Post on 08-May-2015
UBSConference
London, England
June 7, 2007
June 7, 2007 Slide 2
Cautionary Statement 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 copper production and sales; (ii) estimates of future costs applicable to sales; (iii) estimates of future capital expenditures, royalty and dividend income, tax rates and expenses; (iv) estimates regarding timing of future development, construction, production or closure activities; (v) statements regarding future exploration results and the replacement of reserves; and (vi) statements regarding 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 2006 Annual Report on Form 10-K, filed February 26, 2007 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.
June 7, 2007 Slide 3
Newmont PortfolioNewmont Portfolio
Nevada
Peru Australia, New Zealand, and Indonesia
Ghana
5.9 Million Equity Gold Ounces Sold in 2006 from 11 Mine-sites Globally
June 7, 2007 Slide 4
0
20
40
60
80
100
1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
29 Million Acres in World Class Gold Districts29 Million Acres in World Class Gold Districts
Central Asia & Indonesia
South America
Australia
Ghana
North America
Newmont’s Reserve GrowthTrack Record & Discovery Cycles
LA N D OWN ER SH IP B Y R EGION
Europe3%Asia Pacif ic
9%
Africa15%
South America
18%
North America
25%
Australia30%
June 7, 2007 Slide 5
2007 Equity Gold Sales Guidance2007 Equity Gold Sales Guidance2007 Outlook = 5.2 to 5.6m Equity Ounces2007 Outlook = 5.2 to 5.6m Equity Ounces
2006 Actual - Equity Gold Sales
Nevada41%
Australia/New Zealand
23%
Yanacocha23%
Batu Hijau4%
Ghana3%
Other6%
2006 Actual to 2007 Guidance* Equity Gold Sales Variance
0.010.57
0.11
0.06
0.23 0.02
5.38
5.88
5.0
5.5
6.0
6.5
2006
A
Africa
Indones
iaNorth
Ameri
caCen
tral A
sia
Australi
a/New
Zealan
dYan
acoch
a
2007
G
Oun
ces
(mill
ion)
2007 Guidance* - Equity Gold Sales
Nevada47%
Australia/New Zealand
25%
Yanacocha15%
Ghana8%
Batu Hijau5%
* 2007 number based on mid-point of guidance
June 7, 2007 Slide 6
NewmontNewmont’’s Operating Cost Profiles Operating Cost Profile
$100
$150
$200
$250
$300
$350
$400
$450
$500
2001 2002 2003 2004 2005 2006
CA
S ($
/oz)
GFMS (Industry Avg) Newmont
$176
$317
Industry = 12% CAGR*
$184Newmont = 11% CAGR
$304
* Industry Cost based on 2007 Gold Survey - GFMS
Newmont operating costs below industry average (2003 – 2006)- 2006
June 7, 2007 Slide 7
2007 Cost Applicable to Sales2007 Cost Applicable to Sales2007 Outlook = $3752007 Outlook = $375--$400/Oz$400/Oz
Approximately $100/oz equivalent from Batu Hijau copper revenue*
Approximately $15 - $20/oz impact from change in deferred stripping*
Others3%
Diesel & Electricity
5%
Labor & Contract Services
15%
Consumbles5%
Production72%
% Increase by Cost DriversChange by Region
*2007 outlook based at mid-point; 2007 copper revenue outlook at $3.00/lb; andQ1 2007 deferred stripping impact.
$0
$100
$200
$300
$400
$500
$600
Ahafo Australia/NewZealand
Nevada Yanacocha Batu Hijau
2007 Guidance CAS ($375 - $400/oz)2006 CAS ($304/oz)
June 7, 2007 Slide 8
NEVADA2007
OutlookQ1
2007Q1
2006
2,350 - 2,550
2,350 - 2,550
560
$375 - $400
560
535
489
$395$493
Consolidated gold sales (000 ounces)
Equity gold sales (000 ounces)
Costs applicable to sales ($/ounce)
NevadaNevada
OpportunitiesSteady state production from Leeville; Carlin and Twin Creeks performing in line with plans;Further anticipated reductions in contracted service costs;Planned savings from power plant and fleet reinvestment.
