DENVER–(BUSINESS WIRE)– Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced first quarter 2023 results and declared a first quarter dividend of $0.40 per share.

Delivered First Quarter Production as Expected; Improving Production in Second Quarter^*

• Produced 1.27 million gold ounces and 288 thousand co-product gold equivalent ounces (GEOs)^** from copper, silver, lead and zinc
• Reported gold Costs Applicable to Sales (CAS) of $1,025 per ounce and gold All-In Sustaining Costs (AISC) of $1,376 per ounce^***; impacted by lower production volumes and continued global cost pressures; costs expected to decrease throughout the year
• On track to achieve full-year guidance of between 5.7 and 6.3 million ounces of attributable gold production with Gold AISC between $1,150 and $1,250 per ounce
• Generated $481 million of cash from continuing operations and reported $(45) million of Free Cash Flow^***;impacted by lower production volumes, timing of working capital changes and higher capital spend
• Reported Net Income of $363 million, with Adjusted Net Income (ANI)^*** of $0.40 per share and Adjusted EBITDA^*** of $990 million; lower production volumes offset by higher realized gold prices
• Ended the quarter with $2.7 billion of consolidated cash, $797 million of short-term time deposits and $6.5 billion of liquidity; reported net debt to adjusted EBITDA ratio of 0.6x^***
• Sold common shares of Triple Flag Precious Metals Corporation for $179 million, further optimizing Newmont’s equity portfolio acquired with the Goldcorp transaction in 2019
• Published 19^th Annual Sustainability Report and 2^nd Annual Taxes and Royalties Contribution Report, providing a transparent review of Newmont’s ESG performance and an overview of Newmont’s tax strategy and economic contributions

First Quarter Dividend Declared Within Established Framework^****

• Board of Directors declared a dividend of $0.40 per share of common stock for the first quarter of 2023, payable on June 15, 2023 to holders of record at the close of business on June 1, 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 $1.00 per share payable at base reserves price and an incremental dividend payout of $0.60 per share; Q1 2023 dividend payout calibrated at the mid-point of the $1,700 per ounce annualized payout range

“Since transforming Newmont’s business four years ago, we continue to lead the gold sector in sustainability, profitable gold production and shareholder returns due to the strength of our team and the quality of our world-class portfolio. During the first quarter, we delivered on our expected results, generated nearly $1.0 billion in adjusted EBITDA and returned $318 million to shareholders through our industry-leading dividend framework. We remain on track to achieve our full year guidance ranges and build upon our track record of safely delivering long-term value to all of our stakeholders through sustainable and responsible mining.”

– Tom Palmer, Newmont President and Chief Executive Officer

First Quarter Results In-Line with Previously Signaled Expectations

FIRST QUARTER 2023 RESULTS DRIVERS

Production volumes came in line with our previously signaled expectations for the first quarter, with higher than signaled production at Tanami and Ahafo, partially offset by lower than planned production at our non-managed joint ventures. Compared to the fourth quarter, earnings were in-line despite lower sales volumes, which were partially offset by higher realized gold prices, including $17 million of favorable mark-to-market adjustments on provisionally-priced gold ounces. Gold CAS per ounce was higher than the fourth quarter due to lower sales volumes, partially offset by lower gross costs from easing inflation on commodities, materials and supplies. Advanced projects and exploration spend was lower than the fourth quarter, but is expected to be higher in the second quarter and the remainder of the year.

Cash flow from continuing operations was $481 million, which was lower than the fourth quarter due to lower sales volumes, partially offset by higher gold prices. Cash flow from continuing operations was also impacted by approximately $360 million of unfavorable working capital movements, including $187 million of cash tax payments, approximately $170 million of build-up of stockpiles and finished goods inventory partially due to the timing of concentrate sales at Peñasquito, and approximately $160 million in timing of payments on accrued liabilities which typically occurs in the first quarter. In addition, we reinvested $526 million in capital spend as we continue to progress our near-term projects.

FIRST QUARTER 2023 FINANCIAL AND PRODUCTION SUMMARY

Attributable gold production¹ decreased 5 percent to 1,273 thousand ounces from the prior year quarter primarily due to lower mill recovery and ore grade milled at Peñasquito as a result of the planned mine sequencing, the impact of the mill shutdown at Tanami due to the rainfall event and lower production at Nevada Gold Mines. These decreases were partially offset by higher ore grade milled at Ahafo and higher mill throughput and ore grade milled at Éléonore. Attributable gold sales versus production was impacted by the timing of concentrate shipments at Peñasquito. This concentrate has been sold and the revenue will be realized in the second quarter.

Gold CAS totaled $1.2 billion for the quarter. Gold CAS per ounce² increased 15 percent to $1,025 per ounce from the prior year quarter primarily due to lower gold sales volumes and higher direct operating costs as a result of inflationary pressures, driven by higher labor costs and an increase in commodity input costs.

Gold AISC per ounce² increased 19 percent to $1,376 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 18 percent to 288 thousand ounces primarily due to lower mill recovery at Peñasquito. This decrease was partially offset by higher ore grade milled at Boddington. Attributable GEO sales versus production was impacted by the timing of concentrate shipments at Peñasquito. This concentrate has been sold and the revenue will be realized in the second quarter.

CAS from other metals totaled $243 million for the quarter. CAS per GEO² increased 28 percent to $918 per ounce from the prior year quarter primarily due to lower other metal sales at Peñasquito, as well as higher direct operating costs as a result of inflationary pressures, driven by higher labor costs and an increase in commodity input costs.

AISC per GEO² increased 33 percent to $1,322 per ounce primarily due to higher CAS per GEO and higher sustaining capital spend.

Average realized gold price was $1,906, an increase of $14 per ounce over the prior year quarter. Average realized gold price includes $1,901 per ounce of gross price received, a favorable impact of $14 per ounce mark-to-market on provisionally-priced sales and reductions of $9 per ounce for treatment and refining charges.

Revenue decreased 11 percent from the prior year quarter to $2.7 billion primarily due to lower sales volumes for all metals except copper and lower average realized co-product metal prices.

Net income from continuing operations attributable to Newmont stockholders was $339 million or $0.42 per diluted share, a decrease of $93 million from the prior year quarter primarily due to lower sales volumes, lower average realized co-product metal prices and higher CAS predominately resulting from cost inflation impacts. These decreases were partially offset by a non-cash pension settlement charge recognized in 2022, lower depreciation and amortization, and the net gain of $36 million recognized on the exchange and subsequent sale of Triple Flag Precious Metals Corporation shares compared to the loss on the sale of the La Zanja equity method investment in 2022.

Adjusted net income³was $320 million or $0.40 per diluted share,compared to $546 million or $0.69 per diluted share in the prior year quarter. Primary adjustments to first quarter net income include changes in the fair value of investments of $41 million and the net gain of $36 million recognized on the exchange and subsequent sale of Triple Flag Precious Metals Corporation shares, as well as valuation allowance and other tax adjustments.

Adjusted EBITDA³ decreased 29 percent to $1.0 billion for the quarter, compared to $1.4 billion for the prior year quarter.

Capital expenditures⁴ increased 20 percent from the prior year quarter to $526 million primarily due to higher sustaining capital spend. Development capital expenditures in 2023 primarily relate to Tanami Expansion 2, Yanacocha Sulfides, Ahafo North, Pamour and Cerro Negro District Expansion 1.

Consolidated operating cash flow from continuing operations decreased 30 percent from the prior year quarter to $481 million primarily due to a decrease in revenue due to lower sales volumes and lower average realized co-product metal prices, an increase in operating cash expenditures resulting from the impacts of inflation on input costs and a build-up of inventory compared to the same period in 2022, primarily at Peñasquito.

Free Cash Flow⁵decreased to $(45) million from $252 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 first quarter, ending the quarter with $2.7 billion of consolidated cash and $797 million of time deposits with a maturity of more than three months but less than one year, with approximately $6.5 billion of total liquidity; reported net debt to adjusted EBITDA of 0.6x⁶.

Nevada Gold Mines (NGM) attributable gold production was 261 thousand ounces, with CAS of $1,109 per ounce² and AISC of $1,405 per ounce² for the first quarter. NGM EBITDA⁶ was $191 million.

Pueblo Viejo (PV) attributable gold production was 60 thousand ounces for the quarter. Cash distributions received for the Company’s equity method investment in Pueblo Viejo totaled $26 million in the first quarter. Capital contributions of $36 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 life¹. 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. Development capital outlook for 2023 and 2024 includes spend related to the Yanacocha Sulfides project ahead of the investment decision planned for late 2024; additional development capital spend and all metal production for Yanacocha Sulfides has been excluded from longer-term outlook beginning in 2025.

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 meter 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 percent, bringing average all-in sustaining costs to $900 to $1,000 per ounce for Tanami (2026-2030). Commercial production for the project is expected in the second half of 2025. Total capital costs are estimated to be between $1.2 and $1.3 billion. Development costs (excluding capitalized interest) since approval were $551 million, of which $52 million related to the three months ended March 31, 2023.
• Ahafo North (Africa) expands our existing footprint in Ghana with four open pit mines and a stand-alone mill located approximately 30 kilometers 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 Resources² 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 and $1,050 million. Development costs (excluding capitalized interest) since approval were $254 million, of which $42 million related to the three months ended March 31, 2023.
• Yanacocha Sulfides (South America) will develop the first phase of sulfide deposits and an integrated processing circuit, including an autoclave to produce 45% gold, 45% copper and 10% 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. In the third quarter of 2022, Newmont announced the decision to delay the project in order to manage project execution risk, move out of a period of significant inflation and to balance development capital cash flows. Management continues to assess the execution and project timeline, up to and including transitioning Yanacocha operations into full closure; the project remains subject to an investment decision. Development capital spend on the project is expected to be approximately $300 to $350 million per year in 2023 and 2024 related to advanced engineering, procurement and completing camp construction.
• 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 and $450 million.

2023 Outlook Remains Second-Half Weighted as Previously Signaled

Newmont’s outlook reflects increasing gold production and ongoing 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. 2023 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%.

Outlook includes development capital, costs and production related to Tanami Expansion 2, Ahafo North, Pamour and Cerro Negro District Expansion 1. Development capital outlook for 2023 and 2024 includes spend related to the Yanacocha Sulfides project ahead of the investment decision planned for late 2024; additional development capital spend and all metal production for Yanacocha Sulfides has been excluded from longer-term outlook beginning in 2025.

Please see the cautionary statement and footnotes for additional information. For a more detailed discussion, see the Company’s 2023 and Longer-Term Outlook released on February 23, 2023, available on www.newmont.com.

2023 SEASONALITY*

In the second quarter of 2023, we expect to produce approximately 24 percent of our full year gold guidance, primarily driven by the following sites:

• Tanami – Higher milling rates expected in the second quarter, with continued recovery from the first quarter rainfall event
• Boddington – Higher grades expected in the second quarter; stripping expected to begin in the second half of the year
• Ahafo – Higher grades expected in the second quarter due to the planned mine sequence and the progression of work at Subika Underground
• Akyem – Higher grades expected in the second quarter due to the planned mine sequence
• Peñasquito – Lower production expected in the second quarter due to the planned mine sequence resulting in lower grades from the Chile Colorado pit

We expect to deliver approximately 55 percent of our full year gold production guidance in the second half of the year.

FIVE YEAR OUTLOOK

CONSOLIDATED EXPENSE OUTLOOK

ASSUMPTIONS AND SENSITIVITIES

Assuming a 35% incremental tax rate, a $100 per ounce increase in gold price would deliver an expected $400 million improvement in attributable free cash flow. Included within the attributable free cash flow sensitivity is a royalty and production tax impact of $5 per ounce for every $100 per ounce change in gold price.

2023 OPERATING COSTS BY CATEGORY

2023 Site Outlook ^a

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by GAAP. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Refer to Non-GAAP Financial Measures within Part II, Item 7 within our Form 10-K for the year ended December 31, 2022, filed with the SEC on February 23, 2023 for further information on the non-GAAP financial measures presented below, including why management believes that its presentation of non-GAAP financial measures provides useful information to investors.

Adjusted net income (loss)

Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows:

Earnings before interest, taxes, depreciation and amortization and Adjusted earnings before interest, taxes, depreciation and amortization

Net income (loss) attributable to Newmont stockholders is reconciled to EBITDA and Adjusted EBITDA as follows:

Income (loss) before income and mining tax and other items is reconciled to Nevada Gold Mines (NGM) EBITDA as follows:

Free Cash Flow

The following table sets forth a reconciliation of Free Cash Flow to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow, as well as information regarding Net cash provided by (used in) investing activities and Net cash provided by (used in) financing activities.

Attributable Free Cash Flow

Management uses Attributable Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations that are attributable to the Company. Attributable Free Cash Flow is Net cash provided by (used in) operating activities after deducting net cash flows from operations attributable to noncontrolling interests less Net cash provided by (used in) operating activities of discontinued operations after deducting net cash flows from discontinued operations attributable to noncontrolling interests less Additions to property, plant and mine development after deducting property, plant and mine development attributable to noncontrolling interests. The Company believes that Attributable Free Cash Flow is useful as one of the bases for comparing the Company’s performance with its competitors. Although Attributable Free Cash Flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Attributable Free Cash Flow is not necessarily comparable to such other similarly titled captions of other companies.

The presentation of non-GAAP Attributable Free Cash Flow is not meant to be considered in isolation or as an alternative to Net income attributable to Newmont stockholders as an indicator of the Company’s performance, or as an alternative to Net cash provided by (used in) operating activities as a measure of liquidity as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. The Company’s definition of Attributable Free Cash Flow is limited in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, the Company believes it is important to view Attributable Free Cash Flow as a measure that provides supplemental information to the Company’s Condensed Consolidated Statements of Cash Flows.

The following tables set forth a reconciliation of Attributable Free Cash Flow, a non-GAAP financial measure, to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Attributable Free Cash Flow, as well as information regarding Net cash provided by (used in) investing activities and Net cash provided by (used in) financing activities.

Net Debt

Net Debt is calculated as Debt and Lease and other financing obligations less Cash and cash equivalents and time deposits included in Time deposits and other investments, as presented on the Condensed Consolidated Balance Sheets. Cash and cash equivalents and time deposits are subtracted from Debt and Lease and other financing obligations as these are highly liquid, low-risk investments and could be used to reduce the Company’s debt obligations.

The following table sets forth a reconciliation of Net Debt, a non-GAAP financial measure, to Debt and Lease and other financing obligations, which the Company believes to be the GAAP financial measures most directly comparable to Net Debt.

Costs applicable to sales per ounce/gold equivalent ounce

Costs applicable to sales per ounce/gold equivalent ounce are calculated by dividing the costs applicable to sales of gold and other metals by gold ounces or gold equivalent ounces sold, respectively. These measures are calculated for the periods presented on a consolidated basis.

The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measures.

All-In Sustaining Costs

All-in sustaining costs represent the sum of certain costs, recognized as GAAP financial measures, that management considers to be associated with production. All-in sustaining costs per ounce amounts are calculated by dividing all-in sustaining costs by gold ounces or gold equivalent ounces sold.

A reconciliation of the 2023 Gold AISC outlook to the 2023 Gold CAS outlook is provided below. The estimates in the table below are considered “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, which are intended to be covered by the safe harbor created by such sections and other applicable laws.

Net debt to Adjusted EBITDA ratio

Management uses net debt to Adjusted EBITDA as non-GAAP measures to evaluate the Company’s operating performance, including our ability to generate earnings sufficient to service our debt. Net debt to Adjusted EBITDA represents the ratio of the Company’s debt, net of cash and cash equivalents and time deposits, to Adjusted EBITDA. Net debt to Adjusted EBITDA does not represent, and should not be considered an alternative to, net income (loss), operating income (loss), or cash flow from operations as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. Although Net Debt to Adjusted EBITDA and similar measures are frequently used as measures of operations and the ability to meet debt service requirements by other companies, our calculation of net debt to Adjusted EBITDA measure is not necessarily comparable to such other similarly titled captions of other companies. The Company believes that net debt to Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors. Management’s determination of the components of net debt to Adjusted EBITDA is evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted EBITDA as follows:

Net average realized price per ounce/ pound

Average realized price per ounce/ pound are non-GAAP financial measures. The measures are calculated by dividing the net consolidated gold, copper, silver, lead and zinc sales by the consolidated gold ounces, copper pounds, silver ounces, lead pounds and zinc pounds sold, respectively. These measures are calculated on a consistent basis for the periods presented on a consolidated basis. Average realized price per ounce/ pound statistics are intended to provide additional information only, do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently.

The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measure: