Q1 2023 Newmont Corporation Earnings Call

Please signal a conference specialist by pressing the stocky followed by January .

After todays presentation, there will be an opportunity to ask questions. Please note. This event is being recorded.

I would now like to turn the conference over to Tom Palmer, President and Chief Executive Officer. Please go ahead.

Okay.

Thank you Brian Good morning, everyone and thank you for joining newmont's first quarter earnings call.

Today Im joined by Rob Atkinson abroad, tabled along with other members of executive leadership team and will all be available to answer questions at the end of the call.

Before I begin please note that a cautionary statement and refer to our SEC filings, which can be found on our website.

Do you want continues to lead the gold industry in safety sustainability profitable production and shareholder returns.

Solid first quarter performance is underpinned by our unmatched portfolio of World class assets, a proven operating model.

Balanced disciplined approach to capital allocation and most importantly.

He has driven commitment to leading sustainability practices.

With a strong outlook combined with the strength of that team and the quality of assets. We remain on track to continue safely delivering long term value to all of our stakeholders.

During the first quarter <unk> produced one 3 million ounces of gold and 288000 gold equivalent ounces from copper silver lead and zinc jet.

Generating nearly $1 billion in adjusted EBITDA and all in line with the expectations. We provided in February for Q1.

We continue to expect the gold production for this year will be weighted 55% to the second half and we remain firmly on track to achieve our full year guidance ranges.

With six out of $5 billion in total liquidity, we continue to maintain an investment grade balance sheet, providing the financial strength to sustain our business throughout the price cycle as we continue to invest in our most profitable growth projects and returned cash to our shareholders.

Corral established dividend framework, we declared a first quarter dividend of 40 cents per share demonstrating.

Demonstrating both our ongoing commitment to shareholder returns and the confidence we have in our business.

During the first quarter, we further rationalized newmont's portfolio with the sale of our interest and Triple flag.

Generating $179 million in cash proceeds.

And we remain on track to deliver an incremental $440 million of full potential cost and productivity improvements this year.

A key part of Newmont's continued efforts to deliver stable production and strong margins from the industry's best portfolio of World class assets.

Our core values of safety sustainability integrity inclusion and responsibility.

They have been developed and embedded over a long period of time and through multiple generations of leaders at newmont.

Together they are fundamental to how we run our business.

Where we choose to walk right and how we conduct ourselves on a daily basis.

Last week.

Launched now not tape annual sustainability report.

And our second annual taxes and royalties contribution report.

Providing a detailed and transparent look of that values driven approach to sustainability and did either of you of our tech strategy and economic contributions.

And next month, we will issue our third annual climate report.

Lodging humans comment that risks and opportunities how strategic planning around various climate change scenarios and the specific actions, we are taking to reduce our carbon footprint.

Each of these reports are part of a robust set of detail our company's management of the sustainability areas that matter most to our stakeholders and to our business.

At the very core of newmont's, leading sustainability practices.

Our commitment to driving a fatality injury and illness free workplace.

And this begins with a disciplined light to focus on safety fundamentals.

In the first quarter, we completed more than 172000 interactions Bard leaders in the field that we're focused on the critical controls that must be in place at all times to prevent fatalities.

To highlight one of the direct consequences of this work.

Compared to the same quarter last year in Q1, we experienced a 56% reduction in potentially fatal incidents.

What we called significant potential events.

This improvement could not have been achieved without our dedicated workforce and the supporting systems that we have in place to maintain and improve our safety culture.

Last month, we recognized several members of our team through our annual <unk> Safety Awards.

Acknowledging those teams and individuals that set the standard for high quality built in safety practices.

From a pool of over 50 nominees, we selected windows in three categories <unk> laid up site team and partner with safety.

We are really proud to be able to recognize the dedication demonstrated by our team members each and every day.

We are also proud of our heritage as a values driven organization with a clear purpose.

We have learnt that achieving our purpose requires strong governance and our commitment to accountability and transparency.

As part of that commitment newmont has been disclosing our sustainability performance since 2004.

Among the key highlights shown on this slide from our 2022 sustainability report.

He's one of the most important focus areas for the mining industry today.

Creating a safe healthy and equitable workplace.

One of the values that differences and ensures that everyone feels sites and each site working at newmont.

Over the last 18 months the mining industry has come under significant scrutiny following a west Australia and parliamentary inquiry into issues of six ism.

Arrestment and believing in the workplace.

I'm disappointed to acknowledge that newmont is not immune to this unacceptable behavior that is taking place in workplaces across the world.

And it is volatile that as late as we make sustainable changes to address and eliminate behaviors.

To manage our response last year all right.

Pointed our senior operational leader reporting directly to me.

And tasked with listening to have workforce to better understand what is being experienced so that we can make lasting and meaningful change.

Over the last few months more than 1000 people I provided thoughtful feedback and personal experiences through 100 focus groups.

And more than 151 on one interviews assist.

Assisting us in understanding the extinct nature and root cause of these behaviors in our organization.

We will remain transparent noticed one of the days behind us.

<unk> provided an overview of the emerging themes from these conversations in our annual sustainability report.

This ask and listen process is helping us to identify the improvements required in our systems.

The symbolic actions that we can take.

And changes in Atlanta shape behaviors that will drive sustainable change in our workplaces.

I'll now turn it over to Rob and then broad to take us through each of our operations and development projects.

Along with a review of our quarterly financial highlights.

Then I'll wrap up with a brief update on our proposed acquisition of Newcrest.

That'd be useful.

Thank you Tom and good morning, everyone.

Since the start of the year I visited three of our four regions at Newmont.

I spent underground with the team a ton of mine reviewing the status of our expansion project to this world class asset with Mia goes our senior Vice President in Australia, and our experienced leadership team.

I traveled to Ghana to see firsthand the progress at our <unk> underground mine and there are half of North project with Dave Thornton, Our senior Vice President in Africa.

And I also travelled to each one of our sites in Canada, Eleonore Musselwhite Unpark opine to review the productivity improvements we are achieving under the leadership of our North American Senior Vice President government vessels.

And as Tom just described our site and regional leaders are very focused on safely delivering the plans whilst continually working to create a safe and inclusive environment for each person working at our operations.

So turning to the next slide let's begin with an update from South America.

<unk> continues to deliver strong mill performance largely due to the implementation of our full potential program over the last four years and with the ongoing support from our operations support networks.

With more than $300 million in annual synergies from processing improvements alone. Our team has been hard at work further debottlenecking payments quito's processing socket.

Proving flotation and filtering capacity as well as optimizing maintenance schedules to increase mill availability.

And there is a direct result payments scheduled process $9 9 million tons in the first quarter, putting us on track to mill, an impressive 37 million tons of ore in 2023.

Mining continues in the Chile, Colorado pit as planned and whilst gold production was lower when compared to the fourth quarter. It was completely in line with the expectations that we've previously communicated due to mine sequencing is very large poly metallic mine.

Linked to this sequence coal production was strong this quarter.

<unk> $266 million in revenue due to higher silver lead and zinc grades being delivered from the Chile, Colorado pit.

And also please note that 55000 gold equivalent ounces in finished goods inventory finished keeps it was built up at the end of the quarter as a result of planned timing on concentrate shipments. This concentrate has since been sold.

And the revenue will be realized in the second quarter.

Also in Q2, we expect both gold and silver grades declined by around 10% compared to Q1 due to the planned mining sequence with the full expectation the tire silver zinc and lead grades in the second half and result in gold equivalent ounces will offset the planned lower gold grades in 2023.

We expect gold and co product production of Penny scheduled to be weighted around 55% to the second half of this year.

Turning to our Leach only operation in Peru, <unk> had delivered steady results in the first quarter.

Production is expected to increase by more than 20% beginning in the second quarter. When we start to realize the benefits from our continued use of our Egyptian leaching technology combined with our re leaching programs.

At Marion our team has begun the planned stripping of the next layback in the marine pit and that's reflected in our guidance. This will result in higher waste tonnes being mined more ore tonnes and oral grading process. This year.

And finally in Argentina, Cerro <expletive> and delivered another solid quarter due to higher underground mining rates and mill throughput.

Gold production is expected to steadily increase each quarter from a combination of sustained productivity improvements and the progression of the first wave of our district expansions at Cerro <expletive>.

We anticipate production will be wasted around 56% to the second half of this year with the site on track to add high grade ounces from Sanmark costs, beginning in the third quarter.

Turning to Australia.