ChallengesPhoenix Start-up;Ongoing labor and energy cost pressures.
June 7, 2007 Slide 9
YANACOCHA2007
OutlookQ1
2007Q1
2006
1,500 – 1,600
775 – 825
455
$340 - $360
234
770
395
$161$310
Consolidated gold sales (000 ounces)
Equity gold sales (000 ounces)
Costs applicable to sales ($/ounce)
PeruPeru
OpportunitiesIncreasing recoveries from La Quinua and Carachugo;Increasing ore placement on leach pads in second half of year;Improving recoveries with 2008 completion of gold mill;Optimizing development plans for Conga;Yanacocha sulfides provide future potential upside.
ChallengesNegotiating a three-year extension with labor union; Lower potential ore grades.
June 7, 2007 Slide 10
AUSTRALIA/NEW ZEALAND2007
OutlookQ1
2007Q1
2006
1,275 – 1,325
1,275 – 1,325
332
$445 - $470
332
333
333
$384$519
Consolidated gold sales (000 ounces)
Equity gold sales (000 ounces)
Costs applicable to sales ($/ounce)
Australia/New ZealandAustralia/New Zealand
OpportunitiesUpside production and exploration potential from the Tanami mine;Increasing throughput at Martha; Upside potential for the year at Pajingo; Boddington project remains on schedule.
ChallengesApproximately $5-$6/ounce for every $0.01 change in the A$ exchange rate;Mature underground and open pit mines; Recruiting and retention of experienced labor.
June 7, 2007 Slide 11
IndonesiaIndonesia
Batu Hijau2007
OutlookQ1
2007Q1
2006
Consolidated copper sales (M lbs) 395 – 435
210 – 230
$1.10 - $1.20
435 - 475
230 – 250
$225 - $240
91 81
Equity copper sales (M lbs) 48 43
Average realized copper price $2.74 $2.08
Equity gold sales (000 ozs) 45 39
Costs applicable to sales ($/lb Cu) $1.40 $0.81
Consolidated gold sales (000 ozs) 84 73
Costs applicable to sales ($/oz Au) $330 $208
OpportunitiesUn-hedged copper exposure;Second half of the year benefits from current stripping campaign;Planned lower waste to ore ratios for the remainder of 2007, with a 6:1 ratio for the year;Higher grade and throughput opportunities.
Challenges$7/ounce Q1 cost impact from the first quarter stripping campaign;Harder ore and higher waste removal costs during first half of the year;Ongoing divestiture requirements.
June 7, 2007 Slide 12
GhanaGhana
Ahafo 2007Outlook
Q1 2007
Q1 2006
Consolidated gold sales (000 ozs) 410 – 450
410 – 450
$460 - $500
125 -
Equity gold sales (000 ozs) 125 -
Costs applicable to sales ($/oz) $341 -
Opportunities25% share in 80 mega-watt power plant;Higher mill ore grade potential;Ramping up to steady state mine rates;Continued evaluation of the Akyem project and Ahafo expansion opportunities.
ChallengesPotential for higher power costs.
