Hugo Nicolaci

Hugo Nicolaci posed a strategic question on maximizing the value of Newmont's longer-dated projects, asking if higher gold prices and reduced balance sheet risk allow for acceleration, or if monetizing stakes in multi-million ounce projects like Galore Creek and Neville Union is an option if they are not medium-term priorities. He also asked Tom Palmer, as he steps back, what excites him most about Newmont's future.

Answer

Natascha Viljoen, President and COO of Newmont Corporation, reiterated Newmont's disciplined capital allocation, stating that projects in the pipeline compete for capital, with the most value-accretive ones receiving allocation within the framework of maintaining a resilient balance sheet and returning capital to shareholders. She confirmed that the company continuously evaluates its portfolio, and if value cannot be extracted from an asset, its position in the portfolio would be reconsidered. Tom Palmer, CEO, expressed his excitement about Newmont's unsurpassed portfolio of long-life operations and project pipeline, which he believes will enable the company to sustain production levels and margins unmatched by competitors in the long term.

Hugo Nicolaci asked a strategic question about maximizing the value of Newmont's longer-dated projects, questioning if higher gold prices and reduced balance sheet risk allow for acceleration, or if monetizing stakes in multi-million ounce projects like Galore Creek and Neville Union is an option if they are not medium-term priorities. He also asked Tom Palmer, as he steps back, what excites him most about Newmont's future.

Answer

Natascha Viljoen, President and COO, reiterated Newmont's disciplined capital allocation approach, where all projects in the study phase compete for capital, prioritizing the most value-accretive ones within the framework of a resilient balance sheet and shareholder returns. She confirmed that Newmont continuously evaluates its portfolio, and if value cannot be extracted from an asset, its position in the portfolio would be reconsidered. Tom Palmer, CEO, expressed his excitement about Newmont's unsurpassed portfolio of long-life operations and project pipeline, anticipating that the company will sustain production levels and margins unmatched by competitors in the coming years.

Hugo Nicolaci of Goldman Sachs asked about the high costs at Nevada Gold Mines and inquired about the sustainability of productivity improvements at the Boddington mine, which ran above nameplate capacity.

Answer

While deferring the Nevada question to the operator, President and COO Natascha Viljoen addressed Boddington's success. She attributed the performance to a 10% productivity lift from the autonomous haul fleet in the mine and improved asset management and reliability in the plant, supported by better fragmentation. This performance is expected to continue as the mine works through its pushback campaign.

Hugo Nicolaci asked for clarification on the timing of cost movements into the second quarter and whether any specific work completions or equipment deliveries would tangibly impact production. He also questioned the objective of repaying debt early given the company's growing liquidity and the compelling rates on existing notes.

Answer

Executive Tom Palmer described the Q2 outlook as 'pretty vanilla,' with production similar to Q1 but higher sustaining capital spend as planned, particularly at Cadia. CFO Karyn Ovelmen addressed the debt question by stating that while there's no specific intent at this time, the company will look for opportunities to 'buffer the balance sheet' in an uncertain economic environment, even as it continues its robust share buyback and dividend programs.

Hugo Nicolaci inquired about Newmont's future debt targets and capital structure, suggesting a leverage ratio might be more appropriate given strong gold prices, and asked about the sequencing and timing for the next phase of growth projects like Red Chris and Yanacocha.

Answer

CFO Karyn Ovelmen stated that the capital allocation strategy remains unchanged, targeting under $8 billion in debt and over $3 billion in cash, while funding projects and shareholder returns. CEO Tom Palmer added that the immediate focus is on executing the three current projects, which earns the right to advance future projects like Red Chris, which is undergoing a feasibility study.

Asked about construction disruptions from weather in Argentina and whether future carbonate volumes would be sufficient and economic to feed expanded conversion facilities.

Answer

The company has not seen any weather-related construction delays in Argentina and has buffers in its schedules. The premise that Olaroz carbonate volumes are unavailable for the network is incorrect; they are aligned with their partner TTC to use that material to feed the hydroxide network, ensuring sufficient feedstock.