Newmont Goldcorp Announces Newmont’s First Quarter 2019 Results

April 25, 2019 ALE

DENVER–(BUSINESS WIRE)–Newmont Goldcorp Corporation (NYSE: NEM, TSX: NGT) announced first
quarter 2019 results for Newmont Mining Corporation (Newmont or the
Company).

Net income: Delivered GAAP net income from continuing
operations attributable to stockholders of $113 million or $0.21 per
diluted share; delivered adjusted net income¹of $176
million or $0.33 per diluted share, down $0.02 compared to the prior
year quarter
EBITDA: Generated $687 million in adjusted EBITDA²,
up seven percent from the prior year quarter
Cash flow: Reported consolidated cash flow from continuing
operations of $574 million, more than double prior year quarter, and
free cash flow³ of $349 million
Gold costs applicable to sales (CAS)⁴: Reported CAS
of $701 per ounce, an improvement of six percent compared to the prior
year quarter, and in-line with the Company’s full year guidance
Gold all-in sustaining costs (AISC)⁵: Reported AISC
of $907 per ounce, an improvement of four percent compared to the
prior year quarter, and in-line with the Company’s full year guidance
Attributable gold production: Produced 1.23 million ounces of
gold, in-line with the Company’s full year guidance
Portfolio improvements: Forged a strategic joint venture
agreement with Barrick to create the world’s largest gold producing
complex by combining the companies’ respective mining operations,
assets, reserves, and talent in Nevada; completed Tanami Power Project
in Australia safely and on schedule, lowering power costs and carbon
emissions by 20 percent
Financial strength: Ended the quarter with net debt of $0.8
billion and $3.5 billion cash on hand, supporting an investment-grade
credit profile; declared a first quarter dividend of $0.14 per share;
declared a one-time special dividend of $0.88 per share to be paid on
May 1, 2019, to Newmont shareholders of record based on outstanding
shares as of April 17, 2019, and not including any shares issued in
connection with the recently completed Newmont Goldcorp transaction.
Newmont Goldcorp update: On January 14, 2019, the
Company entered into a definitive agreement to acquire all outstanding
common shares of Goldcorp Inc. (Goldcorp) in a primarily stock
transaction. On April 18, 2019, Newmont closed its acquisition
of Goldcorp following receipt of all regulatory approvals and approval
by Newmont’s and Goldcorp’s shareholders of the resolutions at the
shareholder meetings on April 11 and April 4, 2019, respectively. As
of the closing date, the combined company is known as Newmont Goldcorp
Corporation, continuing to be traded on the New York Stock Exchange
under the ticker NEM and listed on the Toronto Stock Exchange under
the ticker NGT.

“We delivered $349 million in free cash flow in the quarter while
meeting production and cost targets on the back of continued operational
excellence,” said Gary J. Goldberg, Chief Executive Officer. “This
performance gave us the means to deliver superior shareholder value in
the form of a special dividend, and to build a stronger future by
advancing profitable projects on three continents, and by progressing
two historic transactions. Our joint venture in Nevada will generate
synergies and create the world’s largest gold mining complex, and our
combination with Goldcorp will create the world’s leading gold business
as measured by assets, prospects and people.”

First Quarter 2019 Summary Results

Net income (loss) from continuing operations attributable to
Newmont stockholders was $113 million or $0.21 per diluted share, a
decrease of $57 million from the prior year quarter primarily due to
integration and transaction costs associated with the Newmont Goldcorp
transaction and Nevada Joint Venture and lower average realized gold
prices; partially offset by higher gold production.

Adjusted net income was $176 million or $0.33 per diluted share,
compared to $185 million or $0.35 per diluted share in the prior year
quarter. The adjustments to net income of $0.12 related to integration
and transaction costs associated with the Newmont Goldcorp transaction
and Nevada Joint Venture, an increase in the fair value of investments,
restructuring charges, and valuation allowances and other tax
adjustments.

Revenue of $1.8 billion was in-line with the prior year quarter
as higher gold ounces sold were offset by lower average realized gold
price and lower copper pounds sold.

Average realized price⁶ for gold was $1,300, a
decrease of $26 per ounce over the prior year quarter; average realized
price for copper was $2.89 per pound, in-line with the prior year
quarter.

Attributable gold production increased two percent to 1.23
million ounces primarily due to a full quarter of mining at Subika
Underground and higher grade at Merian and Yanacocha, partially offset
by reduced mining and lower grade at KCGM.

Gold CAS decreased five percent to $935 million for the
quarter. Gold CAS per ounce improved to $701 for the quarter from higher
production, lower stockpile and leach pad inventory adjustments and a
favorable Australian dollar foreign currency exchange rate.

Gold AISC decreased four percent to $907 per ounce for the
quarter on lower CAS.

Attributable copper production decreased 17 percent to 10,000
tonnes for the quarter, primarily due to lower grades and throughput at
Boddington, partially offset by higher grades at Phoenix. Copper CAS totaled
$43 million for the quarter. Copper CAS was $1.94 per pound, an 11
percent increase over the prior year quarter due to lower production at
Boddington, partially offset by higher production at Phoenix and a
favorable Australian dollar foreign currency exchange rate. Copper
AISC for the quarter rose nine percent to $2.26 per pound
primarily from higher CAS per pound.

Capital expenditures⁷ decreased by three percent from
the prior year quarter to $225 million primarily due to the completion
of Subika Underground; partially offset by higher spending for growth
projects, including Quecher Main, Yanacocha Sulfides, Tanami Expansion
2, and the Ahafo Mill Expansion and Ahafo North.

Consolidated operating cash flow from continuing operations
increased 116 percent from the prior year quarter to $574 million due to
favorable changes in working capital. Free cash flow also increased $314
million to $349 million for the quarter from higher operating cash flow.

Balance sheet ended the quarter with $3.5 billion cash on hand
and a leverage ratio of 0.3x net debt to adjusted EBITDA. Newmont is
committed to maintaining an investment-grade credit profile.

____________________
¹		Non-GAAP measure. See end of this release for reconciliation to Net income (loss) attributable to Newmont stockholders.
²		Non-GAAP measure. See end of this release for reconciliation to Net income (loss) attributable to Newmont stockholders.
³		Non-GAAP measure. See end of this release for reconciliation to Net cash provided by operating activities.
⁴		Non-GAAP measure. See end of this release for reconciliation to Costs applicable to sales.
⁵		Non-GAAP measure. See end of this release for reconciliation to Costs applicable to sales.
⁶		Non-GAAP measure. See end of this release for reconciliation to Sales.
⁷		Capital expenditures refers to Additions to property plant and mine development from the Condensed Consolidated Statements of Cash Flows.

Corporate update

On March 10, 2019, the Company entered into an implementation agreement
with Barrick Gold Corporation (Barrick) to establish a joint venture
that will combine certain mining operations and assets located in Nevada
and historically included in the Company’s North America reportable
segment and certain of Barrick’s Nevada mining operations and assets
(the Nevada JV Agreement). Pursuant to the terms of the Nevada JV
Agreement, Barrick and the Company will hold economic interests in the
joint venture equal to 61.5 percent and 38.5 percent, respectively.
Barrick will operate the joint venture with overall management
responsibility and will be subject to the supervision and direction of
the joint venture’s Board of Managers, which will be comprised of three
managers appointed by Barrick and two managers appointed by Newmont. The
Company and Barrick will have an equal number of representatives on the
joint venture’s technical, finance and exploration advisory committees.
Establishment of the joint venture is subject to the usual conditions,
including regulatory approvals, and is expected to be completed in the
coming months.

Projects update

Newmont’s capital-efficient project pipeline supports stable production
with improving margins and mine life. Near-term development capital
projects are presented below. Funding for Ahafo Mill Expansion and
Quecher Main has been approved and these projects are in execution.
Additional projects represent incremental improvements to production and
cost guidance. Internal rates of return (IRR) on these projects are
calculated at a $1,200 gold price.

Ahafo Mill Expansion (Africa) is designed
to maximize resource value by improving production margins and
accelerating stockpile processing. The project also supports
profitable development of Ahafo’s highly prospective underground
resources. Both first production and commercial production are
expected in the fourth quarter of 2019. The expansion is expected to
increase average annual gold production by between 75,000 and 100,000
ounces per year for the first five years beginning in 2020. Capital
costs for the project are estimated between $140 and $180 million with
expenditure of approximately $35 to $45 million in 2019. The project
has an IRR of more than 20 percent.

The Ahafo Mill
Expansion, together with the Company’s recently completed Subika
Underground project, will improve Ahafo’s production to between
550,000 and 650,000 ounces per year for the first five full years of
production (2020 to 2024). During this period Ahafo’s CAS is expected
to be between $650 and $750 per ounce and AISC is expected to be
between $800 and $900 per ounce. This represents average production
improvement of between 200,000 and 300,000 ounces at CAS improvement
of between $150 and $250 per ounce and AISC improvement of $250 to
$350 per ounce, compared to 2016 actuals.

