Adam Baker

Adam Baker inquired about Newmont's decision to lift its reserve and resource gold price assumptions to $2,000 per ounce for resources and $1,700 per ounce for reserves. He asked for the rationale behind this change, whether it is still considered conservative, and how the specific numbers were determined.

Answer

Francois Hardy, CTO, Newmont, explained that the reserve price assumption follows a rigorous process, aligning with the low to mid-80% range of the three-year trailing average. He stated that $2,000 per ounce is considered the right number for reserves at this stage, emphasizing that mine plan and reserve/resource assumptions are optimized against different criteria.

Adam Baker questioned Newmont's decision to increase its gold reserve price assumption from $1,700 per ounce to $2,000 per ounce. He asked for the corporate rationale behind this change, whether the new assumption is still considered conservative, and how the specific number was determined by the team.

Answer

Francois Hardy, CTO of Newmont, explained that the company employs a rigorous process for defining gold price assumptions, considering various market directions and aligning closely with the three-year trailing average. He noted that at the time of setting the 2026 reserve price assumption, it was just above 80% of the three-year trailing average, which is within their target range. Mr. Hardy stated that Newmont does not believe the $2,000 assumption is too conservative, emphasizing the rigorous process and continuous evaluation of short-term opportunities, while differentiating between mine plan and reserve/resource assumptions.