • Optimized exploration and project portfolio Advanced Projects & $139 • $150 Exploration Focusing on highest value opportunities $100 • General & Headcount and productivity $74 $50 Administrative improvements $17 $0 Through Q2 2014 vs Prior July 30, 2014 Newmont Mining Corporation Slide 10
Continuing to seek resolution in Indonesia • Operations entered “care and maintenance” June 5; force majeure declared • Arbitration announced July 1, will seek injunctive relief • Ongoing discussions with government • Concentrate inventories will continue to ship to PT Smelting • Revised guidance reflects export permits received January 2015 • Final 7% interest divestiture pending Batu Hijau, Indonesia July 30, 2014 Newmont Mining Corporation Slide 11
Financial Results
Q2 financial results Q2 2014 Q2 2013 Average Realized Gold Price ($/oz) $1,283 $1,386 Average Realized Copper Price ($/lb) $3.01 $2.69 Revenue ($M) $1,765 $2,018 Net Income from Cont. Operations ($M) $182 $(2,133) Adjusted Net Income ($M) 4 $101 $(90) Adjusted Net Income ($ per share) 4 $0.20 $(0.18) Cash from Continuing Operations ($M) $378 $293 Dividends ($ per share) $0.025 $0.35 July 30, 2014 Newmont Mining Corporation Slide 13
Q2 adjusted net income above prior year ($M) $150 $17 Adjusted Net Income ($million) $100 $28 - $2 $50 $101 $183 $0 - - $90 ($50) ($100) $24 $91 ($150) $72 ($200) ($250) 2013 ANI Au/Cu Volume Commodity Price Cost applicable to Sales Stockpile Revaluations Advanced Projects and Expl Other Tax Rate 2014 ANI July 30, 2014 Newmont Mining Corporation Slide 14
Q2 gold CAS 17% below prior year ($/oz) $1,000 $18 $950 $44 $900 $121 $850 CAS ($/oz) $800 $91 $750 $1 $700 $895 $650 $744 $600 $550 $500 2013 Actual Volume Hedging Stockpile Revaluations Direct Spend Other 2014 Actual July 30, 2014 Newmont Mining Corporation Slide 15
Disciplined capital allocation Improved financial flexibility • Cash balance of approximately $1.7B, no borrowings on $3B revolver • Cash from Continuing Operations of $378M in Q2 • Free cash flow of $124M in Q2 • Extended debt maturity profile Enhance Portfolio • Approved Merian project with an anticipated start date of late 2016 • Completed sale of Jundee for approximately $94M on July 1 Return cash to shareholders • Returned YTD $89M in the form of dividends July 30, 2014 Newmont Mining Corporation Slide 16
Outlook
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