Quecher Main (South America) will add
oxide production at Yanacocha, leverage existing infrastructure and
enable potential future growth at Yanacocha. Commercial production is
expected in the fourth quarter of 2019. Quecher Main extends the life
of the Yanacocha operation to 2027 with average annual gold production
of approximately 200,000 ounces per year between 2020 and 2025 (100
percent basis). During the same period, incremental CAS is expected to
be between $750 and $850 per ounce and AISC between $900 and $1,000
per ounce. Capital costs for the project are expected to be between
$250 and $300 million with expenditure of $95 to $105 million in 2019.
The project IRR is expected to be greater than 10 percent.

Newmont outlook

Newmont issued its 2019 and longer-term outlook in December 2018 and the
figures did not include the impact of the Newmont Goldcorp transaction,
which closed on April 18, 2019, or the proposed Nevada Joint Venture.
The outlook reflected steady gold production and ongoing investment in
its operating assets and most promising growth prospects. Newmont does
not include development projects that have not yet been funded or
reached execution stage in its outlook which represents upside to
guidance.

Attributable gold production is expected to be 5.2 million ounces
in 2019, primarily driven by a full year of higher grade production from
the recently completed Subika Underground project in Africa. Production
is expected to be 4.9 million ounces in 2020 and longer-term production
is expected to remain stable at between 4.4 and 4.9 million ounces per
year through 2023 excluding development projects which have yet to be
approved.

North America production is expected to be 1.9 million ounces in 2019
as higher grade production from Northwest Exodus and Twin Underground
are offset by the depletion of Silverstar ore at Carlin and lower gold
production at Phoenix as mining shifts to higher copper grade ore from
the Bonanza pit. Production remains at 1.9 million ounces in 2020 and
2021 as higher grades at Long Canyon following the stripping campaign
help offset lower grades at CC&V. North American production may be
impacted by approximately 70,000 ounces following the Gold Quarry wall
slip but mine plan optimization work is ongoing. The Company continues
to pursue profitable growth opportunities at Carlin, Long Canyon, CC&V
and Galore Creek.
South America production is expected to be 650,000 ounces in 2019 as
productivity improvements at Merian offset the transition to harder
ore. Production is expected to decrease to 560,000 ounces in 2020 and
450,000 ounces in 2021 as the Tapado Oeste pit and Yanacocha laybacks
are mined out and Merian transitions from saprolite to hard rock. The
Company continues to advance near-mine growth opportunities at Merian
and both oxide and sulfide potential at Yanacocha.
Australia production is expected to be 1.5 million ounces in 2019 with
higher grades and throughput and productivity gains at Tanami, offset
by lower mining rates at KCGM following the wall slips and the
continuation of stripping at Boddington. Production is expected to be
1.5 million ounces in 2020 and 1.6 million ounces in 2021 as
Boddington accesses higher grade ore. KCGM’s near-term production has
been lowered due to the wall slips, but optimization work continues to
recover the impacted ounces as part of the broader Golden Mile Growth
Study. The Company continues to advance studies for a second expansion
at Tanami and expects to reach a full-funds decision in the second
half of 2019.
Africa production is expected to be 1.1 million ounces in 2019 with a
full year of production from Subika Underground, higher grades from
the Subika open pit and improved mill throughput in the second half of
the year with the Ahafo Mill Expansion. Production is expected to be
930,000 ounces in 2020 with lower grades at Akyem and Subika open pit
which are partially offset by higher underground grades at Ahafo and a
full year of production from the Ahafo Mill Expansion. In 2021,
production is expected to be 1 million ounces as Akyem reaches higher
grades near the bottom of the pit. The company continues to advance
the Ahafo North project and other prospective surface and underground
opportunities.

Gold cost outlook – CAS is expected to be $710 per ounce
for 2019 following higher production at Ahafo, lower mining costs at
Yanacocha and lower operational costs at Tanami with the completion of
the Tanami Power Project. The Company continues to implement Full
Potential cost and efficiency improvements and advance technology
initiatives to offset inflation and input cost pressures. CAS is
expected to be $750 per ounce for 2020 and between $690 and $740 per
ounce longer-term through 2023. AISC is expected to be $935 per ounce in
2019 on improved CAS in Africa and South America partially offset by
higher sustaining capital. AISC is expected to be $975 per ounce in 2020
and between $875 and $975 longer-term through 2023. Future Full
Potential savings and profitable ounces from projects that are not yet
approved represent additional upside not currently captured in guidance.

