• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
newmont mining Paydirt_Conference
 

newmont mining Paydirt_Conference

on

  • 265 views

 

Statistics

Views

Total Views
265
Views on SlideShare
265
Embed Views
0

Actions

Likes
0
Downloads
2
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    newmont mining Paydirt_Conference newmont mining Paydirt_Conference Presentation Transcript

    • A New Day Dawning Paydirt Gold Conference Adriaan van Kersen 2-3 April, 2008
    • 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 capital expenditures, project costs, tax rates and expenses; (ii) estimates regarding timing of future mine development, construction, operations, or closure activities; and (iii) statements regarding potential cost savings, productivity, operating performance, cost structure and competitive position. 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 2007 Annual Report on Form 10-K, filed on February 21, 2008, 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. April 2, 2008 Slide 2
    • A new Day Dawning April 2, 2008 Slide 4
    • Our Foundations Building Sustainable Performance Leverage, Scope & Scale Financial Performance HOPE BAY Operational GOLD BASE METALS Execution MAJOR PROJECTS POTENTIAL ACQUISITION Exploration & Development Project Execution Regional Growth April 2, 2008 Slide 5
    • Operational Execution & 2008 Outlook 2007 2007 2008 Outlook Outlook Actuals Equity gold sales (million ounces) 5.2 – 5.4 5.32 5.1 – 5.4 Costs applicable to sales ($/oz) $375 – $400 $406* $425 – $450 Equity copper sales (million pounds) 190 – 210 204 155 – 165 Costs applicable to sales ($/lb) $1.10 – $1.20 $1.10 $1.30 – $1.40 Capital expenditures (billions) $1.7 – $1.9 $1.67 $1.8 – $2.0 Exploration (millions) $180 – $185 $177 $240 – $255 April 2, 2008 Slide 6
    • Operational Execution Australia/New Zealand Q4 2007 YTD 2007 Outlook 2008 Equity gold sales (000 ozs)* 1,324 335 1,065 – 1,125 Costs applicable to sales – Gold ($/oz) $494 $496 $585 - $625 Consolidated capital expenditures $229 $597 $800 - $850 ($m) Tanami Jundee Kalgoorlie Perth Boddington Waihi April 2, 2008 Slide 7 *Includes sales from discontinued operations of Pajingo in 2007.
    • Exploration: The Limits to Discovery Number of Gold Discoveries Found Per Year Over 1 Million Ounces 25 $5 Exploration Expenditures ($ Billion) 20 $4 Number of Discoveries Industry Exploration Expenditures 15 $3 10 $2 5 $1 0 $0 * * 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 Early Stages of Exploration Data April 2, 2008 Source: PACRIM 2004 & MEG Slide 8
    • Exploration: Newmont’s Track Record 100 93.8 93.2 92.4 91.3 86.5 80 60 Moz 64.8 55.5 40 46.9 41.4 34.1 20 0 2003 2004 2005 2006 2007 Cumulative Reserves From Exploration Reserves Without Exploration Success Peer Group Average* Total Reserve Ounce Differential = 52.4 Million Ounces Five-Year Exploration Cost = $804 Million April 2, 2008 *Peer Group includes: ABX, AU, GFI, PDG Slide 9
    • Exploration :2008 Program April 2, 2008 Slide 10
    • Capital Effectiveness Stage-Gate Process Gate 1 Gate 2 Gate 4 Gate 3 Advance viable Determine if a Select a single Ensure single business Business Case option to achieve option is opportunities exists Business Case optimized, predictable and competitive Stage 1 Stage 2 Stage 3 Stage 4 Execution Operations Gate Gate Gate Gate Gate Gate Gate Gate Business Opportunity Business Delivery Opportunity Creation Stage Gate Defined work requirements Determine if the investment performed by various aligns with Newmont’s cross functional groups Strategy & Objectives April 2, 2008 Slide 11
    • 2008 Strategic Priorities: Exploration & Development Projects Conga - Peru Reserves (equity): 6.1 million ounces of gold, 1.7 billion pounds of copper Progress: Stage 3 studies in progress Permitting activities underway Building cross functional teams Continuing to engage community Development decision expected in 2008 Conga Drilling Akyem - Ghana Reserves (equity): 7.7 million ounces gold Progress: Stage 2 studies in progress Permitting activities underway Development decision expected in 2008 Akyem April 2, 2008 Slide 13
    • 2008 Strategic Priorities: Projects in Execution Nevada Power Plant Impact: Reduce Nevada operating costs by ~$25 per ounce Progress: On track for mid-2008 start-up Capital: $620 - $640 million Yanacocha Gold Mill (consolidated) Impact: 400 – 500 thousand ounces of gold per annum $250 – $300/oz average costs applicable to sales Progress: On track for start-up mid-2008 Capital: $250 - $270 million Boddington April 2, 2008 Slide 14
    • Boddington 12/31/2007 Status Business Objectives Develop long life operation in AAA country Increase future reserves Create long term stable cash flows Current Reserves (Newmont): • 11.1 million ounces of gold • 1.0 billion pounds of copper Production First Five-Years (100%) Gold annual average : 950 – 1,050 thousand ounce Copper annual average: 30 – 35 thousand tones Project Metrics Safety – TRIFR: 1.21 Capital (Newmont): $1.4 to $1.6 billion Progress: 62% complete Start-up: On track for late 2008 / early 2009 April 2, 2008 Slide 15
    • Waihi DBD0475D1: 19.8m @ 5.6g/t (14.7@ 7.1g/t) DBD0476: In progress, testing ‘ASOK’ on 59730mE Auron Domain Shape Feb ‘08 April 2, 2008 Slide 16
    • The Callie Deeps Vision April 2, 2008 Slide 17
    • The Callie Deeps Vision April 2, 2008 Slide 18
    • Callie Deeps - Recent Discovery DBD0475D1: 19.8m @ 5.6g/t (14.7@ 7.1g/t) DBD0476: In progress, testing ‘ASOK’ on 59730mE Auron Domain Shape Feb ‘08 April 2, 2008 Slide 19
    • Driving Shareholder Value Through Focus and Execution Our Foundation World’s premier unhedged gold producer Focus on core gold business and operational execution Boddington Building on the Momentum from 2007 Extensive Exploration Portfolio Acquired prospective Hope Bay project in Canada Disciplined Project Evaluation process Healthy Project Pipeline April 2, 2008 Slide 20
    • A New Day Dawning