Martin Pradier

Martin Pradier asked for confirmation of Newmont's right of first refusal regarding Nevada Gold Mines and its implications for Barrick potentially pursuing an IPO. He also inquired about the current book value of Yanacocha, specifically for the sulfides project and Conga, following the decision to stop development.

Answer

Peter Wexler, Interim CFO and Chief Legal Officer of Newmont, responded to the right of first refusal question, stating that the rights for both parties are detailed in the publicly filed agreement, and Newmont has no additional information beyond public disclosures regarding an IPO. Natascha Viljoen, President and CEO, provided the book values for Yanacocha, stating that the sulfides project is approximately $78 million (primarily equipment for sale) and Conga is around $900 million.

Martin Pradier asked for confirmation of Newmont's right of first refusal with Barrick regarding Nevada Gold Mines and whether Barrick could proceed with an IPO without Newmont's consent. He also inquired about the current book value of Yanacocha Sulfides and Conga after the decision to defer development.

Answer

Peter Wexler, Interim CFO and Chief Legal Officer, Newmont, referred to the publicly filed joint venture agreement for details on rights and IPO scenarios. Natascha Viljoen, President and CEO, Newmont, stated that the book value for Yanacocha Sulfides was approximately $78 million (mainly equipment for sale) and for Conga was around $900 million.

Martin Pradier requested a detailed breakdown of the significant cost increase projected for this year compared to the 2025 outlook, specifically asking for color on the drivers for both gold and copper operations.

Answer

Graham Shuttleworth, Senior EVP and CFO, began to explain the drivers behind the cost increase, noting three main factors, with the gold price assumption being the first significant one, before the connection was lost.

Martin Pradier asked for details on the significant cost increase in the 2026 outlook compared to 2025, requesting color on the big drivers for both gold and copper.

Answer

Graham Shuttleworth, Senior EVP and CFO, began to explain that there are three main buckets, with the gold price assumption being the first significant driver, but the connection was lost before he could elaborate further.

Asked if salaries are still being paid at the suspended Loulo mine, the associated costs, and the reason for higher costs at Pueblo Viejo despite a small drop in production.

Answer

Yes, salaries are still being paid at Loulo, which is in a temporary shutdown with minimal net cost for now; a full care-and-maintenance scenario would cost about $10M/month. The higher costs at Pueblo Viejo in Q4 were driven by processing lower-grade ore as per the mine plan, which increased the unit cost.

Martin Pradier from Veritas asked for specific production expectations for 2025 and 2026 from the new development projects: Goose, Mineral Park, Blackwater, and Platreef.

Answer

Executive Emma Murray stated that for 2025, the four projects combined are expected to contribute 20,000 to 25,000 GEOs, accounting for a partial-year ramp-up. For 2026, she indicated they would be hitting their stride, providing examples of a full-year contribution of about 30,000 GEOs from Blackwater and 10,000 to 12,000 GEOs from Mineral Park.

Martin Pradier asked for clarification on the production outlook for the second half of 2024, questioning if gold and silver production would be weaker than the first half. He also sought to quantify the production impact from the recent fire at the Salobo mine.

Answer

Wesley Carson, VP of Mining Operations, confirmed the second half would be weaker, projecting a production split of 52% in H1 and 48% in H2. He attributed this to the Salobo fire's impact and lower Q4 grades, plus a grade-driven drop at Penasquito. He estimated the fire's impact to be in the 10,000-ounce range. President & CEO Randy Smallwood added that Salobo's strong H1 performance likely absorbed this impact on an annual basis, making it net neutral for the full year.

Martin Pradier sought confirmation that the Yanacocha investment's success is contingent on the sulfide project proceeding. He also asked for clarification on the $49.1 million tax adjustment, specifically whether it related to prior years.

Answer

Eaun Gray, SVP of Business Development, confirmed that the sulfide project is necessary for the Yanacocha investment's return. Sandip Rana, CFO, clarified that the $49.1 million was a one-time adjustment for prior years, required after Barbados increased its corporate tax rate, which forced a revaluation of the company's deferred tax liability.