In the introduction to Newmont's Fourth Quarter and Full Year 2024 Results Conference Call, Tom Palmer, the President and CEO, welcomes participants and introduces the executive leadership team who are available to answer questions later. He emphasizes the company's commitment to safety, detailing efforts to enhance safety performance through improvements in culture, systems, and skill development. Newmont aims to strengthen its safety culture by simplifying systems, implementing standards, and enhancing leadership capabilities to empower employees in decision-making for safe and productive work. Palmer concludes by transitioning to discuss the company's operational and financial performance.

In 2024, Newmont focused on integrating acquired assets, rationalizing its portfolio, and stabilizing its business amidst exciting gold market demand and industry challenges. The company is tackling integration issues at Cadia and Lihir to unlock their long-term potential through robust plans and investments. Newmont is leveraging its operational and technical expertise to ensure sustainability and optimize long-term value. Additionally, its recent divestment program has been successful in streamlining the portfolio.

Newmont has successfully sold or agreed to sell its six non-core operations, aiming to generate up to $4.3 billion in pretax proceeds, with $2.5 billion expected in cash after taxes and costs in the first half of the year. These transactions, including Telfer, are set to remove $1.8 billion in closure liabilities, positioning Newmont with a strong core portfolio capable of benefiting from gold and copper cycles. The company exceeded production guidance with 6.8 million ounces of gold and over 150,000 tons of copper last year, mostly from its core portfolio, and generated $2.9 billion in free cash flow, highlighting its financial potential. Newmont remains focused on capital allocation in 2024, returning $2.3 billion to shareholders and maintaining a robust balance sheet with over $3.6 billion in cash and $7.7 million in liquidity.

The paragraph discusses a company's enhanced financial position, having reduced $1.4 billion in debt and achieving a target balance below $8 billion. It emphasizes a focus on capturing returns and margin potential from their portfolio without speculating on future gold prices, though expecting strong demand and pricing due to the geopolitical scenario. As a leading gold producer, the company aims to maximize value from its resources and culture to generate long-term shareholder value. They commit to improving safety, cost, and productivity, ultimately stabilizing production and managing costs effectively to benefit from high gold prices. The company, Newmont, offers a high-quality portfolio for investors seeking exposure to gold and copper, possessing many Tier 1 gold operations and operating in quality jurisdictions.

The paragraph discusses Newmont's strategic focus on optimizing costs and productivity across its Tier 1 managed operations to mitigate geopolitical risks in the industry. The company is executing 11 managed operations and three key projects in favorable mining jurisdictions, aiming to produce an average of 6 million ounces of gold and 150,000 tons of copper annually over the next decade. Newmont's investment cycle, coupled with cost and productivity improvements, aims to maximize margins in varying commodity cycles. The company boasts over 40 years of high-confidence reserves, with significant mineral inventory and exploration potential. It holds the largest gold reserve, with 134 million ounces, and a resource base of 170 million ounces, alongside substantial copper reserves, using a gold price assumption of $1,700 per ounce for 2024.

The paragraph discusses the outcomes of a standard annual review process, highlighting confidence in developing optimal mine plans based on price assumptions without reducing the gold reserve grade. It mentions revisions to the reserves of Lihir and Brucejack due to Newmont's governance and technical updates. The focus then shifts to Cadia, an Australian gold-copper mine, detailing the transition to new Panel Caves and addressing past underinvestment in tailings remediation and storage capacity. Finally, it touches on efforts at Lihir to stabilize operations in the mine and processing plant.

The paragraph discusses the optimization of a mine plan, considering cultural heritage sites, mine layout, sequence, and equipment reliability to create sustainable long-term plans. A run-of-mine stockpile has been established for stable mill feed. Production stability from 2025 to 2027 is anticipated, with a 30% production increase expected in 2028. At Brucejack, underground development aims to reduce grade variability by applying lessons from the Tanami project. For Newmont's Peñasquito mine, a 2024 stripping campaign will boost gold production by 30%, with increased silver, lead, and zinc production expected in 2026. At Boddington, stripping in laybacks will allow for 30% more gold production starting in 2027. The Ahafo complex achieved record production in 2024, with strong performance continuing into 2025.

The paragraph discusses the mining operations and future projections for a company. The Subika open pit is reaching the end of its economic life, shifting focus to lower-grade ore from the Awonsu open pit, which will slightly reduce production compared to record levels from the previous year. This reduction will be mitigated by the new Ahafo North Mine, set to start in the second half of the current year, maintaining Ahafo's output at approximately 750,000 ounces annually by 2026. At Tanami, production is expected to be stable in 2025, with increased output in the second half due to higher-grade ore. An expansion project at Tanami is set to increase output by 35% beginning in 2028, reducing operating costs. By 2025, an additional 1.4 million ounces are anticipated from non-managed joint ventures, projected to deliver 20% more gold in 2027 than the prior year. The company expects to increase annual gold production by over 10% by 2028 through these projects and anticipates significant developments in 2024. At Ahafo North, construction and infrastructure have progressed well, with first gold expected in the second half of the current year.

The paragraph highlights significant progress made in a deep shaft project, with concrete lining completed for most parts and backfilling achieved for the remaining section. The focus for 2025 will be on equipping these sections while advancing underground infrastructure. Commercial production is anticipated by late 2027, potentially lowering operating costs by 2028 for the Tanami project, establishing it as a long-life, low-cost producer. For the Panel Caves at Cadia, substantial milestones were reached, including underground development and ore delivery, expected to yield substantial gold and copper, ensuring Cadia's operation until mid-century. Additionally, the impact of high gold prices in 2025 and investment cycles on costs is acknowledged, both positively affecting cash flow but also influencing unit costs.

The paragraph discusses the expected increase in all-in sustaining costs for Newmont's core portfolio to around $1,620 per ounce by 2025, driven primarily by higher sustaining capital investments and macroeconomic factors. Key contributors include increased capital spending at Cadia, cost allocation changes at poly-metallic mines, and inflation. The company assumes a $2,500 gold price for 2025, with costs expected to rise further if gold prices increase due to related taxes and royalties. Despite these challenges, Newmont is committed to improving cost-efficiency and productivity to maintain a reliable production of 6 million ounces of gold annually, as part of its strategy to become a leading gold and copper company.

The program for cost reduction and productivity at Newmont consists of three key components: reducing G&A costs while transitioning to 11 managed operations, enhancing commercial operations to optimize supply chain and revenue, and improving productivity with a focus on safety across all operations. Significant progress has been made in understanding the future portfolio, aiming for better safety, cost efficiency, and productivity. The company is providing guidance for 2025 with expected gold production of 5.6 million ounces and an all-in sustaining cost of $1,620 per ounce. Sustaining capital will remain at $1.8 billion for a few years due to Cadia's tailings storage facilities investment, while development capital is capped at $1.3 billion for 2025. Production is expected to be 52% weighted to the second half of the year, largely due to non-managed operations.

In the first quarter, the company expects to produce 23% of its forecasted gold from core assets, supplemented by higher-cost ounces from non-core assets intended for sale. Unit costs will be impacted by early-year capital spending, leading to the highest all-in sustaining costs in Q1 and reduced free cash flow compared to the previous Q4. However, free cash flow is projected to increase each subsequent quarter throughout the year, enabling the company to meet 2025 commitments and maintain capital allocation priorities. These priorities include financial strength with over $3 billion in cash and under $8 billion in debt, reinvesting for sustainable cash flow, and returning capital to shareholders through dividends and share repurchases. The timing of share repurchases will align with projected free cash flow and divestment proceeds, as the company focuses on streamlining its core portfolio.

The paragraph is part of a financial discussion during a company's earnings call. It highlights that the previous year was focused on integrating new assets and divesting non-core ones, setting a foundation for future productivity. With 2024 completed, the company aims to enhance asset value to improve safety, costs, and productivity while focusing on margins and cash flow growth. During the Q&A, Hugo Nicolaci from Goldman Sachs asks Karyn Ovelmen about future debt and gearing targets post-debt reduction and asset sales. Karyn responds that the company plans to maintain a strong balance sheet with $3 billion in cash and debt under $8 billion, while focusing on funding capital projects, including sustaining and development capital expenditures.

The paragraph discusses the financial policies and future growth projects of a company. It mentions that there's a $1 annual dividend with no change, and they are continuing their $3 billion share repurchase program, with $1.8 billion remaining. Hugo Nicolaci asks Tom Palmer and Natasha about future projects like Red Chris and Yanacocha, seeking updates and the appropriate number of concurrent projects for the portfolio. Tom Palmer emphasizes the importance of delivering current projects with a $1.3 billion investment and hitting milestones to justify future project funding. He mentions that Red Chris is undergoing a feasibility study and working to secure permits and support, while Yanacocha has been a long-standing project in Peru.

The paragraph discusses the current and future developments of various mining projects, focusing primarily on Yanacocha, where 40 million ounces of gold have been produced, yet it is only halfway through its potential. The transition at Yanacocha involves moving from oxide to sulfide operations, and the immediate priority is building water treatment facilities for safe discharge. The paragraph mentions ongoing collaborations and projects in Papua New Guinea, Chile, and British Columbia, emphasizing the importance of successful execution. An interaction with Daniel Morgan, who questions the margin between the reserve price assumption and cost guidance, follows. Tom Palmer explains that reserve pricing is based on a thorough evaluation of price trends and models at Newmont.

The paragraph discusses the unit costs forecasting for 2025, particularly concerning investments in Cadia to improve the tailings facility and cave value. The speaker is not satisfied with the projected cost of $1,620 and aims to reduce it to Tier 1 levels by improving costs and productivity. They mention a separate rigorous process for setting reserve prices annually. Daniel Morgan inquires about updates and optimizations for Lihir, including pit optimization and plans for asset integrity upgrading. Tom Palmer responds by detailing the completion of a Newmont standard final pit shell, reserve impacts, and mine planning adjustments for managing the Phase 14a layback.

The paragraph discusses the current and future efforts at a mine, focusing on road maintenance, equipment integrity, and a stripping campaign over the next two to three years to access higher-grade ore. The work involves setting up structures for improved feed reliability and a maintenance program, all part of the sustaining capital budget. The goal is to reach historical production levels by 2028, ensuring Lihir remains a valuable long-term asset with over 30 million ounces in reserves and resources. The operator then opens the floor to Lawson Winder of Bank of America, who asks about the company's guidance strategy, particularly regarding the provision of one-year versus three-year forecasts.

In the paragraph, Tom Palmer discusses the company's focus on stabilizing the business and delivering on their commitments for 2025 following a major transformation and asset divestment program the previous year. He mentions the emphasis on improving costs and productivity to understand the potential of their asset portfolio better. The guidance will remain focused on the year 2025, and there is a plan to build a strategy for 2026 based on insights gained this year. Additionally, Lawson Winder inquires about the gold price assumptions used for planning the business and dividends, questioning whether the sustainable gold price for dividends is set at $1,700 or still at $1,400 per ounce.

In the paragraph, Daniel Major from UBS questions whether Newmont's projection of averaging 6 million ounces of gold annually over the next three years might be understated, given the company's portfolio and expected developments. Tom Palmer, responding, confirms that while there will be fluctuations around this average due to various factors such as periods of lower grade mining and stripping, the long-term outlook still centers on consistently achieving about 6 million ounces on average. He emphasizes that Newmont's strategy focuses on enhancing profit margins rather than merely increasing production volume, and stresses the company's long-term stability and potential in the gold industry.

The paragraph is a Q&A exchange discussing the overhead costs associated with the acquisition of Newcrest. Daniel Major questions why general and administrative (G&A) costs are projected to rise significantly in 2025, despite anticipated synergies from the Newcrest deal. Tom Palmer responds by explaining that although there are synergies from merging two companies, the G&A costs remain high due to ongoing divestments and the integration process. They are working on reducing these costs as assets are divested, expecting the G&A expenses to align with the go-forward portfolio of 11 managed operations in time. The conversation then moves on to a question from Kate McCutcheon about the integration.

In the article, Natascha Viljoen addresses a question from Kate about the anticipated 5-million-pound synergy run rate and its absence in the financials. Viljoen explains that while the run rate for synergies was achieved ahead of schedule by the end of 2024, increased costs—due to one-time expenses, additional spending on efficiency initiatives, and general cost escalation—obscured these synergies in the financial statements. Despite capturing significant synergies in the supply chain and potential productivity improvements, the overall costs, particularly in G&A, remained high through 2024 and into 2025, affecting the net financial performance.

The paragraph discusses capital allocation, asset sales, and share buybacks by a company. In the recent quarter, asset sales and free cash flow exceeded expectations, and $1.8 billion is still authorized for stock buybacks. Although not much stock was repurchased last quarter, the share price wasn't significantly high. Karyn Ovelmen explains that there was approximately $1.2 billion in buybacks by the end of the year, but no share buybacks have occurred since the start of 2025 due to the expiration of a 10b5-1 plan. Post-earnings release, share buybacks will resume depending on free cash flow and divestiture proceeds timing, expecting around $2.5 billion from non-core asset sales in early 2025. Josh Wolfson of RBC Capital Markets asks about the lack of long-term outlook information beyond 2025, seeking clarity on future releases.

In the paragraph, Tom Palmer discusses the company's strategic focus for 2025, emphasizing the commitment to safety, cost management, and productivity, while also highlighting the execution of three key projects and their expected impact over the next few years. He mentions the work being done to improve and optimize the portfolio for 2026, with high-confidence commitments expected to be announced next year. Josh Wolfson asks about assessing the success of the Newcrest acquisition in terms of production, costs, and reserves. Palmer responds by explaining the efforts to configure and improve the Cadia asset for long-term sustainability, focusing on building two specific caves and possibly extending one of them.

The paragraph discusses mining projects managed by a company, focusing on their long-term potential and strategic execution. It mentions assets like Lihir, Red Chris, and Brucejack, highlighting their significant ore reserves and developmental progress. The company aims to optimize these assets for long-term value and keep stakeholders updated quarterly. Al Harvey from JPMorgan asks about project transitions, suggesting Red Chris as the next logical step for development. Tom Palmer responds that they do not intend to handle projects as if on a "conveyor belt." The company wants to ensure projects reach commercial production and deliver promised value before moving on to new initiatives.

The paragraph is from a discussion about Newmont's project execution plans, particularly focusing on the feasibility study and developments at the Red Chris project. Al Harvey and Tom Palmer discuss the company's approach to investment, balancing between gold and copper projects. Tom highlights key projects like Boddington and Cadia, emphasizing their potential in both gold and copper output. Red Chris is described as a critical project with significant copper and gold potential, capable of maintaining or even increasing production levels. The exchange concludes with thanks and a closing of the conference.

This summary was generated with AI and may contain some inaccuracies.