NewmontInvestorDay2009_update

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NewmontInvestorDay2009_update

  1. 1. Newmont Mining Corporation 2009 Investor Day March 18, 2009, New York, NY
  2. 2. Agenda I. Welcome & Introductions II. Strategic Overview III. Operational Planning & Execution IV. Project Planning & Execution V. Closing Remarks / Q&A 03/18/09 Newmont Mining Corporation 2009 Investor Day 2
  3. 3. Today’s Presenters Richard O’Brien - President and Chief Executive Officer Russell Ball - Executive Vice President and Chief Financial Officer Randy Engel - Executive Vice President, Strategic Development Brian Hill - Executive Vice President, Operations Guy Lansdown - Executive Vice President, Development Alan Blank - Executive Vice President, Legal and External Affairs 03/18/09 Newmont Mining Corporation 2009 Investor Day 3
  4. 4. Cautionary Statement This news release 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 and other applicable laws. Words such as “expect(s)”, “feel(s)”, “believe(s)”, “will”, “may”, “anticipate(s)”, “estimate(s)”, “should”, “intend(s)” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, without limitation, (i) estimates of future mineral production and sales; (ii) estimates of future costs applicable to sales, other expenses and taxes, for specific operations and on a consolidated basis; (iii) estimates of future capital expenditures, construction, production or closure activities; (iv) statements regarding future exploration expenditures and results and future reserves and mineralized material; (v) statements regarding fluctuations in capital and currency markets; (vi) statements regarding potential cost savings, productivity, operating performance, and cost structure; (vii) expectations regarding the completion and timing of the Boddington acquisition and other transactions; and (viii) expectations regarding the start-up time, design, mine life, production and costs applicable to sales and exploration potential of the Boddington project and other projects. 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 2008 Annual Report on Form 10-K, filed on February 19, 2009, 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. 03/18/09 Newmont Mining Corporation 2009 Investor Day 4
  5. 5. Strategic Overview
  6. 6. Key Messages in Today’s Presentation: “Passionately Pursuing Excellence” • Our focus on executing against our operational and project plans will continue to deliver reliable results • Our disciplined approach to evaluation of internal and external investment opportunities will yield long-term improved returns on invested capital • Strategic alignment across Newmont’s portfolio will facilitate business and operating efficiencies and improved cash flow generation 03/18/09 Newmont Mining Corporation 2009 Investor Day 6
  7. 7. Strategic Focus – “Re-Establishing Credibility” 1 “Plan & Execute” 2 “Refine & Confirm Strategic Direction” 3 “Create Operating & Business Efficiencies” “Gain Global Alignment 4 & Regional Ownership” ongoing Summer 2007 Spring 2009 03/18/09 Newmont Mining Corporation 2009 Investor Day 7
  8. 8. “Passionately Pursuing Excellence” Vision: We will be the most valued and respected mining company through industry leading performance Mission: We will build a sustainable mining business that delivers top quartile shareholder returns while leading in safety, environmental stewardship and social responsibility 03/18/09 Newmont Mining Corporation 2009 Investor Day 8
  9. 9. Safety is First in Everything We Do • 12% decrease in Total Reportable Accident Frequency Rate in 2008 • >35 million exposure hours at Batu Hijau without a lost time accident (over 1.5 years) Injury Frequency Rates – 5 year Trend Industry Comparison – Total Injury Rates 1.48 0.35 1.60 12 1.40 9.90 0.30 1.21 10 1.20 0.25 8 0.92 7.00 1.00 0.20 0.84 0.20 5.30 5.40 5.60 0.74 6 0.80 0.16 0.15 0.60 4 0.11 3.10 0.10 0.10 2.60 0.10 0.40 1.70 2 0.40 0.74 0.05 0.20 0 0.00 0.00 R ring ra ng g ew ts O on t uf i on rt re as Lo g g in po on gin in ec 2004 2005 2006 2007 2008 /G i in A i n ch an uct m in tu ns oj g M M ac Pr r il a st N rT as O /G C LTAFR TRAFR d M ol G il Source: Data extracted from U.S. Bureau of Labor Statistics O 03/18/09 Newmont Mining Corporation 2009 Investor Day 9
  10. 10. We Will Deliver on Our Plans in a Safe and Environmentally and Socially Responsible Manner • Independent Community Relationships Review completed – Implementation underway • Corporate Social Responsibility leadership – 2nd consecutive year listed on DJSI World – Received multiple national awards • San Jose Reservoir – Peru • Green PROPER Rating – Indonesia • Excellence in Mine Reclamation – Nevada • Other Key Initiatives – International Cyanide Management Code certification at all sites by end of 2009 – ISO 14001 certification at all sites by end of 2010 03/18/09 Newmont Mining Corporation 2009 Investor Day 10
  11. 11. Corporate Scorecard – 3 to 5 Year Horizon “What Does Success Look Like” Deliver sustainable operating and project performance Operating costs consistently in lower half of the industry cost curve Build a more robust project pipeline Lengthen reserve life Deliver top-quartile investor returns Improve Free Cash Flow generating capacity and returns on invested capital 03/18/09 Newmont Mining Corporation 2009 Investor Day 11
  12. 12. Corporate Scorecard – 2009 “Delivering on Our Commitments” Continued focus on operating and project performance; Met original 2008 gold operating outlook Demonstrated leadership in safety, environmental stewardship and social responsibility Improved production profile at competitive costs applicable to sales with Boddington acquisition Strengthened balance sheet with $1.7 B in additional liquidity Deliver 2009 operating performance in-line with expectations Complete Boddington project in line with expectations Clarify Batu Hijau divestiture path forward Optimize and evaluate project pipeline against external opportunities Create operating and business efficiencies across “One Newmont” 03/18/09 Newmont Mining Corporation 2009 Investor Day 12
  13. 13. Newmont – Strategic Alignment Across Our Global Portfolio Building an Industry-Leading Sustainable Mining Business Strategic Foundations 2009 Strategic Objectives People Development Retain, develop and attract employees Operational Planning and Industry Leading Performance Execution Deliver on our plans in a safe and environmentally and socially responsible manner Project Planning and Execution Leverage Global Create operating and business efficiencies Expertise Reserve and Production Growth Think and invest strategically Financial Strength and Flexibility 03/18/09 Newmont Mining Corporation 2009 Investor Day 13
  14. 14. Evaluating Investment Opportunities - Strategic Fit vs. Enterprise Risk Corporate Development 10% of NEM Cash Flow 1,900 1,800 1,700 Nevada 1,600 1,500 NAV’s ($ million) 1,400 1,300 1,200 Strategic Fit Score vs. Enterprise Risk Score 1,100 Yanacocha Australian 1,000 Gold 900 Batu Hijau 800 10% of 700 NEM NAV Royalties 600 Golden Grove Ghana Ghana 4.0 500 Pajingo Tanami 400 Zarafshan KCGM Favourable 300 Balance Sheet & FCF Generation Turkey 200 Yandal 100 Boddington 0 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 M&A Kalgoorlie Martha Golden Giant La Herradura Projects Target #3 Strategic Fit Score Project A 3.0 Exploration Target #3 M&A Target #1 Exploration Target #2 2.0 Exploration Target #1 Unfavourable Project C Exploration M&A Target #2 Project B 1.0 4.0 3.0 2.0 1.0 Enterprise Risk Score Favourable Unfavourable 03/18/09 Newmont Mining Corporation 2009 Investor Day 14
  15. 15. Rating & Ranking Investment Opportunities Measuring Value (Strategic Fit Categories) Growth Potential Financial Impact Financial Exploration Upside Strength Diversification Free Cash Flow Production Strategic Fit Score vs. Enterprise Risk Score 4.0 Favourable M&A Target #3 Strategic Fit Score Margin Project A 3.0 Exploration Target #3 M&A Target #1 Asset Quality Exploration Target #2 2.0 Exploration Target #1 Unfavourable Project C M&A Target #2 Project B 1.0 4.0 3.0 2.0 1.0 Enterprise Risk Score Favourable Unfavourable 03/18/09 Newmont Mining Corporation 2009 Investor Day 15
  16. 16. Rating & Ranking Investment Opportunities Measuring Risk (Enterprise Risk Categories) Financial Risks Technical Risks Liquidity Compliance Debt Gearing Energy Availability Water Access Commodity and Forex Exposures Land Access Execution Safety ESR Risk Ability to Risks Reclaim Access to Skilled Labor Stakeholder Relations Strategic Fit Score vs. Enterprise Risk Score Geo-Political Risk Reserve 4.0 Favourable Replacement M&A Reserve Target #3 Strategic Fit Score Project A 3.0 Exploration Replacement Target #3 M&A Target #1 Exploration Geo-Political Target #2 2.0 Exploration Risk Target #1 Unfavourable Project C M&A Risk Target #2 Project B 1.0 4.0 3.0 2.0 1.0 Enterprise Risk Score Favourable Unfavourable 03/18/09 Newmont Mining Corporation 2009 Investor Day 16
  17. 17. Reorganized to Focus on Innovation and Drive Growth Business Business Generative Opportunity Opportunity Operations Exploration Delivery Creation Mineral Potentially Non-Resource Reserves Inventory Economic Mineralization Mineralization isitions s & Acqu Gate 5 Merger Gate 4 Gate 3 Gate 2 Gate 1 Order of Magnitude Target Gate ID Gate Business Services and Solutions 03/18/09 Newmont Mining Corporation 2009 Investor Day 17
  18. 18. Newmont – Globally Aligned, Regionally Owned and Locally Operated Nevada Power Plant Boddington, Australia Yanacocha Gold Mill, Peru 03/18/09 Newmont Mining Corporation 2009 Investor Day 18
  19. 19. Newmont – Globally Aligned, Regionally Owned and Locally Operated Nevada Warehouse Community Partnerships in Ghana San Jose Reservoir, Peru 03/18/09 Newmont Mining Corporation 2009 Investor Day 19
  20. 20. Newmont – 2009 Equity Gold Sales Outlook Boddington and Batu Hijau offset declines in Nevada 5,800 ~50 ~(10) ~(10) ~(325) 5,700 ~100 Equity Gold Sales (Kozs) 5,600 ~365 5,200 - 5,500 5,500 Other Operations 5,400 Yanacocha 5,300 Ahafo Batu Hijau 5,184 5,200 Nevada Australia/NZ 5,100 5,000 4,900 4,800 2008 2009 03/18/09 Newmont Mining Corporation 2009 Investor Day 20
  21. 21. Newmont – 2009 Costs Applicable to Sales Outlook Improved CAS anticipated in 2009 $490 Costs Applicable to Sales ($/oz) ~$5 ~($15) ~$25 $470 ~($15) $450 $440 ~($20) $400 - $440 $430 Yanacocha Ahafo $410 Batu Hijau Nevada Australia/NZ $390 $370 $350 2008 2009 03/18/09 Newmont Mining Corporation 2009 Investor Day 21
  22. 22. Newmont – 2009 Capital Expenditures Outlook ~20% decrease anticipated in 2009 $2,000 ~($30) $1,875 $1,900 ~($35) Capital Expenditures ($M) ~($50) ~($60) $1,800 ~($60) $1,700 ~($90) $1,400 - $1,600 $1,600 South America $1,500 Indonesia Africa Australia/NZ $1,400 Other Nevada $1,300 $1,200 $1,100 $1,000 2008 2009 03/18/09 Newmont Mining Corporation 2009 Investor Day 22
  23. 23. Global Monetary Environment Further Supports Higher Gold Prices Investor flight to safety driving gold higher $1,100 63 Global Gold ETF DEMAND AND GOLD PRICE US Trade-Weighted Dollar Index (Major Currencies) $1,000 67 Dollar Index (Axis Inverted) GOLD $900 71 Gold ($/oz) $800 75 $700 79 $600 83 Source: NBF World Gold Producers Quarterly, March 2009 Last date: March 9, 2008 $500 87 1/3/06 1/3/07 1/3/08 1/3/09 03/18/09 Newmont Mining Corporation 2009 Investor Day 23