North America CAS is expected to be $785 per ounce in 2019 as lower
leach grades drive inventory cost increases at CC&V which are
partially offset by cost improvements across the other North American
operations. CAS is expected to be $760 per ounce in 2020 and $790 per
ounce in 2021 with higher production at Twin Creeks as the Turquoise
Ridge Joint Venture (TRJV) optimization project ramps up. AISC is
expected to be $975 per ounce in 2019 on improved unit CAS. AISC is
expected to be $925 per ounce in 2020 and 2021. North American CAS and
AISC guidance may be impacted by the Gold Quarry wall slip and mine
plan optimization work is ongoing.
South America CAS is expected to be $640 per ounce in 2019 driven by a
lower stripping ratio at Yanacocha partially offset by higher labor
and mill maintenance costs at Merian. CAS is expected to increase to
$825 per ounce in 2020 with higher inventory costs and strip ratio at
Yanacocha. CAS is expected to be $830 per ounce in 2021 as Merian
fully transitions into harder rock which is partially offset by lower
operating costs at Yanacocha as the oxide mill shuts down. AISC is
expected to be $800 per ounce in 2019 due to lower CAS and sustaining
capital. AISC is expected to be $995 per ounce in 2020 and $1,000 per
ounce in 2021 on higher CAS and increases in sustaining capital.
Australia CAS is expected to be $775 per ounce in 2019 driven by
increased stripping at Boddington and the drawdown of lower grade
stockpiles at KCGM, partially offset by higher production and lower
power costs at Tanami from switching to natural gas. CAS is expected
to be $750 per ounce in 2020 and $645 per ounce in 2021 as Boddington
reaches higher grades. AISC is expected to be $945 per ounce in 2019
on increased CAS. AISC is expected to be $925 per ounce in 2020 and
$800 per ounce in 2021.
Africa CAS is expected to be $570 per ounce in 2019 due to higher
grades from Subika Underground and Subika open pit and the Ahafo Mill
Expansion coming online. CAS is expected to be $660 per ounce in 2020
and $625 per ounce in 2021 with mine sequencing at the Ahafo and Akyem
pits driving production changes. AISC is expected to be $735 per ounce
in 2019 on improved unit CAS, partly offset by higher sustaining
capital for the Ahafo tailing storage facility expansion. AISC is
expected to be $830 per ounce in 2020 and $780 per ounce in 2021.

Copper – Attributable production is expected to be 45,000
tonnes in 2019 and 2020 as Phoenix reaches higher grade copper ore from
the Bonanza pit which is offset by lower production at Boddington.
Copper production increases to between 45,000 and 65,000 tonnes
longer-term through 2023 driven primarily from higher grades at
Boddington following completion of the next stripping campaign. CAS is
expected to rise to $2.05 per pound in 2019 and $2.10 per pound in 2020
due to higher stripping at Boddington. CAS is expected to improve to
$1.55 to $1.75 per pound longer-term through 2023 as production at
Boddington increases offsetting lower copper grades at Phoenix. AISC is
expected to rise to $2.45 per pound in 2019 on increased CAS. AISC is
expected to be $2.55 per pound in 2020 and $1.80 to $2.10 per pound
longer-term.

Capital – Total consolidated capital is expected to be $1,070
million for 2019 and $730 million for 2020. Development capital of $390
million in 2019 includes investments in the Tanami Power Project in
Australia, Ahafo Mill Expansion in Africa, Quecher Main in South
America, and the TRJV third shaft in North America and expenditures to
advance studies for future projects. Development capital is expected to
be $70 million in 2020 and approximately $50 million longer-term until
additional projects are approved. Sustaining capital is expected to be
$700 million for 2019, $660 million for 2020 and between $450 and $550
million per year longer-term to cover infrastructure, equipment and
ongoing mine development.

Consolidated expense outlook – Interest expense is
expected to be $215 million for 2019 from leases related to the Tanami
Power Project and lower capitalized interest. Investment in exploration
and advanced projects is expected to be $430 million in 2019 with
increased near-mine and greenfield exploration spend across all regions
and higher advanced project spend in North America. 2019 outlook for
general & administrative costs is stable at $245 million and guidance
for depreciation and amortization is expected to be $1,370 million.

Assumptions and sensitivities – Newmont’s outlook assumes $1,200
per ounce gold price, $2.50 per pound copper price, $0.75 USD/AUD
exchange rate and $65 per barrel WTI oil price. Assuming a 35% portfolio
tax rate, $100 per ounce increase in gold price would deliver an
expected $335 million improvement in attributable free cash flow.
Similarly, a $10 per barrel reduction in the price of oil and a $0.05
favorable change in the Australian dollar would deliver an expected $25
million and $45 million improvement in attributable free cash flow,
respectively. These estimates exclude current hedge programs; please
refer to Newmont’s Form 10-Q which was filed with the SEC on April 25,
2019 for further information on hedging positions.

