Francois Hardy - Newmont Tanami Operation - Newmont Tanami Operation – The Journey to Full Potential:

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Francois Hardy delivered the presentation at the 2014 Mining the Territory Conference.

With record year on year investment in mining developments and exploration in the Northern Territory, the 8th Annual Mining the Territory Conference is perfectly placed to hear latest information on this booming region.

For more information about the event, please visit: http://bit.ly/MiningtheNT2014

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Francois Hardy - Newmont Tanami Operation - Newmont Tanami Operation – The Journey to Full Potential:

  1. 1. Newmont Tanami Overview Mining The Territory – August 2014
  2. 2. Agenda 2 • Site Overview • Burning Platform to Rebuild Credibility • Sustain Credibility • Growth
  3. 3. Tanami Site Overview
  4. 4. Newmont Tanami - Location
  5. 5. Newmont Tanami Operations • One of the most remote mine sites in Australia • Located 550 km from Alice Springs • Yuendumu 260 km to the South East • Lajamanu 365 km to the North East • All personnel flown in and out for rosters • All freight mobilised along the Tanami Track
  6. 6. • Initial discovery by Davidson 1901 • Granites/Tanami deposits worked between 1910-1940. • Exploration continues from 1969 into 1970’s • CLC deed signed for Granites in 1984 • Production started in 1986 at the Granites Gold Mine • Callie discovered in 1991 – OP 1992- 1998 • Callie Underground Mine first ore 1998 • Auron first production in December 2012 • Total Production of ~7Moz to date Discovery and Production History
  7. 7. • Gold is primarily found as coarse nuggets in quartz veins • These gold bearing veins occur in sheets, and are called 70/70 veins due to their orientation • Gold is also hosted with sulphides in Auron beds 70/70 veins Deposit Geology - Mineralisation
  8. 8. Total Reserves, Resources as of 31st December 2013  Reserves – 16.2Mt at 5.8g/t for 3.0M ounces Resources – 9.6Mt at 6.0g/t for 1.8M ounces NTO: DBS Underground
  9. 9. Burning Platform to Rebuild Credibility
  10. 10. NTO Performance 5 Year look back 10 Safety Key Themes: • Reactive approach to Incidents/Risks • 2010 - transition to owner mining • 2010 - Newmont Safety Journey • 2012 – Newmont Vital Behaviours Production Key Themes: • Year on year underperformance • “Chocolates tomorrow” • Mine constrained – campaign milling • 2010 transition to owner operator • Underground mine productivity
  11. 11. NTO Operating Environment - 2013 11 Key Themes: • Shaft halted based on base plan with 2yr negative FCF @$1,500/oz • Gold Price “slump” • Valued ounces above “growth at all costs” • Focus on Total cash sustaining cost per ounce • Core vs non core………..
  12. 12. NTO Safety Results 2012 - 2013 • Total Recordable Accidents decreased from 41 in 2012, to 22 in 2013 • Severity rate decreased by 35% over 12 months • Lost Time Injuries decreased from 18 in 2012, to 2 in 2013 0.00 1.00 2.00 3.00 4.00 5.00 0 1 2 3 4 5 6 InjuryCount Jan- 12 Feb- 12 Mar- 12 Apr- 12 May- 12 Jun- 12 Jul- 12 Aug- 12 Sep- 12 Oct- 12 Nov- 12 Dec- 12 Jan- 13 Feb- 13 Mar- 13 Apr- 13 May- 13 Jun- 13 Jul- 13 Aug- 13 Sep- 13 Oct- 13 Nov- 13 Dec- 13 LTA - Actual 4 0 3 3 3 1 1 0 1 1 0 1 0 1 1 0 0 0 0 0 0 0 0 0 RWA - Actual 0 1 0 3 0 0 2 0 0 1 1 5 5 0 1 1 0 2 1 0 1 0 0 2 MTA - Actual 2 2 0 0 0 2 1 0 0 2 1 1 1 2 0 0 0 0 0 1 0 0 2 1 6MMA TRAFR 4.02 3.34 3.62 4.21 4.20 4.14 3.73 3.16 2.78 2.39 2.23 2.89 3.28 3.95 4.25 3.90 3.62 2.72 1.77 1.37 1.20 1.00 1.44 1.67 12MMA TRAFR 3.95 3.66 3.76 4.15 4.12 4.00 3.88 3.25 3.19 3.26 3.17 3.49 3.51 3.55 3.49 3.09 2.86 2.81 2.59 2.75 2.81 2.51 2.57 2.21 TRAFR Target 0.00 3.51 3.51 3.51 3.51 3.51 3.51 3.51 3.51 3.51 3.51 3.51 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 2.70 Tanami - 12MMA, 6MMA TRAFR & Reportable Injuries FrequencyRate
  13. 13. NTO Operating Results - 2013 13 Key Themes: • 42% increase in Oz’s produced • 52% increase in t.km’s • 30% increase in Ore mined • 2% increase in recovery • 9% lower operating costs • 35% reduction in Total cost/oz
  14. 14. Sustain Credibility
  15. 15. NTO 2014 YTD Safety Overview Safety improvement continues:  Over 1 year LTI Free  Vital Behaviours imbedded  Safety Interactions >100% 15  38% YTD improvement in 12MMA TRAFR  Vital Behaviours imbedded
  16. 16. NTO Production and Costs Overview YTD Productivity continues to achieve stretch targets: • Development 16% above budget • Ore tonnes mined 14% above budget • Tkms hauled 6% above budget • Ore processed 13% above budget • Gold production 16% above budget Cost/CSC <$1,000/oz • June YTD 15% below budget 16
  17. 17. Growth Strategy
  18. 18. NTO Growth • Establish wingspan of Federation orebody. • Expand Federation position within Auron stratigraphy • Discover additional ore bodies south and lateral
  19. 19. NTO Strategy 19 • LOM Strategy aims to develop a low cost, long life asset • Targeting +450kozs at CSC <$1,000/oz and is a step to support future growth investment options • Generates attractive NPV and long term FCF • Allows access to increases in lateral wingspan and orebody at depth • Establishes LOM ventilation infrastructure to support step change in mining rates • Increases processing capability to match future mining rates • Supports optionality and opportunity for significant upside
  20. 20. Questions? 20

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