Gold Production: 1.7 million ounces at an all-in sustaining cost of $1,439 per ounce. Tier 1 Gold Production: 1.4 million ounces at $1,378 per ounce. Copper Production: 35,000 tonnes. Gold Equivalent Ounces from Other Metals: Over 480,000 ounces from copper, silver, lead, and zinc. Cash Flow from Operating Activities: $776 million in Q1. Free Cash Flow: $217 million for the quarter, excluding a one-time stamp duty payment. Dividend: Declared at $0.25 per share for the first quarter. Synergies Achieved: $56 million in Q1, total of $105 million since Newcrest acquisition. Revenue: $4 billion, with gold priced at $2,090 per ounce and copper at $3.72 per pound. Adjusted EBITDA: $1.7 billion. Adjusted Net Income: $0.55 per diluted share.

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Release Date: April 25, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q & A Highlights

Q: Can you provide an update on the asset sales, specifically the timing and use of proceeds from the sale of the Lundin Gold financing facilities? A: Thomas Ronald Palmer, President, CEO & Director of Newmont Corporation, explained that the formal process for divesting six high-quality non-core assets has begun, with a high level of interest. The first payment from the Lundin transaction is expected in the second quarter, and the second in the third quarter. The proceeds will initially replenish cash balances as part of their capital allocation strategy.

Q: Could you give guidance on the GEOs progression throughout the year, especially at Penasquito? A: Natascha Viljoen noted that Penasquito is expected to have a higher GEO contribution this year due to mining in the Chile Colorado pit, which has higher GEOs. The expected quarterly production for silver is around 9 million ounces, and for lead and zinc, it is approximately 29,000 tonnes and 58,000 tonnes respectively across the four quarters.

Q: Are there any significant maintenance activities planned across your portfolio that we should be aware of? A: Natascha Viljoen mentioned that besides the previously discussed maintenance at Lihir in Q3, Ahafo South will undergo girth gear replacement in Q2. Post-maintenance, production levels at Ahafo are expected to normalize.

Q: How is the full potential program progressing at Lihir and other newly acquired assets? A: Thomas Ronald Palmer highlighted that the full potential program at Lihir focuses on simplifying operations to drive stability through the mining value chain. Early quick wins include optimizing high-pressure grinding rolls at Cadia, similar to their successful implementation at Boddington.



Q: Regarding the divestment strategy, do you have a preference for selling assets in groups or individually? A: Thomas Ronald Palmer clarified that they are running separate processes for assets in different locations (Australia, Africa, North America) but are actively engaging in price discovery for all assets. They aim to optimize value and cash through these divestments.

Q: Can you provide more details on the Yanacocha water treatment plants, including the drivers for building new plants versus using the existing ones? A: Thomas Ronald Palmer explained that the new water treatment plants at Yanacocha are necessary both for increased capacity and updated technology. These plants are designed to treat water to meet stringent quality standards perpetually, reflecting a significant long-term commitment to environmental management.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.