Investor Day 2012

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Investor Day 2012

  1. 1. Newmont Mining Corporation2012 Investor DayNew York, NYMay 23, 2012 Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com
  2. 2. Cautionary Statement 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 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, including commencement of mining, drilling and stage gate advancement and expansion opportunities; (vii) potential ounces or tons and grades of reserves, NRM, pre- 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 in 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 current 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 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 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 ore grade 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. Cautionary Note to U.S. Investors – The United States SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce in accordance with the Industry Guide 7. We use the term “NRM” to refer to non-reserve mineralization as further described in the Appendix hereto. We use certain terms on this presentation, which the SEC guidelines prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-K, which may be found on our website or the SEC’s website http://www.sec.gov/edgar.shtml. Further information regarding measures is set forth in the Appendix hereto. Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 2 May 23, 2012
  3. 3. Agenda 9:30 Safety Briefing and Introduction 9:35 Strategic Update  Industry Challenges  Focused Growth with Disciplined Returns  Alternative Development Options  Conga Update  Balance Sheet Strength  Cost Efficiencies & Capital Sequencing 10:20 Q&A Session 11:00 Regional Operations & Exploration Update  Regions  Exploration Update 11:45 Summary and Q&A Session Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 3 May 23, 2012
  4. 4. Safety BriefingRay Caltagirone, Director of Security Emergency Exit Elevators Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 4 May 23, 2012
  5. 5. Strategic UpdateRichard O’Brien, President and CEO Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com
  6. 6. What We Told You in 2011…..Newmont Offers a Compelling Combination of Growth, Returns and Exploration Upside Excerpt from Presentation Dated April 7, 2011, provided for illustrative purposes only. Does not constitute reaffirmation of excerpted data. Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 6 May 23, 2012
  7. 7. Addressing Industry Challenges Increasing Resource Nationalism Tax and royalty increases, more demands on social-license and more pressure from host governments Re-evaluating certain projects for re-sequencing based on risk profile and return potential Increasing Operating and Capital Pressures Investors focused on cost control, increasing political and technical risk, and returns on and of capital Reducing G&A, rationalizing operations, deferring some earlier stage projects & some exploration Gold ETF Outperforming Gold up 10% in 2011 and 142% over the last 5 years; senior gold equities down 15% in 2011 and up 29%, respectively, during in the same period Newmont led industry with Gold-linked dividend supporting return of capital to shareholders, what could be next? Mining Valuation Multiples Compressing Diversified and Gold valuations down over 25% from 2010 Focused on enhancing per share performance Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 7 May 23, 2012
  8. 8. Key Events Since Newmont’s Last Investor Day – April 2011 February 2012 September 2011 Government of Peru Announces Enhanced Gold Independent Expert Price-Linked EIA Review Dividend Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 October 2011 July 2011 February 2012 Blockades Full Funding November 2011 Gold Reserves Temporarily Impact April 2012 Approved for Increased to Yanacocha Access Suspension of Conga and Tanami Record 99Moz Government of Conga Construction Peru Releases Activities Independent Expert EIA Review Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 8 May 23, 2012
  9. 9. And In 2012, Enhancing Value Through Profitable Growth,Disciplined Returns and Exploration Potential Attributable Basis Profitable  Profitable gold production potential of 6-7Moz by 20171 GrowthDisciplined  Disciplined risk-adjusted returnsReturnsExploration  Option to add ~90 Moz Au and ~9 Blb Cu reserves between 2011-20202PotentialBalance Sheet  Access to capital with an investment grade balance sheet and strongStrength operating cash flows to support profitable growth Industry- Leading  Committed to returning capital to shareholders Dividend Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 9 May 23, 2012
  10. 10. Profitable Growth with Disciplined ReturnsDelivering Per Share Leadership Gold Reserves per Thousand Shares Attributable Gold Production per Share 250 12.0 2011 2010 2009 2011 2010 2009 200 10.0 8.0 150 6.0 100 4.0 50 2.0 0 0.0 NEM ABX AEM GG KGC IMG NEM ABX AEM GG KGC IMG Consolidated Operating Cash Flow per Share Dividends Paid per Share $9.00 $1.20 2011 2010 2009 2011 2010 2009 $7.00 $1.00 $5.00 $0.80 $3.00 $0.60 $0.40 $1.00 NEM ABX AEM GG KGC IMG $0.20 -$1.00 $0.00 -$3.00 NEM ABX AEM GG KGC IMGBasic Shares Outstanding as of 12/31/11 in millions: NEM 494, ABX 999, AEM 169, GG 804, KGC 1136, IMG 376 Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 10 May 23, 2012
  11. 11. What We’ve Shared Recently About our Growth Potential Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 11 May 23, 2012
  12. 12. 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 Production Potential (6-7 Moz)4 7.0 Africa 2012 ~0.8 Moz 6.0 Attributable ~0.4 Akyem Production N America Potential ~0.2 Subika Outlook Decline S America Deferred Jundee, Batu Ahafo Mill ~0.2 ~5.1 Moz3 (~0.1 Moz) Decline Projects ~0.2 Waihi GL APACAu Production (Moz) ~0.2 Other/Ext. 5.0 (~0.5 Moz) Africa Decline Lone Tree ~0.3 Merian APAC ~0.6 Moz (~0.4 Moz) ~0.2 Long Canyon S America ~0.3 Moz ~0.3 NV Exp./Other ~0.3 Moz 4.0 N America ~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 | Annual Investor Day Meeting, New York City | www.newmont.com 12 May 23, 2012
  13. 13. Alternative Development Options Increased Financial Flexibility Profitable Growth & Disciplined Returns North America Africa APAC Lone Tree Autoclave Restart Ahafo North Jundee Extensions ~2014 ~2014 ~2019 Au Production Potential: ~60koz Au Production Potential: ~60koz Au Production Potential: ~210koz Development Capital: ~$100M Development Capital: ~$100M Development Capital: ~$550M Batu 3rd SAG ~2016 Cu Production Potential: ~60Mlb Production potential reflects annual estimates Development Capital: ~$300M Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 13 May 23, 2012
  14. 14. Conga Update5: Conga Progressing on a Measured Basis Contingent UponCapital Cost Reductions and Future Community Support Independent review confirmed EIA meets Peruvian and International standards 2012-2013 revised spending estimated at 2/3 less than originally planned development capex during the same period (i.e., ~$440M versus ~$1.5 B attributable) 2012-2013 spending now focused primarily on water supply and quality improvements, EPCM and camp maintenance and long lead equipment purchases Further development of Conga contingent upon capital cost reductions required to generate acceptable project returns as well as local community and Peruvian government support  First potential production would be early 2017 Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 14 May 23, 2012
  15. 15. Profitable Growth with Disciplined ReturnsPotential Delayed Development of Peruvian Projects Could Defer ~1Moz of GoldProduction by 2017 as well as ~$3B of Capex Potential Cash Flow Production Potential4 2012 - 2017 Growth6 8,000 Potential Delayed Peruvian Projects – Conga, Cerro Quilish, & Yanacocha ~7.0 7,000 Extensions ~6.5Annual Attributable Gold Production (Moz) 6,000 ~5.4 ~6.0 ~5.4 ~5.2 ~5.8 ~5.2 5,000 ~5.2 ~5.0 ~5.0 ~5.1 4,000 Potential Production 3,000 Growth Conga & Other 2,000 Base Gold S. America Operations Africa 1,000 APAC N. America 0 2012 2013 2014 2015 2016 2017 *For Pro-Forma Assumptions See Footnote 6 Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 15 May 23, 2012
  16. 16. Increased Focus on Reducing Costs Across the Business Restructuring Team Russell Ball Exploration and Capital Expenditures Operations General & Advanced Projects Administrative Sponsor: Grigore Simon Sponsor: Gary Goldberg Sponsor: Gary Goldberg Sponsor: Russell Ball 2012 Expense Outlook 2012 Capex Outlook 2012 CAS Outlook 2012 G&A Outlook  Exploration: $360 -  $3.0 - $3.3B  $3.6B  $210 - $230M $390M  Advanced Projects: $430 - $480M*Note: Outlook on an Attributable Basis Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 16 May 23, 2012
  17. 17. Delivering on our Plans in a Safe, Environmentally and SociallyResponsible Manner Dow Jones Sustainability Index (DJSI)  Fifth consecutive year selected to the DJSI World ISO 14001 Certification  Certification complete at 100% of sites in 2011 International Cyanide Code Certification  100% Certification at all sites as of February 2012 Global Greenhouse Gas (GHG) Inventory  Global GHG inventory reported to The Climate Registry (TCR) and verified by Bureau Veritas  Selected for the Carbon Disclosure Project (CDP) S&P 500 Leadership Index. Mine Closure & Reclamation  Nevada Excellence in Mine Reclamation Awards and One Billion Trees Award (Indonesia) Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 17 May 23, 2012
  18. 18. Delivering on our Plans in a Safe, Environmentally and SociallyResponsible Manner Corporate Responsibility Magazine  Ranked 42nd overall in 2012 on 100 Best Corporate Citizens Founding Member of the International Council on Mining and Metals and the World Gold Council Community Relationships Review (CRR)  Unprecedented independent review of Newmont relationships with communities; implementation plans are underway to respond to the CRR recommendations  Rollout of our revised social responsibility standards  Development and implementation of our social audit program  Conflict Management training in partnership with RESOLVE.  Implemented our ESR-Exploration Guidebook www.beyondthemine.com Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 18 May 23, 2012
  19. 19. Financial OverviewRussell Ball – EVP & CFO Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com
  20. 20. Balance Sheet StrengthStrong Liquidity Position with Investment Grade Rating Cash Flow from Operations ($B) Large Liquidity Buffer $4.0 $3.6 Cash and Cash Equivalents7 $2.6B $3.5 Investments8 $1.7B $3.2 Credit Facility9 $2.5B $2.9 $3.0 Available Liquidity $6.8B $2.5 $2.0 Investment Grade Ratings and Metrics $1.5 $1.3 Credit Ratings BBB+ / Baa1 (stable) $1.0 $0.7 Debt to Capitalization10 27.7% $0.5 Debt to EBITDA11 1.2x $0.0 2007 2008 2009 2010 2011 Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 20 May 23, 2012
  21. 21. Revolving Credit Facility RenewalLower Rates, Larger Facility and Extended MaturityLA/BR JP Morgan JP MorganRatings at Close Baa1 / BBB+ Baa1 / BBB+Current Ratings Baa1 / BBB+ Baa1 / BBB+Maturity Date May 20, 2016 May 22, 2017Size ($MM) 2,500.0 3,000.0 Revolving Credit FacilityFacility Description Revolving Credit Facility (Amend, upsize, and extend existing)Tenor 5-years 1-year extensionUndrawn Cost (bps) 17.5 15.0All In Drawn Cost (bps) 125.0 115.0 Facility Libor Facility LiborPricing Grid (bps) Ratings Fee Margin Drawn Ratings Fee Margin Drawn 223 ≥A2 / A 10.0 90.0 100.0 ≥A2 / A 7.5 80.0 87.5 A3 / A- 12.5 100.0 112.5 A3 / A- 10.0 90.0 100.0 Baa1 / BBB+ 17.5 107.5 125.0 Baa1 / BBB+ 15.0 100.0 115.0 Baa2 / BBB 25.0 125.0 150.0 Baa2 / BBB 20.0 120.0 140.0 <Baa3 / BBB- 30.0 157.5 187.5 <Baa3 / BBB- 25.0 140.0 165.0 *Highe r of *Highe r ofFinancial Covenant Debt / Cap ≤ 62.5% Debt / Cap ≤ 62.5% Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 21 May 23, 2012
  22. 22. Balance Sheet StrengthDebt Maturity Profile12 Convertible Senior Notes $1,600 $1,400 $1,200 $3.0B Corporate RevolverMillions of US$ $1,000 ~$1.5B $800 $174 $1,500 $600 $1,100 $1,000 $900 $400 $690 $575 $575 $600 $200 $430 $265 $10 $10 $10 $- 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2022 2035 2039 2042 Retired Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 22 May 23, 2012
  23. 23. Gold Price-Linked Dividend13~$600 Million Paid Over Last 4 Quarters $5.00 Dividend increases / Dividend Dividend increases / decreases decreases by $0.20/share increases / by $0.40/share for every $100/oz $4.70 $4.50 for every $100/oz change decreases by change in the gold price in the gold price $0.30/share for $4.30 every $100/oz $4.00 change in gold $3.90 priceAnnualized Dividend per Share ($) $3.50 $3.50 Paid $1.20 Per Share Over Last 4 $3.10 Quarters $3.00 Q2 2011 $0.20 $2.70 Q3 2011 $0.30 $2.50 Q4 2011 $0.35 $2.30 Q1 2012 $0.35 $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 -$2,599 Trailing Realized Gold Price ($/oz) Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 23 May 23, 2012
  24. 24. Gold Price PerspectiveRussell Ball – EVP & CFO Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com
  25. 25. Gold Price PerspectivePlenty of “Trading Headlines”, but Look to the Long-term Fundamentals May 23, 2012 Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 25 May 23, 2012
  26. 26. Gold Price HistoryMartin Murenbeeld (April 17, 2012) May 23, 2012Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 26 May 23, 2012
  27. 27. Gold Price HistoryMartin Murenbeeld (April 17, 2012) May 23, 2012Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 27 May 23, 2012
  28. 28. Gold Price PerspectiveMartin Murenbeeld (April 17, 2012)Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 28 May 23, 2012
  29. 29. Gold Price PerspectiveBullish Fundamentals: Monetary Reflation II Source: John Hathaway, Tocqueville Asset Management, L.P. April 2012Day Meeting, New York City | www.newmont.com Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 29 May 23, 2012
  30. 30. Gold Price PerspectiveBullish Fundamentals: Central Banks Source: The Gartman Letter, May 22, 2012, New York City | www.newmont.com Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 30 May 23, 2012
  31. 31. Gold Price PerspectiveBullish Fundamentals: ETF’s and Investment Demand Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 31 May 23, 2012
  32. 32. Gold Price PerspectiveMartin Murenbeeld (April 17, 2012)Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 32 May 23, 2012
  33. 33. Gold Price PerspectiveBearish Factors #4Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 33 May 23, 2012
  34. 34. Gold Price PerspectiveBearish Factors #8Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 34 May 23, 2012
  35. 35. Gold Price ForecastMartin Murenbeeld (April 17, 2012)Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 35 May 23, 2012
  36. 36. Questions and AnswersStrategic Update Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com
  37. 37. Regional UpdatesGary Goldberg - EVP & COO Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com
  38. 38. Reportable AccidentsInjury Frequency Trend Employees & Contractors Total Reportable Accident Frequency Rate (“TRAFR”) 2.8 2.44 2.4 2.06 2.0 1.6 1.48 1.21 1.2 0.92 0.91 0.84 0.78 0.74 0.72 0.69 0.8 0.4 0.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1 2012 Newmont TRAFR - Employees & Contractors Example Calculations Q1 2012 Newmont TRAFR = 108 TRAs * 200,000 / 27,594,075 hours Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 38 May 23, 2012
  39. 39. Regional UpdatesGlobal Overview Operations & Projects ~46,000 Total Workforce Operations 14 – Open pit mines Carlin 16 – UG mines Leeville 15 – Process facilities Midas Projects 7 – Heap leach pads Phoenix Emigrant 2 – Power Plants Twin Creeks Phoenix Cu Leach Leeville / Turf Expansion Phoenix Mill Expansion Long Canyon La Herradura Nimba Sabajo Ahafo Merian Conga Akyem Batu Hijau Subika Expansion Elang La Zanja Tanami Yanacocha Jundee Tanami Shaft Boddington Operations KCGM Waihi Projects Golden Link Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 39 May 23, 2012