June 7, 2007 Slide 13
The Gold Company Of Choice The Gold Company Of Choice For A Gold Bull MarketFor A Gold Bull Market
Remain on Track for Anticipated Gold and Copper Sales
Addressing Operating Cost Challenges at Phoenix
Building New Mines with Strong Exploration Potential
Balanced Global Portfolio
Institutional Quality Investment
“No Gold Hedging” Philosophy
UBSConference
London, England
June 7, 2007
June 7, 2007 Slide 15
2,400
2,500
2,600
2,700
2001 2002 2003 2004 2005 2006
Glo
bal P
rodu
ctio
n (to
nnes
)
5.0
5.5
6.0
6.5
7.0
7.5
8.0
NEM
Equ
ity P
rodu
ctio
n (o
z m
m)
Mine Production
NEM Equity Production (oz/mm)
Appendix Appendix ––Gold Industry Gold Industry -- Declining ProductionDeclining Production
Source: GFMS
Pre-Merger(5.5 mm ozs)
7.6
5.9
June 7, 2007 Slide 16
-5%
15%
35%
55%
75%
95%
2002 2003 2004 2005 2006
Structural Steel Labor Total Process Plant All Mining Equipment
Labor +77%
Steel +57%
Plants +45%
Equipment +29%
Appendix Appendix --Extractive Industry Capital InflationExtractive Industry Capital Inflation
June 7, 2007 Slide 17Going Forward - Capital Effectiveness through Stage Gate process
$0
$500
$1,000
$1,500
$2,000
2002 2003 2004 2005 2006 2007F
Capi
tal (
$ M
illio
ns)
Sustaining Capital New Project Capital
Phoenix
Leeville
Ahafo
Boddington
Power Plant
MY Gold Mill
Appendix Appendix --NewmontNewmont’’ss Capital ExpendituresCapital Expenditures2007 Outlook = $1.8 2007 Outlook = $1.8 -- $2.0 billion$2.0 billion
June 7, 2007 Slide 18
Akyem Mine, GhanaDeferred pending permitting, optimization and feasibility studySustainable power solution alternatives under reviewAdditional exploration drilling data underwayDevelopment decision expected by end of 2007
Conga Mine, PeruLarge Copper and Gold DepositOptimization studies in progress
Ahafo Expansion, GhanaSubika UndergroundPossible Second Mill
Yanacocha Gold Mill & SulfidesPotential for Large Gold & Copper districtOngoing metallurgical studies
Appendix Appendix ––Future ProspectsFuture Prospects
June 7, 2007 Slide 19
Appendix Appendix ––Phoenix OverviewPhoenix Overview
Lower Mill Recovery and Grade ChallengesOptimization efforts to improve simultaneous gold and copper recoveriesEvaluating mine plan sequencing to optimize metal production
Mill Throughput ChallengesMore complex ores than anticipated in some zones
• Drill and blast improvement programs• Crusher feed optimization efforts• Optimizing replacement crusher plans• Blending hard and soft ores to maximize throughput
Phoenix Upside Potential 8.0 million ounces gold;770 million pounds copper in reservesExploration targets exist with potential for expanding the Phoenix pit;Production opportunities from copper oxide material, with potential to add an oxide leach pad once permitted
June 7, 2007 Slide 20
Appendix Appendix ––Ghanaian Power PlantGhanaian Power Plant
Long-term solution80 mega-watt power plant under construction;25% share in power supplied;Proportionate distribution of power from the grid; Plant to supply one-third of Ahafo power needs
Power plant constructionMajority of equipment received;Remaining critical equipment expected mid-year;Completion expected during second half
June 7, 2007 Slide 21
Appendix Appendix ––Exploration Spending and OutlookExploration Spending and Outlook2007 Outlook = $170 2007 Outlook = $170 -- $175 million$175 million
2007 Budget by Program2007 Budget by Location
North America24%
Other Turkey 2%
West Africa 10%
Opportunity Fund& Support 21%
Australia 14%
South America 28%
China/SE Asia 2%
Near Mine54%
Greenfields20%
OpportunityFund 9%
Tech Support/Management 9%
Diamonds 9%
Exploration SpendingQ1
2007Q1
2006
Total Exploration $40 $33
Near-mine $21 $22
Other $9 $3
Greenfield $10 $8
June 7, 2007 Slide 22
Appendix Appendix ––Q1 Merchant Banking ResultsQ1 Merchant Banking Results
Royalty and Dividend IncomeFY2006 Record $120 million (+52% over 2005)Q1 Royalty and Other Income: $31 million
Equity Portfolio and Investment GrowthMarket value of marketable securities portfolio:
$1.40 billion at Year-end 2006; $1.28 billion at end of Q1 2007
Alberta Heavy Oil Investment: $20 million investment $280 million sale proceedsCanadian Oil Sands Trust: $268 million investment $800 million market value
Value Creation InvestmentsIron Ore Coal Arctic GasDiamonds