Q2 2024 Newmont Corp Earnings Call

Good morning and welcome to Newmont's 2nd Quarter 2024 Announce Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Operator: All participants will be in lesson 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, this event is being recorded. I would now like to turn the conference over to Tom Palmer, President and Chief Executive Officer. Please do so.

Operator: and his call. All participants will be in less and only mode.

Operator: Share your need assistance; please signal as girlfriend specialist by pressing the star key followed by zero.

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

After today's presentation there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Tom Palmer, President and Chief Executive Officer. Please go ahead.

Tom Palmer: I will 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: Thank you, Operator. Good morning, everyone, and thank you for joining us on 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. Turning to the next slide, please note our cautionary statement and refer to our SEC filings, which can be found on our website. Before I cover our results for the quarter, I'd like to take a moment to provide an update on the important work we are doing to reinvigorate our safety net, following the tragic loss of four of our colleagues over the last year. We have initiated a comprehensive, systematic review of our safety and risk management system in order to better understand the key challenges and opportunities we have to improve our safety performance going forward.

Tom Palmer: Good morning, everyone, and thank you for joining our call. Today I'm joined by my Executive Leadership team, including Natasha Viljoen and Karen Ovelman, and we'll all be available to answer your questions at the end of the call. Turning to the next slide, please note our course restatement and refer to our HTC filings, which can be found on our website.

Thank you, Operator. 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.

Turning to the next slide, please note our Cautionary Statement and refer to our SEC filings which can be found on our website.

Thomas Ronald Palmer: Our Enhanced Approach includes a heightened level of diligence across our entire fatality risk management assurance model, bolstering our leadership work in the field to ensure we have a balanced approach between both the quantity and quality of our critical control verification, and an increased focus on leaders, coaching leaders and their teams, aimed at building and strengthening capability through all levels of our organization with this reinvigorated approach. We are actively driving improvements in safety performance and strengthening operational effectiveness across all of our managed operations. Turning now to our second quarter highlights.

Tom Palmer: Before I cover our results for the call, I would like to take a moment to provide an update on the important work we are doing to reinvigorate our safety systems. Following the tragic loss of four of our colleagues over the last year, we initiated a comprehensive systematic review of our safety and risk management systems in order to better understand the key challenges and opportunities we have to improve our safety performance going forward. Our enhanced approach includes a height of level of diligence across our entire Italian risk management assurance model, bolstering our leadership work in the field to ensure we have a balance to approach between both the quality and quantity of our critical control verification and an increased focus on leaders, coaching leaders and their teams aimed at building and strengthening capability through all levels of our organisation.

Before I cover our results for the quarter, I'd like to take a moment to provide an update on the important work we are doing to reinvigorate our safety systems.

following the tragic loss of four of our colleagues over the last year.

We initiated a comprehensive, systematic review of our safety and risk management systems.

in order to better understand the key challenges and opportunities we have to improve our safety performance going forward.

Our Enhanced Approach

includes a heightened level of diligence across our entire fatality risk management assurance model.

bolstering our leadership work in the field to ensure we have a balanced approach between both the quantity and quality of our critical control verifications.

and an increased focus on leaders, coaching leaders and their teams.

aimed at building and strengthening capability through all levels of our organisation.

Tom Palmer: With this reinvigorated approach, we are actively driving improvements in safety performance and strengthening operational effectiveness across all of our managed operations. Turning now to our second order highlights. We deliver solid operational performance as planned, keeping us firmly on track to achieve our 2024 guidance and positioning us to deliver improving financial results. The solar results have also enabled us to progress our capital allocation priorities, which I'll touch on in a moment. With a continued focus on safety delivering, we've also made medical progress on the four key commitments we made to our shareholders at the start of the year.

with this reinvigorated approach.

We are actively driving improvements in safety performance.

and strengthening operational effectiveness across all of our managed operations.

Thomas Ronald Palmer: We delivered solid operational performance as planned, keeping us firmly on track to achieve our 2024 guidance and positioning us to deliver improving financial results. These solid results have also enabled us to progress our capital allocation priorities, which I'll touch on in a moment. With a continued focus on safely delivering, we've also made meaningful progress on the four key commitments we made to our shareholders at the start of the year. We launched a safety refresh across our managed operations globally.

Turning now to our second quarter highlights.

We delivered solid operational performance as planned.

keeping us firmly on track to achieve our 2024 guidance.

and positioning us to deliver improving financial results.

These solid results have also enabled us to progress our capital allocation priorities, which I'll touch on in a moment.

With a continued focus on safely delivering, we have also made meaningful progress on the four key commitments we made to our shareholders at the start of the year.

Thomas Ronald Palmer: First, we continue to strengthen new multi-position as the goal of industries recognized the state ability leader. During the second quarter, and as I just mentioned, we launched a safety refresh across our managed operations globally and delivering this important work to reinvigorate our safety systems, tools, standards, and infield leadership work. Supported by this approach, we've restarted operations to Sarah Negral in late May, returning our focus to safe and efficient mining in this hard-if-effective district in Argentina. In May, we also published our annual climate report summarizing our performance for the site managed by Newmont throughout 2023. Moving to our second commitment, the Emwood has created a world-class portfolio focused on Tier 1 and emerging Tier 1 operations and districts.