  40. 40. 2012 Cost Assumptions Applied Metrics Unit Assumptions Gold Price $/oz $1,500 Copper Price $/lb $3.50 Silver Price $/oz $30 WTI $/bbl $90 AUD:USD $ $1.00 Labor Escalation Avg. 4% 2012-2014  All figures shown are attributable to Newmont.18  Production figures are estimate figures developed from the guidance listed in the table above.  The 1st 5 year production charts are shown beginning in the first year of production.  Production ranges shown reflect the first five year average production for gold and/or copper.  All Development Capital Expenditures and Operating Costs are estimate figures developed from the guidance listed in the table above.  Development capital expenditures are the sum of development capital expended from 2012 – 2017.  Operating costs are a range of the first five year average figures beginning in the first full year of production. Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 40 May 23, 2012
  41. 41. North AmericaRegional Overview 2011 Reserves: 37.0 Moz Au and 2.0 Blb Cu North America z 2011 NRM: 13.9 Moz Au and 1.0 Blb Cu Phoenix Mill Operations z Carlin Leeville Midas Phoenix Twin Creeks Projects Emigrant Phoenix Cu Leach Leeville / Turf Expansion La Herradura Phoenix Mill Expansion Long Canyon Operations Projects 2012 Outlook14 2017 Potential15Attributable Gold Production (koz) 1,900 – 2,000 Attributable Gold Production (koz) ~2,300 – 2,400CAS ($/oz) $570 – $630 Gold Contribution from Projects (koz) ~400 – 500Attributable Development Capex ($M) $240 – $280 Attributable Development Capex for Projects ~$1,600 – $1,900 ($M)Attributable Sustaining Capex ($M) $520 – $600 Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 41 May 23, 2012
  42. 42. North AmericaProduction Profile Breakout In Millions of Ounces ~2.4 ~0.1 Phoenix Mill Expansion Long Canyon ~0.1 Emigrant ~0.1 Leeville/Turf Expansion ~0.2 Long Canyon Leeville / Turf Expansion Base ~1.9 Emigrant Phoenix Mill 2017 Expansion Note: La Herradura included in “Other” category; contributing ~40koz to 2017 7Moz potential Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 42 May 23, 2012
  43. 43. North AmericaLeeville / Turf Expansion – Start Date ~2016 180 Estimated First 5 Year Production $800 Project Description 160 $700 140 $600 Attributable Gold Production (Koz) Allows for ramp-up in production and 120 Gold CAS ($/oz) $500 exploration access for the greater Leeville 100 $400 resource area 80 $300 60 40 $200 Gold Reserves & NRM 20 $100 0 - 2015 2016 2017 2018 2019 Production CAS ($/oz) 2011 Reserves: 4.3 Moz 2011 NRM: 2.0 Moz 160 Estimated Development Capital Expenditures Attributable Capital Expenditures ($M) 140 120 Project Update 100 80 Earthworks began in March at Turf after 60 permit approval 40 Contractors mobilizing to start preparations 20 for sinking vent shaft - 2011 2012 2013 2014 2015 Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 43 May 23, 2012
  44. 44. North AmericaEmigrant – Start Date ~2013 Estimated First 5 Year Production Project Description 100 $800 $700 Attributable Gold Production (Koz) 80 $600 Bolt-on to Carlin’s infrastructure Gold CAS ($/oz) 60 $500 $400 40 $300 Gold Reserves & NRM 20 $200 $100 0 - Reserves: 1.6 Moz 2012 2013 2014 Production 2015 CAS ($/oz) 2016 NRM: 0.4 Moz Estimated Development Capital Expenditure 70 Project Update Attributable Capital Expenditures ($M) 60 50 Mining started in Q2; on track for second- 40 half 2012 leach start-up 30 First run-of-mine ore delivered to leach pad 20 in April 2012 10 Leverages Carlin infrastructure & resources - 2011 2012 2013 Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 44 May 23, 2012
  45. 45. North AmericaPhoenix Mill Expansion – Start Date ~2017 Project Description Potential opportunity to expand current operation and increase current mill capacity Profitable Growth16 Gold: ~75 – 85 koz/yr Copper: ~25 – 28 Mlb/yr Disciplined Returns Development Capex: ~$550 – $660M Operating Costs: ~$450 – $550/oz Project Update Evaluating options ranging from current levels up to two times current throughput (28 Mtpa) Feasibility study underway Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 45 May 23, 2012
  46. 46. North AmericaLong Canyon – Start Date ~2017 Project Description Project Update A Carlin-Type trend with potential for regional  NRM declaration expected in 2012 synergies resource statement17  Potentially new mineralized structures Profitable Growth identified; follow up drilling underway  Targeting district potential of ~8Moz Gold: ~200 – 300 koz/yr Disciplined Returns Development Capex: ~$500 – $700M Operating Costs: ~$375 – $520/oz Project Milestones Plan of Operations submitted in Q1 2012 Completed 278 holes in 2011; ~59km Step out drilling extended mineralization 1km along strike Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 46 May 23, 2012
  47. 47. South AmericaRegional Overview South America 2011 Reserves: 10.8 Moz Au and 1.7 Blb Cu Yanacocha 2011 NRM: 7.2 Moz Au and 0.8 Blb Cu Sabajo Merian Conga La Zanja Yanacocha Operations Projects 2012 Outlook14 2017 Potential15 Attributable Gold Production (koz) 700 – 750 Attributable Gold Production (koz) ~1,300 – 1,400 CAS ($/oz) $480 – $530 Gold Contribution from Projects (koz) ~1,100 – 1,200 Attributable Development Capex ($M) $725 – $840 Attributable Development Capex for ~$3,000 – $3,100 Projects ($M) Attributable Sustaining Capex ($M) $225 – $260 (Incl Attributable Capex - Conga ($M) $600 – $650) Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 47 May 23, 2012
  48. 48. South America: SurinameMerian – Start Date ~2015 Project Description Open pit mine with exploration upside Profitable Growth18 Gold: ~350 - 400 koz/yr Disciplined Returns Capex: ~$700 – $775M Operating Costs: $525 – $600/oz Gold Reserves & NRM 2011 NRM: 3.6 Moz Potential to add ~50%-100% of current NRM over the next 5-10 years Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 48 May 23, 2012
  49. 49. Asia PacificRegional Overview 2011 Reserves: 31.6 Moz Au and 6.0 Blb Cu Asia Pacific 2011 NRM: 13.7 Moz and 2.3 Blb Cu Boddington Batu Hijau Elang Tanami Tanami Jundee Shaft KCGM Boddington Waihi Golden Link Operations Projects 2012 Outlook14 2017 Potential15 Attributable Gold Production (koz) 1,775 – 1,885 Attributable Gold Production (koz) ~1,700 - 1,800 CAS ($/oz) $800 – 850 Gold Contribution from Projects (koz) ~300 – 400 Attributable Copper Production (Mlb) 150 – 170 Attributable Copper Production (Mlb) ~175 - 185 CAS ($/lb) $1.80 – $2.20 Copper Contribution from Projects (Mlb) ~35 - 45 Attributable Development Capex ($M) $210 – $240 Attributable Development Capex for Projects ~$800 - $950 ($M) Attributable Sustaining Capex ($M) $475 – $550 Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 49 May 23, 2012
  50. 50. Asia PacificProduction Profile Breakout In Millions of Ounces ~1.8 ~0.2 Other Expansions ~0.1 Waihi Golden Link Waihi Golden Link Base ~1.5 Other Expansions (incl. Tanami Shaft) 2017 Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 50 May 23, 2012
  51. 51. Asia PacificBatu Hijau UpdateDivestiture Update  Ministry of Finance and Parliament dispute over purchase of final 7% divestiture stake to be resolved by Constitutional Court  New regulatory requirement for foreign companies to divest 51% expected to have no impact on PTNNTIndonesian Export Ban  Indonesia’s export ban on copper concentrates being discussed with Government  PTNNT’s Contract of Work provides export protections Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 51 May 23, 2012
  52. 52. Asia PacificTanami Shaft – Start Date ~2014 – 2015 Tanami Shaft Impact to Base Project Description 450 $1,000 400 Attributable Gold Production (Koz) $950 Project reduces CAS and leverages existing 350 Gold CAS ($/oz) operating infrastructure and exploration 300 $900 potential to extend mine life 250 $850 200 150 $800 Gold Reserves & NRM 100 $750 50 - $700 2011 Reserves: 2.3 Moz 2014 2015 2016 2017 2018 2011 NRM: 2.2 Moz Base Production Shaft Production CAS ($/oz) w/ Shaft 200 Estimated Development Capital Expenditures 180 Project Update Attributable Capital Expenditures ($M) 160 140 120 Full funds approval received July 2011 100 EPCM contract awarded & bore contractor 80 mobilized Q4 2011 60 Increases gold production from 40 20 underground by 60 – 90koz per year - Reduces project CAS by ~$100/oz 2011 2012 2013 2014 Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 52 May 23, 2012
  53. 53. Asia PacificWaihi Golden Link – Start Date ~2016 Project Description Project UpdateLeverages existing infrastructure, extends mine  Currently advancing Correnso and Martha life and provides additional exploration upside Deeps evaluations  Target 2H 2012 Martha exploration decline once permits received Profitable Growth Gold: ~100 – 125 koz/yr Disciplined Returns Development Capex: ~$240 – $290M Operating Costs: ~$800 – $900/oz Gold Reserves & NRM 2011 Reserves: None 2011 NRM: 0.7 Moz Au Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 53 May 23, 2012
  54. 54. Asia PacificJundee – Start Date ~2014 Project Description Extensive High-Grade Vein system with potential to extend life of mine Gold Reserves & NRM 2011 Reserve: 0.7 Moz 2011 NRM: 0.4 Moz Project Update New extensions to both the North and South with discovery of Gringotts and extensions to Gateway and Cook areas Potential to increase working faces for additional UG ore feed Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 54 May 23, 2012
  55. 55. Asia PacificBoddington MinePerformance Update  Improving plant reliability, with conveyor circuit modifications to be completed in Q4  Fairly consistent performance through April and early May  Running at ~35Mtpa rates since the beginning of 2012  Availability of dry crushing and grinding side of the plant is always a focus  Expect to be on budget at mid-year for both gold and copper production Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 55 May 23, 2012
  56. 56. AfricaRegional Overview 2011 Reserves: 19.5 Moz Africa z 2011 NRM: 7.2 Mozzzzzz Ahafo Plant zzzzz Nimba Ahafo Akyem Subika Expansion Operations Projects 2012 Outlook14 2017 Potential15Attributable Gold Production (koz) 570 – 600 Attributable Gold Production (koz) ~1,200 – 1,400CAS ($/oz) $500 – $550 Gold Contribution from Projects (koz) ~800 – 900Attributable Capex ($M) $560 – $650 Attributable Development Capex for Projects ($M) ~$1,600 – 2,300Attributable Sustaining Capex ($M) $45 – $55 Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 56 May 23, 2012
  57. 57. AfricaProduction Profile Breakout In Millions of Ounces ~1.4 ~0.2 Ahafo Mill Expansion Akyem ~0.2 Subika Expansion ~0.4 Akyem Ahafo Mill Expansion Base ~0.6 Subika Expansion 2017 Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 57 May 23, 2012
  58. 58. AfricaAkyem – Start Date ~2014 Estimated First 5 Year Production Project Description 500 700 600 Attributable Gold Production (Koz) Akyem will contribute to nearly doubling our 400 500 Gold CAS ($/oz) African production. Construction is ~50% 300 400 complete, first concrete poured at crusher. 200 300 200 Profitable Growth 100 100 0 0 Gold: ~350 – 450 koz/yr 2013 2014 2015 2016 2017 Production CAS ($/oz) Estimated Development Capital Expenditures Disciplined Returns 450 Attributable Capital Expenditures ($M) 400 350 Capex: ~$850 – $1,100M 300 Operating Costs: $500 – $650/oz 250 200 Gold Reserves & NRM 150 100 2011 Reserves: 7.4 Moz 50 - 2011 NRM: 0.3 Moz 2011 2012 2013 2014 Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 58 May 23, 2012
  59. 59. AfricaSubika Expansion – Start Date ~2014 – 2015 Project Description Project Update Subika’s ore body remains open at depth and  Test stoping, infrastructure development and strike and feeds higher grade ore into the diamond drilling on-going on site Ahafo operation Profitable Growth Gold: Ramp up ~100-150 koz/yr / Steady- state ~180 – 220 koz/yr Disciplined Returns Capex: ~$500 - $700M Operating Costs: $700 - $950/oz Gold Reserves & NRM 2011 Reserves: 4.5 Moz 2011 NRM: 3.6 Moz Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 59 May 23, 2012
  60. 60. AfricaAhafo Mill Expansion – Start Date ~2015 – 2016 Project Description Project Update  EIS permit path forward finalized; 1st draft to Expansion on target to increase district be submitted June 2012 production and improve sustainable  Project team in place and mobilized development while sustaining costs  Engineering contractor to present bid proposal June 2012 Profitable Growth Gold: ~150-200 koz/yr Disciplined Returns Capex: ~$550 – $650M Operating Costs: Reduces Ahafo CAS ~$80 – $100/oz Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 60 May 23, 2012
  61. 61. Exploration UpsideGrigore Simon – SVP Exploration Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com
  62. 62. Exploration UpsideStrong Reserve and NRM Growth Attributable Net Gold Reserve and NRM Growth CAGR – Compounded Annual Growth Rate P&P – Proven and Probable Reserves Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 62 May 23, 2012
  63. 63. Exploration UpsideGold Reserves Increase to Record Levels 2011 Attributable Gold 2011 Attributable Gold Proven and Probable Proven and Probable Reserves (Moz) Reserve Additions by Region (Moz) ~0.9 ~6.3 ~7.4 ~0.3 ~2.2Million Ounces ~2.9 ~3.3 98.8 ~6.2 93.5 N. America Africa 2010 Gold Price Additions Revisions Depletions 2011 S. America Asia Pacific  Record gold reserves of 98.8 million ounces, an increase of ~6% from 2010  Biggest gold reserve increases came from North America (Carlin, Phoenix, and Turf/Leeville), Africa, and APAC (Tanami, KCGM, Jundee)  Gold NRM increased ~12% over 2010 from 37.5Moz to 42.1Moz Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 63 May 23, 2012
  64. 64. Exploration UpsideCopper Reserves Increase to Record Levels 2011 Attributable Copper 2011 Attributable Copper Proven and Probable Proven and Probable Reserves (Blb) Reserve Additions by Region (Blb) ~0.03 ~0.1 ~0.3 ~0.1 ~0.4 Billion Pounds ~0.2 9.7 ~0.5 9.4 N. America Asia Pacific 2010 Cu Price Additions Revisions Depletions 2011 S. America  Record copper reserves of 9.7 billion pounds, an increase of ~3% from 2010  Copper NRM increased ~11% over 2010 to 4.1Blb  Copper reserve growth driven by increases at Phoenix and Batu Hijau Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 64 May 23, 2012
  65. 65. Exploration UpsideBalanced Exploration Program Between Reserves, NRM and Discoveries Attributable Expensed Exploration Outlook is $360-390M in 2012 Corporate, $32M South America, APAC, $87M $54M Africa, $58M North America, 2012: $138M Opportunity Exploration Fund, $25M Expense (~$370M) Reserves, $47M Near Mine Generative New Discovery, $96M NRM, $90M Pre-NRM, $111M Subject to cost efficiency and capital re-sequencing Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 65 May 23, 2012
  66. 66. Exploration UpsideReserve Base Expected to Exceed the 100 Moz Level at Year End Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 66 May 23, 2012
  67. 67. Exploration UpsideNRM Base Expected to Remain Strong and Sustain Reserve Depletion Ahafo North, Ghana Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 67 May 23, 2012
  68. 68. Exploration UpsidePre-NRM Pipeline Has the Potential to Double the Current NRM Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 68 May 23, 2012
  69. 69. Exploration UpsideGrowing Portfolio of Potential New Discoveries Still to Enter the Pipeline Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 69 May 23, 2012
  70. 70. Exploration UpsideStrong Portfolio of Drill Ready Targets Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 70 May 23, 2012
  71. 71. Questions and AnswerRegional Operations and Exploration Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com
  72. 72. Enhancing Value Through Profitable Growth, Disciplined Returnsand Exploration Potential Attributable Basis Profitable  Profitable gold production potential of 6-7Moz by 20171 GrowthDisciplined  Disciplined risk-adjusted returnsReturnsExploration  Option to add ~90 Moz Au and ~9 Blbs Cu reserves between 2011-20202PotentialBalance Sheet  Access to capital with an investment grade balance sheet and strongStrength operating cash flows to support profitable growth Industry- Leading  Committed to returning capital to shareholders Dividend Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com 72 May 23, 2012
  73. 73. Appendix Newmont Mining Corporation | Annual Investor Day Meeting, New York City | www.newmont.com
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