Newmont Corporation (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM)
(Newmont or the Company) today announced key actions that together
will deliver on its clear and consistent strategy.
"Newmont's go-forward portfolio is the new standard for gold and
copper mining," said Tom Palmer, Newmont's President and Chief
Executive Officer. "This portfolio provides our shareholders with
exposure to the highest concentration of Tier 1 assets in the
sector, each with the scale and mine life to generate strong free
cash flows, and all located in the world's most favorable mining
jurisdictions. It is from this platform that Newmont has
established a balanced shareholder return framework, designed to
return capital to shareholders through a stable base dividend and
share repurchase program. As we look forward to this very important
year of integration and transformation, I am confident in the
quality of our assets and the capability of our team to deliver on
our commitments, return capital to shareholders and justify our
position as the benchmark gold equity."
Announced a Focused Tier 1 Portfolio*
- Intend to divest six non-core assets including Éléonore,
Musselwhite, Porcupine, CC&V, Akyem and Telfer, as well as two
non-core projects including Havieron and Coffee
- Focusing management efforts on portfolio of Tier 1 assets and
emerging Tier 1 assets
- Sequencing development projects to focus on enhancing project
development capabilities to bring forward the gold industry's best
pipeline of gold and copper projects
- Identified an additional $500 million of cost and productivity
improvements over and above initial synergy commitments**
Provided Long-Term Outlook for the Tier 1 Portfolio**
- 6.7 million ounces of gold production targeted by 2028; gold
equivalent ounce (GEO) production of 8.3 million by 2028
- Average annual sustaining capital spend of $1.5 billion
expected over the next five years to support key tailings
management, water and infrastructure projects, as well as fixed and
mobile equipment reliability
- Average annual development capital spend of $1.3 billion
expected over the next five years focused on advancing the most
value-accretive opportunities at the right time and in the right
order
Established Balanced Capital Allocation Strategy and Return
of Capital Framework***
- Commitment to an investment grade balance sheet, targeting
approximately $7 billion in available liquidity, including $3
billion of cash with an increased $4-billion five-year corporate
revolving credit facility
- Near-term debt reduction of $1 billion to approximately $8
billion through free cash flow and divestment proceeds from sale of
non-core assets
- Disciplined development capital spend of approximately $1.3
billion per annum with a focus on safely and efficiently bringing
forward opportunities that are aligned with the Company's
strategy
- Continued focus on return of capital to shareholders through a
fixed dividend of $1.00 per share annualized*** and a $1 billion
share repurchase program to be executed over the next 24 months
with excess free cash flow and proceeds from asset
divestitures**
- Declared a dividend of $0.25 per share of common stock for the
fourth quarter of 2023 payable on March 28, 2024 to holders of
record at the close of business on March 5, 2024
_______________________________________ * Newmont’s go-forward
portfolio is focused on Tier 1 assets, consisting of (1) six
managed Tier 1 assets (Boddington, Tanami, Cadia, Lihir, Peñasquito
and Ahafo), (2) assets owned through two non-managed joint ventures
at Nevada Gold Mines and Pueblo Viejo, including four Tier 1 assets
(Carlin, Cortez, Turquoise Ridge and Pueblo Viejo), (3) three
emerging Tier 1 assets (Merian, Cerro Negro and Yanacocha), which
do not currently meet the criteria for Tier 1 Asset, and (4) an
emerging Tier 1 district in the Golden Triangle in British Columbia
(Red Chris and Brucejack), which does not currently meet the
criteria for Tier 1 Asset. Newmont’s Tier 1 portfolio also includes
attributable production from the Company’s equity interest in
Lundin Gold (Fruta del Norte). Tier 1 Portfolio cost and capital
metrics include the proportional share of the Company’s interest in
the Nevada Gold Mines Joint Venture. ** See discussion of outlook
and cautionary statement at the end of this release regarding
forward-looking statements. Expectations regarding productivity
improvements, synergies, asset divestitures and return of capital
are also forward-looking statements. *** Expectations regarding
2024 dividend levels, annualized dividend and share repurchases are
forward-looking statements. The declaration and payment of future
quarterly dividends remains at the discretion of the Board of
Directors and will depend on the Company’s financial results, cash
flow and cash requirements, future prospects, and other factors
deemed relevant by the Board. See cautionary statement at the end
of this release.
