Mr. Tom Palmer reports

NEWMONT REPORTS SECOND QUARTER 2023 RESULTS; REMAINS ON TRACK TO ACHIEVE FULL YEAR GUIDANCE*; DECLARES $0.40 SECOND QUARTER DIVIDEND

Newmont Corp. has released second quarter 2023 results and has declared a second quarter dividend of 40 cents per share. All amounts are expressed in U.S. dollars.

Second quarter decisions position Newmont for a strong second-half performance:

• Produced 1.24 million attributable gold ounces and 256,000 co-product gold equivalent ounces (GEOs) from copper, silver, lead and zinc; well positioned for stronger production in the second half of the year;
• Reported gold costs applicable to sales (CAS) of $1,054 per ounce and gold all-in sustaining costs (AISC) of $1,472 per ounce, impacted by lower production volumes; costs expected to decrease in the second half of the year;
• On track to achieve full-year guidance of between 5.7 million and 6.3 million ounces of attributable gold production with gold AISC between $1,150 and $1,250 per ounce, primarily driven by increased production at Ahafo, Tanami, Cerro Negro, Akyem and the two non-managed joint ventures at Nevada Gold Mines and Pueblo Viejo;
• Generated $656-million of cash from continuing operations and reported $40-million of free cash flow, impacted by higher sustaining and development capital spend as Newmont continues to reinvest for the future;
• Reported net income of $155-million, with adjusted net income (ANI) of 33 cents per diluted share and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $910-million; prioritizing safety, long-term value and positioning for stronger second-half results;
• Ended the quarter with $2.8-billion of consolidated cash, $374-million of short-term time deposits and $6.2-billion of liquidity; reported net debt to adjusted EBITDA ratio of 0.7 times;
• Entered into a definitive agreement to acquire Newcrest Mining Ltd.; transaction is expected to close in the fourth quarter, subject to customary conditions, including shareholder approval;
• Progressed portfolio optimization through the deferral of the investment decision for the Yanacocha sulphides project by at least two years;
• Published third annual climate report outlining how Newmont understands and is addressing climate change.

Second quarter dividend declared within established framework:

• Board of directors declared a dividend of 40 cents per share of common stock for the second quarter of 2023, payable on Sept. 21, 2023, to holders of record at the close of business on Sept. 7, 2023;
• Annualized dividend payout range for 2023 of $1.40 to $1.80 per share, subject to quarterly approval by board of directors;
• Based on a sustainable base dividend of $1 per share payable at base reserves price and an incremental dividend payout of 60 cents per share, second quarter dividend payout calibrated at the midpoint of the $1,700-per-ounce annualized payout range.

"In the second quarter, Newmont delivered $910-million in adjusted EBITDA with a disciplined approach to running a safe and sustainable mining business to generate long-term value. Our business is underpinned by the industry's strongest balance sheet and a global portfolio with the size and scale to make decisions that deliver on our strategy. We remain on track to achieve our full-year guidance, and I am proud of the prudent decisions made during the second quarter to safeguard our work force, protect long-term value and position Newmont to deliver a strong performance in the second half of the year," said Tom Palmer, Newmont president and chief executive officer.

Prudent decisions in the second quarter to generate long-term value

In the second quarter, Newmont made the following key decisions to protect its work force, generate long-term value and drive a strong performance in the second half of the year:

• Penasquito -- in June, Newmont suspended operations at the site to focus on finding an appropriate and sustainable resolution to the dispute with the leadership of the National Union of Mine and Metal Workers of the Mexican Republic.
• Eleonore -- in June, Newmont evacuated and temporarily shut down the site to protect its work force from the unprecedented wildfires in Canada.
• Cerro Negro -- in May, Newmont paused mining to complete important inspections for the safety and well-being of its work force.
• Akyem -- in the second quarter, Newmont processed low-grade stockpiles originally planned for the fourth quarter and optimized the mine plan to safely extract the maximum amount of ore from the pit.

Direct operating costs remained largely consistent with the first quarter as inflation pressures continued to stabilize, with improvements to pricing on energy, fuel and commodities, as well lower direct costs as a result of the suspension of operations at Penasquito. In addition, AISC was higher due to higher sustaining capital during the second quarter compared with the first quarter, driven by the timing of spend at Boddington, Musselwhite and Ahafo. Penasquito incurred $23-million of operating costs and $15-million of depreciation and amortization due to the suspension of operations. In addition, Eleonore incurred $6-million of operating costs and $2-million of depreciation and amortization while the site was evacuated due to the wildfires in Canada. These costs have not been adjusted from Newmont's non-GAAP (generally accepted accounting principles) financial metrics for the second quarter.

Cash flow from continuing operations was $656-million, which was favourable compared with the first quarter, primarily driven by lower impacts from working capital changes as higher cash tax payments of $246-million were largely offset by favourable change in accounts receivable. In addition, Newmont reinvested $616-million in capital spend, including $236-million in development capital spend to continue to progress near-term projects and $380-million in sustaining capital to progress site improvement projects, such as upgrading camp conditions at Musselwhite and the addition of five new autonomous haulage trucks at Boddington to advance stripping in the North and South pits.

Well positioned to deliver a strong performance in the second half of 2023

Production remains weighted to the second half of the year as previously guided, with improving costs expected through the remainder of the year, driven by the following sites:

• Ahafo is expected to reach higher grade and tonnes mined from Subika underground with access to the third mining level and additional draw points, in addition to higher ore tonnes mined and improved grade at the Subika open pit. The site is on track to commission the replacement conveyor in the third quarter.
• Cerro Negro is expected to improve productivity and reach higher-grade stopes from the first wave of the Cerro Negro district expansions. In the second quarter, first ore was mined from San Marcos, the first of six new deposits.
• Tanami is expected to deliver higher tonnes mined and processed and reach the year's highest grades during the fourth quarter.
• Akyem is expected to deliver higher-grade tonnes in the second half of the year following the decision to optimize the mine plan for safety and productivity in the second quarter.
• Nevada Gold Mines and Pueblo Viejo are both expected to be weighted strongly toward the second half of the year.

Second quarter 2023 financial and production summary

Attributable gold production decreased 17 per cent to 1.24 million ounces from the prior-year quarter primarily due to lower production at Penasquito, Akyem, Merian, Cerro Negro and Boddington. In addition, lower-than-planned production was delivered from the non-managed joint venture at Pueblo Viejo. Attributable gold sales were largely in line with gold production for the quarter.

Gold CAS totalled $1.3-billion for the quarter. Gold CAS per ounce increased 13 per cent to $1,054 per ounce from the prior-year quarter primarily due to lower gold sales volumes. This unfavourable impact was partially offset by the charges recognized in the second quarter of 2022 related to 2021 site performance for the Penasquito profit sharing agreement, as well as lower energy, materials and contracted services costs at Penasquito while operations were suspended in the second quarter of 2023.

Gold AISC per ounce increased 23 per cent to $1,472 per ounce from the prior-year quarter primarily due to higher CAS per gold ounce and higher sustaining capital spend.

Attributable gold equivalent ounce (GEO) production from other metals decreased 22 per cent to 256,000 ounces primarily due to the suspension of operations at Penasquito. Attributable GEO sales were largely in line with production for the quarter.

CAS from other metals totalled $266-million for the quarter. CAS per GEO increased 8 per cent to $1,062 per ounce from the prior-year quarter primarily due to lower other metal sales at Penasquito as a result of suspension of operations during the second quarter. This unfavourable impact was partially offset by lower energy, materials and contracted services costs at Penasquito while operations were suspended.

AISC per GEO increased 16 per cent to $1,492 per ounce primarily due to higher CAS per GEO and higher sustaining capital spend.

Average realized gold price was $1,965, an increase of $129 per ounce over the prior-year quarter. Average realized gold price includes $1,974 per ounce of gross price received, an unfavourable impact of $1 per ounce mark-to-market on provisionally priced sales and reductions of $8 per ounce for treatment and refining charges.

Revenue decreased 12 per cent from the prior-year quarter to $2.7-billion primarily due to lower gold and silver sales volumes, partially offset by higher average realized prices for all metals except zinc.

Net income from continuing operations attributable to Newmont stockholders was $153-million or 19 cents per diluted share, a decrease of $226-million from the prior-year quarter primarily due to lower sales volumes and higher income tax expense. These decreases were partially offset by lower CAS and a decrease in unrealized losses on marketable and other equity securities.

Adjusted net income was $266-million or 33 cents per diluted share, compared with $362-million or 46 cents per diluted share in the prior-year quarter. Primary adjustments to second quarter net income include changes in the fair value of investments of $42-million, Newcrest transaction costs of $21-million, and restructuring and severance costs of $10-million, as well as valuation allowance and other tax adjustments.

Adjusted EBITDA decreased 21 per cent to $900-million for the quarter, compared with $1.1-billion for the prior-year quarter.

Capital expenditures increased 19 per cent from the prior-year quarter to $616-million primarily due to higher sustaining capital spend. Development capital expenditures in 2023 primarily relate to Tanami expansion 2, Ahafo North, Yanacocha sulphides, Pamour and Cerro Negro district expansion 1.

Consolidated operating cash flow from continuing operations decreased 36 per cent from the prior-year quarter to $656-million primarily due to a decrease in revenue due to lower sales volumes, a decrease in the fair value of investments and a buildup of inventory compared with the same period in 2022, primarily at Penasquito.

Free cash flow decreased to $40-million from $514-million in the prior-year quarter primarily due to lower operating cash flow and higher capital expenditures.

Balance sheet and liquidity remained strong in the second quarter, ending the quarter with $2.8-billion of consolidated cash and $374-million of time deposits with a maturity of more than three months but less than one year, with approximately $6.2-billion of total liquidity; reported net debt to adjusted EBITDA of 0.7 times.

Nevada Gold Mines (NGM) attributable gold production was 287,000 ounces, with CAS of $1,055 per ounce and AISC of $1,388 per ounce for the second quarter. NGM EBITDA was $245-million.

Pueblo Viejo (PV) attributable gold production was 51,000 ounces for the quarter. Cash distributions received for the company's equity method investment in Pueblo Viejo totalled $40-million in the second quarter. Capital contributions of $22-million were made during the quarter related to the expansion project at Pueblo Viejo.

Progressing profitable near-term projects from unmatched organic pipeline

Newmont's project pipeline supports stable production with improving margins and mine lives. Newmont's 2023 and longer-term outlook includes current development capital costs and production related to Tanami expansion 2, Ahafo North, Pamour and Cerro Negro district expansion 1. Longer-term development capital outlook has been updated to reflect the deferral of the investment decision for the Yanacocha sulphides project, which has reduced expected capital spend by $300-million in 2024. Additional development capital spend and all metal production for Yanacocha sulphides has been excluded from longer-term outlook until an investment decision has been reached.

Additional projects not listed below represent incremental improvements to the company's outlook:

• Tanami expansion 2 (Australia) secures Tanami's future as a long-life, low-cost producer by extending mine life beyond 2040 through the addition of a 1,460-metre hoisting shaft and supporting infrastructure to process 3.3 million tonnes per year and provide a platform for future growth. The expansion is expected to increase average annual gold production by approximately 150,000 to 200,000 ounces per year for the first five years and reduce operating costs by approximately 10 per cent, bringing average all-in sustaining costs to $900 to $1,000 per ounce for Tanami (2026 to 2030). Commercial production for the project is expected in the second half of 2025. Total capital costs are estimated to be between $1.2-billion and $1.3-billion. Development costs (excluding capitalized interest) since approval were $617-million, of which $118-million related to the six months ended June 30, 2023.
• Ahafo North (Africa) expands Newmont's existing footprint in Ghana with four open-pit mines and a stand-alone mill located approximately 30 kilometres from the company's Ahafo South operations. The project is expected to add between 275,000 and 325,000 ounces per year with all-in sustaining costs of $800 to $900 per ounce for the first five full years of production. Ahafo North is the best unmined gold deposit in West Africa with approximately 3.8 million ounces of reserves and 1.4 million ounces of measured, indicated and inferred resources and significant upside potential to extend beyond Ahafo North's current 13-year mine life. Commercial production for the project is expected in the second half of 2025. Total capital costs are estimated to be between $950-million and $1.05-billion. Development costs (excluding capitalized interest) since approval were $283-million, of which $71-million related to the six months ended June 30, 2023.
• Pamour (North America) extends the life of Porcupine and maintains production beyond 2024. The project will optimize mill capacity, adding volume and supporting high-grade ore from Borden and Hoyle Pond, while supporting further exploration in a highly prospective and proven mining district. An investment decision is expected in late 2023 as opportunities have been identified to extend production from current operations, allowing for a deferral of project spending. Formal updates to capital estimates and estimated project completion will be provided closer to the investment decision.
• Cerro Negro district expansion 1 (South America) includes the simultaneous development of the Marianas and Eastern districts to extend the mine life of Cerro Negro beyond 2030. The project is expected to improve production to above 350,000 ounces beginning in 2024 and provides a platform for further exploration and future growth through additional expansions. Development capital costs for the project are estimated to be between $350-million and $450-million.
• Yanacocha sulphides (South America) has been deferred for at least two years from the previously planned investment decision date in 2024, representing the first step to Newmont delivering on its portfolio optimization strategy. Development capital spend guidance for 2024 has been updated to reflect the reduced spend of $300-million. Yanacocha sulphides will develop the first phase of sulphide deposits and an integrated processing circuit, including an autoclave to produce 45 per cent gold, 45 per cent copper and 10 per cent silver. The first phase focuses on developing the Yanacocha Verde and Chaquicocha deposits to extend Yanacocha's operations beyond 2040 with second and third phases having the potential to extend life for multiple decades.

2023 outlook remains second-half weighted

Newmont's outlook reflects increasing gold production and continuing investment into its operating assets and most promising growth prospects. Newmont's reserves and mine planning gold price assumption has been set at $1,400 per ounce. Two thousand twenty-three outlook assumes a $1,700-per-ounce revenue gold price for CAS and AISC, including royalties and production taxes. For 2023, Newmont has assumed normalizing levels of inflation, improving throughout the year, with a year-over-year average escalation rate of approximately 3 per cent.

Outlook includes development capital, costs and production related to Tanami expansion 2, Ahafo North, Pamour and Cerro Negro district expansion 1. Longer-term development capital outlook has been updated to reflect the deferral of the investment decision for the Yanacocha sulphides project, which has reduced expected capital spend by $300-million in 2024. Additional development capital spend and all metal production for Yanacocha sulphides have been excluded from longer-term outlook until an investment decision has been reached.

Conference call information

A conference call will be held on Thursday, July 20, 2023, at 11 a.m. Eastern Time (9 a.m. Mountain Time); it will also be carried on the company's website.

Conference call details

Dial-in number: 844-470-1428

International dial-in number: 404-975-4839

Dial-in access code: 134084

Conference name: Newmont

Replay number: 866-813-9403

International replay number: 44-204-525-0658

Replay access code: 108980

Webcast details

Title: Newmont second quarter 2023 earnings conference call

The second quarter 2023 results will be available before the market opens on Thursday, July 20, 2023, on the investor relations section of the company's website. Additionally, the conference call will be archived for a limited time on the company's website.

About Newmont Corp.

Newmont is the world's leading gold company and a producer of copper, silver, lead and zinc. The company's world-class portfolio of assets, prospects and talent is anchored in favourable mining jurisdictions in North America, South America, Australia and Africa. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social and governance practices. The company is an industry leader in value creation, supported by robust safety standards, superior execution and technical expertise. Newmont was founded in 1921 and has been publicly traded since 1925.

We seek Safe Harbor.