Kate McCutcheon's questions to Newmont Corporation (NEM) leadership • Q4 2024
Question
Kate McCutcheon of Citi asked where the previously announced $500 million synergy run rate from the Newcrest deal is visible in the financials, as costs appear higher. She also inquired about the minimal share buyback activity in the past quarter and the expected cadence for repurchases going forward.
Answer
CFO Karyn Ovelmen explained that while synergy run rates were achieved, they were overwhelmed by one-time integration costs and overall cost structure increases, making them less visible on the bottom line. She added that share buybacks can resume post-earnings, with timing correlated to free cash flow and the ~$2.5 billion in expected divestiture proceeds in H1 2025.