  24. 24. Positioned for Significant Cash Flow Generation Newmont Gross Margin Potential Potential to Generate $1.2B Cash Flow for Reinvestment into Business (at $925/oz & $1.50/lb) $1,000 Industry 2009 Cash Cost Curve ($/oz) $925 per Potential ounce $900 Operating Cash Potential Flow ~$2.0B $800 OCF Reinvestable Cash Flow ~$320/oz $700 ~$1.2B Gold Costs $600 Applicable to Taxes: ~$75/oz Sales ~$2.2B $500 Overhead: Sustaining ~$110/oz Capital(1) $400 ~$0.8B $300 CAS: ~$420/oz $200 Overhead(2) $100 ~$0.6B Taxes at 30% ~$0.4B $0 Represented by Amortization at midpoint of guidance. (1) 0% 20% 40% 60% 80% 100% Overhead includes General and Administrative, Exploration, Advanced Projects and R&D, (2) Source: Brook Hunt and Interest expense at midpoint of guidance. Taxes calculated after DDA deductions. 03/18/09 Newmont Mining Corporation 2009 Investor Day 24
  25. 25. Highest Cash Flow Per Share of Senior Peer Group 2009 & 2010 Expected Cash Flow per Share $6.00 Expected Cash Flow per Share 2009E 2010E $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 da le rad o ana t erra corp t os i ck oss mo n -Eag a Ala m Barr -Ne v Kin r Yam Gold Eld o Cen New ico co Agn Fra n Source: UBS Metals, Mining & Gold Weekly”, March 12, 2009 03/18/09 Newmont Mining Corporation 2009 Investor Day 25
  26. 26. Strong Balance Sheet with Cash Flow Generation Expected Strengthened balance sheet with $1.7 B net proceeds in January 2009 capital markets transactions ~$2.7B Available Liquidity(1) 100% Unhedged Sales Final gold hedges London PM Fix, repurchased July 2007 $1,050 3-13-09 = $928.00 $1,000 Equity Cash and Cash Equivalents $950 Gold Price ($/oz) ~$0.6B $900 Available $850 Revolver Capacity Canadian Oil $800 ~$1.5B Sands and Other $750 Marketable $700 Securities ~$0.6B $650 $600 07 08 08 09 07 08 2/ 2/ 2/ 2/ / / /2 /2 7/ 3/ 7/ 3/ 11 11 As of February 28, 2009 (1) 03/18/09 Newmont Mining Corporation 2009 Investor Day 26
  27. 27. Disciplined Approach Yields Value Through Boddington Acquisition Business Objectives Gold cost curve (US $/oz)(2) • Develop long-life operation in AAA-rated country $900 • Increase future reserves • Create long-term stable cash flows $600 Boddington Reserves (at 100%): $300 • Gold: 20.1 million ounces $0 • Copper: 1.9 billion pounds 0% 25% 50% 75% 100% Cumulative Percentile Shown net of by-product credits Source: Brook Hunt (2) Non-Reserve Mineralization (at 100%): • Gold: 516 million tonnes at 0.5 gpt • Copper: 516 million tonnes at .09% Production(1) • Gold annual average: 0.9 - 1.05 million ounces • Copper annual average: 30,000 - 35,000 tonnes Strip Ratio • 1.2 – 1.4 CAS(1) • Anticipated to be ~$300/oz (net of by-product credits) (1) First five full years of production 03/18/09 Newmont Mining Corporation 2009 Investor Day 27
  28. 28. Boddington – Accretive Acquisition Consistent with Strategic Focus of Enhancing Production Profile with Long-Lived, Low-Cost Assets Total Cost of Acquisition per Ounce - % of Prevailing Spot Gold Price Newmont (Boddington) Historical Gold Industry Transactions Source: BMO Capital Markets, February 2009 03/18/09 Newmont Mining Corporation 2009 Investor Day 28
  29. 29. Boddington – Start-up Remains on Schedule Status • Safety – TRIFR: 1.43 • Capital: $2.6 to $2.9B (100%) • Progress: ~93% complete • Start-up: mid-2009 Mining Progress • All mine equipment onsite and operating as expected • Monthly tonnage rate ~7 million tonnes and increasing Commissioning • First rock crushed and conveyed late February • HPGRs pre-commissioned in December • Progressive plant commissioning ongoing • Initiating plant turnover • Global Newmont professionals supporting start-up Operations • Operations team fully staffed • Confident in 12-month ramp-up 03/18/09 Newmont Mining Corporation 2009 Investor Day 29
  30. 30. Batu Hijau Divestiture Update Arbitration decision expected in the first half of 2009 • Hearings have been held • Committee in deliberation and reviewing all evidence Divestiture Obligations CoW Existing Existing requirement to Indonesian Required Equity Valuation Divestiture offer to Interest Shares to be Potential NTP ($M) / Percentage Schedule Indonesians (PTPI) Offered by NTP Interest Offered March 31, 2005 15% 20% 0% 80% March 31, 2006 23% 20% 3% 77% $109 / 3% March 31, 2007 30% 20% 10% 70% $272 / 7% March 31, 2008 37% 20% 17% 63% $426 / 7% March 31, 2009 44% 20% 24% 56% pending / 7% March 31, 2010 51% 20% 31% 49% / 7% 03/18/09 Newmont Mining Corporation 2009 Investor Day 30
  31. 31. Key Messages in Today’s Presentation: “Passionately Pursuing Excellence” • Our focus on executing against our “Doing what we say we are operational and project plans will continue going to do” to deliver reliable results • Our disciplined approach to evaluation of internal and external investment “Seizing opportunities” opportunities will yield long-term improved returns on invested capital • Strategic alignment across Newmont’s “One Newmont” portfolio will facilitate business and operating efficiencies and improved cash flow generation 03/18/09 Newmont Mining Corporation 2009 Investor Day 31
  32. 32. Operational Planning & Execution Why is this important? Delivery will increase our financial returns and value relative to our competitors, keep our people safe and allow us access to land, all creating value for our shareholders
  33. 33. Newmont – Strategic Alignment Across Our Global Portfolio Building an Industry-Leading Sustainable Mining Business Strategic Foundations 2009 Strategic Objectives People Development Retain, develop and attract employees Operational Planning Industry Leading Performance and Execution Deliver on our plans in a safe and environmentally and socially responsible manner Project Planning and Execution Leverage Global Create operating and business Expertise efficiencies Reserve and Production Growth Think and invest strategically Financial Strength and Flexibility 03/18/09 Newmont Mining Corporation 2009 Investor Day 33
  34. 34. Newmont’s Global Portfolio 03/18/09 Newmont Mining Corporation 2009 Investor Day 34
  35. 35. Our Renewed Focus on Operational and Project Execution Will Continue to Deliver Reliable Results • 2008 gold operating results delivered within expectations • Delivering higher gold sales at lower operating and capital costs in 2009 ~3% Higher Equity Gold ~5% Lower Costs ~20% Lower Capital Sales (Mozs) Applicable to Sales ($/oz) Expenditures ($B) 5.2 - 5.5 $1.9 $440 $400 - $440 5.2 $1.4 - $1.6 2008 Actual 2009 Outlook 2008 Actual 2009 Outlook 2008 Actual 2009 Outlook 03/18/09 Newmont Mining Corporation 2009 Investor Day 35
  36. 36. Operational Planning & Execution North America Overview
  37. 37. North America Nevada 03/18/09 Newmont Mining Corporation 2009 Investor Day 37
  38. 38. Nevada Operations Sage Mill Elko Midas TRJV Midas Mill Twin Creeks Humboldt Winnemucca Deep Post Leeville Turf Elko Mill 5 Mill 6 Gold Quarry Battle Carlin Mountain Emigrant Phoenix Mill Phoenix Buffalo Valley Cu Leach Pershing Eureka Lander 03/18/09 Newmont Mining Corporation 2009 Investor Day 38
  39. 39. North America – Globally Aligned, Regionally Owned and Locally Operated Building an Industry-Leading Sustainable Mining Business Strategic Foundations North America Focus • One Newmont One Nevada People Development • Longer-term business planning Operational Planning and Industry Leading Performance • Mine to Mill improvements Execution • Regional ISO 14001 certification • Continued permitting improvements for projects Project Planning and Execution Leverage Global • Central shared warehouse Expertise • Further integration of HSLP and ESR standards Reserve and Production • Nevada opportunities portfolio Growth Financial Strength and Flexibility 03/18/09 Newmont Mining Corporation 2009 Investor Day 39
  40. 40. Nevada – Addressing 2008 Challenges Working with partners to Third-party performance address performance issues Newmont 2009 Responses Nevada 2008 Challenges Improving leach solution management Slower leach pad recoveries Continue to replace contractors Higher UG contracted with employees services cost 03/18/09 Newmont Mining Corporation 2009 Investor Day 40