Boddington continued its momentum from the fourth quarter, delivering strong gold and copper production in the first quarter. Whilst also completing our planned seven day preventative maintenance shutdown of the processing plant.

And as we look ahead the sites is expected to deliver improved results during the second quarter supported by steady ore grades and strong mill performance.

And as we ramp up waste stripping in the pit in the second half of the year, we expect to increase total material mined to around 20 million tons per quarter, helping to maintain steady gold and copper production. Despite planned lower ore grades being delivered to the mill.

Moving up to 10 in mind and as previously discussed the northern territory in Australia experienced record wet weather and associated extensive flooding during late 2022 and the start of 2023.

Which resulted in the complete closure of the main access route for supplies to Panama from late December with the Panama track only being fully reopened unable to transport normal loads in late February .

As described during our last earnings call. This road closure impacted our ability to move key consumables to site, resulting in the depletion of all of our wet weather stops on site and this is station of milling operations and gold production for 32 days during Q1.

However, during this period our team remains agile and responded to this event with mining operations, continuing and ore being stockpiled in front of the mill.

Scheduled maintenance was moved forward to reduce downtime in subsequent quarters.

And in partnership with the Northern territory government and local contractors, we successfully repaired and reopened the ton of mine track.

Due to these efforts <unk> expects to recover most of the emphasis from this event over the course of 2023.

It is on track to more than double gold production in the second quarter.

It's also important to note that all of our key consumable stocks at site have returned to normal operating levels and we have continued to progress our second expansion in Panama.

The team has now completed more than 565 meters of the concrete shaft lining in addition to our camp extension to accommodate our current and future workforce.

And despite the temporary closure of the main access route during the fourth quarter. The project remains on track to deliver significant and cost improvements in the second half of 2025.

And that is moving to Africa.

Jim delivered lower ore grades in the first quarter as our team commenced stripping of the next layback in line with the expectations previously communicated.

Strip ratios will remain high throughout the year as planned with stronger gold production expected in the second and third quarters due to higher grades coming through.

At a hassle, we delivered a solid quarter, our strong mining rates in plant throughput, partially offset lower lower grades due to planned underground rehabilitation that impacted access to high grade material at this should become the grant.

During Q1, the site experienced a conveyor failure.

<unk> one of the two conveyor systems transporting ore from the secondary crusher to the mills.

However, the team was able to put a system in place to bypass the conveyor and offset any impact to production.

As a result, a hassle remains on track to achieve its annual guidance range with steady increases production each quarter still expected as we open up additional draw points and it should become to grant.

We anticipate gold production at a handful will be wasted around 60% to the second half of this year due to higher mining rates and the delivery of more high grade ore to the mill over the course of the year.

A handful north project continues to progress well with approximately 85% of the total land area available for construction.

And as you can see in the photo on this slide we have transported the large portion of the necessary civil construction and mining equipment from a handful to a half or north as we prepare to develop this next important phase of our half will complex in Ghana.

Now moving across to North America.

As discussed during our last earnings call, our North American operations have made tremendous progress due to the guidance from our experienced team of leaders the strength of our integrated operating model and the support from our proven full potential program.

Starting with <unk>, our leach only operation remains a solid contributor with slightly lower production compared to the previous quarter due to waste stripping in the Globe Hill pit as planned.

At Eleonore the site delivered another strong quarter, driven by improved mining rates and mill performance compared to the fourth quarter.

These improvements combined with the progress we have made in workforce stability will enable eleonore to continue generating steady production levels throughout the year more than offsetting planned or or grid.

Musselwhite delivered lower ore grade and mining rates compared to the fourth quarter as the team focused on backfill activities to expose higher grade stopes.

And when combined with the efficiency improvements achieved through double the stoping Musselwhite is expected to deliver increased production each quarter in 2023 was nearly 56% of production anticipated in the second half of the year.

And finally, porcupine delivered higher ore grade and improved tons nine largely offsetting the impact from planned mill maintenance during the first quarter.

A more project continues to progress well as we prepare for an investment decision in late 2023.

Collectively our Canadian sites have improved production by 26% compared to the same quarter last year, primarily due to a continued focus on closely managing labor vacancies and absenteeism also improving productivity and reliability with greater access for our leadership and full potential team.

Post the Canadian border restrictions.

Elliott no muscle wasting porcupine each achieved the highest quarterly performance in terms of development meters and for and for comparison. This is an overall improvement of 37% versus Q1 2022.

And also as a direct consequence tons mined improved 26% and ore tons processed also increased 7%.

These very pleasing results are a true testament to the power of our operating model and its ability to replicate leading practices across our global operations and these improvements will be on just the answer is delivered we have also seen the significant potential event frequency rates that are for North American operations.

And half due to an increased focus on critical control verifications proving once again that our strong safety culture is key to delivering on our commitments.

Finally talk to non managed joint ventures, or 38, 5% ownership of Nevada gold mines, and 40% interest in people with behavioral contributed 321000 ounces of attributable gold production in the fourth quarter, representing 20% of our combined non.

<unk> joint venture production guidance for the full year.

As highlighted at our full year earnings presentation in February a tragic workplace fatality occurred at our joint venture in Nevada Gold mines.

The fatality of card that the Carlin goldstrike underground operation on the 20 <unk> of January and a detailed investigation was carried out by our JV partners, which included one of Newmont's, most senior safety leaders as a key member of the investigation team.

MGM in Newmont's executive leaders have also made to discuss and share safety strategies interventions and tactics to help ensure tragedies of this nature do not occur again at MGM.

Both of these joint ventures are core to the new model portfolio and we look forward to continuing to work with our managing partner to help ensure a safe and productive future for Nevada gold mines and Pueblo behavioral.

And with that I'll pass it over to Brian to cover our financial results over to you Brian .

Thanks, Rob and good morning, everyone, let's get started with the financial highlights.

In the first quarter Newmont delivered $2 $7 billion in revenue at a realized gold price of $1906 per ounce driven from 21% of our anticipated full year production and including $376 million from our copper silver lead and zinc co products adjust.

Adjusted EBITDA of $1 billion in cash from operations of $481 million, which includes $360 million of unfavorable working capital movements, partly due to the timing of <unk>.

Oncentration shipments at Penske, though.

As stated previously we are currently in a period of meaningful reinvestment.

With capital spend for the first quarter of $526 million as we continue to progress our near term projects and position our portfolio to be profitable and resilient for decades to come.

Additionally, through the continued rationalization of our portfolio, we sold our stake in Triple Quad, which generated $179 million of proceeds.

<unk> to newmont's strong liquidity profile at the end of the quarter with $3 $5 billion of cash on the balance sheet.

This investment grade balance sheet continues to be an integral part of our capital allocation strategy mainly.

Maintaining financial strength and flexibility, while balancing sustainable reinvestment and meeting shareholder returns.

First quarter GAAP net income from continuing operations was $339 million or <unk> 42 per diluted share adjustments included <unk> <unk> related to a gain from the sale of our interest in triple play as part of our ongoing portfolio optimization <unk> related to unrealized mark to market gains on equity investments.

<unk> related to tax adjustments.

Taking these into account we reported first quarter adjusted net income of <unk> 40 per diluted share relatively in line with the previous quarter, Despite lower production as planned and previously communicated.

These results also include the impact from higher average realized gold price.

Lower sales volumes, including the impact from the timing of concentrate sales at <unk> as mentioned earlier.

And lower total cost applicable to sales driven by lower overall production and higher oil prices.

And as a reminder, this higher gold price environment results in both favorable inventory adjustments as well as higher royalties and production taxes.

As the year progresses, we anticipate that unit costs will decline as production increases and inflationary pressure stabilized improving margins and strengthening our financial position.

As a reflection of the confidence in our business and our strong financial position. This morning, we declared a first quarter dividend of <unk> 40 per share or $1 60 per share on an annualized basis.

Set within our established framework in line with our fourth quarter dividend.

This continues to be the highest dividend per share in the gold sector and remains within the top 20% of large cap dividend payers in the S&P 500.

With this dividend declared newmont will have returned $4 5 billion.

To shareholders through dividends since introducing the framework in October 2020, and.

And we have now maintained a dividend yield of above 3% for 10 consecutive quarters.

And with that I'll pass it back to Tom.

Thanks, Brian I'd now like to provide an update on a potential acquisition of Newcrest.

To briefly recap the key events and milestones over the last three months.

On February 5th Newmont confirmed that we had submitted a nonbinding proposal to acquire Newcrest.

They don't say 350 <unk>.

<unk> bought that they had rejected our proposal, but also took Nevada has access to limited nonpublic information.

After negotiating and appropriate non disclosure agreement, we will provide an access to this information.

As part of this process my executive leadership team and I, along with some of our key subject matter experts so to face to face meeting with the Newcrest management team.

After reviewing this additional information we submitted a revised nonbinding proposal to the board of Newcrest.

Following terms.

My proposal to acquire 100% of the issued share capital by way of an Australia in scheme of arrangement under which Newcrest shareholders would receive for newmont shares.

Each new Chris sure.

No Chris would have the rights to fund and pipe shareholders, a special dividend of up to U S $1 10 per share to realize the value of franking credits.

And that the <unk> Alpha is best and final.

Subject only to know superior proposal emerging.

On April 10th.

The new acreage board denigrate to grant access to confirmatory due diligence to enable us to put forward I bonding proposal.

Newmont has been provided exclusivity for a full week due diligence period.

That did not on my 11th.

Our proposed acquisition would.

I would combine the assets and talent of two of the sector's top senior gold producers.

Set the new standard the site profitable and responsible gold mining.

Newmont has a long history and a shared heritage with Newcrest.

Cushing Al Australia subsidiary way back in 1966.

Our subsidiary that would become Newcrest sub 25 years later.

And as part of that history now companies also have shared commitment to a strong safety culture and leading sustainability practices.

Newmont has been provided exclusivity for a full week due diligence period.

Which is in addition to the complementary portfolios of World class assets.

Kind of a low risk mining jurisdictions.

Our proposed acquisition would strengthen our stablish position in Australia.

Creating efficiencies and value with a shade workforce.

Nickel expertise and large scale supply chain optimization.

And it would build upon the district potential in British Columbia is highly perspective Golden triangle.

Through a combination of operating mines and development projects that will deliver value through shape technology local capabilities and ore body experience.

Without scale and track record of successfully managing some of the worlds top tier one assets.

This transaction with leverage near months experience from the Goldcorp acquisition, where we have demonstrated over the last four years that we can generate meaningful improvements to performance stability and profitability, especially at large open pit and underground operations.

Since we closed the Goldcorp acquisition just over four years ago on April 18th 2019.

We have delivered more than $1 billion in annual synergies significantly exceeding our initial commitment of $365 million.

More than three quarters of the synergy value was generated by focusing on the fundamentals of mining and processing.

And it shapes the disciplined application of our proven full potential program and leveraging at Newmont operating model with an experienced team of latest and subject matter experts.

<unk> is the only tier one asset in the Goldcorp acquisition has been the main driver of this value.

Generating more than $700 billion in annual synergies.

At this very large open pit mine.

We have increased the average timeline on our fleet of 85 large 330 ton haul trucks.

17 tons per load.

With scope for further improvement.

This translates to an additional 12 million tonnes of material moved per year. The next to zero cost.

Combined with other loan and hold improvements we have increased the annual total material moved to tennis data by more than 20% compared to 2020.

With no additional equipment.

Then turning to the processing plant at <unk>, we have worked to understand and then address the bottlenecks in the crushing grinding and flotation circuits.

Complex poly metallic operation.

Delivering a 7% increase in annual throughput compared to 2020, which translates to around $300 million and free cash flow improvements each year from this operation.

The Goldcorp acquisition involved the integration of five new operations of which one kind of scared out with a tier one asset.

It also involved the entry into three new jurisdictions.

By comparison Alpha.

Our proposed acquisition of Newcrest would also involve the integration of five new operations.

But importantly, oddly one new jurisdiction.

And notably two of the operations Katia adhere a tier one assets.

With Red, Chris and Bruce Jack representing a T. One district in the Golden Triangle in British Columbia.

In the full years since April 2019, we have delivered on our value proposition and exceeded the commitments that we made.

We have strengthened our position as the industry's recognized responsible gold laid up.

We have enhanced our portfolio through the successful integration of the former Goldcorp assets and go out and you have an operating model delivering over $1 billion in annual synergies.

We have optimized our portfolio.

Generating over $2 billion in proceeds from the divestments of Red Lake.

Our share of both K to GM and Continental gold.

Along with the continued rationalization of our noncore equity portfolio.

Notably $1 billion of the proceeds from these divestments was delivered within the first 12 months of the acquisition closing.

And we have led the industry on capital returns.

Turning bold in five and a half billion dollars to shareholders over the last four years.

We have enhanced our portfolio through the successful integration of the former Goldcorp assets in no way out and you have an operating model delivering over $1 billion in annual synergies.

While also completing a one in a heartbeat and opportunistic share buybacks.

Finally, our successful integration of the Goldcorp assets goes far beyond the synergies after the basement and leading shareholder returns.

We have led the alignment of the former Goldcorp organization with numerous purpose values experience and culture.

We have fully implemented do you have on safety systems and processes, we have integrated our sustainability goals and targets.

Through our disciplined capital allocation process, the former Goldcorp assets have significantly benefited from the combined entities free cash flow generation capability.

And we have learned to operate in three new jurisdictions and forged lasting community and host country relationships.

So in closing.

I am not able to provide any further details on the <unk> proposal at this time as it is alive and gigabit.

But I wanted to be clear with everyone on today's call that we will continue to be disciplined as we went through the due diligence process and determine synergies and we will act in the best interest of our shareholders.

Thank you for your time today and with that I'll now turn it over to the operator to open up the lines for questions.

Thank you.

We will now begin the question and answer session.

I'll ask a question you May press, one Scott Sorry, then one on your touch Brian .

Can you speak Frank please pickup your handset before pressing the mckee.

With your question. Please press Star then Keene.

At this time, we'll pause Kim from Barclays.

The first question comes from Jackie Kosnovsky from BMO capital markets.

Thanks, very much for taking my question and then I'm going to apologize because I acknowledge that you've just mentioned you don't want to give more information about the new French transaction, but anybody on that.

Anyway.

But let's say you finished the due diligence on.

Where the exclusivity period is still intact and and it's approved by all shareholders can you talk a little bit about the timeline for.

When the earliest.

Transaction closing would be and what you thought to be for.

Integration of the asset.

Thanks Jack.

I'll try to answer the questions based on cables, both respecting the base to that.

Hum.

The restrictions on paying out a comment.

Certainly in due diligence close to four months, we will we'll.

We'll go through that due diligence process, that's an exclusivity period for four weeks.

We will remain disciplined in terms of understanding that information and assessing that and making out judgments and decisions and it is a it is a core capability of Nemo, we have a part of our operating model has the capability of our operating and technical teams and so when it comes to due diligence.

We have a very strong team who are very experienced doing this work. So we are we are applying the full force of the nimble organization on this due diligence exercise, but work diligence diligently through that process. So they might get judgments.

Assuming that that will work well.

Sorry, Jackie sorry, sorry, sorry go ahead go ahead, I'm, sorry, I didn't mean to interrupt.

Alright Jackie.

Assuming assuming that are progressing well and we were we we reached a binding agreement.

Then they would be the regulatory approvals to work through.

In Australia, and Papua New Guinea.

States and in Canada, and so it really becomes a better understanding of those approval pathways and ultimately leading to clause is dependent upon that.

That's still that's still a little bit into the future in working progress.

That normally takes a few months to work through those steps.

In terms of.

One of the real strengths of <unk> and the strategic rationale of this deal of which there are many what are the real strengths is that we already have an operating model and infrastructure in Australia and in Canada.

So if you think about it integration exercise, we already have many of golfs in a full.

Business unit operating out of Australia General managers report familiar we have a finance team in HSA, but legal statements like this.

Can you give me the United States, and Canada, and so it really becomes a better understanding of those approval pathways and ultimately leading to clause is dependent upon that.

Stan ability next to it or we licensed to them a technical too.

So it integration.

Australia is involves two operations, becoming part of the.

Ladies team. She currently has boddington and 10 a month.

That normally takes a few months to work split through those steps.

When all was RSA pay down in Australia, we had boddington Katmai, we had why he ever in New Zealand, we had John D. We had cases, yet so we are scalable in terms of being able to accommodate additional operations exactly the same circumstance plays out in Canada, where we already have eleonore Musselwhite, Porcupine Cripple Creek and Victor report.

One of the real strengths of <unk> and the strategic rationale of this deal of which there are many what are the real strengths is that we already have an operating model and infrastructure in Australia and in Canada.

So if you think about it integration exercise we already have <unk>.

Through two vessels and he is.

Business unit operating out of Australia General managers report familiar we have a finance team in HSA and the legal team of sustainability and external relations team of technical too.

North American leadership team, so again, Bruce Jack and Red Chris can vary.

Very comfortably into that scalable organization.

For the here Papa New Guinea is a new jurisdiction very similar to what we were in Indonesia with thought to AGL joined me about nine years ago I used to say to your boss President for Indonesia, Boston Jakarta, managing the external relations with Indonesia, and Nevada, Heathrow Operation and I think there are some analogies between how I think about how we.

<unk>. She currently has boddington antenna.

What always RSA paid out in Australia, we had boddington Catamite, we had why he ever in New Zealand, we had John day, we had cases, yet so we're scalable in terms of being able to accommodate additional operations exactly the same circumstance applied that in Canada, where we already have eleonore muscle what folkie poet Cripple Creek <unk> Victor report.

Think about.

Either here in a pay in Jay and what when we did very successfully for many many years in Indonesia. So Jacky hopefully that gives you some flavor of how we think about integration.

Through two vessels and he is.

No. That's helpful. Thanks, Tom I mean, I think one when you talk to or when the media talked about this transaction initially.

North American leadership team, so again, Bruce Jack and Red Chris can can fit very comfortably into that scalable organization.

The thought was sort of a yearend or early 'twenty four closing, but I would expect that as this process has gone on that that gets pushed back is that fair like you'd be kind of.

Papua New Guinea is a new jurisdiction very similar to what we were in Indonesia, We thought to Hey, Joe joined D. About nine years ago as senior Vice President for Indonesia based in Jakarta, managing make soda relations with Indonesia, and about the Haynesville operation and I think there are some analogies between how I think about how we think about them.

Mid 2024 at the earliest sort of time frame I'm, just thinking from a modeling perspective.

Yeah, Jackie I think I think that's too far into the future as best you could look into the Crystal ball.

The <unk> approval.

The approval process.

I have a hearing to pay a J than what we did very successfully for many many years in Indonesia. So Jackie Hi played that gives you some flavor of how we think of that integration.

It.

Is it.

It's still we're in the hands of the booking through appropriate those approval processes, but I think it's.

I think it's a shorter time frame than what you just articulated.

No. That's helpful. Thanks, Tom I mean, I think when you talk to or when the media talked about this transaction initially.

Okay. Okay. That's helpful. Thank you and maybe just as a follow up question or unrelated question.

You've mentioned.

Maybe.

Maybe potential sanctioning decision.

Investment decision for <unk> in late 'twenty, three and I know previously you've talked about you had a coach itself.

Mid 2024 at the earliest timeframe I'm just thinking from a modeling perspective.

<unk> decision as well can you talk a little bit about like what your.

What youre going to be looking for are.

Yeah, Jack I think I think that's too far into the future as best you can look into the Crystal ball.

Either independently of the new Chris transaction or or potentially.

In light of this new Chris transaction, what what Youre looking for in order to make a positive decision on on the projects that you've got in your portfolio today.

It's still we're in the hands of the booking through appropriate those approval processes, but I think it's I.

Thanks, Jackie Bobby talked specifically to put more of an AR Morris.

A layback of the existing open pit. So it's really it's the as we deplete the orad apologize the Midland Timmins and we move across to put more that were already to watery.

A related question you have.

And maybe potential sanctioning decision on that investment decision for <unk> in late 'twenty, three and I know previously you've talked about you had a coach itself.

As part of the closure plans than then.

And then.

Or its really all that just replacement in terms of the provision of the below grade ores to supplement.

What youre going to be looking for.

And all of them so.

So a high grade underground ore through the through the millipore coupon. So it's a very very straightforward lybeck our pipeline replacement investment decision. We're just working through the diligence process of Richie working towards a full funds at the end of the year. We've got some early not late orders coming in in terms of getting some played on the ground.

Either independently of <unk>.

No, Chris transaction or or potentially.

In light of this new Chris transaction.

What youre looking for in order to make a positive decision on on the projects that you've got in your portfolio today.

Thanks, Jackie Bobby talked specifically to put more of an AR Morris.

As the water comes out of that pit to be able to get a good start to that so that's the that's sort of in that sort of.

A layback of the existing open pit. So it's really it's the as we deplete the orad apologize the Midland Timmins and we move across to pump more that were already to watery.

They are independent of anything else that might be happening as just a natural progression of events in that mine and that that that decision.

As part of the closure plans then.

Assuming it continues to meet our hurdle rates will enable porcupine to run for for so many more used to come profitably.

Then.

Our mortgage really holding just replacement in terms of the provision of the below grade orders to supplement.

Ordered an oil province of high grade underground ore through the through the mill at Porcupine. So it's a very very straightforward.

Gotta catch a sofa with what thing gehring still dedicated to the Chief Development Officer, Peru focused on understanding all options for for again of coaches sulfides through to and including.

Lybeck our pipeline replacement investment decisions, we're just working through the diligent process of Richie working towards a full funds at the end of the year. We got some early bulk laid all of that is coming in in terms of getting some played on the ground as the water comes out of that pit to be able to get a good start on that so that's the that's sort of it's sort.

Not proceeding with the project and putting it into into into care and maintenance and damage to diligently working through that process with attainment erode and we've got a.

Second half of 'twenty 'twenty four decision to be made that so that that is also independent of anything that might be happening externally.

Since they are independent of anything else that might be happening as just a natural progression of events in that bond and that that decision.

Assuming it continues to meet our hurdle rates will enable porcupine to run for the many more used to come profitably.

But it's a process that they will continue to work through with that taught pardon me board.

If and many more.

More generally.

You Gotta catch a sofa.

If the.

We've got thing Gehring still dedicated to that chip development office of Peru focused on understanding all options for for again at coach of sulfides through to and including.

If it were to be successful in the the acquisition I would point you to.

Our track record with with Goldcorp, where within the first 12 months, we did work to rationalize the portfolio.

Not proceeding with the <unk>.

Perfect and putting it into.

And to look to recycling projects. So that we met we will stay true to our capital allocation strategy in terms of the strength of their balance sheet, a steady rate of investment in the business and leading returns to our shareholders and that would be the same strategy that we would apply.

Into into care and maintenance and things to diligently working through that process with the team in Peru, and we have got.

Second half of 'twenty 'twenty four decision to be made there. So that that is also independent of anything that might be happening externally.

We were in a situation, where we were working through an integration of our combined portfolio, the mantra and <unk>, which has been a key philosophy of how we approach I work for well over a decade is value over volume and.

That is.

A process that they will continue to work through with that top primary mode.

If money mode.

Generally.

If if the.

And value over volume would apply.

Were to be successful in the acquisition.

If this transaction were to be successful.

Point you to.

Our track record with with Goldcorp, where within the first 12 months, we did work to rationalize the portfolio.

That's really helpful. Thanks, very much for the color. Thanks, Tom.

Thanks Jackie.

And to look to recycling projects, so that we met.

Thank you Jack.

We will stay true to our capital allocation strategy in terms of the strength of that balance sheet, a steady rate of investment in the business and leading returns to shareholders and that would be the same strategy that we would apply.

Yes.

Please go to your bank.

Great. Good morning, everybody. Thank you so much for taking my questions.

Just kind of circle back.

Tom if I can just on the new class potential acquisition.

If we were in.

A situation, where we were working through an integration of our combined portfolio. The mantra at <unk>, which has been a key philosophy of how we approach I work for well over a decade, it's value over volume.

Just wanted to check with you do not require also Mexican approval for that as well or is that not need it.

Yeah.

And value of a volume would apply.

No I don't believe this Mexican approvals needed tenure I think it's the jurisdictions in which they're operating.

Is it this transaction whether it be successful.

That's really helpful. Thanks, very much for the for the color. Thanks, Tom.

So just look to pay down, but I believe that.

Thanks Jackie.

Yep.

Okay. So if Sony thus far that you mentioned.

Thank you we now have one yet.

Okay. That's helpful. Thanks.

From Scotia Bank.

One less country to deal with.

Great. Good morning, everybody. Thank you so much for taking my questions.

And then just on the shareholder vote.

From that you need 66, and two thirds vote.

Just kind of circle back.

Tom if I can just on the new class potential acquisition.

The new class shareholders on 50 point.

Plus one from Yamana.

Just wanted to check with you do not require awesome Mexican approval for that as well or is that not needed.

Want to make sure that I have.

Right.

It's a tenuous just just checking with the team that you broke up a little bit on the 10 year. So that would just checking the sanish spuds, that's 50, plus one newborn.

No I don't believe this Mexican approvals needed tenure I think it's the jurisdictions in which they're operating.

If that's the case then it's the two thirds two thirds for Newcrest, we believe that's the case.

So just look to Pedro I don't believe.

If that's incorrect tenure will circle back and clarify that okay.

Yep.

Okay perfect. Thank you so much I really appreciate that and just wanted to.

Okay, so with Sony thus far that you mentioned.

Just talk about your co product guidance for the year.

Okay. That's helpful. Thanks.

Unless country to deal with.

We were quite low sorry, a little bit too high I think on Q1.

And then just on the shareholder vote, just to confirm that you need 66, and two thirds vote.

So you came in a bit more can you just kind of guide me through and I know Rob Dickerson.

The new class shareholders, and 50 point plus.

I think I missed some of that but just on the overall for newmont, how should I think about that.

Plus one from Yamana.

To make sure that I have those right.

<unk> products going through the year I know, we talked about it at panofsky, though that I think you're very close to half.

Ah tenuous, just just checking with the team that you break up a little bit almost 10 years. So that would just checking the sanish spuds, that's 50, plus one for newborn.

Second half weighted for the year I just wanted to know 65% weighted for the year, but I just wanted to newmont for a whole how should I be thinking of the co products.

If that's the case then it's two thirds two thirds for Newcrest, we believe that's the case.

If that's incorrect tenure will circle back and clarify that okay.

Sure.

Yes, certainly certainly if a starting point the coproduct will will be firmly within guidance has not changed there and then in terms of the Whiting.

Okay perfect. Thank you so much I really appreciate that and just wanted to.

Just talk about your co product guidance for the year.

We were quite low sorry, a little bit too high I think on Q1.

The if I look across.

The <unk>.

So you came in a bit more can you just kind of guide me through and I know Rob Dickerson.

Boddington and <unk>, where we've had the kind of products.

Tenure, so copper at Boddington Boddington, where in the high grades in the first half moving to the lower grade part of the secret to the second half.

I think I missed some of that but just on the overall for newmont, how should I think about that.

Products going through the year I know, we talked about it at panofsky, though that I think you're very close to half.

Production.

52, first half 48 second half our copper production at Boddington.

Movement second half weighted for the year I, just wanted to know 65% weighted for.

And then when you look at our paint a SKU that we are weighted to the second half.

The year, but I just wanted to newmont for a whole how should I be thinking of the co products.

For silver lead and zinc.

Uh huh.

Silver 44, 56 first half to second half.

Yes, certainly certainly if a starting point the coproduct will will be firmly within guidance.

Zinc.

About 40 60.

And just there and then in terms of the Whiting.

First half to second half.

And late about 45, 55 first half to second half of the site.

The if I look across.

The <unk>.

G I.

Boddington and <unk> is where we have the kind of products.

For the year certainly within the goddess right just simply forgot it.

Tenure.

No. That's very helpful. Thank you I was a bit off on that one and then if I could just finally ask just maybe your thoughts about that.

Copper at Boddington bought into we're in the high grades in the first half maybe the lower grade part of the secret to the second so copper production.

The Mexican law.

Changes thereof, and what your thoughts on how you are leading into that please thank you.

52, first half 48 second half our copper production at Boddington.

And then when you look at paying a SKU that we are weighted to the second half.

Yeah. Thanks can you maybe for the others on the call about not being.

Following Mexico, Mexico as closely.

For silver lead and zinc.

Silver 44, 56 first half to second half.

Just in the loft Waco side of the Congress in Mexico approved an amendment to.

Zinc.

About 40 60.

A version of an initiative that's around reforming a legal framework for the mining industry. So let's go through Congress.

First half to second half and late about 45, 55 first half to second half.

Right.

And in the legislative process that that now continues.

G O.

For the year certainly within the goddess right just simply forgot it.

Through them to the Senate for further debate and discussion. So there is this.

And all that's very helpful. Thank you I was a bit off on that one and then if I could just finally ask just maybe your thoughts about that.

There's still some uncertainty around the scope of the reform so it's <unk>.

<unk> to speculate on what the impacts might be on the mining industry or specifically on game on so it's just working its way through we're certainly going through a process of.

The Mexican law.

<unk> thereof, and what your thoughts on how you're leading into that please thank you.

Yeah. Thanks can you maybe for the others on the call about not following Mexico, Mexico as closely.

Doing that legal reviews of.

Or what they proposed in that initiative and closely monitoring that process.

But working all sorts through the Mexican mining chamber, who is taking the lead with this matter on behalf of the mining industry in Mexico.

Just in the loft Waygal side of the Congress in Mexico approved an amendment to.

Our version of an initiative that's around reforming a legal framework for the mining industry. So let's go through Congress.

It's.

It's an important legal reform and so we would expect.

And in the legislative process that now continues.

And HUD that the Senate.

Some open and constructive dialogue with all.

Throw in to the Senate for further debate and discussion. So there is this.

Is that are involved in that is just all the mining companies. That's the the communities local and municipal governments.

There's still some uncertainty around the scope of the reform so it's <unk>.

Difficult to speculate on what the impacts might be on the mining industry or specifically on <unk>. So it's just working its way through we're certainly going through a process of.

And the <unk> is responsible for analyzing this initiatives. So it's in that stage, where we would hope and expect that there is some very active discussion and debate.

Doing that legal reviews of what.

On this reform.

What they proposed to that initiative and closely monitoring that process.

There are some you know when you start to review Bonnie frameworks that is an opportunity.

But working all sorts through that Mexican mining chamber, who has taken the lead with this matter on behalf of the mining industry in Mexico.

To promote greater competition can provide greater transparency in the sector.

Two to work towards better safety and compliance standards or provide more job opportunities and have benefits in terms of social and economic benefits. So I would hope that that debate is.

It's.

It's an important legal reform and so we would expect.

And HUD that the Senate promote some open and constructive dialogue with all.

Is conducted well and and with the full group of stakeholders.

Parties that are involved and that's just not the mining companies. That's the the communities the local and municipal governments.

Involved and looking to improve circumstances in Mexico.

And <unk> is responsible for and loss in this initiative. So it's in that stage, where we would hope and expect that there is some very active discussion and debate.

As a consequence, so early days long way to go our expectation and our hope is that there was a critical to bite type slice at Mexico.

On this reform.

There are some.

And is your understanding that whatever claims.

When you start to review mining framework that is an opportunity.

And in fact would be grandfathered from any changes on 10 year et cetera.

To promote greater competition to provide greater transparency in the sector.

Yes.

Two to work towards better safety and compliance standards provide more job opportunities and have benefits in terms of social economic benefits. So.

That's how understanding tenure.

Just like we were let's say I want the sandy, but we're working through that make sure we fully understand that.

It's more about sunny its more about future concessions as opposed to car.

I would hope that that debate is.

Is conducted well and.

And with the full group of stakeholders.

Okay.

Great. Thank you so much.

Involved and looking to improve circumstances in Mexico.

Thanks, Dan.

Thank you. Our next question comes from Scott Henry.

Consequent so early days long way to go our expectation and our hope is that there was a critical to bite that takes place in Mexico.

Great.

Okay.

Hi, Good morning, Thanks for taking my two questions both related to the Canadian Operation, Maybe first Rob you were talking a little bit about <unk>.

And is your understanding that whatever claims you have in effect would be grandfathered from any changes on Kenya et cetera.

<unk> and labor availability can you just give some more color.

Is that more or less resolved now do you have.

Yes.

The right number of people on site across the Canadian operation.

Yeah.

That's how understanding tenure.

Yeah.

With that said I want to say any but we're working through to make sure we fully understand that.

Hey, good morning, Fahad, Yes, we yes, we do.

It's more about setting it's more about future concessions as opposed to car.

We really focus on two areas.

Very strong recruitment and we've been able to do that very successfully across the three operations.

Okay.

Thank you so much.

And also just really making sure that our current workforce are turning up for work. So a very strong focus from absenteeism and lead management and those are both paying off very significant dividends. So the situation, we had last year, especially different this year. So we're in good shape.

Thanks, Dave.

Thank you. Our next question comes from Scott Henry.

Great.

Okay.

Hi, Good morning, Thanks for taking my two questions both related to the Canadian Operation, Maybe first Rob you were talking a little bit about improvements in labor availability can you just give some more color.

Okay. That's good to hear and then.

More or less resolved now do you have.

As a follow up on the Canadian operations. It sounds like the milling operations mining operations lots of productivity improvements year over year, but the Asa remains elevated is there something thats.

The right number of people on site across the Canadian operation.

Hey, good morning, Fahad, Yes, we yes, we do.

Part of the equation that maybe we're missing is it just higher sustaining capex this quarter.

We really focus on two areas.

Very strong recruitment and we've been able to do that very successfully across the three operations.

And also just really making sure that our current.

Oh.

I'll touch on that first.

Workforce are turning up for work so a very strong focus from absenteeism and leave management and those are both paying off very significant dividends. So the situation, we had last year, especially different this year. So we're in good shape.

The first issue that you mentioned is it without a doubt the performance in Canada has been very very positive across the board in terms of the development meters and also the material movement.

Okay. That's good to hear and then.

Et cetera, So we're very very pleased with the physical performance.

As a follow up on the Canadian operations. It sounds like the milling operations mining operations lots of productivity improvements year over year, but the Asa remains elevated is there something thats.

And that also goes into you know the way in which the plant to operate so recovery solution losses.

Et cetera, as well as the underground so across the board, we're very pleased with the productivity, but Brian has got some detailed answers in terms of the asics.

Part of the equation that maybe we're missing is it just higher sustaining capex this quarter.

Yes. Thank you Robin Thanks for the question behind them I think as it relates to musselwhite and it could be looking at our earnings release.

That's perfect.

I'll touch on that first.

Our ounces sold were lower.

The first issue that you mentioned is it without a doubt the performance in Canada has been very very positive across the board in terms of the development meters and also the material movement.

And our sustaining capital is is a bit higher for <unk> for the quarter and that's largely in line with what we expected for the for muscle weight for the period. So that's what drove the higher <unk>.

Et cetera, So we're very very pleased with the physical performance.

Okay, perfect that makes sense that's.

That's it for me thank you.

And that also goes into the.

Thanks, a lot.

The way in which the plant operates so recoveries solution losses et cetera, as well as the underground so across the board. We're very pleased with the productivity, but Brian has got some detailed answers in terms of the Asics, yes.

Yeah.

Huh.

Tony <unk> from CIBC World markets.

Yeah.

Hi, good morning, Tom and team.

I guess my first question is with respect broadly to our strategy and the acquisition of quest.

Thank you Rob and thanks for the question Fahad I think as it relates to musselwhite and it could be looking at our earnings release.

Talking about how.

Our ounces sold were lower.

Your operations are scalable.

And our sustaining capital is is a bit higher for the quarter and that's largely in line with what we expected.

I was just trying to understand.

I understand that when you.

If you were to acquire Newcrest.

From us or wait for the period. So that's what drove the higher <unk>.

Our intention would be to basically run the 2 million ounces.

But they have an AD that TB.

Okay, perfect that makes sense.

Six or 7 million ounces and Uba I guess.

For me thank you.

Sure.

7 million ounce producer or would there be some excellent asset rationalization in there in your and your going forward plan.

Thanks for hot.

Tony.

Tony.

CIBC World markets.

Yeah, Thanks, and good morning.

Yeah.

Hi, good morning, Tom and team.

Nadir I think the two.

Hip hop to answer that question, we have an operating model that is scalable to pay out.

I guess my first question is with respect broadly to strategy and the acquisition of Quest. So you were talking about how.

Integrate the existing fab operations.

Thank you Chris for that 12 finished operations and manage those operations safely and effectively.

Your operations are scalable and I was I was just trying to understand.

But our focus is on value over volume.

Understand that when you.

If you were to acquire Newcrest.

So we still got a lot of work to do in the context of AV get Chris to be inappropriate to comment specifically on newcrest, given it's a lot of engagement.

Your intention would be to basically run the 2 million ounces.

They have an AD that TB.

But we certainly look back at our playbook and they have experience with Goldcorp.

Six or 7 million ounces and uba seven.

7 million ounce producer or would there be some asset rationalization in there in your and your going forward plan.

We divested a GM red like Continental gold within the first 12 months and brought in one of the hot again and prices. So as we work through that you did the diligence on this large transaction and we think about portfolio rationalization value over volume and synergies we've got.

Yes, thanks, and good morning.

Later, I think the probably two two.

Two parts to answer that question, we have an operating model that is scalable to be able to integrate the existing fab operations.

That equates to fit out 12 finished operations and manage those guys operations safely and effectively.

Four years of experience, our muscle memory capability within that team that we draw upon and and we we look to that experience to that they think about this potential opportunity.

But our focus is on value over volume.

So we still got a lot of work to do in the context of AV get Chris to be inappropriate to comment specifically on newcrest, given it's a lot of engagement.

I know I'm being a bit vague because it's a lot of engagement.

I believe you can say the playbook that.

But we certainly look back at our playbook and they have experience with Goldcorp.

We have followed over the last four years with value over volume.

We divested a GM red like Continental gold within the first 12 months and brought in the $1 billion in proceeds so as we work through that you did the.

<unk> front and center.

Sure.

Remind me of the divestitures that you did with the Goldcorp transaction I think there were just too right Red Lake and with so.

Diligence on this large transaction and we think about portfolio rationalization.

Red Lake.

50% share in case of GM.

The volume and synergies we've got four years of experience on muscle memory capability within that team that we draw upon and and we will look to that experience.

If you recall, we had an interesting continental solved and the <unk> project in.

In Colombia, So we completed those three divestments within the first 12 months that was appealing to the hospitals and then we spent the last four years cleaning up the noncore equity portfolio, which triple.

Think about this potential opportunity so.

I know I'm being a bit vague because it's a lot of engagement, but I believe you can say the playbook.

Triple flag with the last one of the last pieces of that and that's actually probably another $700 million of prices over the last four years.

We have followed over the last four years with value over volume.

<unk> front and center.

Okay, and then I guess my next question would be I mean, it's been.

Sure.

About four years since the last major transaction.

Okay.

Remind me of the divestitures that you did with the Goldcorp transaction I think there were just too right.

You know where to call what do you think you'd be done for a while or would you be.

And with so.

No.

Right like Oh.

Looking to do something else.

50% sharing case at G M and if you recall, we had an interesting continental solved in the political project in.

Right.

[laughter] thanks to data.

Wanted to follow up I think.

In Colombia, So we completed those three divestments within the first 12 months that was a 1 billion at a half dollars and then we spent the last four years cleaning up the noncore equity portfolio, which.

[laughter] productivity. This is this is a lot of engagement we will remain.

And disciplined in terms of decisions, we made as to whether it besides or not and we know we have we know very very well if we were successful what's evolved and.

Triple flag with the left one of the last pages of that and that's actually brought in another $700 million.

Are prices over the last four years.

We need a grading and deliver delivering synergies. This is if this would have come off its a transformational transaction.

Okay, and then I guess my next question would be.

And.

Been about four years since the last major transaction.

Our focus will be on delivering on our commitments and we have.

We'll work to close do you think you'd be done for a while.

The experience of knowing what's involved in that.

Would you be.

Yeah.

And we will be applying all of that experience.

Looking to do something else.

Alright.

Some time to deliver that value.

[laughter] pace, thanks to data.

Okay I just wanted to ask one more question so.

I think.

Not with related to this transaction, but a little bit more on the operations. So I did notice that you mentioned in your.

[laughter] productivity. This is this is the law of engagement.

Commentary that.

We will remain disciplined in terms of decisions, we made as to whether it besides or not and we know we have we have very very well. If we were successful what's involved in we.

Costs were higher as a result of lower volumes and royalties on.

On higher gold prices in the world.

A good problem to have.

But the moment about lower consumables.

We need to drive and deliver delivering synergies. This is if this were to come off its a transformational transaction.

Input.

Is that could we read into that we're starting to see some.

And and.

Our focus will be on delivering on our commitments and we have.

Input costs.

I'm not sure it's alleviating like how should we think about that over the course of the year from a unit cost perspective, not necessarily from a volume perspective.

The experience of knowing what's involved in that.

And we will be applying all of that experience.

Sure, Thanks abate or.

Some time to deliver that value.

Okay I just wanted to ask one more question so.

Hello consumables, primarily the fact that a 10 a mile was down to 32 days with the weather impacts of the northern territory. That's that's that's the main contributor to that Q1.

Not related to this transaction, but a little bit more on the operations. So I didn't notice that you mentioned in your.

Commentary that.

Costs were higher as a result of lower volumes and royalties on higher gold price.

Explanation for consumables in terms of the cost base as you say the key the key one unit costs is driven by the 21% weighting in the first quarter.

It's a good problem to have.

But the comment about.

As we look as we look.

Lower consumables.

At the end of March and then thinking about the remaining nine months.

Is that could we read into that we're starting to see some.

The assumptions we made around.

Input costs.

Inflation across our cost base, you know, 50% of the cost bases live up but employees and contracted services next 30% consumables and a 15% fuel and energy the assumptions. We've made after the three months of the year are holding true so not seeing any any.

I'm not sure it's alleviating like how should we think about that over the course of the year from a unit cost perspective, not necessarily from a volume perspective.

Sure Thanks debate or.

The low consumables, primarily the fact that 10 am I was down to 32 days with the weather impacts of the northern territory. That's the main contributor to that Q1.

Levi I showed on our assumptions, yet, but watching that very closely.

Explanation for consumables in terms of the cost base as you say, it's acute the key one unit cost is driven by the 21% weighting in the first quarter.

But I'm not seeing anything, particularly different from what with the shunt.

Okay. So you're good.

Ending up at 920 at the midpoint the guidance range for the year at this point.

As we look as we look.

At the end of March and then thinking about the remaining nine months.

Yeah, that'd be it catches on it yes, yes.

The assumptions we made around.

Still on track to landing on that Oh, that'd be pulling back on the tissue side.

Inflation across our cost base, 50% of our cost bases live up but employees and contracted services next 30% consumables and it's 15% fuel and energy the assumptions. We have made after three months of the year are holding true so not seeing any any.

Okay. Thank you very much.

Thanks Anita.

We now have Greg Barnes from TD Securities.

Yes. Thank you Tom I just wanted to ask about your views on the safety culture at MGM and what in your perspective.

The Lady I showed on our assumptions, yet, but watching it very closely.

Perhaps improvements that could happen there.

But I'm not seeing anything, particularly different public with it yet.

Yeah, Good morning, Greg might kick off and wrote them broke speeds Robert talk to him later.

Okay. So you're good.

Ending up at 920 at the midpoint guidance range for the year at this point.

At MGM and every couple of weeks and so there's a very close.

Yeah, that'd be a catheter, yes, yep still I'm still on track to landing on that Oh that bill pointed out got a tissue side.

Working relationship and are often often that that is about.

Less so around ounces and of course most of around how we can work together on.

Okay. Thank you very much.

Thanks Anita.

On.

On safety improving site performance.

We now have Greg Barnes from TD Securities.

Hey, Seth.

Probably a couple of comments I think Greg is.

Yes. Thank you Tom I just wanted to ask about your views on the safety culture at MGM and what in your perspective.

It is important we always have a chronic on AIDS around site performance, although with we've had.

Period of time, we've paid fatality free as an organization.

Yes.

Perhaps improvements that could happen there.

I'm off certainly in my 35 years of mining at least through some some tragic freidel accidents and we still have.

Yeah. Good morning, Greg I'm on my kickoff and wrote them broke speeds Robert talk to.

On average every every 10 days a significant potential event that could've been a fatality. So it's a sense of chronic eye on <unk> and the things you need to be doing to understand your fatality risks are and thats critical controls that need to be in place.

Peter at MGM and every couple of weeks and so we are very close.

If you realize your ship and often also that that is about.

Less so around ounces and cost most are around how we can work together on.

We don't spend a lot of Tom on the ground and in the in the operations that we don't manage so we don't have that in depth knowledge of what might be happening on the ground and operation that we'd have to manage but we do have a whole bunch of things that we do and we look to share.

On safety improving site performance.

Hey, Seth.

A couple of comments I think Greg is.

It's important we always have a chronic on AIDS around site performance, although we've had.

And I think that's the best the best thing, we can do whether it be with MGM as the adult May show adventure, whether it be with a mining company with no working relationship with but we're in the same industry, but Robert maybe give you a flavor of how we think about supporting.

A period of time, where we've paid fatality free as an organization.

Certainly in my 35 years of mining at least through some some tragic vital accidents and we still have.

On average every 10 days.

Did they get potential events that could have been a fatality. So it's a sensor chronically on A's and the things you need to be doing to understand your fatality risks are and that's critical controls that need to be in place.

Whether it be engine game or anyone else when it comes to some of the things we try and do when it comes it comes to improving site performance.

Thanks, very much Tom and just building on that Greg.

We don't spend a lot of Tom on the ground in the in the operations that we don't manage.

Certainly a very very open to sharing that.

Well, we don't have that in depth knowledge of what might be happening on the ground and operation that we manage but we do have a whole bunch of things that we do and we look to share and I think that's the best the best thing that we can do whether it be with MGM as the adult males joint venture with her.

We've been on a journey.

Which has had an awful lot of lessons in.

In the past and those lessons will have led to some of the systems that we've developed and we're very open to sharing those and we have shared those with.

Our colleagues to MGM.

So there's definitely a very good people at <unk>, who are working very hard and you know the tragedies have really shook them to the core and they're really doing a lot of work in terms of the planning and when I refer to the discussions that we had it wasn't bad.

With a modern company with a working relationship with but we're in the same industry, but Robert maybe give you a flavor of how we think about supporting.

Whether it be engine game or anyone else when it comes to some of the things we try and do when it comes it comes to improving site performance.

Dispensing off one another what we've done well for us and what they believe could walk there, but they certainly had some challenges major turnover.

Thanks, very much Tom and just building on that Greg.

Certainly a very very open to sharing that.

A lot of new people.

We've been on a journey.

Uh huh.

Which has had an awful lot of lessons in.

Nevada Gold mines and you know.

So they are very committed to changing there, but we have shared our fatality risk management system. We have shared the methodology in terms of the importance of a pre stops the importance of visible and failed to engage leadership, we have shared our our views on.

In the past and those lessons will have led to some of the systems that we've developed and we're very open to sharing those and we have shared those with.

Our colleagues to MGM.

This definitely very good people at MGM or working very hard and the tragedies have really shook them to the core and they're really doing a lot of work in terms of the planning and when I refer to the discussions that we had it was about.

Very much a caring culture.

And those.

Those are the things, which I'm absolutely sure we will be duly considered and taken on board, but you know the conversations we think no mistake that Peter Richardson and the team are working very hard to improve our safety performance.

Just bouncing off one another what we've done well for us and what they believe.

Could walk there, but you know theres certainly had some challenges major turnover is central a lot of new people.

Thank you Matt.

Tom and Rob perhaps your views on the safety culture at Newcrest. If you have any can talk about the deal.

The Nevada gold mines and you know.

They are very committed to changing there, but we have shared our fatality risk management system. We have shared the methodology in terms of importance of a pre stops the importance of visible and failed to engage leadership.

Thanks, Greg.

We it's it's something that it's part of the when we think about confirmatory due diligence.

That's the all the stuff you do going into data rooms are boring through.

You know resource models and mine plans in and.

Sure there are our.

Our views on.

Very much caring culture.

And the luck.

And those.

An important part of our confirmatory due diligence is getting on the ground so whether it be the newcrest or any other.

Those are the things, which I'm absolutely sure will be duly considered and taken on board, but you know the conversations we have make no mistake that Peter Richardson and the team are working very hard to improve our safety performance.

Any other potential acquisition when you might be looking at what's very important for us in making a judgment.

Thank you.

About whether it's a P value in a transaction. We proceed with is getting on the ground.

Tom and Rob perhaps your views on the safety culture at Newcrest. If you have any can talk about the deal.

With their technical people, but also also stimulated so as we think about due diligence and sought visits.

Thanks, Greg.

It's it's something that it's part of the when we think about confirmatory due diligence.

Folks like robe.

Based on all the stuff you do going into data rooms and pouring through.

Pewter Dean Gehring all of my team with the <unk> vessels are the mere gasses.

You know resource models and mine plans in and.

Francois Hardy, so very senior operational leaders and decide whether it be in the context of a lot of engagement or any other due diligence we do having.

And the luck.

An important part of our confirmatory due diligence is getting on the ground so whether it be the newcrest or any other.

Having senior leaders on the ground.

Any other potential acquisition when you might be looking at what is very important for us in making that judgment.

Spitting out you need to spend a day.

But you learn a lot walking around and operation within a day in terms of the culture that operationally, particularly the safety culture and that is a very important part of our due diligence process.

About whether it's a fair value in a transaction. We proceed with is getting on the ground.

Certainly certainly a part of the due.

With their technical people, but also.

Due diligence process that we would be doing in this law of engagement so can't comment specifically on this.

Also stimulated so as we think about due diligence and sought visits.

Folks like robe.

This is particular engagement, but rather that.

Pewter Dean Gehring, all of my team with a banana vessels.

It is an important part of that decision, making process and we say that my son get people to sort and safety and safety culture is a fundamental part of that due diligence process.

Gases.

Francois Hardy, so very senior operational leaders.

Whether it be in the context of a law of engagement or any other due diligence we do.

Okay, great. Thanks, Tom.

Yes.

Thanks, Greg.

Having simulators on the ground.

We now have Mike Parkin with National Bank.

Spinning any day to spend a day.

But you learn a lot walking around and operation within a day in terms of the culture that operationally, particularly the safety culture and that is a very important part of our due diligence process.

Hey, guys. All my questions have been answered congrats on the good quarter.

Yes.

Okay.

Thanks, Bob good to hear your voice.

And Sidney certainly a part of the due.

Due diligence process that we would be doing in this law of engagement. So.

We have a final question on the line from any company.

Comment specifically on.

CIBC World markets.

This is particular engagement, but rather that.

Hi, Thanks.

My follow up so I just wanted to talk about.

It is an important part of that decision, making process and we say that my son get people to site and safety and safety culture is a fundamental part of that due diligence process.

You talked about in Western Australia.

Yes.

Good morning, Jeff to make your conference calls you probably delve into that a little bit more.

Okay, great. Thanks, Tom.

Thanks, Greg.

I do recall meeting the gentleman that you appointed I can't recall it.

We now have Mike Parkin with National Bank.

To head up that in Michigan.

No. It's no secret that Newcrest has been at the center.

Thanks, guys. All my questions have been answered congrats on the good quarter.

I'm just trying to understand how you know.

Yes.

Okay.

Ultimately you proposed to improve some of their operations, but also the deal with.

Thanks, Bob good to hear your voice.

You have a final question on the line from any company.

Yeah.

Cultural issues that new craft tied around sexual harassment.

The CIB.

CIBC World markets.

Hi, Thanks for taking my follow up so I just wanted to talk about.

<unk>.

In respect of work they have a program in place Congress that work, which I'm not sure if you will but any results yet or not but I.

You talked about in Western Australia.

Just wanted to see how are you guys.

Yes.

Thinking about that would approach that obviously you your knowledge that you have had some issues yourself.

Important enough to make your conference calls you probably delve into that a little bit.

But I just wanted to see how youre thinking about that in the context of that.

More than I do recall meeting the gentleman that you appointed I can't recall it.

A company that is now.

Far more pockets in Australia.

That in Michigan.

No it's no secret that.

Yeah.

If things are really really important question and Alex bites is the name of the person you're remembering as well.

Newcrest has been at the center of some of these.

So I'm just trying to understand how.

It was the senior Vice President of the Australian Operation.

Currently you proposed to improve some of their operations, but also to deal with.

And it's been working directly familiar over the last year spending Tomanek trail, our thoughts in that as I say a nice.

So the cultural issues that new crop tied around excellent rock.

Small focus groups and one on one discussions.

In respect to work they have a program in place conference that that work, which I'm not sure if it's real but any results yet or not but.

Hum.

This is these are issues that exist in society, and it's up to every workplace, whether you're mining or everywhere else around the world.

Just wanted to see how are you guys.

Thinking about that would approach that obviously your knowledge that you have had some issues yourself.

And I can say that with confidence now because we're in eight countries around the world and Alex This is completed.

But I just want to see how youre thinking about that.

A larger company that is now.

Engagements at every one of our operations and the consistency in the stories and the personal experiences.

More focused in Australia.

Okay.

Reflect these issues exist in every society and certainly the countries that we work in.

If things are really really important question and Alex bites is the name of the person.

So it exists every workplace, including ALS and I'm confident at the site.

You're remembering.

It was the senior Vice President of the Australian Operation.

And it's been working directly familiar over the last year spending terminate surveil, our thoughts in that as I say a nice buzz.

Every other mining company as a as a result.

When we think about the work we need to do to.

Small focus groups and one on one discussions.

Change, the hybris and improve workplace culture.

But.

Deliberately after Alex to do the work one one because.

These are issues that exist in society, and it's up to every workplace with her in mining are everywhere.

He has the operational experience he understands.

Around the world.

Operations, and what happens on Saturday knots on back shifts not shifts and all the rest of it.

And I can say that with confidence now because we're in eight countries around the world and Alex.

<unk> is completed.

He also.

Engagements that everyone about our operations and the consistency in the stories and the personal experiences.

Is representative of.

The group of people, who use the HIFU needs to change in order for us to change the culture and workplace.

Reflecting these issues exist in every society certainly the countries that we work in.

Those those people with power and privilege.

So it exists every workplace, including ALS and I'm confident at the site.

It's taking with parent privileged you need to change their behavior and typically in a mining industry certainly in the western World.

Every other mining companies as a result.

Mark Alex look a lot like the middle aged white men and.

When we think about the work we need to do to.

It is about creating dissidence in terms of who.

Change behaviors and improve workplace culture.

Who's the hyphenated change and how do we change that behavior to create I.

Deliberately after Alex to do the work one one because.

A more respectful workplace.

He has the operational experience he understands.

When I think about any potential transaction and integration.

Operations, and what happens on Saturday knots on back shifts not shifts and all the rest of it.

Whether it be newcrest or any other company.

Our approach would be to apply the same things that we're going to have to do within our own operations in terms of setting expectations for what is some acceptable behavior to be equipping our latest with the schools to understand what is inappropriate behavior and aggressive huh.

He also.

Is representative of.

The group of people, whose the hike in Asia to change in order for us to change the culture and workplace.

Those those people with power and privilege.

It's taken with parent privilege you need to change their behavior and typically in a mining industry certainly in the western World.

Early on to ensure that we're creating sites working garments.

Mark Alex look a lot like the middle aged men and so it is about creating dissonance in terms of.

Many of many mining operations have a culmination camps, how are we thinking about safe work environments and al combination cancer, not only for the men and women who work in our mining operations, but importantly for those people who cater in claim and that was a culmination of villages.

Who's the hyphenated change and how do we change your behavior to create.

And more respectful workplace.

When I think about any potential transaction and integration.

Whether it be newcrest or any other company.

How do we how do we ensure that we have the person at the center of any event that occurs and we're supporting the person as we work through.

Our approach would be to apply this.

Things that we're going to have to do within our own operations in terms of setting expectations for what is acceptable behavior to be equipping our latest with the skills to understand what is inappropriate behavior and address it.

Any particular issue that might present in terms of billing.

Harassment racism and the lock so that the actions that we're looking to develop and tight.

At the moment.

We were successful in acquiring new crest would be exactly the same actions that we would be applying.

Early on to ensure that we are creating site work environments.

Many of many mining operations have a combination case, how are we thinking about site working borrowers now combination camps.

At a set of new Crystal who watch them. So nothing specifically that we do we have a lot of work to do.

For the men and women, who work in our mining operations, but importantly for those people who cater in claim and that was a culmination of villages.

The industry has a lot of work to do quite frankly society has a lot of work to do to improve the.

Hi.

In workplaces around the world.

How do we how do we ensure that we have the person at the center of any event that occurs and we're supporting the person as we work through.

Yeah.

Okay, well thank you Paul.

As a woman in mining and wanted to ask about some time in the field.

But it's definitely important work for sure.

Any particular issue that might present in terms of billing.

Yeah.

Harassment racism and the luck so that the actions that we're looking to develop and take.

Thanks for the question.

I think operator, he said it for questions.

Equity amount.

Yes, I can confirm this concludes the question and answer session.

We were successful in acquiring new crest would be exactly the same actions that we would be applying.

I'd like to turn the conference back over to Tom Palmer.

Uh huh.

And I said it would be a crystal who watch it so nothing specifically that we do we have a lot of work to do the industry has a lot of work to do quite frankly society has a lot of work to do to improve it.

Thanks, operator, and thank you everyone for your time this morning, and please enjoy the rest of it I think so.

Thank you for joining our conference and that does conclude today's call. Please have a lucky day and you may now disconnect.

Hi visits in workplaces around the world.

Yeah.

Okay, well, thank you cannot work.

As a woman in mining and when he spent some time in the field.

Alright, it's definitely important work for sure.

Yeah.

Thanks for the question Anita.

I think operator, who said it for questions.

Yes, I can confirm this concludes the question and answer session.

Let's turn the conference back over to Tom Palmer for any closing remarks.

Thanks, operator, and thank you everyone for you tell them. This morning, and please enjoy the rest of your day.

Yeah.

Thank you for joining I can confirm that does conclude today's call. Please have a lucky day and you may now disconnect your lines.

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