2019 Newmont outlook^a

Outlook figures in the tables below do not include the impact of the
Newmont Goldcorp transaction, which closed on April 18, 2019, or the
proposed Nevada Joint Venture.

2019 Outlook+/- 5%	Consolidated Production	Attributable Production	Consolidated CAS	Consolidated All-in Sustaining Costs^b	Consolidated Sustaining Capital & Finance Lease Payments	Consolidated Development Capital Expenditures
	(Koz, Kt)	(Koz, Kt)	($/oz, $/lb)	($/oz, $/lb)	($M)	($M)
North America	1,935	1,935	785	975	285	15
South America	1,030	650	640	800	75	175
Australia	1,470	1,470	775	945	215	70^c
Africa	1,140	1,140	570	735	120	130
Total Gold^d	5,600	5,200	710	935	700	390

Total Copper	45	45	2.05	2.45

2019 Consolidated Expense Outlook^e($M) +/-5%
General & Administrative					245
Interest Expense					215
Depreciation and Amortization					1,370
Advanced Projects & Exploration					430
Adjusted Tax Expense^f					210

^a		2019 Outlook in the above table are considered “forward-looking statements” and are based upon certain assumptions. For example, 2019 Outlook assumes $1,200/oz Au, $2.50/lb Cu, $0.75 USD/AUD exchange rate and $65/barrel WTI; AISC and CAS estimates do not include inflation, for the remainder of the year. Production, CAS, AISC and capital estimates exclude projects that have not yet been approved. The potential impact on inventory valuation as a result of lower prices, input costs, and project decisions are not included as part of this Outlook. Such assumptions may prove to be incorrect and actual results may differ from those anticipated, including variation beyond a +/- 5% range. Amounts may not recalculate to totals due to rounding. See cautionary note at the end of this release.
^b		All-in sustaining costs or AISC as used in the Company’s Outlook is a non-GAAP metric; see below for further information and reconciliation to consolidated 2019 CAS outlook.
^c		Includes financing lease payments related to the Tanami Power Project paid over a 10 year term beginning in 2019.
^d		Production outlook does not include equity production from stakes in TMAC (28.55%) or La Zanja (46.94%) as of December 31, 2018.
^e		Consolidated expense outlook is adjusted to exclude extraordinary items, such as certain tax valuation allowance adjustments.
^f		Consists of $75 of mining taxes and $135 of income taxes and is based on a $1,200/oz. gold price and $2.50/lb. copper price. Income taxes and mining taxes are particularly sensitive to pricing and actual expense will vary if realized prices differ significantly from these amounts.


	Three Months Ended March 31,
Operating Results	2019		2018		% Change
Attributable Sales (koz, kt)
Attributable gold ounces sold		1,234		1,231	–	%
Attributable copper tonnes sold		10		12	(17	)%

Average Realized Price ($/oz, $/lb)
Average realized gold price	$	1,300	$	1,326	(2	)%
Average realized copper price	$	2.89	$	2.88	–	%

Attributable Production (koz, kt)
North America		474		490	(3	)%
South America		185		144	28	%
Australia		340		366	(7	)%
Africa		231		209	11	%
Total Gold		1,230		1,209	2	%

North America		4		3	33	%
Australia		6		9	(33	)%
Total Copper		10		12	(17	)%

CAS Consolidated ($/oz, $/lb)
North America	$	787	$	765	3	%
South America	$	577	$	782	(26	)%
Australia	$	756	$	707	7	%
Africa	$	594	$	746	(20	)%
Total Gold	$	701	$	748	(6	)%
Total Gold (by-product)	$	683	$	725	(6	)%

North America	$	1.71	$	1.88	(9	)%
Australia	$	2.06	$	1.68	23	%
Total Copper	$	1.94	$	1.74	11	%

AISC Consolidated ($/oz, $/lb)
North America	$	958	$	918	4	%
South America	$	721	$	921	(22	)%
Australia	$	897	$	847	6	%
Africa	$	775	$	876	(12	)%
Total Gold	$	907	$	943	(4	)%
Total Gold (by-product)	$	896	$	926	(3	)%

North America	$	2.01	$	2.17	(7	)%
Australia	$	2.38	$	2.03	17	%
Total Copper	$	2.26	$	2.07	9	%

Contacts

Investor Contacts
Jessica
Largent, 303.837.5484
jessica.largent@newmont.com

Media
Contacts
Omar Jabara, 303.837.5114
omar.jabara@newmont.com

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