Tier 1 Portfolio Outlook Focuses on Growing Margins and
Disciplined Reinvestment
Production from Newmont’s optimized portfolio is expected to
increase over the next five years while benefiting from cost
reductions on a per unit basis. The growth necessary to meet the
Company’s production targets is expected to be driven by Newmont's
ten Tier 1 operations.
2025+ OUTLOOK
Tier 1 Portfolio gold production is expected to improve to 6.7
million ounces by 2028 with the completion of the Ahafo North
project in Ghana, the expansion at Tanami and the completion of two
block caves at Cadia in Australia. Boddington will emerge from the
stripping campaign at the North and South Pits in 2026 with
improved gold and copper grades. Lihir is expected to improve
production in 2025 with higher grades from Phase 14a with operating
improvements to mine and mill performance benefiting production.
Peñasquito will deliver higher production in 2025 with the
stripping campaign completed at Peñasco Pit.
Non-managed operations will also improve production levels
through 2028 mainly driven by Nevada Gold Mines.
CAS and AISC per ounce are also expected to improve through 2028
with higher production volumes and productivity improvements gained
from delivering on synergy commitments.
Conference Call Information
A conference call will be held on Thursday, February 22,
2024 at 10:00 a.m. Eastern Time (ET) and 4:00 p.m. ET;
it will also be available on the Company’s website.
10:00 a.m. ET
Conference Call Details
Dial-In Number
833.470.1428
Intl Dial-In Number
404.975.48391
Dial-In Access Code
960159
Conference Name
Newmont
Replay Number
866.813.9403
Intl Replay Number
929.458.6194
Replay Access Code
672728
4:00 p.m.
ET Conference Call Details
Dial-In Number
833.470.1428
Intl Dial-In Number
404.975.48391
Dial-In Access Code
431401
Conference Name
Newmont
Replay Number
866.813.9403
Intl Replay Number
929.458.6194
Replay Access Code
615787
1For toll-free phone numbers, refer to the following link:
https://www.netroadshow.com/events/global-numbers?confId=49005
Webcast Details
Title: Newmont Fourth Quarter 2023 Results and 2024 Guidance
Conference Call 10:00 a.m. ET URL:
https://events.q4inc.com/attendee/998838961 4:00 p.m. ET URL:
https://events.q4inc.com/attendee/548087872
The fourth quarter 2023 results and 2024 guidance will be
available before the market opens on Thursday, February 22, 2024 on
the “Investor Relations” section of the Company’s website at
Newmont.com. Additionally, the conference call will be archived for
a limited time on the Company’s website.
About Newmont
Newmont is the world’s leading gold company and a producer of
copper, zinc, lead, and silver. The company’s world-class portfolio
of assets, prospects and talent is anchored in favorable mining
jurisdictions in Africa, Australia, Latin America & Caribbean,
North America, and Papua New Guinea. Newmont is the only gold
producer listed in the S&P 500 Index and is widely recognized
for its principled environmental, social, and governance practices.
Newmont is an industry leader in value creation, supported by
robust safety standards, superior execution, and technical
expertise. Founded in 1921, the company has been publicly traded
since 1925.
Cautionary Statement Regarding Forward
Looking Statements, Including Outlook Assumptions:
This news release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbor
created by such sections and other applicable laws and
“forward-looking information” within the meaning of applicable
Australian securities laws. Where a forward-looking statement
expresses or implies an expectation or belief as to future events
or results, such expectation or belief is expressed in good faith
and believed to have a reasonable basis. However, such statements
are subject to risks, uncertainties and other factors, which could
cause actual results to differ materially from future results
expressed, projected or implied by the forward-looking statements.
Forward-looking statements often address our expected future
business and financial performance and financial condition; and
often contain words such as “anticipate,” “intend,” “plan,” “will,”
“would,” “estimate,” “expect,” “believe,” “pending” or “potential.”
Forward-looking statements in this news release may include,
without limitation, (i) estimates of future production and sales,
including production outlook, average future production and upside
potential; (ii) estimates of future costs applicable to sales and
all-in sustaining costs; (iii) estimates of future capital
expenditures, including development and sustaining capital; (iv)
expectations regarding asset sales and related timelines; (v)
future expectations regarding sites with recently started
operations, including Peñasquito; (vi) expectations regarding
future investments or divestitures; (vii) expectations regarding
free cash flow and returns to stockholders, including with respect
to future dividends and future share repurchases, the dividend
framework and expected payout levels; (viii) expectations regarding
future mineralization, including, without limitation, expectations
regarding reserves and recoveries; (ix) estimates of future cost
reductions, synergies, including pre-tax synergies, savings and
efficiencies, Full Potential and productivity improvements; and (x)
other outlook. Estimates or expectations of future events or
results are based upon certain assumptions, which may prove to be
incorrect. Such assumptions, include, but are not limited to: (i)
there being no significant change to current geotechnical,
metallurgical, hydrological and other physical conditions; (ii)
permitting, development, operations and expansion of operations and
projects being consistent with current expectations and mine plans;
(iii) political developments in any jurisdiction in which the
Company operates being consistent with its current expectations;
(iv) certain exchange rate assumptions; (v) certain price
assumptions for gold, copper, silver, zinc, lead and oil; (vi)
prices for key supplies; (vii) the accuracy of current mineral
reserve and mineralized material estimates; and (viii) other
planning assumptions. Uncertainties include those relating to
general macroeconomic uncertainty and changing market conditions,
changing restrictions on the mining industry in the jurisdictions
in which we operate, impacts to supply chain, including price,
availability of goods, ability to receive supplies and fuel, and
impacts of changes in interest rates. Such uncertainties could
result in operating sites being placed into care and maintenance
and impact estimates, costs and timing of projects. Uncertainties
in geopolitical conditions could impact certain planning
assumptions, including, but not limited to commodity and currency
prices, costs and supply chain availabilities.
Future dividends beyond the dividend payable on March 28, 2024
to holders of record at the close of business on March 5, 2024 have
not yet been approved or declared by the Board of Directors, and an
annualized dividend payout or dividend yield has not been declared
by the Board. Management’s expectations with respect to future
dividends are “forward-looking statements” and the Company’s
dividend policy is non-binding. The declaration and payment of
future dividends remain at the discretion of the Board of Directors
and will be determined based on Newmont’s financial results,
balance sheet strength, cash and liquidity requirements, future
prospects, gold and commodity prices, and other factors deemed
relevant by the Board. Investors are also cautioned that the extent
to which the Company repurchases its shares, and the timing of such
repurchases, will depend upon a variety of factors, including
trading volume, market conditions, legal requirements, business
conditions and other factors. The repurchase program may be
discontinued at any time, and the program does not obligate the
Company to acquire any specific number of shares of its common
stock or to repurchase the full authorized amount during the
authorization period. Consequently, the Board of Directors may
revise or terminate such share repurchase authorization in the
future.
For a more detailed discussion of such risks and other factors
that might impact future looking statements, see the Company’s
Annual Report on Form 10-K for the year ended December 31, 2022
filed with the U.S. Securities and Exchange Commission (the “SEC”)
on February 23, 2023, as updated by the current report on Form 8-K
filed with the SEC on July 20, 2023, as well as Newmont's other SEC
filings, including the definitive proxy statement filed with the
SEC on September 5, 2023 and the Company's Quarterly Report on Form
10-Q for the quarter ended September 30, 2023 filed with the SEC on
October 26, 2023, under the heading “Risk Factors," and other
factors identified in the Company's reports filed with the SEC,
available on the SEC website or at Newmont.com. The Company does
not undertake any obligation to release publicly revisions to any
“forward-looking statement,” including, without limitation,
outlook, to reflect events or circumstances after the date of this
news release, or to reflect the occurrence of unanticipated events,
except as may be required under applicable securities laws.
Investors should not assume that any lack of update to a previously
issued “forward-looking statement” constitutes a reaffirmation of
that statement. Continued reliance on “forward-looking statements”
is at investors’ own risk. Investors are also encouraged to review
our Form 10-K expected to be filed on, or about, February 27,
2024.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240222692687/en/
Media Contact Jennifer Pakradooni
globalcommunications@newmont.com
Investor Contact - Global Neil
Backhouse investor.relations@newmont.com
Investor Contact - Asia Pacific
Christopher Maitland apac.investor.relations@newmont.com
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