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Newmont Goldcorp

Creating the World’s Leading Gold Company

Newmont to Combine with Goldcorp

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Strongest Portfolio of World Class Operating Gold Mines and Projects in Favorable Jurisdictions with Largest Reserve Base and Unmatched Exploration Potential

  • Industry-leading project pipeline on four continents
  • Unparalleled exploration potential in the most prospective gold districts around the globe
  • Apply best operating models, systems and technologies to build a safe, high-performing organization and achieve superior operational execution through Full Potential continuous improvement program
  • Strong commitment to zero harm, inclusion and diversity, and recognized industry leadership in ESG performance
  • Delivering up to $100 million in annual pre-tax synergies
  • Disciplined process to optimize portfolio production levels and targeting $1.0 to $1.5 billion of divestitures over the next two years
  • Opens up tremendous opportunities for employees across North America and beyond

Transaction Details

$10B Equity Value
$12.5B1 Enterprise Value

Leadership & Governance

  • Proportional Board representation - 2/3 Newmont, 1/3 Goldcorp
  • Noreen Doyle to serve as Chairperson
  • Ian Telfer to serve as Deputy Chairperson
  • Gary Goldberg to serve as CEO
  • Tom Palmer to serve as President and COO
  • Management team appointed on a “best talent” basis
  • Headquarters: Denver, Colorado; regional offices in Vancouver, Miami, Perth and Accra

Experienced management and talented mining professionals with a proven track record of maximizing value

Combined company:
Newmont Goldcorp
To be listed on NYSE and TSX

Newmont ~65% Shareholders Ownership
Goldcorp ~35% Shareholders Ownership

FLEXIBILITY TO EXECUTE CAPITAL PRIORITIES & FOCUS ON HIGHEST RETURN PROJECTS

Delivering Strong, Sustainable Cash Flow and Shareholder Returns

  • Targeting sustainable production of 6-7 million ounces of gold annually
  • Expected average project IRR of >15% across portfolio
  • Solid, investment grade balance sheet
  • Growing margins and Reserves
  • Industry-leading dividend: stable and sustainable dividend of $0.56 per share
Newmont 68.5 Mozs3
Goldcorp 52.8 Mozs3
55% RESERVES CONCENTRATED IN CANADA, US AND AUSTRALIA

World-Class Gold Mining Operations Favorable Jurisdictions2

Highest concentration of reserves and resources located in Canada, US and Australia

“This combination will create the world’s leading gold business with the best assets, people, prospects and value-creation opportunities. We have a proven strategy and disciplined implementation plan to realize the full value of the combination, including an exceptional pool of talented mining professionals, stable and profitable gold production of six to seven million ounces over a decades-long time horizon, the sector’s largest gold Reserve and Resource base, and a leading project and exploration pipeline. Our cultures are well aligned, with strong commitments to zero harm, inclusion and diversity, and industry-leading environmental, social and governance performance. We expect to generate up to $100 million in annual pre-tax synergies, with additional cost and efficiency opportunities that will be pursued through our proven Full Potential continuous improvement program. The combination is expected to be immediately accretive to Newmont’s net asset value and cash flow per share. We constantly review opportunities to raise our performance, and this combination represents the most promising path to deliver superior and sustainable value for our shareholders, employees, host countries and communities.”

Gary Goldberg CEO of Newmont

“This combination creates the world’s premier gold company. In addition to the depth and quality of Newmont Goldcorp’s operations, projects, exploration properties and Reserves, the combined company’s assets will be centered in the world’s most favorable and prospective mining jurisdictions and gold districts. The strategic rationale for combining Goldcorp with Newmont is powerfully compelling on many levels, and both teams are fully committed to delivering on the transaction’s value proposition for all of our stakeholders. Newmont Goldcorp will be one of Canada’s largest gold producers and will have its North America regional office in Vancouver, and expects to oversee more than three million ounces of the combined company’s total annual gold production.”

David Garofalo President and CEO of Goldcorp

Path to close

The Boards of both companies have unanimously voted to approve the transaction which is expected to close in the second quarter of 2019. Closing of the transaction is subject to approval by the shareholders of both companies; regulatory approvals in a number of jurisdictions including the European Union, Canada, South Korea and Mexico; and other customary closing conditions.

  1. Newmont Mining Corporation and Goldcorp Inc. closing stock price as of January 11, 2019
  2. Newmont Mining Corporation Operations: North America: Carlin, CC&V, Long Canyon, Phoenix, Twin Creeks; Latin America: Yanacocha, Merian; Africa: Akyem, Ahafo; Australia: Tanami, KCGM, Boddington; Goldcorp Inc. Operations: North America: Éléonore, Porcupine, Musselwhite, Red Lake; Latin America: Cerro Negro, Peňasquito, Pueblo Viejo
  3. Reserves shown for Goldcorp as of June 30, 2018. Reserves shown for Newmont as of December 31, 2017

Additional Information

For more information on the transaction: