Westcoast Winter Roadshow


                                           Wayne W. Murdy
                               Chair...
Overview

 • Company Overview

 • Gold Supply and Demand Fundamentals

 • Industry-Wide Cost Pressures

 • Growing Margins...
Overview of Newmont

                 Guidance                                    Actual


 Production        2006        ...
The Case for Gold:
  Gold as a Currency
                              Current Account Deficit Approaching a Trillion Dolla...
Input Cost Pressures
     550%
                    • Increasing Capital & Operating Costs
     450%
                      ...
Political Risk Diversification
                                      2006 Production
Nevada                       5.6 – 5....
2006 Project Development
Update – Ghana & Australia
            Boddington, Australia
            • Construction is 11% co...
Newmont:
 A World Leading Gold Company

• Founded in 1921, Publicly traded since 1925

• Market Capitalization            ...
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newmont mining 01_10_07_UBS_CA

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newmont mining 01_10_07_UBS_CA

  1. 1. Westcoast Winter Roadshow Wayne W. Murdy Chairman and Chief Executive Officer January 10-11, 2007 Slide 1 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, that are intended to be covered by the safe harbor created by such sections. Such forward-looking statements include, without limitation, (i) estimates of future gold and other metals production and sales; (ii) estimates of future costs and consolidated costs applicable to sales; (iii) estimates of future capital expenditures and expenses; (iv) estimates regarding timing of future development, construction, production and expansion activities; (v) statements regarding future exploration results; (vi) estimates of reserves and statements regarding replacement of reserves; and (vii) estimates of pre-tax gains. 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, forward-looking 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 such 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 in the countries in which we operate, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s 2005 Annual Report on Form 10-K, which is on file 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,” to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Slide 2 1
  2. 2. Overview • Company Overview • Gold Supply and Demand Fundamentals • Industry-Wide Cost Pressures • Growing Margins and Increasing Costs • Political Risk Diversification • Continued Merchant Banking Success Slide 3 Overview of Newmont % of Financials & Statistics 2005 2006 Change 9-month Revenue ($millions) $3,060 $3,527 +15% Net Income ($millions) $260 $568 +118% Equity Gold Sales (000 ounces) 4,695 4,155 -12% Realized Gold $427 $591 +38% Cost of Sales Per Ounce $239 $297 +24% Market Capitalization ($millions) $18,945 $21,363 +13% Total Assets ($millions) $13,922 $15,121 +8% 1. Market Capitalization based on 12/11/2006 share price of $47.45 and 450.2m shares outstanding and a 2005 average share Slide 4 price of $42.24 and 448.5m shares outstanding. 2
  3. 3. Overview of Newmont Guidance Actual Production 2006 2005 2005 2004 & Reserves Production Production Reserves Reserves Nevada 2.3moz 2.3moz 33.3moz 35.0moz Yanacocha 1.4moz 1.7moz 16.8moz 16.6moz Australia/NZ 1.4moz 1.6moz 14.9moz 15.1moz Batu Hijau 0.2moz 0.4moz 6.7moz 7.2moz Ghana 0.2moz - 18.7moz 16.0moz Other 0.3moz 0.5moz 2.9moz 2.5moz Total 5.8moz 6.5moz 93.2moz 92.4moz Slide 5 The Case for Gold: Declining Mine Supply Market Average Gold Prices Fundamentals 4,500 $363/oz $444/oz • Mine Supply down $310/oz 4,000 $271/oz 617 $409/oz 4% since 2001 3,500 520 547 468 656 Gold Tonnes • Washington Accord 3,000 713 840 943 848 861 (CBGA) limits Official Sales each year 2,500 2,621 2,588 2,592 • Net Producer 2,000 2,470 2,519 De-hedging 1,500 2001 2002 2003 2004 2005 Mine Supply Scrap Supply Official Sales Source: GFMS Slide 6 3
  4. 4. The Case for Gold: Gold as a Currency Current Account Deficit Approaching a Trillion Dollars $800 2% $700 1% 0% $600 -1% $500 Gold ($/oz) % of GDP -2% $400 -3% $300 -4% -5% $200 Current Account Deficit/Surplus -6% $100 Gold Price -7% $- -8% 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 Source: Bloomberg Slide 7 Operating Cost Pressures Newmont vs. Industry Weighted Average Cash Costs $400 5-Year Total Operating Cost Inflation Industry 73% $350 Newmont 52% $305 Compound Annual Inflation $300 Industry 12% $297 Newmont 9% CAS ($/oz) $250 $195 $200 $150 $176 $100 2001 2002 2003 2004 2005 2006 YTD Source: GFMS – Update 1, NEM Q3 Results GFMS (Cash Costs - Industry Avg) Newmont Slide 8 4
  5. 5. Input Cost Pressures 550% • Increasing Capital & Operating Costs 450% 438% • Industry labor prices are up ~18% over 350% past 5 years 278% 250% 150% 170% 132% 50% -50% 2002 2003 2004 2005 2006 % Gain Gold WTI Oil Copper Steel Source: Bloomberg, Steel Prices courtesy of Citigroup Slide 9 Expanding Margins Despite Increasing Costs 2 $52.75 $700 Price $591 al Share $600 Averag e Annu $43.04 $42.24 $500 $34.50 $441 $26.19 $412 $19.35 $366 $294 $400 $313 $271 $196 $205 $300 $170 $89 $121 $200 $297 $100 $182 $192 $196 $216 $236 $- 2001 2002 2003 2004 2005 9-Months 1 2006 CAS/Oz Operating Margin/Oz Realized Price/Oz 1. As of September 30, 2006 2. Source: Bloomberg Slide 10 5
  6. 6. Political Risk Diversification 2006 Production Nevada 5.6 – 5.8 mm equity ozs - Guidance Yanacocha Other Nevada 3% 42% Ghana 67% 3% in Developed Australia/ Australia/NZ 25% Countries New Zealand Yanacocha Ghana Indonesia 24% 3% 2005 Reserves 93.2 mm equity ozs Other Nevada Investment Indonesia 3% 35% 51% Portfolio in Developed Ghana Australia/NZ Countries 16% 21% Yanacocha Indonesia 18% 7% Slide 11 2006 Project Development Update - Nevada Leeville, Nevada • Achieved commercial production in Q4 • Progressing mine development and underground infrastructure • Project expected to ramp up to 3,200 tons per day by end of 2007 Phoenix, Nevada • Achieved commercial production in Q4 • Installing larger crusher and evaluating oxide copper leach program Power Plant • Construction approximately 28% complete • Ongoing cost pressures Slide 12 6
  7. 7. 2006 Project Development Update – Ghana & Australia Boddington, Australia • Construction is 11% complete • Initial production expected in late 2008 or early 2009 Yanacocha Gold Mill, Peru • Under construction for initial production in 2008 • Maintains current gold sales outlook Akyem, Ghana • Deferred construction pending permitting, power availability and optimization of project economics Slide 13 Investment Portfolio 2006 • Estimated Royalty and Other Income of $105 - $115 million Long-Term Wealth Creation 1) Alberta Heavy Oil: $20 million Investment $280 million Proceeds 2) Canadian Oil Sands Trust: $200 million Investment >$800 million Value 3) Other Assets: • Iron Ore and Coal • Arctic Gas • Gold Refineries 4) $153 Million Investment in Shore Gold Inc.’s FALC – Diamond Project Slide 14 7
  8. 8. Newmont: A World Leading Gold Company • Founded in 1921, Publicly traded since 1925 • Market Capitalization $20 Billion1 • Only Gold Stock in the S&P 500 and Fortune 500 • Most Liquid Gold Stock Approximately $350 Million/Day1 • 32 Million Acres of Land in the World’s Best Gold Districts • Industry Leading Balance Sheet and Financial Flexibility • Gold Price Leverage ”No Gold Hedging” Philosophy 1. Market Capitalization based on 12/11/2006 share price of $47.45 and 450.2m shares outstanding and a 2005 average share price of $42.24 and 448.5m shares outstanding. Slide 15 8

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