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    Newmont Corporation (NEM)

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    Business Description

    Newmont Corporation (NEM) is a leading mining company primarily engaged in the production of gold, with additional operations in copper, silver, lead, and zinc mining . The company operates 17 mining sites, including significant interests in Red Chris and Nevada Gold Mines (NGM) . Gold is the primary product, and the company reports its production in gold equivalent ounces, reflecting contributions from other metals . Newmont's financial performance is closely tied to the fluctuating prices of these metals, influenced by global economic factors . The company is strategically focused on advancing projects, research and development, and exploration to enhance its operations and resource base .

    1. Gold Production - Engages in the extraction and processing of gold, which is the primary product and main revenue contributor.
    2. Copper Production - Involves mining and processing copper, providing a significant additional revenue stream.
    3. Silver Production - Extracts and processes silver, contributing to the company's diverse metal portfolio.
    4. Lead Production - Engages in the mining of lead, adding to the company's range of metal products.
    5. Zinc Production - Involves the extraction and processing of zinc, further diversifying the company's metal offerings.

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Thomas R. PalmerPresident and Chief Executive OfficerOctober 1, 2019Thomas R. Palmer joined Newmont's Board of Directors on October 1, 2019. He previously served as President and Chief Operating Officer and has a 20-year career with Rio Tinto .
    Robert D. AtkinsonExecutive Vice President and Chief Operating Officer (until May 2, 2024)June 2019Robert D. Atkinson joined Newmont in June 2019. He has over 30 years of mining industry experience and previously worked at Rio Tinto .
    Natascha ViljoenExecutive Vice President and Chief Operating OfficerMarch 1, 2024Natascha Viljoen joined Newmont on October 2, 2023, and will assume full accountability for all business units on March 1, 2024. She was previously CEO of Anglo American's platinum business .
    Karyn F. OvelmenExecutive Vice President and Chief Financial OfficerMay 30, 2023Karyn F. Ovelmen joined Newmont on May 30, 2023. She has over 30 years of experience in financial roles and has served as CFO at several companies .
    Jennifer CmilExecutive Vice President and Chief People OfficerOctober 2019Jennifer Cmil has been with Newmont since October 2019. She joined Newmont in 2010 and has held various HR leadership positions .
    Peter TothExecutive Vice President, Chief Strategy and Sustainability OfficerJuly 2022Peter Toth joined Newmont in July 2022. His role expanded in September 2022 to include Sustainability. He has over 25 years of leadership experience in the resources industry .
    Dean GehringExecutive Vice President, Chief Integration Officer, and Interim CTOMay 2023Dean Gehring joined Newmont in 2017 and was appointed Executive Vice President and Chief Technology Officer in June 2019. He became Chief Integration Officer in May 2023 and Interim CTO in September 2023 .
    Mark D. EbelInterim Chief Legal Officer (until March 2024)June 2023Mark D. Ebel was promoted to Interim Chief Legal Officer in June 2023. He joined Newmont in 2011 and has been responsible for M&A and compliance matters .
    Suzanne RetallackExecutive Vice President, Chief Safety and Sustainability OfficerJune 2023Suzanne Retallack was promoted to Executive Vice President and Chief Safety and Sustainability Officer in June 2023. She joined Newmont in 2019 and has led improvements in health and safety systems .
    Joshua L. CageChief Accounting Officer and ControllerOctober 2022Joshua L. Cage has served as Chief Accounting Officer and Controller since October 2022. He has over 20 years of service with Newmont and previously worked at Ernst & Young and KPMG .

    Questions to Ask Management

    1. Given the anticipated lower production from Lihir and Brucejack in 2025, resulting in an estimated gold production of 5.6 million ounces from the core portfolio , how does the company plan to address this decline and what measures are being taken to improve production levels at these operations?

    2. With the expected annual sustaining capital spend of around $1.8 billion over the next few years due to critical tailings work at Cadia , how will this significant expenditure impact the company's free cash flow and capital allocation priorities?

    3. Considering the escalation in labor costs, particularly contracted labor, contributing to higher than expected direct costs and G&A spend , what strategies are being implemented to manage these cost pressures and improve margins?

    4. Given the focus on optimizing the go-forward portfolio of 11 managed operations and three projects in execution , how does the company prioritize potential new projects like Wafi-Golpu, especially when the current projects are already consuming significant resources ?

    5. Having achieved the initial synergy run rate target of $500 million , are there additional synergies or cost-saving opportunities that the company is pursuing to enhance shareholder value, particularly in light of the higher than expected costs and production challenges?

    Share Repurchase Program

    Program DetailsProgram 1Program 2
    Approval DateFebruary 2024 October 2024
    End Date/DurationFebruary 2026 October 2026
    Total additional amount$1 billion $2 billion
    Remaining authorization$552 million Not specified
    DetailsOffsets dilution from stock awards and provides shareholder returns Executed at company's discretion

    Debt Maturity Schedule

    YearAmount Due (Millions)Debt TypeInterest Rate (%)% of Total Debt
    2026$1,000 Senior Notes5.30 11.7% = (1,000 / 8,550) * 100
    2029$700 Senior Notes2.80 8.2% = (700 / 8,550) * 100
    2030$650 Senior Notes3.25 7.6% = (650 / 8,550) * 100
    2030$N/ASenior Notes2.25 N/A
    2032$N/ASenior Notes2.60 N/A
    2034$1,000 Senior Notes5.35 11.7% = (1,000 / 8,550) * 100
    2042$1,000 Senior Notes4.875 11.7% = (1,000 / 8,550) * 100

    Customer Concentration

    CustomerRelationshipSegmentDetails
    JPMorgan Chase
    Major gold purchaser
    Gold
    In 2023: $2,583 million (22% of total gold sales).In 2022: $1,503 million (13%).In 2021: $2,002 million (17%).
    Royal Bank of Canada
    Major gold purchaser
    Gold
    In 2023: $1,765 million (15% of total gold sales).
    Standard Chartered
    Major gold purchaser
    Gold
    In 2023: $1,659 million (14% of total gold sales).In 2022: $4,179 million (35%).In 2021: $4,634 million (38%).
    Toronto Dominion Bank
    Major gold purchaser
    Gold
    In 2023: $1,630 million (14% of total gold sales).

    Auditor

    NameStart DateEnd DateReason for Change
    Ernst & Young LLP (EY)September 3, 2014 PresentCurrent auditor.
    PricewaterhouseCoopers LLP (PwC)N/ADecember 31, 2014 Decision by the Audit Committee to rotate the independent registered public accounting firm.