  41. 41. Nevada – 2009 Equity Gold Sales Outlook Focus on Nevada opportunities portfolio 2,500 ~(15) ~15 ~40 ~(85) Equity Gold Sales (Kozs) ~85 ~(125) 2,225 2,250 ~(240) Implied Leach Recovery Head Grade Placed Mill Throughput Mill Recovery Finished Goods 1,800 - 2,000 Leach Tons Placed Inventory 2,000 Mill Grade 1,750 1,500 2008 2009 03/18/09 Newmont Mining Corporation 2009 Investor Day 41
  42. 42. Nevada – 2009 Costs Applicable to Sales Outlook Higher costs primarily driven by lower sales $650 Costs Applicable to Sales ($/oz) ~$10 ~($10) $600 ~($10) ~$15 $535-$575 ~($10) ~$25 ~($15) ~$80 $550 $500 Contracted Services Parts and Supplies $460 Consumables Electricity Labor $450 Diesel Other $400 Volume $350 $300 2008 2009 03/18/09 Newmont Mining Corporation 2009 Investor Day 42
  43. 43. Nevada – 2009 Capital Expenditure Outlook Maintaining spending on opportunities and benefitting from commissioned power plant $400 ~($10) ~$10 ~$20 ~($15) ~($20) $350 Capital Expenditures ($M) $337 ~($40) Capitalized Exploration $300 ~($36) Phoenix Crusher Dewatering Development $230 - $260 Tailings $250 Power Plant Other $200 $150 2008 2009 03/18/09 Newmont Mining Corporation 2009 Investor Day 43
  44. 44. Gold Quarry West Wall – Supports Nevada Opportunities Portfolio Business Objectives • Increase ounces and understand extent of Gold Quarry to extend Carlin life of mine Current Non-Reserve Mineralization • 77 million tonnes at 1.4 gpt Status Truck drill #2 • Extensive drilling in 2009 (~31,000 meters) Track drill #1 Track drill #2 Truck drill #1 • Targeting 2.5-3.5 million ounces reserve conversion 03/18/09 Newmont Mining Corporation 2009 Investor Day 44
  45. 45. Turf – Supports Nevada Opportunities Portfolio Business Objectives • Define new high-grade ounces, extend Leeville life • Leverage current Leeville infrastructure Current Non-Reserve Mineralization • 1.3 million tonnes at 11.6 gpt Status • More potential than originally anticipated • Advancing resource development: – Underground drilling (~23,000m) – Four access drifts (~1,300m) – Stage Gate studies • Optimizing production with Leeville 03/18/09 Newmont Mining Corporation 2009 Investor Day 45
  46. 46. Operational Planning & Execution South America Overview
  47. 47. South America 03/18/09 Newmont Mining Corporation 2009 Investor Day 47
  48. 48. Yanacocha Operations 03/18/09 Newmont Mining Corporation 2009 Investor Day 48
  49. 49. South America – Globally Aligned, Regionally Owned and Locally Operated Building an Industry-Leading Sustainable Mining Business Strategic Foundations South America Focus People Development • Land acquisition of La Quinua canals Operational Planning and Industry Leading Performance • Building Kuntar Wasi road Execution • Maintain ISO 14001 & Cyanide Management Code certifications Project Planning and Execution • Operate gold mill above design Leverage Global • Implementation of shared services Expertise Reserve and Production • 16,000 meter drilling program at Yanacocha Sulfides Growth • Developing understanding of porphyry deposits near Conga Financial Strength and Flexibility 03/18/09 Newmont Mining Corporation 2009 Investor Day 49
  50. 50. South America – Addressing 2008 Challenges South America 2008 Challenges Newmont 2009 Responses Optimize gold mill throughput Limited production Early access to La Quinua Central flexibility Geotechnical improvements Mining La Quinua canals ESR permits and Approval of EIA modifications access to land Developing Conga EIA 03/18/09 Newmont Mining Corporation 2009 Investor Day 50
  51. 51. South America – 2009 Equity Gold Sales Outlook Gold mill outperformance driving higher gold sales 1,400 ~(10) ~35 ~(20) ~(300) ~70 1,300 Equity Gold Sales (Kozs) ~270 1,200 Finished Goods Inventory 1,100 Mill Recovery 975 - 1,025 Mill Throughput Mill Grade 1,000 946 Timing of Flows from Leach Tons Placed 900 Leach Pads 800 700 600 2008 2009 03/18/09 Newmont Mining Corporation 2009 Investor Day 51