First, we continue to strengthen Newmont's position as the gold industry's recognised sustainability leader.

During the second quarter, and as I just mentioned,

We launched a safety refresh across our managed operations globally.

and are leveraging this important work to reinvigorate our safety systems, tools, standards and in-field leadership work.

Thomas Ronald Palmer: We restarted operations at Saranac Row in late May, summarizing our performance for the sites managed by Newmont throughout 2023. Newmont has created a world-class portfolio focused on Tier 1 and emerging Tier 1 operations, and this represents 477,000 gold equivalent ounces from copper, silver, lead, and zinc. We will receive nearly $530 million by the end of this year with this progress and two new blockades at KDS. Karyn will discuss in more detail in a few minutes. Turning now to Synergy.

Supported by this approach.

We've restarted operations to serenade Growing Light 9.

returning our focus to safe and efficient mining in this highly prospective district in Argentina.

In May we also published our annual climate report.

Summarising our performance for the sites managed by Newmont throughout 2023.

Moving to our second commitment.

Newmont has created a world-class portfolio focused on Tier 1 and emerging Tier 1 operations and districts.

Tom Palmer: From this portfolio, in the Singapore, we've produced 1.60 ounces of gold and 477,000 gold equivalent ounces from copper, silver, lead, and zig. Notably, this included 38,000 tons of copper for the cotton. We generated 1.4 million dollars of cash flow from operations and $500 for the end dollars in free cash flow in the second quarter. And yesterday, we announced the mutatization of our mutatization of our mutatization of the third payment obligations. And we expect to receive $150,000,000 upon closing by September 30. It is also worth noting that you have not received $40,000 to stay out of the contingent payments from the adoption of that to HR.

From this portfolio, in the second quarter, we produced 1.6 billion ounces of gold.

and 477,000 gold equivalent ounces from copper, silver, lead and zinc.

Notably, this included 38,000 tonnes of copper for the quarter.

We generated $1.4 billion of cash flow from operations.

and $594 million in free cash flow in the second quarter.

And yesterday, we announced the monetisation of our Barta Hijal deferred payment obligations.

and we expect to receive $153 million upon closing by September 30th.

It is also worth noting that Newmont received $44 million associated with contingent payments from production of Marta Hijal.

Thomas Ronald Palmer: Green total proceeds that we will receive this year from our former operation to $197 million. In addition, we received the first $180 million payment from the sale that we announced last quarter: that London gold financing facilities. For these two transactions, we will receive nearly $530 million by the end of this year. With this progress and with the confidence we have in our divestiture program, we now expect to reach at least $2 billion from the sale of our seven high-quality, non-core assets alone. Taking all of this into account, we continue to build momentum, enabling us to advance our capital allocation priorities.

bringing total proceeds that we will receive this year from our former operation to $197 million.

In addition, we received the first $180 million payment from the sale that we announced last quarter of our London Gold financing facilities.

of these two transactions.

We will receive nearly $530 million by the end of this year.

With this progress...

And with the confidence we have in our divestiture program, we now expect to reach at least $2 billion from the sale of our seven high-quality non-core assets alone.

Taking all of this into account, we continue to build momentum.

Tom Palmer: Since our last call, we continue to save the progress of projects we have in execution, but our industry-leading organic project pipeline. Including the second expansion of Tata Mai, our new minor half-a-normal, and the two new blockades of Catera. We have retired $250 million in debt, and we have returned approximately $540 million to shareholders in the form of regular dividends and share purchases.

enabling us to advance our capital allocation priorities.

Since our last call we continue to safely progress the projects we have in execution from our industry-leading organic project pipeline.

including the second expansion at Tanami, our new minor half-o-north.

and the two new Block K's at Kardia.

We have retired 250 million dollars in debt.

And we have returned approximately $540 million to shareholders in the form of regular dividends and share repurchases.

Tom Palmer: Which Karen will discuss in the more detail in a few minutes. Turning down to synergies, we remain firmly on track to deliver a buzz and be on our initial commitment of $500 million. In the second quarter, we achieved $100 million in synergies. Bringing our run rate to $25 million since we closed our acquisition of Jim Rest, only eight months ago. With this solid momentum, we have now expanded our back office integration team and remain firmly on track to achieve a $335 million run rate by the end of this year, while ahead of our initial estimates.

which Karyn will discuss in more detail in a few minutes.

Thomas Ronald Palmer: We remain firmly on track to deliver above and beyond our initial commitment of $500 million. In the second quarter, we achieved $100 billion in synergies, well ahead of our initial estimates. Looking at the three components of our Synergy Delivery and starting with full potential, we are now advancing into the delivery stage for the initiatives we have identified at Lahear, