Q1 2024 Newmont Corp Earnings Call

Okay.

Sure.

Good morning, and welcome to Newmont's first quarter 'twenty 'twenty four earnings call.

Operator: Good morning, and welcome to Newmont's first quarter 2024 earnings call. All participants will be in the listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note the event is being recorded. I'd now like to turn the conference over to Tom Palmer, President and Chief Executive Officer. Please go ahead.

Operator: All participants will be in a listen only mode.

Operator: Should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.

Operator: After today's presentation there'll be an opportunity to ask questions. Please note the event is being recorded.

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

Thomas Ronald Palmer: Thank you operator.

Thomas Ronald Palmer: Good morning, everyone, and thank you for joining our call. Today I'm joined by my executive leadership team, including Natascha Viljoen and Karyn Ovelmen, and we'll all be available to answer your questions at the end of the call. Can I please ask you to note our course pre-statement and refer to our SEC filings, which can be found on our website? Before we begin today, I'd like to take a moment to remember the three colleagues who sadly lost their lives working for Newmont this year. Mike Kibena-Morrison, or Cobby, as he was known to his friends and colleagues, for the dedicated and hard-working member of our Half-O-North project team and the natural later. Cobby was a son and husband.

Thomas Ronald Palmer: Good morning, everyone and thank you for joining our call.

Thomas Ronald Palmer: Today I'm joined by my Executive leadership team.

Thomas Ronald Palmer: Net cash at <unk> and Karen Edelman.

Thomas Ronald Palmer: All will be available to answer your questions at the end of the call.

Thomas Ronald Palmer: Can I. Please ask you to note our cautionary statement and referred to as you say filings, which can be found on our website.

Thomas Ronald Palmer: Yeah.

Thomas Ronald Palmer: Before we begin today I'd like to take a moment to remember the trade colleagues, who sadly lost their lives working through demand this year.

Thomas Ronald Palmer: Alright beta Morrison on coffee as he was dying to his friends and colleagues with a dedicated and hardworking member although outside North project.

Thomas Ronald Palmer: And the natural later.

Thomas Ronald Palmer: Coffee was a sudden husband.

Thomas Ronald Palmer: [inaudible] Dear friend to many, and he will be greatly missed. Rosanna Lestermark was a daughter, a wife, and a mother to a young daughter. Civil engineer, Rosanna was part of the original team that developed Cerro Negro 11 years ago and had aspirations to soon become a part-time farmer in Argentina. Daniel Ochoa was a son, father to two young boys, partner, and He has been described by his colleagues as a strong team member with ambitions to further develop his career in mining.

Thomas Ronald Palmer: Uh huh.

Thomas Ronald Palmer: Dear friend to many and he will be greatly missed.

Thomas Ronald Palmer: Right that are less about where the daughter.

Thomas Ronald Palmer: Yes.

Thomas Ronald Palmer: Two young daughter.

Thomas Ronald Palmer: Civil engineer.

Thomas Ronald Palmer: Or is that it was part of the original team that developed Cerro <expletive> 11 years ago.

Thomas Ronald Palmer: Had aspirations to soon become a pod top pharma in Argentina.

Thomas Ronald Palmer: And Daniel would show up.

Thomas Ronald Palmer: One father to two young boys.

Thomas Ronald Palmer: And our brother.

Thomas Ronald Palmer: He has been described by his colleagues as a strong team member.

Thomas Ronald Palmer: With ambitions to further develop he's Korea in mining.

Thomas Ronald Palmer: The investigation into these tragic incidents have been led by two of our managing directors from different business units.

Thomas Ronald Palmer: The investigations into these tragic incidents have been led by two of our Managing Directors from different businesses, with the support of teams of subject matter experts, to ensure that we truly understand the cause of the... Our response will include implementing both immediate measures from early observations from the investigation, as well as taking a structured approach to reinvigorate our safety system. Tools and In-Field Leadership Activities that will all have a heavy focus on the quality of application.

Thomas Ronald Palmer: With the support of teams of subject matter experts to ensure that we truly understand the cause of the incidents.

Thomas Ronald Palmer: Our response will include implementing immediate measures from early observations from the investigations.

Thomas Ronald Palmer: Well, it's taking a structured approach to reinvigorate our safety systems tools and in field leadership activities.

Thomas Ronald Palmer: All have a heavy focus on the quality of application.

Thomas Ronald Palmer: Sadly. These recent incidents a stark reminder of the need to maintain discipline and a relentless focus on safety fundamentals.

Thomas Ronald Palmer: Sadly, these recent incidents are a stark reminder of the need to maintain discipline and a relentless focus on safety fundamentals. The loss of Adam Kennedy, Cobby, Rosanna, and Daniel over the past six months has had a profound impact on the entire Newmont family, and it is with great humility and resolve that I address you.

Thomas Ronald Palmer: The loss of Arab Kennedy, Colby, Rosetta and Daniel over the past six months.

Thomas Ronald Palmer: A profound impact on the entirety of my family.

Thomas Ronald Palmer: And it is with great humility and resolved.

Thomas Ronald Palmer: We will continue to challenge ourselves to ensure that everyone working in our business goes home safely to their loved ones. Turning to our quarterly results. We are firmly on track to deliver our 2024 guidance. We are pleased with our operational performance in the first quarter and remain focused on delivering consistent results as guided over the remainder of this year and beyond. I also want to reiterate the four key commitments that we have made to our shareholders. We continue to make progress on these committees.

Thomas Ronald Palmer: We will continue to challenge ourselves to ensure that everyone working in that business goes home safely to their loved ones.

Thomas Ronald Palmer: Turning to our quarterly results.

Thomas Ronald Palmer: We are firmly on track to deliver our 2020 full guidance.

Thomas Ronald Palmer: We are pleased with our operational performance in the first quarter.

Thomas Ronald Palmer: And remain focused on delivering consistent results as it got it.

Thomas Ronald Palmer: <unk> of this year and beyond.

Thomas Ronald Palmer: I also want to reiterate the four key commitments that we have made to our shareholders.

Thomas Ronald Palmer: We continue to make progress on these commitments.

Thomas Ronald Palmer: And I'd like to provide a brief update on our first quarter achievements, starting with strengthening Newmont's position as the gold industry's recognized sustainability leader. Last week, Newmont published its 20th Annual Sustainability Report, along with its third annual taxes and royalties contribution, both providing a detailed and transparent look at our values-driven approach to sustainability and the economic contributions we make in the jurisdictions and communities that we operate with this sustainable foundation in place.

Thomas Ronald Palmer: And I'd like to provide a brief update on our first quarter achievements.

Thomas Ronald Palmer: Starting with strengthening demand position, it's the gold industry's recognized started ability later.

Thomas Ronald Palmer: Last week, you must published at 20th annual Sustainability report.

Thomas Ronald Palmer: Along with that third annual taxes and royalties contribution report.

Thomas Ronald Palmer: But it is providing a detailed and transparent look at values driven approach to sustainability.

Thomas Ronald Palmer: And the economic contributions we buy in the jurisdictions and communities that we operate.

Thomas Ronald Palmer: With the stable foundation in place, we have created the industry's strongest portfolio of world class gold and copper assets.

Thomas Ronald Palmer: We have created the industry's strongest portfolio of world-class gold and copper assets, and the most favorable bonding jurisdiction, and from this portfolio, we produced 1.7 million ounces of gold at an all-in sustaining cost of $1,439 an ounce in the first quarter.

Thomas Ronald Palmer: The most favorable bonding jurisdictions.

Thomas Ronald Palmer: And from this portfolio, we purchased one 7 million ounces of gold at an all in sustaining cost of $1439 an ounce in the first quarter.

Thomas Ronald Palmer: We continue to expect these unit cost to improve throughout the year.

Thomas Ronald Palmer: We continue to expect these unit costs to improve throughout the year, driven by both higher production in the second half and the delivery of synergies. I'd also note that in the first quarter, our Go Forward Tier 1 portfolio produced 1.4 million ounces of gold at $1,378 an ounce. T1 Portfolio, Old Circle, over 480,000 gold equivalent ounces from copper, silver, lead, and zinc, and included in this number is the 35,000 tons of copper that we produced and sold.

Thomas Ronald Palmer: Driven by the higher production in the second half and the delivery of synergies.

Thomas Ronald Palmer: I'd also note that.

Thomas Ronald Palmer: In the first quarter. Our go forward T. One portfolio produced one 4 million ounces of gold.

Thomas Ronald Palmer: $1358 an ounce.

Thomas Ronald Palmer: Our tier one portfolio also produced a 480000 gold equivalent ounces from copper silver lead and zinc.

Thomas Ronald Palmer: Included in this number is the 35000 tons of copper that we produced and salt.

Thomas Ronald Palmer: We generated $776 million of cash flow from operating activities in Q1.

Thomas Ronald Palmer: We generated $776 million of cash flow from operating activities in Q1, including a $666 million reduction in working capital, which Karyn will cover in a few minutes. And when we exclude the $291 million one-time stamp duty payment we made in February in connection with our acquisition of U-Press, free cash flow for the quarter would have been $217 million.

Thomas Ronald Palmer: Including a $666 million reduction from working capital, which Karen will cover in a few minutes.

Thomas Ronald Palmer: And when we exclude the $291 million one time stamp Judy time, it would be made in February in connection with our acquisition of depressed.

Thomas Ronald Palmer: Free cash flow for the quarter would have been $217 million.

Thomas Ronald Palmer: Our second quarter production and costs are.

Thomas Ronald Palmer: Our second quarter production and cost are expected to remain relatively consistent with the first quarter, and we continue to expect that our gold production will be weighted to around 53% in the second half of the year, remaining firmly on track to receive our four-year guidance on both the production and cost basis in the first quarter. We also continue to progress the investment in our six high-quality non-core assets this year, and this morning we announce the sale of our London Gold Finance business, generating $330 million in cash proceeds and furthering our commitment to maximising shareholder value by monetising our non-core assets.

Thomas Ronald Palmer: Are expected to remain relatively consistent with the first quarter.

Thomas Ronald Palmer: And we continue to expect that our gold production will be weighted to around 53% in the second half of the year.

Thomas Ronald Palmer: Remaining firmly on track to achieve that full year guidance on both production and cost basis.

Thomas Ronald Palmer: In the first quarter. We also continued to pick rates the divestment of our six high quality non core assets this year.

Thomas Ronald Palmer: And the sporting we announced the sale of that.

Thomas Ronald Palmer: Lundin gold financing facilities.

Thomas Ronald Palmer: <unk> $330 million in cash proceeds.

Thomas Ronald Palmer: Furthering our commitment to maximizing shareholder value by monetizing non core assets.

Thomas Ronald Palmer: We continue to maintain our exposure to frigid don't know tight.

Thomas Ronald Palmer: We continue to maintain our exposure to Frida Del Norte through our Equity Interest in London Gold, underpinned by the industry's strongest portfolio of gold and copper assets. We remain committed. As part of this, we declared a first quarter dividend of $0.25 per share, demonstrating our ongoing commitment to returning capital to shareholders.

Thomas Ronald Palmer: So our equity interest in Lundin gold.

Thomas Ronald Palmer: Underpinned by the industry's strongest portfolio of gold and copper assets.

Thomas Ronald Palmer: Mine committed.

Thomas Ronald Palmer: We remain committed to maintaining a disciplined and balanced approach to capital allocation.

Thomas Ronald Palmer: Part of this we declared a first quarter dividend of 25 cents per share demonstrating.

Thomas Ronald Palmer: Demonstrating our ongoing commitment to returning capital to shareholders.

Thomas Ronald Palmer: We refinanced approximately $2 billion of debt related to the <unk> acquisition.

Thomas Ronald Palmer: We refinanced approximately $2 billion in debt related to the Newcrest Act, and we continue to advance our four key projects we have in execution, the second expansion at Tanami, our new mine, Harpo North, and our two new block caves at Katie's, and finally turning to Synergy. We remain firmly on track to deliver on our commitment. In the first quarter, we achieved $56 billion in synergies, bringing the total delivered to $105 million since we closed our acquisition of Duke Rest in November last year and building solid momentum towards our commitment of delivering a $500 million Synergy run rate by the 1st of January 2026.

Thomas Ronald Palmer: And we continue to advance our four key projects we have in execution.

Thomas Ronald Palmer: Second expansion of Panama.

Thomas Ronald Palmer: Do you mind, how far north.

Thomas Ronald Palmer: And that to your block caves Acadia.

Thomas Ronald Palmer: And finally, turning to synergies we remain firmly on track to deliver on our commitments.

Thomas Ronald Palmer: In the first quarter, we achieved $56 billion in synergies bringing.

Thomas Ronald Palmer: Bringing the total to limit to $105 million since we closed our acquisition of <unk> in November last year.

Thomas Ronald Palmer: And building solid momentum towards our commitment of delivering 500 million dollar synergy run rate by the first of January 2026.

Thomas Ronald Palmer: We have identified a series of initiatives each with action plans and dedicated resources in place.

Thomas Ronald Palmer: We have identified a series of..., each with action plans and dedicated resources in place, that have us on track to achieve a $335 million run rate by the end of this year, representing two-thirds of our $500 million Synergy commitment and well ahead of the run rate we estimated when we announced this commitment in May of last year. Beginning with the core of this value delivery, we are seeing great opportunities emerging from our full potential work, and we are just getting started.

Thomas Ronald Palmer: How about on track to achieve a $335 million run rate by the end of this year.

Thomas Ronald Palmer: Representing two thirds of our 500 million dollar synergy commitment.

Thomas Ronald Palmer: And well ahead of the run rate, we estimated when we announced this commitment didnt buy of last year.

Thomas Ronald Palmer: Beginning with the core of this value delivery.

Thomas Ronald Palmer: We are seeing right opportunities emerging from our full potential work and we are just getting started.

Thomas Ronald Palmer: At play here.

Thomas Ronald Palmer: At La Jolla, we recently completed the first phase of full potential, from which we have identified an issue that will deliver more than $150 million of value. To double the synergy target we allocated to this new Tier 1 operation in our portfolio. I've just returned from La Jolla, and the key to extracting this value will be simplification, following a very similar approach to the one we used at Penosquito five years ago.

Thomas Ronald Palmer: <unk> completed the first phase of full potential.

Thomas Ronald Palmer: From which we have identified initiatives that will deliver more than $150 million of value.

Thomas Ronald Palmer: Close to double the synergy target, we allocated to the U T. One operation in our portfolio.

Thomas Ronald Palmer: I've just returned from the here and the key to extract this value will be simplification.

Thomas Ronald Palmer: Following a very similar approach to the one we used to pay the <unk> five years ago we.

Thomas Ronald Palmer: We have key members of our Newmont technical team on the ground in P&G supporting the site team to work on simplifying operations by focusing on the areas that will genuinely move the needle and stopping the non-value activities that have historically plagued this operation. One example of this work... This is the work we are doing to de-bottleneck the materials handling and crushing circuit, which has been limited by the years' different oil properties, resulting in downtime from spillage, blocked chutes, and blocked crushers.

Thomas Ronald Palmer: We have key members of our technical team on the ground in PNG.

Thomas Ronald Palmer: Noting the sauteed to work on simplifying operations by focusing on the areas that were genuinely move to NATO and stopping the non value activities that have historically plagued this operation.

Thomas Ronald Palmer: One example of this work.

Thomas Ronald Palmer: Is the work we are doing to debottleneck, the materials handling and crushing circuits.

Thomas Ronald Palmer: Which have been limited by the he is different oil properties.

Thomas Ronald Palmer: Putting in downtime from spillage blocks shirts and blocked crashes.

Thomas Ronald Palmer: From this initiative alone, we expect to improve mill throughput and generate over $50 million in annual cash flow improvement. And with many future waves of opportunities already identified at La Jolla, we remain very excited about the untapped potential at this T1 operation. We are also well into the first phase of our full potential work at Cadia, Red Crisps, and Bridgejack and have already identified several high-value opportunities that we will progress in parallel.

Thomas Ronald Palmer: From this initiative alone, we expect to improve mill throughput generate about $50 million in annual cash flow improvements.

Thomas Ronald Palmer: And they are future waves of opportunities already identified at least here we remain very excited about the untapped potential at this tee one operation.

Thomas Ronald Palmer: We are also well into the first phase of our full potential work Acadia Red Chris and Bruce check.

Thomas Ronald Palmer: And have already identified several high value opportunities that we will put grass in parallel.

Thomas Ronald Palmer: Initiatives now underway at Lehia for our Supply Chain Synergy. We have already realized close to $30 million from negotiating more favourable terms and pricing for materials and equipment, as well as first consolidating and then renegotiating service contracts. As we look ahead... We will continue to work closely with our key suppliers, leveraging our unmatched scale and global partnership. We seek improvements through negotiations and tenders over the course of the year and turn to GNA.

Thomas Ronald Palmer: With the initiatives now underway at play here.

Thomas Ronald Palmer: For our supply chain synergies.

Thomas Ronald Palmer: Have already realized close to $30 million from negotiating more favorable terms and pricing of materials and equipment.

Thomas Ronald Palmer: Well, let's first consolidating and then renegotiated service contracts.

Thomas Ronald Palmer: As we look ahead.

Thomas Ronald Palmer: We will continue to work closely with our K supplies.

Thomas Ronald Palmer: Leveraging our unmatched scale and global partnerships.

Thomas Ronald Palmer: Improvements through negotiations and tenders over the course of the year.

Thomas Ronald Palmer: Then turning to Jay and I will.

Thomas Ronald Palmer: We have already achieved over 80% of the synergies that we committed to, and we expect to exceed our $100 million G&A commitment by the end of this year. Most of our DNA synergies are coming from employee and contractor rationalization, as we expect, and to a lesser extent from reductions in insurance premiums and other administrative fees. We look forward to realizing the significant production and cost benefits from our Synergy work, and we will continue to provide you with updates on our progress each quarter. And with that, I'll now pass it to Natascha and then Karyn for an update on our operational and financial performance for the quarter.

Thomas Ronald Palmer: We have already achieved.

Speaker Change: Percent of the synergies that we committed to and.

Natascha: And we expect to exceed our 100 million dollar G&A commitment by the end of this year.

Thomas Ronald Palmer: Most of that G&A synergies are coming from employee and contractor rationalization as we expected and to a lesser extent from reductions in insurance premiums and other administrative phase.

Natascha: We look forward to realizing the significant production and cost benefits from our synergy work and we will continue to provide you with updates on our progress each quarter.

Natascha: And with that I'll now pass it to Natasha and then Karen for an update on our operational and financial performance for the quarter.

Natascha Viljoen: Thank you, Tom, and good morning, everyone. After the loss of our colleagues at Ahofa North and Cerro Negro, Tom and I spent time at these two sites, and with the Project Operation and Investigation teams, to get a first-hand understanding of the incidents to inform our global response to address our safety performance. In addition to O'Hara for North and Cerro Negro, I had the privilege of visiting five of our six managed Tier 1

Natascha: Every year and attention.

Speaker Change: Thank you Tom and good morning, everyone.

Natascha Viljoen: After the loss of our Honey I don't offhand know at Cerro <expletive>.

Natascha Viljoen: I spent time at these two sites.

Natascha Viljoen: Project operational, adding 50, guys teams to get that firsthand understanding of the insights to inform our plasma response to take place.

Natascha Viljoen: Our safety performance.

Natascha Viljoen: In addition to often notes in Cerro <expletive> I had the privilege of visiting five of our six managed can't walk.

Natascha Viljoen: and spend time with our colleagues at Bunnington, Iniskito, Achim, Ahofo, and Lahir as well as Yanagucha and Marion. Our operations delivered a strong first order performance, in line with our business plan and outlook for the year. With full potential underway at many of our sites, we remain confident in our ability to deliver safe and efficient production, keeping us on track to deliver on the commitments Tom just described. I will cover the first order performance and outlook for our Tier 1 operations. Starting with Panama,

Natascha Viljoen: Operations.

Natascha Viljoen: Same time without honey.

Natascha Viljoen: Boddington and as Keith has it came off and the U S China with Marriott.

Natascha Viljoen: Our operations delivered a strong says oh tend to fall.

Natascha Viljoen: In line with our business plan and outlook for the year.

Natascha Viljoen: With full potential underway at many of our sites, we remain confident in our ability to deliver safe and efficient production.

Natascha Viljoen: Keeping us on track to the end.

Natascha Viljoen: On the Commandments, Tom just described.

Natascha Viljoen: I won't cover distasteful the performance in our core tier.

Natascha Viljoen: Tier one operations, starting with 10 of mine.

Natascha Viljoen: Panama achieved planned production for the quarter. Despite the heavy weight season in the northern Cal vaccine that resulted in a six week planned shut off the Panama Jack.

Natascha Viljoen: Tanami achieved planned production for the quarter despite the heavy wet season in the Northern Territory that resulted in a six-week closure of the Tanami Tract. In the first quarter, Tanamiya delivered higher tons mined from deeper underground and successfully completed its planned mold shutout, positioning the site to deliver at least a 20% increase in mold production in the second quarter compared to the first. At Boddington, the stripping of the current laybacks in both the North and South Beds continued to ramp up in the first quarter, an investment that will bring forward stronger gold and copper grades starting in 2026.

Natascha Viljoen: In the first quarter, Panama Hyatt tonnes mined from the underground and successfully completed its planned vote shut out.

Natascha Viljoen: <unk> the site still have at least a 20% increase in bolt action in the second quarter conveyed to the first.

Natascha Viljoen: At Boddington, the stripping of the current Lightbox in south and North and South.

Natascha Viljoen: To wrap up in the first quarter and.

Natascha Viljoen: And investment that will bring forward stronger gold and copper grades starting in 2026.

Natascha Viljoen: Total material moved increased over the fourth quarter due to improved tons mined and higher shovel productivity through the introduction of double-sided loading for our autonomous truck fleet, representing a major milestone for this entire fleet as the performance of this technology continues to go from strength to strength. The Mosquito delivered strong silver and lead production from the Chile, Colorado pit in the first quarter, as waste stripping continues to progress in the Penobscot pit, as previously indicated.

Natascha Viljoen: Total material moved increased I think the fourth quarter due to improved tons mined and highest shovel productivity through the introduction of double sided smelting for our autonomous truck seat.

Natascha Viljoen: Representing a major milestone for this all fleet as the performance of this technology continues to go from strength to strength.

Natascha Viljoen: And if you talk to limit strong silver and lead production from the Chile, Colorado pit in the first quarter.

Natascha Viljoen: It's why stripping continues to proudly in the NASCAR pets as previously indicated.

Natascha Viljoen: As a result, and as planned we continue to expect gold production to be around 60, St weighted towards the second half Yeah. This world class Poly metallic mine.

Natascha Viljoen: As planned, we continue to expect gold production to be around 60% weighted towards the second half of the year at this world-class polymetallic mine. As we return to mining ore from the Benasca Bit toward the end of the year, we will have access to these higher gold rates in the fourth quarter and into next year. At OHAFA, we continue to optimize the processing circuits in the first quarter, achieving a 37% increase in mold throughput compared to the prior quarter. The newly fabricated girth gear for one of the two SAGMALs has arrived on sale.

Natascha Viljoen: I was pretty tend to mining ore from the pit NASCAR pit towards the end of the year, we will have access to these higher goals right in the fourth quarter and into next year.

Natascha Viljoen: At wholesale we continue to optimize the processing circuits in the first quarter, achieving a 37% increase in most simple compared to the prior quarter.

Natascha Viljoen: The newly fabricated glass can't for one of the two Sag Mills has arrived on site.

Natascha Viljoen: And we remind you that we are on track to reply this year in May of this year. Once the new growth gear is commissioned, we anticipate a 10 to 20-day wrap-up period to reach full processing rights, resulting in even stronger production levels at our HOFO into the second half of the year. Gaidio continued to deliver strong gold and copper grades from the current blockades in the first quarter.

Natascha Viljoen: We remain on track to replace this yeah in my office yet.

Natascha Viljoen: Once the new gas case commissioned we anticipate I tend to 'twenty die ramp up period to reach full processing rates.

Natascha Viljoen: Salting and even stronger production cables other half into the second half of it yet.

Natascha Viljoen: Guy do you have continued to deliver strong gold and copper grades from the low case in the first or tab.

Natascha Viljoen: However, as factored into our guidance, these growth rates are expected to gradually decline over the remainder of the year as we transition from mining this cave to Panel Cave 2-3. And the work we are doing on both tailings rectification and expansion at CADIA, as mentioned last quarter, is progressing well. Tom and I visited Lahir in early April and were impressed with the team's dedication and understanding of the potential work. As Tom said, this work will focus on simplifying the operation and being clear on the highest value options, that will drive stability through the mining value chain. In addition, I want to flag that the largest of our four autoglides for the year will come down in Quarter 3 for planned maintenance. This shutdown is included in our guidance.

Natascha Viljoen: And that is factored into our guidance. These grads are expected to gradually decline over the reminder of the yet as we transition from mining disguise.

Natascha Viljoen: Panel cave two stream.

Natascha Viljoen: And the work we're doing on bad timing swing topic, I shouldn't and expansion that caveat as mentioned the protest is proudly say wow.

Natascha Viljoen: Tom and I visit into here in early April and we placed with the team's education and understanding and then implementing full potential work.

Natascha Viljoen: As Tom stated this work will focus on simplifying the operation.

Natascha Viljoen: And being clear on the highest value option.

Natascha Viljoen: We'll drive stability through the mining value chain.

Natascha Viljoen: In addition, I wanted to flag that the largest of our four all the clients I think he would come down in quarter three full pad by Internet.

Natascha Viljoen: This shutdown.

Natascha Viljoen: And our guidance.

Natascha Viljoen: Mhm.

Natascha Viljoen: During the first quarter, we continued to progress to full key projects. We currently have in execution.

Karyn F. Ovelmen: During the first quarter, we continued to progress the four key projects we currently have in execution. At Ahofa North, we are advancing the construction of the processing plant and mine service facilities, along with waste stripping activities to allow the mining of ore to commence towards the end of this year. We are diligently focused on progressing the project safely and efficiently and looking forward to delivering new low-cost ounces in the second half of 2025.

Karyn F. Ovelmen: I don't often know we are advancing the construction of the processing plant and mindset of synergies.

Karyn F. Ovelmen: With waste stripping activities to allow the binding of own to commence towards the end of its yet.

Karyn F. Ovelmen: We are diligently focused on progressing the project safely and efficiently and looking forward to delivering new low cost ounces in the second half of 2025.

Karyn F. Ovelmen: I think second expansion of Panama, and our focus is on safely mining the law was six inches off the shelf.

Karyn F. Ovelmen: At the second expansion of Panama, our focus is on safely lining the lower section of the shop. And as you can see in the photo, we also continued to progress the construction of the underground infrastructure, including pouring the concrete foundation for the crusher chamber during the first quarter. The two block caves at Cadia are both progressing well. We are advancing cave development to bring production online at Panel 2-3, and we are progressing underground development work for Panel Cave 1-2. With that, I'll turn it over to Karyn to cover our financial performance and capital allocation priorities for the remainder of the year.

Karyn: And as you can see in the fact that we also continued to progress the construction of the underground infrastructure.

Karyn: Including pouring the concrete foundations for the crushing China during the first quarter.

Karyn: It is not kind of caveat, our best practices well, we are advancing <unk> development to bring production online I don't know two three.

Karyn: And we are proud of the underground development plan panel cave one kid.

Karyn: With that I'll turn it over to Karen to cover all financial performance and capital allocation priorities.

Karyn: Bind that after yet.

Karyn F. Ovelmen: Thank you, Natascha. Let's get started with a review of the financial highlights for the quarter. Newmont delivered solid first-quarter earnings driven by strong production volumes and favorable metal prices. And as a reminder, results included only two months of equity investment in Lundin Gold, which is accounted for one quarter in arrears. In the first quarter, Newmont delivered $4 billion in revenue at an average realized gold price of $2,090 per hour and a copper price of $3.72 per pound.

Karyn: Thank you and just watch that let's get started with the review of the financial highlights for the quarter.

Karyn F. Ovelmen: Newmont delivered solid first quarter earnings driven by strong production volumes favorable metal prices and as a reminder results included only two months of our equity investment in Lundin gold, which is accounted for one quarter in arrears.

Karyn F. Ovelmen: In the first quarter Newmont delivered over $1 billion in revenue at an average realized gold price of $2090 per ounce and copper price of $3.72 per pound.

Karyn F. Ovelmen: Adjusted EBITDA $1 $7 billion.

Karyn F. Ovelmen: Justin Iveda, $1.7 billion, and adjusted net income of $0.55 per diluted share. The most notable adjustment to net income for the quarter was a 43-cent add-back related to non-cash impairments of non-core assets that were classified as held for sale as of March 31st. Under U of S GAAP, assets that are classified as held for sale require a specific evaluation and need to be recorded at the lower recurring value or fair value, less cost to sell, as a result of this evaluation.

Karyn F. Ovelmen: And adjusted net income of 55 cents per diluted share.

Karyn F. Ovelmen: The most notable adjustment to net income for the quarter with a 43% add back related to noncash impairments of non core assets that were classified as held for sale as of March 31.

Karyn F. Ovelmen: Under U S. GAAP assets that are classified as held for sale require a specific evaluation and needed to be recorded at the lower carrying value or fair value less cost to sell.

Karyn F. Ovelmen: As a result of this evaluation newmont realized in noncash loss on assets held for sale, including the associated tax impact of $485 million, primarily related to the coffee project as opposed to assets that are currently operational.

Karyn F. Ovelmen: Newmont realized a non-cash loss on assets held for sale, including the associated tax impact of $485 million primarily related to the coffee project, as opposed to assets that are currently operational. As I indicated on our previous call, we anticipated minimal free cash flow in the first quarter, primarily due to the timing of production and payment. However, we generated over $1.4 billion of cash flow from operations in the first quarter before a working capital reduction of $666 million.

Karyn F. Ovelmen: As I indicated on our previous call, we anticipated minimal free cash flow in the first quarter, primarily due to the timing of production and payments.

Karyn F. Ovelmen: We generated over $1 $4 billion of cash flow from operations in the first quarter before a working capital reduction of $666 million.

Karyn F. Ovelmen: These changes in working capital included.

Karyn F. Ovelmen: These changes in working capital included a one-time payment of $291 million dollars related to stamp duty tax stemming from the acquisition of Newcrest, which was accrued for last year. They build and stockpile primarily at our newly acquired sites $193 million. A bill that accounts receivable of $84 million, largely due to the ramp-up of operations at Penesquito in the first quarter and the timing of concentrate sales, and $59 million of reclamation spending primarily related to the construction of the Hennacota Water Treatment Facility.

Karyn F. Ovelmen: A one time payment of $291 million related to stamp duty tax stemming from the acquisition of new crash, which was accrued for last year.

Karyn F. Ovelmen: It building stockpiles, primarily at our newly acquired sites of $193 million.

Karyn F. Ovelmen: Hey, build in accounts receivable of $84 million largely due to the ramp up of operations at tennis keto and the first quarter and the timing of concentrate sales.

Karyn F. Ovelmen: And $59 million of reclamation, and primarily related to the construction of the Hana culture water treatment facilities.

Karyn F. Ovelmen: And a conscious ongoing closure advanced to the feasibility stage at the end of last year and continues to address several complex closer issues, including water management, social impacts and calix.

Karyn F. Ovelmen: Santa Croce's ongoing closure advanced to the feasibility state at the end of last year and continues to address several complex closure issues, including water management, social impacts, and talent. This long-term water management solution will replace five existing water treatment facilities with two.

Karyn F. Ovelmen: This long term water management solution will replace five existing water treatment facilities with too.

Karyn F. Ovelmen: We commenced our construction of the agriculture water treatment plants as planned this quarter and expect spending to ramp up throughout the year and continue to adversely impact working capital.

Karyn F. Ovelmen: We commend the circumstruction of the Anacocha Water Treatment Plants as planned this quarter and expect spending to ramp up throughout the year and continue to adversely impact working capital. Historically, Newmont's standalone reclamation spend averaged around $200 to $300 million per annum, but we expect to spend around $600 million in 2024 and peak around $700 million in 2025 before beginning to decline in 2026. As previously mentioned, the first half of the year traditionally tends to produce adverse work and capital changes.

Karyn F. Ovelmen: Historically, newmont Standalone reclamation spend averaged around $200 million to $300 million per annum, we expect to spend around $600 million in 2024.

Karyn F. Ovelmen: And peak around $700 million in 2025 before beginning to decline in 2026.

Karyn F. Ovelmen: As previously mentioned the first half of the year traditionally tends to produce adverse working capital changes and this normal trend is expected to continue into the second quarter.

Karyn F. Ovelmen: This normal trend is expected to continue into the second quarter, but with a slightly lower impact due to the regular timing, cash tax, and interest paid. And with projections also weighted toward the second half of the year, we anticipate that the majority of our cash flow after working capital will be realized in the third and fourth quarters, positioning Newmont for a stronger second half of the year from both an earnings and cash flow perspective as we continue to focus on operational delivery.

Karyn F. Ovelmen: The slightly lower impact due to the regular timing cash tax and interest payments.

Karyn F. Ovelmen: And with protection also weighted towards the second half of the year, we anticipate that the majority of our cash flow after working capital will be realized in the third and fourth quarter positioning newmont for a stronger second half of the year from both an earnings and cash flow perspective, we continue to focus on opera.

Karyn F. Ovelmen: <unk> delivered.

Karyn F. Ovelmen: As Tom mentioned, we remained firmly on track to achieve our full year guidance for production cost and capital spend.

Karyn F. Ovelmen: As Tom mentioned, we remain firmly on track to achieve our full-year guidance for production, costs, and capital. Production is expected to increase in the second half of the year. The year's strongest performance anticipated in the fourth quarter, primarily driven by strong grades at Penasquito, Ahofeld, and Panama, and Unicost will be closely correlated to production. The added benefit of full potential improvements and additional synergies realized in the second half of the year.

Karyn F. Ovelmen: Production is expected to increase in the second half of the year.

Karyn F. Ovelmen: Do your strongest performance anticipated in the fourth quarter, primarily driven by strong grades and tennis keto heartfelt and Panama.

Karyn F. Ovelmen: And unit costs will be closely correlated to production with the added benefit of full potential improvements and additional synergies realized in the second half of the year.

Karyn F. Ovelmen: Capital Discipline is a key focus area for us with our transformed portfolio. As mentioned on our last call, we continue to expect to invest an average of $1.3 billion per year of development capital in projects that will generate the highest returns, which we plan to provide more information about during our capital markets day in the fourth quarter of 2024. During the first quarter, we continued to execute our balanced capital allocation strategy, which focuses on maintaining a strong balance sheet, steadily funding cash-generative capital projects, and returning capital to shareholders.

Karyn F. Ovelmen: Capital discipline is a key focus area for us with our transformed portfolio.

Karyn F. Ovelmen: As mentioned on our last call. We continue to expect to invest an average of $1 $3 billion per year development capital projects that will generate the highest returns, which we plan to provide more information about during our capital markets day in the fourth quarter 'twenty 'twenty four.

Karyn F. Ovelmen: During the first quarter, we continued to execute our balanced capital allocation strategy, which focuses on maintaining a strong balance sheet steadily funding cash generative capital projects and returning capital to shareholders.

Karyn F. Ovelmen: We maintained an investment grade balance sheet and ended the quarter with $6 $7 billion in total liquidity when including our cash reclassified to current assets held for sale.

Karyn F. Ovelmen: We maintained an investment-grade balance sheet and ended the quarter with $6.7 billion in total liquidity when including the cash reclassified to current assets over sale. We reinvested $317 million of development capital as we continue to advance our highest return projects from our deep organic pipeline. And finally, we declared a fixed common first quarter dividend of $0.25 per share, in line with the dividend declared during the fourth quarter. Looking ahead, our capital allocation priorities have not changed, and the cash flows generated from our operations and the proceeds from investments will be allocated, First, to have an approximate cash balance of $3 billion and then to reduce debt up to $8 billion over the next few years.

Karyn F. Ovelmen: You reinvest at $317 million of development capital as we continue to advance our highest return projects from our organic pipeline.

Karyn F. Ovelmen: Finally, we declared a fixed common first quarter dividend <unk> 25 per share in line with the dividend declared during the fourth quarter.

Karyn F. Ovelmen: Looking ahead, our capital allocation priorities have not changed and the cash flows generated from operations and the proceeds from divestments will be allocated for.

Karyn F. Ovelmen: First to have an approximate cash balance of $3 billion, and then to reduce debt up to $8 billion over the next few years.

Karyn F. Ovelmen: Additionally, once we have line of sight and meeting our balance sheet targets, we intend to repurchase shares as we see value in buying back our shares.

Karyn F. Ovelmen: Additionally, once we have a line of sight on meeting our balance sheet targets, we intend to repurchase shares as we see value in buying back our shares. Maintaining a disciplined and structured approach to capital allocation throughout the year will better position Newmont to deliver value to our shareholders.

Karyn F. Ovelmen: Maintaining a disciplined and structured approach to capital allocation throughout the year.

Karyn F. Ovelmen: <unk> positioned newmont to deliver value to our shareholders.

Thomas Ronald Palmer: With that, I'll hand it to Tom for his closing remarks. Back to you, Tom. Thanks, Karyn.

Karyn F. Ovelmen: With that I'll hand, it to Tom for closing remarks actually.

Tom: Thanks Kurt.

Tom: In closing and as we look ahead to our priorities for the year.

Thomas Ronald Palmer: In closing, and as we look ahead to our priorities for the year, I'd like to reiterate our focus areas and key commitments. We will reinvigorate our established safety program and continue to strengthen Newmont's position as the gold industry's recognized sustainability leader. Second, over the next two years, we will continue operating the industry's strongest portfolio of world-class gold and copper assets in the most favourable mining jurisdictions. We will deliver $500 million of annual synergies.

Thomas Ronald Palmer: I'd like to reiterate our focus areas and K commitments.

Thomas Ronald Palmer: First.

Thomas Ronald Palmer: We will reinvigorate our established safety program and continue to strengthen its position as the gold industry's recognized sustainability laid up.

Thomas Ronald Palmer: Second we will continue operating the industry's strongest portfolio of world class gold and copper assets in the most favorable audit jurisdictions.

Thomas Ronald Palmer: Good okay.

Thomas Ronald Palmer: The next two years.

Thomas Ronald Palmer: We will deliver $500 million of annual synergies.

Thomas Ronald Palmer: An additional $500 million.

Thomas Ronald Palmer: Additional $500 million in cost and productivity improvement and over $2 billion in cash from portfolio optimisation. And finally, we will drive a disciplined, balanced approach to capital allocation, creating a resilient and returns-focused future for our organization and our shareholders from our Go Forward portfolio, focused on Tier 1 gold and copper operations. We are well positioned to deliver on these commitments and more, while adding an attractive value proposition to new and existing investors during this unique time in the Golden Age. And with that, I'll thank you for your time today and turn it over to the operator to open the line for questions.

Thomas Ronald Palmer: Cost and productivity improvements.

Thomas Ronald Palmer: And I have a $2 billion in cash from portfolio optimization.

Thomas Ronald Palmer: And finally, we will drive disciplined balanced approach to capital allocation, we are adding a resilient and returns focus future for our organization and our shareholders.

Thomas Ronald Palmer: From our go forward portfolio focused on tier one gold copper operations, we are well positioned to deliver on these commitments and more.

Thomas Ronald Palmer: We're adding an attractive value proposition to new and existing investors.

Thomas Ronald Palmer: During this unique time in the gold industry.

Speaker Change: And with that I'll. Thank you for your time today.

Thomas Ronald Palmer: And turn it over to the operator open the line for questions.

Thomas Ronald Palmer: Yeah.

Speaker Change: We will now begin the question and answer session.

Operator: We'll now begin the question and answer session. Please limit your inquiries to one primary question and one follow-up question. To ask a question, you may press star and then one on your touchtone phone. If you're using a speakerphone, please pick up your headset before pressing the keys. To withdraw your question, please press star, then two. At this time, we'll pause to assemble our roster. Our first question comes from Lawson Winder of Bank of America. Thank you, operator. Good morning.

Operator: We ask that you. Please limit your inquiries to one primary question and one follow up question.

Lawson Winder: To ask a question you May Press Star then one on your Touchtone phone.

Operator: If you're using a speakerphone please pick up your headset before pressing the keys to withdraw your question. Please press Star then two at this time, we'll pause to assemble our roster.

Operator: Our first question comes from Lawson Winder of Bank of America.

Lawson Winder: Thank you, operator. Good morning, Tom and team.

Lawson Winder: Thank you operator, good morning, Tom and team.

Lawson Winder: Very nice quarterly results and thanks for the update today. Can I start off by asking about asset sales? First of all, congratulations on realizing value from the sales of the lending stream and offtake. But with respect to that, first of all, when would you receive that cash, first of all? And then, second of all, will it be applied entirely to debt repayment? And then, just looking at the asset sales more broadly, we've seen public indications of interest, fairly substantial interest, in Achievement Helfer. How would you describe the interest in the other assets? And what is your timeline? Currently, I think I might be able to announce some transactions on these assets. Thank you.

Lawson Winder: Very nice quarterly results and thanks for the update today.

Lawson Winder: Can I start off by asking about asset itself first of all congratulations on realizing value from the sale of the <unk> streaming offtake.

Lawson Winder: But with respect to that.

Lawson Winder: First of all when you receive that when would you receive that cash first of all and then second of all we will it be applied entirely to debt repayment and then.

Lawson Winder: Just looking at the asset sales more broadly.

Lawson Winder: We've seen public indications of interest.

Lawson Winder: The substantial interest in achieving culture, how would you describe the interest in the other assets and what is your timeline.

Lawson Winder: I'm thinking too.

Lawson Winder: Being able to announce some so transactions on these assets. Thank you.

Speaker Change: Voting closer to take your pick up the second part of your question and I get care to pick up the first in terms of the use of the proceeds from that.

Thomas Ronald Palmer: from the London transaction. So six high-quality non-core assets that are now held for divestment. So we've moved into that accounting classification, as Karyn talked about. We have started a formal process on every one of those assets. So we're in phase one for each and every one of those assets. So we're in the price discovery phase. And there is a high level of interest across all of those processes.

Thomas Ronald Palmer: From the London transaction.

Thomas Ronald Palmer: So six six high quality non core assets that are now held for divestment.

Thomas Ronald Palmer: Moved into that accounting classification, its character book too.

Thomas Ronald Palmer: We have started a formal process on every one of those assets. So we're in phase one in each of those.

Thomas Ronald Palmer: Each and every one of those assets. So we were the price discovery phase.

Thomas Ronald Palmer: And there is a high level of interest across across all of all of those processes.

Thomas Ronald Palmer: When we classify assets held for sale, we are laying out a program, as we've committed to, that we will work to divest those assets for fair value over the next 12 months. Our preference is cash, and that's what we'll be looking at, optimized value and cash. The process has started on all six of them, and there's a high degree of interest; clearly, getting an asset out of a Newmont portfolio is attracting a lot of interest in the marketplace.

Thomas Ronald Palmer: When we when they classified as assets held for sale.

Thomas Ronald Palmer: We are laying out a program as we've committed to that we will work to divest those assets all fair value over the next 12 months.

Thomas Ronald Palmer: Preferences on cash and that's what we're looking to optimize value and cash but the process has started for all six of them and there's a high degree of interest clearly getting a finesse it out of the game of portfolio is attracting a lot of interest in the marketplace.

Thomas Ronald Palmer: I'll pass to Karyn in terms of your question around the use of the proceeds. They come in two tranches, Karyn, and then where we proposed... Yes, in terms of the use of the proceeds, so the first payment, second quarter, third.

Thomas Ronald Palmer: Karen in terms of your question the ramp up.

Karyn: The use of the proceeds that come in two tranches, Canada.

Karyn: Yes in terms of the use of proceeds so the first payments second quarter through the second payment in the third quarter, our capital allocation priorities.

Karyn F. Ovelmen: Yes, in terms of the use of proceeds, so the first payment in the second quarter, the second payment in the third quarter, our capital allocation priorities are consistent, as I discussed in my prepared remarks, and as we've indicated through 2024, the beginning part of the year, we will be drawing on cash as we go through the year, and so the first proceeds would be used to kind of replenish those cash balances as we go forward.

Karyn F. Ovelmen: Priorities are consistent as.

Karyn F. Ovelmen: As I discussed in my prepared remarks.

Karyn F. Ovelmen: And as we've indicated through 'twenty to predict for the beginning part of the year, we will be drawing on cash.

Karyn F. Ovelmen: As we go through the year and so the first probably first proceeds would be used to kind of replenish those cash balances may go for it.

Speaker Change: Great. Thank you very much.

Speaker Change: Thanks, a lot.

Karyn F. Ovelmen: Yeah.

Karyn F. Ovelmen: Our next question comes from Tanya <unk> of Scotiabank.

Operator: Our next question comes from Tanya Jakusconek of Scotiabank.

Tanya M. Jakusconek: Great. Good morning, Thank you for taking my question.

Tanya M. Jakusconek: Oh, great. Good morning. Thank you for taking my question. Natascha, I wanted to ask you just about the year on the GEO side. You gave us 4753 on the gold front. Can you give us some guidance on the other metals, maybe just on the GEOs, how they progress during the year, and particularly at Penasquito, please?

Tanya M. Jakusconek: Natasha I wanted to ask you just on the.

Tanya M. Jakusconek: The year on the G. E O side, you gave us the 47 53 on the coal front can you give us some guidance on the other metal.

Tanya M. Jakusconek: Maybe just on the PEO, how they progressed at the air and particularly Panofsky do please.

Natascha Viljoen: Hi, Thank you for that question I think starting off just ask broadly.

Natascha Viljoen: Tanya, thank you for that question. I think, starting off just broadly, we see higher contribution from Benesquito to GEOs this year because we are mining predominantly in the Chile-Colorado pits that we know are higher in GEOs. If we look at our GEL production across the last four quarters, we will see that the GEL production for silver would be around 9 million ounces a quarter, on the order of about 28,000 tons and 58,000 tons of zinc across the forecourt.

Natascha Viljoen: We will see we see higher contribution from <unk>.

Natascha Viljoen: Yes, because we all with we are mining too dominant in the Chile, Colorado pit.

Natascha Viljoen: We know is high in <unk>.

Natascha Viljoen: If we look at our <unk> production.

Natascha Viljoen: Ross.

Natascha Viljoen: In the last four quarters.

Natascha Viljoen: We will see that the <unk> collection.

Natascha Viljoen: Production and so that would be around 9 million ounces for today in the order of about 20 million ounces.

Speaker Change: I'm sorry.

Natascha Viljoen: No.

Natascha Viljoen: <unk> thousand tons, and 50000 tons of zinc.

Thomas Ronald Palmer: It's just chipping in there, Tanya, that they're sort of coming out of Chile and Colorado into the fourth quarter and heading back into Farnasco, pretty flat on silver and lead but probably going to catch a little bit more zinc maybe in the fourth quarter.

Natascha Viljoen: Zinc across the across the four quarters.

Thomas Ronald Palmer: Just just chipping in Kenya.

Thomas Ronald Palmer: Yes.

Thomas Ronald Palmer: That's sort of coming out of Chile, Colorado to the fourth quarter and get back and ask Scott pretty flat.

Thomas Ronald Palmer: Sooner or later, but probably a little bit more seek value.

Thomas Ronald Palmer: The fourth quarter.

Tanya M. Jakusconek: Okay, so that's helpful. Thank you.

Tanya M. Jakusconek: Okay.

Speaker Change: Well thank you.

Thomas Ronald Palmer: Co-op is pretty steady, Tanya, sorry.

Tanya M. Jakusconek: A couple of pretty steady through the year, what was pretty steady to unnecessary.

Speaker Change: Okay and could I ask.

Tanya M. Jakusconek: Okay, and could I ask, just still on the operational side, Natascha, you mentioned Lahir Maintenance in Q3. Are there any other big maintenance that we should be aware of in your portfolio, particularly Nevada Gold Mines, Pueblo Viejo, and Cadia?

Tanya M. Jakusconek: The operational side Natasha you mentioned.

Tanya M. Jakusconek: Here maintenance in Q3 are there any other big maintenance that we should be aware of in your portfolio, particularly in Nevada.

Tanya M. Jakusconek: <unk> platinum.

Tanya M. Jakusconek: <unk> Kalia.

Natascha Viljoen: The only other area would be Ohafo South, where we will be replacing the girth gear, as I mentioned in the prepared comments, and that will happen now in the second quarter, and then after that, we should see a ramp up back to normal production levels for Ohafo. You might remember Tanya, we did say that we reduced production out of Ohafo to make sure that we keep the two mold streams running, but that will then return to normal production right after that shutdown.

Tanya M. Jakusconek: The only other area would be a half of south we will be replacing the cask, yes, I mentioned in the prepared comments.

Natascha Viljoen: So and that will happen now in the second quarter and then after that we should see a ramp up back to normal production levels for a half hour.

Natascha Viljoen: You might have been Tanya we did cite that we've reduced production out of a half hour to to make sure that between the two.

Natascha Viljoen: Modes seems funny, but that's all they returned to normal production rates after that shot.

Speaker Change: Okay. That's very helpful. And then just finally on operations and then I'll leave it for someone else.

Tanya M. Jakusconek: Okay, that's very helpful, and then just finally on operations, and I'll leave it for someone else that I'm just interested in, as you know, the costs were quite good in Q1, even you know with the lower production level that you are going to expect better production going through the year. Anything on the inflationary front that you could flag for us any easing that you're seeing any benefits from?

Tanya M. Jakusconek: I'm just interested as you you know the costs were quite good in Q1, even with the lower production levels that Tom you are going to expect better production going through the year.

Tanya M. Jakusconek: Anything on the inflationary front that you can flag for us any easing that youre seeing anything that you're seeing some benefit sun.

Tanya M. Jakusconek: Yeah.

Natascha Viljoen: We've certainly seen some easing in three areas. We've seen it in contractor costs, diesel, and explosives. But then we've also seen some increase in our steel wool costs related to steel prices and then also cyanide costs. The other aspect would probably be energy. In certain areas, we see a reduction in energy. That is, I think, quite surprising for us in 2023.

Speaker Change: We certainly see seeing some easing in three areas, we see named in contractor costs diesel and explosives, but then we've also seen some increase in it.

Natascha Viljoen: Scalable cost related to our steel side.

Natascha Viljoen: Campaign has cyanide cyanide cost.

Natascha Viljoen: The other factor I would probably energy in certain areas, we see a reduction in energy.

Natascha Viljoen: That is I think quite surprising for us it's some 2023.

Thomas Ronald Palmer: And just a reminder, Daniel, you're about half way out of the rec course. Half way out of the rec course is Labor, and that's been pretty flat. Yes.

Speaker Change: And just to remind you that <unk> Rick.

Thomas Ronald Palmer: I've got a rig cost is labor and thats been pretty flat yes.

Daniel: So it's just as I understood because it faded in and out and I apologize for that just on where youre seeing reductions are easing isn't contractor costs.

Tanya M. Jakusconek: So just as I understood it, because it faded in and out, and I apologize for that, just on where you're seeing reductions or easing as in contractor costs, diesel, and some consumables and energy. Is that a correct statement?

Tanya M. Jakusconek: So and some consumables and energy is not a correct statement.

Daniel: Yeah, Yeah explosion of specifically.

Natascha Viljoen: Explosives, specifically. And then overall labor costs, yeah, overall labor costs dying floods for owned labor, that's about 50% of our cost might.

Natascha Viljoen: And then I was at all neither cost.

Natascha Viljoen: Yeah as a whole live across time slots for neither that's about 50% of our cost Michael.

Speaker Change: Okay. Thank you so much for taking my questions and I'll pass it to someone else. Thank you.

Tanya M. Jakusconek: Okay, thank you so much for taking my questions, and I'll pass them to someone else. Thank you.

Operator: Thanks, Tanya. Thanks. Our next question comes from Josh Wolfson of RBC Capital Markets.

Joshua Mark Wolfson: Thanks, Kevin.

Operator: Our next question comes from Josh Wolfson of RBC capital markets.

Joshua Mark Wolfson: Thanks very much. The team has painted a fairly rosy picture here of what the prospects are for asset dispositions and then also what the free cash flow outlook would look like absent some of these working capital headwinds. In that context, I'm wondering how flexible is the company's buyback policy, and I'm noticing the stock being a lot higher today than it was when the plans were announced for this in the fourth quarter results. Thank you.

Speaker Change: Hey, thanks very much.

Joshua Mark Wolfson: Team has painted a fairly rosy picture here on what the prospects are for asset dispositions.

Joshua Mark Wolfson: And then also what the with the free cash outlook will look like absent some of these working capital headwinds.

Joshua Mark Wolfson: In that context, I'm wondering how flexible is the company's buyback policy.

Joshua Mark Wolfson: Notice that the stock being a lot higher today than it was.

Joshua Mark Wolfson: When the when the planes were announced for this at the fourth quarter results. Thank you.

Thomas Ronald Palmer: Thanks, Josh. Yeah, as we go through the divestitures, and as I've indicated, as our free cash flow picks up in the second half of the year, our first priority is to ensure that we've got our cash replenished on our balance sheet. And then there will be flexibility in terms of as long as we have line of sight in terms of that debt reduction over the next 24 months, we would, at that point in time, if we were to, start to think about executing on a share buyback.

Speaker Change: Thanks, Josh.

Thomas Ronald Palmer: Yes, we as you go through the divestitures.

Thomas Ronald Palmer: As Ive indicated is our free cash flow picks up in the second half of the year.

Thomas Ronald Palmer: First priority is to ensure that we've got that are cash replenishment, our balance sheet and then there will be flexibility in terms of episodes. We have line of sight in terms of that got debt reduction over the next 24 months.

Thomas Ronald Palmer: At that point in time, if we were in a position to start to think about executing on share buybacks.

Speaker Change: We bought it just would've gotten approved $1 billion buyback program ready to go.

Thomas Ronald Palmer: And a reminder, Josh, we've got an approved $1 billion buyback program ready to go if and when that scenario, which Karyn maps out, takes place.

Thomas Ronald Palmer: If or when that scenario.

Joshua Mark Wolfson: Okay. And then just sort of to clarify, when I look at what a flat quarter would look like at much higher gold prices today, and again, without some of the larger working capital challenges, even maybe one or two of these asset dispositions would put you in line of sight of that. So is it fair to say that, you know, the prospects for this buyback could happen sooner than maybe the initial criteria were outlined for the balance sheet requirements?

Thomas Ronald Palmer: <unk> takes.

Thomas Ronald Palmer: <unk> plus.

Joshua Mark Wolfson: Okay, and then just sort of clarify when I look at even what a flat quarter would look like a much higher gold prices today and again without the some of the larger working capital challenges, even maybe one or two of these asset dispositions would put you in line of sight of that so is it fair to say.

Joshua Mark Wolfson: Say that the prospects for this buyback could happen sooner than maybe what the initial criteria were outlined for the for the balance sheet requirements.

Joshua Mark Wolfson: You had expectations for further divestitures is that those.

Thomas Ronald Palmer: The expectations for the divestitures are that those will be executed within the next 12 months, hence the classification on the balance sheet as assets held for sale. So the expectation is that through the first quarter of 2025, we will have executed or made decisions around the divestitures. And so the timing is contingent upon

Thomas Ronald Palmer: Those will be executed within the next 12 months, hence that the classification on the balance sheet as assets held for sale. So expectation is through first quarter of 2025.

Thomas Ronald Palmer: That we will have executed or made decisions around the divestitures and so that timing is contingent upon that.

Speaker Change: Got it okay.

Joshua Mark Wolfson: Okay. And then, sorry, one question if I can sneak in.

Speaker Change: And then sorry, one question if I could sneak in I noticed the book value for the assets that are held for sale is a $5 7 billion, which is a quite a large number as compared to the $2 billion.

Joshua Mark Wolfson: I noticed the book value for the assets that are held for sale is $5.7 billion, which is quite a large number as compared to the $2 billion targeted. Any sort of comments on how we should think about pricing or what the targets are effectively? No, not really.

Joshua Mark Wolfson: Targeted any sort of comments there on.

Joshua Mark Wolfson: How we should think about pricing or our.

Joshua Mark Wolfson: With the targets are effectively.

Karyn F. Ovelmen: No, not necessarily. I think, you know, from an accounting convention perspective, and how they're recorded from a GAP perspective, will obviously be considered, I would assume, by potential buyers, but in essence, the process of going through the commercial view of the assets and the value to potential buyers will produce something most likely different, whether it's up or down in association versus what it is.

Karyn F. Ovelmen: No not necessarily I think.

Karyn F. Ovelmen: I'm, an accounting convention perspective, and how they reported from a GAAP perspective.

Karyn F. Ovelmen: We'll be.

Karyn F. Ovelmen: Obviously considered I would assume that potential buyers, but you know that.

Karyn F. Ovelmen: And essentially are the process of going through the commercial appeal of the assets and the value to the potential buyers that will produce something most likely different.

Karyn F. Ovelmen: Whether it's up or down and efficiency versus what is recorded on our books from a GAAP perspective.

Joshua Mark Wolfson: Great, thank you very much.

Joshua Mark Wolfson: Yeah.

Speaker Change: Great. Thank you very much.

Operator: Thanks Josh. Our next question comes from Jackie Przybylowski of BMO Capital Markets.

Joshua Mark Wolfson: Yeah.

Jackie Przybylowski: Thanks, Josh.

Jackie Przybylowski: Our next question comes from Jackie principally Lawsky of BMO capital markets.

Jackie Przybylowski: Yeah, thanks very much for taking my questions. Um, maybe I'll ask the first question on the full potential program. So I had the privilege of visiting Pensacola in March, and the team did a great job of outlining how the full potential program has benefited there. And, and I know you're working very hard on rolling that out in some of the newer acquired assets, like Lahir. Can you talk a little bit about how that's going so far and what you're seeing in terms of achievement?

Speaker Change: Yeah, Thanks, very much for taking my questions maybe.

Speaker Change: Maybe I'll ask the first question on the full potential program. So I had the privilege of visiting pass keto in March and.

Jackie Przybylowski: Definitely the team did a great job of outlining how the full potential program has benefited there.

Jackie Przybylowski: And I know, you're working very hard on a rolling that out in some of the newer acquired assets likely here can you talk a little bit about how that's going so far in <unk>.

Jackie Przybylowski: What youre seeing in terms of achievements or maybe potential for future achievements.

Thomas Ronald Palmer: Thanks Jackie, good morning. I'll kick off, and Natascha, if you want to build on that. Well, with Dean Gehring in the room as well, I want to chip in as well. We're further, and most advanced at La Jolla, and La Jolla was the site we saw as the most opportunity, which is why we jumped into there literally on day one, the three main productivity and cost opportunities of the year. The one I mentioned in the repair remarks is really around consistent ore feed so that you can manage and address materials handling.

Speaker Change: Thanks, Jackie and good morning, all I'll kick off the customer want to build on that with de gearing in the room as well and I want to chip in as well.

Thomas Ronald Palmer: With further.

Thomas Ronald Palmer: Most advanced at the heel.

Thomas Ronald Palmer: It was the software service the most opportunity which is why we jumped into this literally on day one.

Thomas Ronald Palmer: <unk> productivity and cost opportunities and the other one I mentioned in the prepared remarks is really around consistent full thing.

Thomas Ronald Palmer: So that you can manage and address materials handling.

Thomas Ronald Palmer: So ensuring you've got the right balance of different ores so that you've got managing conveyor belts and block chutes and block crushers, just allowing a big plan to get it done. Asset management and improving plant availability and other plant losses, a real opportunity at Lahear, just the basics of wood quality, work management, reliability, engineering, with the strength of the team that we have to support Lahear. And then the third one is down into the pit, improving mine efficiency and mine productivity, just getting back to the basics of drill and blast, load, and haul through the mine. So, very similar to what we discussed at Pinusketo in late February. Move across to maybe just I'll touch on Kadia and Red Criss in particular.

Thomas Ronald Palmer: Ensure they've got the broad balance of different all so they just got.

Thomas Ronald Palmer: Managing conveyor belts and.

Thomas Ronald Palmer: <unk> bulk crosses just allowing a big player to get consistency.

Thomas Ronald Palmer: Coming into it is that is a key value driver.

Thomas Ronald Palmer: Asset management, and improving plant availability and other plant losses, a real opportunity at a at.

Thomas Ronald Palmer: I believe you just the basics of good quality work management reliability engineering with the strength of entertainment we have to support.

Thomas Ronald Palmer: So everybody's down into the Caribbean bought efficiency and bond productivity, just getting back to the basics of gorilla glass loophole.

Speaker Change: For the moment so.

Thomas Ronald Palmer: Very similar as we discussed it a bit.

Thomas Ronald Palmer: Good.

Thomas Ronald Palmer: In late February.

Thomas Ronald Palmer: Across to maybe just touch on the tide here in Red Chris in particular.

Thomas Ronald Palmer: It's an enabler.

Thomas Ronald Palmer: There's an enabler at Cartier, a really important enabler in terms of resolving the tailings constraints, so understanding the work to rectify the tailings at Cartier and then expand those tailings to ensure you've got the tailings capacity to support productivity improvements from both mine and processing plant, underground. It's unlocking panel development. We're clearly opening up PC23, so progressing the opening up of the draw points over the next couple of years in PC23, and ensuring that you're bringing on the development work for PC12.

Thomas Ronald Palmer: Got it really important enabler in terms of of.

Thomas Ronald Palmer: Of resolving the tallies constraint so understanding the work to rectify the tiling ZIP code here and then expand those towers to ensure you've got the tightest capacity support productivity improvements for both on the processing plant.

Thomas Ronald Palmer: Underground, it's unlocking pedal development with clearly opening up <unk> to three separate dressing the yes.

Thomas Ronald Palmer: The draw points over the next couple of years. They take two three ensure that you're bringing on the development works I'd say, one two and then it's a fine balance between the mine and the processing plant. So ensuring that we're doing that work were also unlocking a processing capability. We're still in that first phase of full potential, but we do identify.

Thomas Ronald Palmer: And then it's a fine balance between the mine and the processing plant, so ensuring that as we're doing that work, we're also unlocking processing potential. We're still in that first phase of full potential, but we do identify some early, quick wins. And I would argue that we are specialists in high-pressure grinding rolls, Over the last dozen years, we have worked with those HPGRs, and we have a very efficient way of operating and maintaining those important crushing circuits so that we have regular visits to Boddington to understand how we both operate and maintain those HPGRs.

Thomas Ronald Palmer: Hi.

Thomas Ronald Palmer: Early quick wins and <unk>.

Thomas Ronald Palmer: I would argue that we are specialists in high pressure grinding rolls at boddington.

Thomas Ronald Palmer: The last dozen years, we have worked with us and we have.

Thomas Ronald Palmer: Very.

Thomas Ronald Palmer: <unk> operating and by putting those does that.

Thomas Ronald Palmer: That important crushing circuit.

Thomas Ronald Palmer: Such that we have a regular visits to bought into and understand how we both operate at <unk>. So the opportunity for us to quickly get across to the Iga Geos Katia understand the power draw understand the process control logic in ophthalmology.

Thomas Ronald Palmer: So the opportunity for us to quickly get across to the HPGRs at Katie App, understand the power draw, understand the process control logic, and optimize those HPGRs is a really early quick win that we are getting after even before we finish the diagnostic phase. And then I will maybe touch on Redcrisp, because that processing plant is going to be there through the end of the open pit mine and as we ultimately move into the block cave, so really focusing on the opportunities to stabilize mill operations, again the basics around reliability and having uptime of that facility. Thank you very much.

Thomas Ronald Palmer: So really early quick wins that we're getting after even before we finish the.

Thomas Ronald Palmer: The diagnostic side.

Thomas Ronald Palmer: And then maybe touch on Red Chris Red Chris that processing plant is going to be there through the end of the open pit mine and as we move into the block cave, so really focusing on the opportunities to stabilize operations given the basics around.

Thomas Ronald Palmer: Reliability and having uptime of.

Thomas Ronald Palmer: Of that facility was consistency after you have stabilized that optimizing copper and gold recoveries and improving process controls. So that you have I build is performing very well for the remaining lofty Peters who didn't bring on the oil from the block caving few cheese.

Natascha Viljoen: Tash, anything you'd like to add? (inaudible)

Jackie Przybylowski: Hopefully, Jackie, that gives you some sense of the excitement we have sitting behind full potential and the confidence we have in that run rate through to the end of this year, the run rate to the end of next year, and why we've gone after the upside on top of that $500 million.

Speaker Change: No I think like I said it doesn't finish campaign.

Speaker Change: Comprehensive answer thanks.

Jackie Przybylowski: I think Jackie that gives us some subsets of the assortment we have been at full potential and the confidence we have in that run rate through the end of this year the run rate to the end of next year, while we've gone after the upside on top of that 500 million.

Thomas Ronald Palmer: And that was a super helpful answer. Thanks, Tom.

Speaker Change: And of those the Super helpful answer Thanks, Tom maybe if I can ask a second question.

Jackie Przybylowski: And maybe as a second question, just going back to your divestment strategy. I know you have a number of assets that you're looking to sell in Canada specifically, but also, you know, I guess, globally as well. Can you comment at all, like, do you have a preference for selling the assets in groups or bundles? Or are they all expected to be sold individually to different buyers? I don't know if you can make any comments on how you're thinking about that. Thanks, Jackie.

Speaker Change: Just going back to your divestment strategy.

Jackie Przybylowski: I know you have a number of assets that you're looking to sell in Canada, specifically, but also you know I guess globally as well can you can you can you comment at all like do you have a preference of selling it.

Jackie Przybylowski: Two groups or bundles or are they own.

Jackie Przybylowski: We expect it to be sold individually to different buyers.

Jackie Przybylowski: Don't know if you can make any comments on sort of how youre thinking about that.

Rich: Thanks, Jackie this is rich.

Thomas Ronald Palmer: Thanks, Jackie. As I mentioned, The process has started on all six assets. So we have engaged banks and have started a process on all six assets, and we're in the process of price discovery through a phase one, so an active interest. So we are getting a good feel for the level of interest in these assets and the competitive environment that we're hoping to enjoy. We're running three separate processes in terms of, because they're in different locations, so there's a process for Telfo in the Australian context with a dedicated team looking after that, there's a process for a CHIM in the African or Ghanaian context with a separate team looking after that, and there's a process for our North American assets, the four operations plus the Colquhiem project and a team getting after that, all being led by Peter Todd and Scott Langley, but up and running and very active, as I say, we're in phase one and quite excited about the level of interest and the competitive environment which we're presenting these assets to prospective buyers.

Thomas Ronald Palmer: It's really a question that process has started and all success. Its so we are engage banks and have started the process on all six assets.

Thomas Ronald Palmer: We're in the process of Prost discovery through a <unk> one so an active interest so.

Thomas Ronald Palmer: We are getting a good feel for the level of interest in those assets and the competitive environment that we have.

Thomas Ronald Palmer: We're hoping to enjoy it.

Thomas Ronald Palmer: Uh huh.

Thomas Ronald Palmer: With <unk>, we're running three separate processes in terms of because they are different like fashion. So there's a.

Thomas Ronald Palmer: Prices for telephone is try and context for the debt.

Thomas Ronald Palmer: A dedicated team looking after that there's a process for Jim.

Thomas Ronald Palmer: If we can look at that in context with a separate team looking after that there's a process for all north American assets before operations plus the coffee project in it.

Thomas Ronald Palmer: Are they getting after that.

Thomas Ronald Palmer: It still being led by Scott.

Thomas Ronald Palmer: Scott lately.

Thomas Ronald Palmer: But up and run up and run again and very active pesticide we're in phase one.

Thomas Ronald Palmer: And.

Thomas Ronald Palmer: Quite excited about the level of interest in the competitive environment, which which way youre presenting those assets to.

Thomas Ronald Palmer: To perspective buyers.

Speaker Change: I appreciate the color thanks very much.

Jackie Przybylowski: I appreciate the color. Thank you very much.

Speaker Change: Thanks Jay.

Operator: Our next question comes from Mike Parkin of National Bank.

Operator: Our next question comes from Mike Parkin of National Bank.

Michael Parkin: Hi guys. Thanks for taking my question. Just looking for a bit of additional color with the anacocha in the water treatment plants. This might be a bit old, but looking for what's the main driver there for doing the two new plants versus the five existing ones. Are the old ones not up to the technology you need to have implemented there?

Speaker Change: Hi, guys. Thanks for taking my question, just looking for a bit of additional color with Cana coach in the water treatment plants.

Michael Parkin: Might be a bit old.

Michael Parkin: But I'm.

Michael Parkin: Just looking for what's the main driver there.

Michael Parkin: The two new plants versus the five existing one is it.

Michael Parkin: <unk> or just the old ones don't have the technology, you kind of need to have implemented there.

Thomas Ronald Palmer: Good morning, Mike. It is both capacity and technology. So, just to paint a picture for you, we've been operating and mining the oxide ore at Anticocha for the better part of the last 30 years, and Disturbed at the top of the Andes, an area that is the equivalent of three quarters of Manhattan. So to give you a sense of the scale of the disturbed land at the top of the Andes, significant rainfall every year, and a watershed right into both the Atlantic and the Pacific Oceans.

Thomas Ronald Palmer: It's good good boating market.

Thomas Ronald Palmer: It is both capacity and technology.

Thomas Ronald Palmer: Just to pay the picture.

Thomas Ronald Palmer: For you.

Thomas Ronald Palmer: We've been operating a bond in the oxide ore and a culture for the better part of the last 30 years.

Thomas Ronald Palmer: And just to the top of the Andas.

Thomas Ronald Palmer: An area that is equivalent of three quarters of Manhattan. So to give you I said that the scale of the disturbed land at the top of the Andes significant rightful every year end.

Thomas Ronald Palmer: A watershed right into it by sea.

Thomas Ronald Palmer: With Atlantic or the Pacific Gosh. It's so there is a very stated there is significant amount of disturbed land, where a significant amount of water at the top of the Andes.

Thomas Ronald Palmer: So there is a very significant amount of disturbed land, a very significant amount of water at the top of the Andes. And that water is acidic, so every drop of water that touches that disturbed land, we need to capture, process, treat, and then discharge at different qualities. In some instances, the discharge needs to be to drinking water quality, and in some instances, to agricultural standards as defined by the permits we have from the regulatory authorities in Peru. As has been accrued for within our closure liability, we have been moving into the stage of closure for Yanacocha.

Thomas Ronald Palmer: And by that waters is the city. So every drop water that touch that disturbed land.

Thomas Ronald Palmer: To capture process trades, and then discharge.

Thomas Ronald Palmer: Two different qualities of subject to discharge a nice debate tricky water quality in some instances to agricultural standards as defined by the the permits we have from the regulatory authorities in.

Thomas Ronald Palmer: In Peru.

Speaker Change: I just paid.

Thomas Ronald Palmer: Our crude fall within our within our pleasure liabilities.

Thomas Ronald Palmer: We were maybe we had been moving into the stage of closure oriented culture.

Thomas Ronald Palmer: That involves the construction of two large water treatment plants over the next few years that will treat water in perpetuity, forever. These plants are designed to be there, processing water, and discharging water forever. So we're in the building phase now for a set of facilities that will operate for the next few decades. Just to put into perspective the size of these water treatment plants, we are treating 8,000 meters cubed per hour. That is a plant equivalent to treating the water required by a city the size of Seattle. So that's the size of the water treatment plants we're building in Yanukocha.

Thomas Ronald Palmer: It falls the construction of two large water treatment plants over the next few years that they will treat water in perpetuity in perpetuity for rhythm. These plants are designed to be the processing water and discharge of water for Airbus, So where in the or and the building of the plant size now for a set of facilities or operate.

Thomas Ronald Palmer: Flips for decades that are in front of us.

Thomas Ronald Palmer: Just to put it.

Thomas Ronald Palmer: This into perspective cause of those water treatment plants, we are treating.

Thomas Ronald Palmer: Designing and building those plants to trade.

Thomas Ronald Palmer: <unk> made a skewed the hour.

Thomas Ronald Palmer: That is a plan equivalent to trading the water required by a city the size of Seattle.

Thomas Ronald Palmer: So that's the size of the water treatment plants, we're building up and you have to catch them.

Michael Parkin: and the cost of those I get that's all kind of flowing through this year and next year. Is that in your capital budget, or is that running through the income statement? You normally have. Are you done?

Michael Parkin: And the cost of those I get that's all kind of flowing through this year and next year is that in your capital budget or is that running through the income statement.

Michael Parkin: You normally see.

Michael Parkin: Hum.

Thomas Ronald Palmer: Sorry, Mike, I want to build on this. You don't look at capital or sustaining capital. That's correct. It's accrued on our balance sheet as a liability. And you'll see that the 600 million that we expect to spend in 2024 is considered a current liability. But you will not see that as time indicated flowing through sustaining or development.

Speaker Change: Alright, Mike or Paramount won't be able to do.

Thomas Ronald Palmer: Yeah.

Thomas Ronald Palmer: Liberty capital of our sustaining capital Yeah. That's correct. It's it's a it's accrued on our balance sheet as a liability and you'll see that the <unk>.

Thomas Ronald Palmer: 600 million that we expect to spend in 2024.

Thomas Ronald Palmer: Considered a current liability.

Thomas Ronald Palmer: You will not see that as Tom indicated flowing through sustaining or development capital.

Speaker Change: Okay. So is it more.

Michael Parkin: So is it more working capital changes as the current liability or not?

Thomas Ronald Palmer: Working capital changes.

Michael Parkin: The current liability.

Karyn F. Ovelmen: That's consistent with the first party. You'll see that flow through working capital. Okay, thank you.

Michael Parkin: Okay.

Mike: Yes, consistent with first quarter, you'll see that flow through working capital.

Speaker Change: Okay. Thanks, very much that's it for me.

Michael Parkin: Okay, thanks very much. That's it for me.

Speaker Change: Thanks Barton.

Michael Parkin: Our next question comes from Anita Soni of CIBC.

Operator: Our next question comes from Anita Soni of CIBC.

Anita Soni: Just a little bit of a follow-on to what Mike just asked. So, with the Anacotia, originally, you guys took a, you know, you made a provision of about two billion dollars, and it was basically the cost of treating this water in perpetuity. So, at least that's what I, you know, that's what we understood or what you had previously talked about. So, is this, do we still have those costs as well? Or is this like, once you've built this plant, you wouldn't have ongoing expenses in terms of the water treatment plant? I'm not quite sure if this is now additive to the original $2 billion.

Anita Soni: Just a little bit of a follow on to what Mike just asked so Christiana coach. Originally you guys took a provision of about $2 billion and it was basically the cost of treating this water in perpetuity so that.

Anita Soni: At least that's what I you know that's what we understood or you had previous to that you previously talked about so is this do we still have those costs as well or is this like once you've built this plant you wouldn't have.

Anita Soni: Ongoing expenses in terms of the water treatment plant like I like I'm not quite sure. If this is now additive to the original $2 billion.

Thomas Ronald Palmer: So Anita, in terms of the provisions that we've had in our closure liabilities, that's all been there, there's no new information there that's fully accounted for in terms of our closure liabilities for Yanacocha, and it's part of that, it's always been We stand to build the water treatment plants, which takes place over 24, 25, 26... And then the cost to operate those water treatment plants. So you're then looking at around $40, $50 million a year to operate those water treatment plants in perpetuity. The costs to both operate those plants and to construct those plants are included in our closure library.

Thomas Ronald Palmer: So in terms of the provisions that we've had in our.

Speaker Change: Pleasure liabilities, that's open Doug.

Thomas Ronald Palmer: New information there that's fully fully accounted for in terms of their pleasure liabilities for culture and.

Thomas Ronald Palmer: And it's part of that there's always been this spend to build the water treatment plant, which takes place either.

Thomas Ronald Palmer: 25 26.

Thomas Ronald Palmer: And then.

Thomas Ronald Palmer: But then the cost to operate.

Thomas Ronald Palmer: Water treatment plants. So they are looking at around $40 million to $50 million a year to operate those water treatment plants in perpetuity.

Thomas Ronald Palmer: The cost of us operate those plants and to construct those plants are included closure liability.

Anita Soni: So what's the total closure liability now then?

Anita Soni: So what is that total corporate liability nowlan.

Thomas Ronald Palmer: [inaudible] is sitting at Looking at my number, it is sitting at about $4.8 billion. [inaudible] Sorry, the liability... I'll pass it across to Karyn to cover the liability rather than me trying to battle with balance sheets.

Karyn: Organic culture.

Karyn: He is sitting at.

Karyn: Just looking at my number it is sitting at about $4 8 billion.

Karyn: Billions of dollars.

Karyn: In the.

Karyn: I'm sorry, the liability pass across to Karen to cover the liability probably drawn battle with balance sheets.

Karyn F. Ovelmen: Yeah, Thomas is referring to the total reclamation and mediation liabilities of around 6.6. But for Yanacocha, it is the 1.7 that has been accrued for on our balance.

Karyn: Yeah. This is Thomas is referring to the total reclamation and remediation liabilities is around $6 six.

Karyn: But for you to go check it is the one seven.

Karyn: That's in that it has been accrued for on our balance sheet.

Thomas Ronald Palmer: Sorry, $1.7 trillion. Yes.

Karyn: Sorry, I wanted to ask first of all here Julien.

Karyn: Yes for the water through the water treatment plant Nathan So there's gotta catch it has a bunch of other larger <unk>.

Anita Soni: Yes, for the water treatment plant, Anita, and Yanacocha has a bunch of other closure activities you've got to reshape, reshape leach pads and waste dumps and tailings facilities. So, for the treatment plant as a component of that, the total closure liability for Yanak Codeshark is $4.8 billion. Okay.

Anita Soni: Activity, so you've got to reshape.

Anita Soni: The reshape.

Anita Soni: <unk> pads, and why stubs and Alex facilities.

Anita Soni: Florida Cryptitis component of that total.

Anita Soni: Closure liability for yet a culture is $4 billion.

Karyn F. Ovelmen: Okay, got it. And then you mentioned taking place over 24, 25, and then 26. Can you tell us what the number that we would see in working capital outflow in 26 would be?

Karyn F. Ovelmen: Okay got it and then you mentioned taking place over 'twenty four 'twenty five.

Karyn F. Ovelmen: And then 26 can you tell us what the number that we would see in working capital outflow in 'twenty six would be.

Anita Soni: Yeah, so as I indicated in my prepared remarks, 600 million in terms of 24, peaking at 700 in 2025 and then starting to come down from there in 2026.

Anita Soni:

Anita Soni: Yes, so as I indicated in my prepared remarks, so $600 million in terms of 24, peaking at 702025, and then starting to come down from there a 2026.

Operator: Our final question comes from Daniel Major of UBS.

Operator: Our final question comes from Daniel major of UBS.

Daniel Edward Major: Hi there. Yeah, thanks. Thanks. Go for it, Daniel. Okay, sorry, I'll keep it quick if you're running out of time. Thanks.

Operator: Yeah.

Daniel Edward Major: Hi, there thanks.

Daniel Edward Major: Thanks.

Daniel Edward Major: Got for Daniel.

Daniel Edward Major: Okay, sorry, I'll keep it quick Q&A time, thanks, Yeah yeah.

Daniel Edward Major: Two questions one.

Daniel Edward Major: Yeah, two questions. One, just on following up on the working capital and looking at your slide 10 in the presentation, you've talked at length about the reclamation payments, but can you give us a sense of any other key moving parts we should expect in the coming quarters? And where you would expect the net balance change year on year to be from a cash working capital perspective, including the stamp duty or excluding it, whichever?

Daniel Edward Major: Just following up on the working capital.

Daniel Edward Major: And looking at your slide 10 in the presentation, you've talked at length on the reactivation payments, but can you give us a sense of any.

Daniel Edward Major: Any other key moving.

Daniel Edward Major: Parts, we should expect in the coming quarters, and what you would expect the net balance change year on year to be from a cash working capital perspective, including the stump Gtx, leading it whichever.

Karyn F. Ovelmen: Sure, so

Speaker Change: Sure so.

Karyn F. Ovelmen: Sure, so the only additional stamp duty we'll have is in the third quarter for approximately $30 million. You'll see some additional seasonal changes as we head into the second quarter as it relates to cash, taxes, as well as interest. From a cash perspective, those will flow through in the second quarter as well, and you'll see higher reclamation liabilities and the cash outflow associated with that as we go through 2024. And then, in addition to that, you'll see the traditional timing as it relates to sales and inventory.

Karyn F. Ovelmen: The only additional stamp duty will happen in the third quarter for approximately $30 million.

Karyn F. Ovelmen: You'll see it you'll see some additional seasonal changes as we head into the second quarter as it relates to cash.

Karyn F. Ovelmen: Taxes as well as interest from.

Karyn F. Ovelmen: From a cash perspective does not flow through.

Karyn F. Ovelmen: In the second quarter, as well and you'll see higher the reclamation liabilities the cash outflow associated with that as we go through 2024, and then addition in addition to that you'll see the traditional timing as it relates to to sales AR and inventory changes as we go through a through the year.

Karyn F. Ovelmen: Okay.

Daniel Edward Major: So, as you stand now, what would you expect the net change to be over the full year, Bill, in terms of total net build on working capital?

Speaker Change: So if you stand now what would you expect the net change to be over the full year Bill in terms of it really isn't that build in working capital.

Karyn F. Ovelmen: Yeah, that really depends on the timing in terms of that as well as, of course, pricing as we go through 2024.

Daniel Edward Major: And that really depends on the timing in terms of that as well as of course pricing as we go through 'twenty 'twenty four.

Daniel Edward Major: Okay, thanks. And then the second one, you talked about, detailed a lot of the progress you've made since the integration into Newcrest. In these kinds of deals, I guess, there are always positives and negatives. What's the toughest part? What's been the most challenging or most difficult part of the integration so far?

Speaker Change: Okay. Thanks, and then the second one.

Speaker Change: Uh huh.

Daniel Edward Major: Detailed a lot of the progress you've made since the.

Daniel Edward Major: Since the integration of Newcrest.

Daniel Edward Major: And these kinds of deals I guess, there's always positives and negatives.

Daniel Edward Major: What's the toughest part what's been the most challenging or will most difficult part of the integration.

Speaker Change: Uh huh.

Daniel Edward Major: Yeah.

Speaker Change: I'll pick that one up.

Thomas Ronald Palmer: I'll pick that one up, by far and away Daniel is the tragic loss of Adam Kennedy's life, Bruce Jack, on the 20th of December last year, and as you reflect upon the integration, you reflect upon what things we could have done differently, what decisions we could have made differently that wouldn't have led to Adam being killed that day at Bruce Jack. I think, as you've said in some of our remarks as well, stepping back from the loss of Adam and safety, I think the two areas that we're working through diligently are colleagues' facilities. We've talked about Telfer, and we've talked about Arcadia, and a little bit around Redcrisp.

Thomas Ronald Palmer: But far and away Daniel as the tragic loss of Kennedy Slaw first Jack on the 20th of December.

Thomas Ronald Palmer: Last year.

Thomas Ronald Palmer: And they and as you reflect upon the integration you reflect on what things could we have done differently what decisions quickly about differently that would have an effect too Adam.

Thomas Ronald Palmer: Cool.

Thomas Ronald Palmer: That day.

Thomas Ronald Palmer: At at first check.

Thomas Ronald Palmer: I think as you said in some of their remarks as well as I think stepping back from from the loss of Adam.

Thomas Ronald Palmer: And safety.

Thomas Ronald Palmer: Two areas that we're working through diligently colleagues facilities, we talked about children, they're talking about.

Thomas Ronald Palmer: Acadia and.

Thomas Ronald Palmer: A little bit of ramp at Red Chris. So just just bringing those tailing facilities into the new both standard and ensure that we have the appropriate discipline around those.

Thomas Ronald Palmer: So just bringing those tailing facilities into the Newmont standard and ensuring that we have the appropriate rigor and discipline around those, managing them here and now and ensuring that as we shepherd those going forward, they have the appropriate standard. And then the third one would be bringing the all body knowledge levels up to the Newmont standard so that we've got really robust all body knowledge underpinning our mind plan. So those would be the three areas where there's been, I guess, the hard work.

Thomas Ronald Palmer: You manage them here and now in ensuring that as we.

Thomas Ronald Palmer: Ship with us going forward.

Thomas Ronald Palmer: Standard and then the third one would be bringing the ore body knowledge levels up to a standard so that we've got really robust ore body knowledge underpinning and bond plants. So that'll be the three areas where this thing.

Thomas Ronald Palmer: That's the hard work.

Thomas Ronald Palmer: I think if I step back from that with the perspective of having lived through a similar integration and transaction five years ago, I think I step back from those three areas, I think the integration has gone very well, and I think we had the benefit of being able to apply the lessons we learned from integrating the five Goldcorp assets back in 2019 to this exercise, and that's put us in a good position.

Thomas Ronald Palmer: That's put us in good state.

Daniel Edward Major: Great, thanks so much. Good luck!

Daniel Edward Major: Okay.

Operator: We've had a follow-up question from Anita Soni of CIBC.

Anita Soni: Yeah, sorry, I got cut off there before the end of the question, but I was hoping I'm assuming that the twenty-two six spend for Yanacocha water treatment would be $400 million. I think you said it was $1.7 billion just for the buildup of those plants. So you're doing $600 and then $700. So the remainder would be $400. Is that correct?

Anita Soni: <unk> for Anika to water treatment would be.

Anita Soni: $400 million I think he said it was $1 7 billion just for that.

Anita Soni: The buildup of those plants. So doing 600, and then 700. So the remainder would be 400 is that correct.

Anita Soni: And the expectation is this will be commissioned in 2027 and there'll be obviously some continued as toxic continued approximately around $50 million a year associated with that going forward.

Karyn F. Ovelmen: Yeah, the expectation is that this will be commissioned in 2027. And there'll be obviously some continued, as Tom said, continued approximately $50 million a year associated with that going forward. So now do we certainly see the step...

Karyn F. Ovelmen: So how do we certainly see the step up through those three years and then back to <unk>.

Karyn F. Ovelmen: So we certainly see the step up through those three years and then back to, as best you can predict that far in the future, back to the sort of normal long-run levels for closure and reclamation.

Karyn F. Ovelmen: As best you can predict that far into the future back to the sort of normal levels.

Karyn F. Ovelmen: <unk>.

Karyn F. Ovelmen: So.

Karyn F. Ovelmen: Pleasure and reclamation activities.

Anita Soni: Okay, so the second question that I wanted to ask was about Cerro Negro. It is definitely unfortunate that two people lost their lives. I did want to ask a little bit about, you know, does it have anything to do with long-term structural support there? I mean, these guys were, or a gentleman and a lady were within the Mine Technical Services Group. So it was not a little bit unexpected for that group for that to happen. So I was just trying to find out if you had any color on that.

Karyn F. Ovelmen: Yeah.

Speaker Change: Okay I'm gonna.

Anita Soni: So the second question that I wanted to ask was about Cerro <expletive> So.

Anita Soni: Definitely unfortunate that two people lost their lives I did want to ask a little bit about.

Anita Soni: Does it have anything to do with long term structural support their these I mean these guys were alright, gentlemen, a lady were mined within the main technical services group. So.

Speaker Change: Did not.

Anita Soni: A little bit unexpected for for that group to them for that to happen. So I was just trying to find out if you had any color on that.

Thomas Ronald Palmer: Thanks Anita, I might have to attach a comment.

Speaker Change: Thanks for that are like us are attached to that comment.

Thomas Ronald Palmer: I <unk> not structural so from a technical point of view and from a quantity of asset point of view excuse me high quality and no material you take challenges for us.

Natascha Viljoen: Anita, absolutely not structural, so from a geotechnical point of view and from a quality of asset point of view, very high quality, and no material geotech challenges for us. This was procedural by nature, so definitely not linked to any long-term prediction.

Natascha Viljoen: This was procedural.

Speaker Change: Gotcha, so definitely not linked to any long term predictions.

Anita Soni: Okay, all right. Thank you. That's it for my questions. Thank you.

Speaker Change: Okay Alright. Thank you that's it from my questions.

Thomas Ronald Palmer: Thanks Anita, and as we close out our investigation, we will share those lessons widely with the industry. So, as we're up to, we will. Thanks, and have a good one.

Speaker Change: Thanks, operator, as we close out our investigation, we will share those lessons wadley.

Thomas Ronald Palmer: With the industry, so as we're opportunity bill thinks that item.

Operator: This concludes the question and answer session. I would like to turn the conference back over to Tom Palmer for his closing remarks.

Thomas Ronald Palmer: Yeah.

Operator: Like to turn the conference back over to Tom Palmer for closing remarks.

Thomas Ronald Palmer: Thank you, Operator. Thank you all for your time, and please enjoy the rest of your day.

Speaker Change: Thank you operator, and thank you all for your time and.

Speaker Change: Please enjoy the rest of your day and thanks, everyone.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Operator: Yeah.