  52. 52. South America – 2009 Costs Applicable to Sales Outlook 13% lower CAS as gold mill exceeds expectations $390 ~$10 ~($5) ~($10) Costs Applicable to Sales ($/oz) ~$10 ~($15) $370 ~$15 ~($15) $346 $350 ~($35) By-Product Credits Parts and Supplies $330 Diesel Consumables $290 - $310 Labor $310 Other Volume Inventory Change $290 $270 $250 2008 2009 03/18/09 Newmont Mining Corporation 2009 Investor Day 52
  53. 53. South America – 2009 Capital Expenditure Outlook Focused spending on improving efficiencies $310 ~($10) Capital Expenditures ($M) ~$50 $290 ~($15) ~($15) $270 ~($20) $250 $239 ~($40) Equipment $230 Dewatering Leach Pads $210 $180 - $200 Other Land $190 Gold Mill $170 $150 2008 2009 03/18/09 Newmont Mining Corporation 2009 Investor Day 53
  54. 54. Gold Mill – What We Said in July 2008 Milling Throughput design: ~5M tonnes per annum Consolidated Production (first five years) Annual average: 400,000 – 500,000 ounces CAS: $250 - $320 per ounce Enhanced Recoveries (first five years) Gold recoveries of 75%-85% Silver recoveries of 60%-75% 03/18/09 Newmont Mining Corporation 2009 Investor Day 54
  55. 55. Gold Mill – Performing Significantly Above Expectations 2008 Results Milling (~8 months/annualized) Throughput design: ~5M tonnes per annum ~3.8M / ~5.7M tonnes Consolidated Production (first five years) Annual average: 400,000 – 500,000 ounces ~300K / ~450K ounces CAS: $250 - $320 per ounce $215 per ounce Enhanced Recoveries (first five years) Gold recoveries of 75%-85% ~88% Silver recoveries of 60%-75% ~65% 03/18/09 Newmont Mining Corporation 2009 Investor Day 55
  56. 56. Environmental Stewardship & Social Responsibility 400,000 cubic meters 6 million cubic meters Water Strategy • Rain water stored for use by the communities during the dry REJO DAM season SAN JOSE RESERVOIR • Water delivered to community canals and basins above committed amounts 1,300 cubic meters each 400,000 cubic meters 400 mil m3 200 FAMILY RESERVOIRS GRANDE DAM 03/18/09 Newmont Mining Corporation 2009 Investor Day 56
  57. 57. Yanacocha Sulfides - Metallurgical Characterization and Process Development Yanacocha - EW cross section Business Objectives Oxides Pit • Extend life of Yanacocha operation Mill Cone • Unlock value in district sulfides Leach 1 Km cone Opportunity Chalcopyrite YS – 911 /588m @ 0.6% • Large tonnage Au-Ag-Cu sulfide inventory occurrence Cu, 0.33 g/t Au, 8g/t Ag below oxide pits Status • Recent drilling results positive • Evaluating leverage of gold mill infrastructure 03/18/09 Newmont Mining Corporation 2009 Investor Day 57
  58. 58. Operational Planning & Execution APAC Overview
  59. 59. Asia Pacific Tanami 03/18/09 Newmont Mining Corporation 2009 Investor Day 59
  60. 60. APAC – Globally Aligned, Regionally Owned and Locally Operated Building an Industry-Leading Sustainable Mining Business Strategic Foundations APAC Focus People Development • Improving stockpile management and mill Operational Planning and Industry Leading Performance optimization Execution • Boddington start-up expected in mid-2009 with an Project Planning and anticipated 12-month ramp-up schedule Execution • Tanami & KCGM optimization study in 2009 Leverage Global • Newmont personnel from around the globe on- Expertise site at Boddington to assist with start-up activities Reserve and Production Growth Financial Strength and Flexibility 03/18/09 Newmont Mining Corporation 2009 Investor Day 60
  61. 61. Australia/New Zealand – Addressing 2008 Challenges Australia/New Zealand 2008 Challenges Newmont 2009 Responses Australia dollar hedging Input cost escalation Take advantage of labor market Formed Carbon Team to identify risks Climate change and emissions trading and mitigation options 03/18/09 Newmont Mining Corporation 2009 Investor Day 61

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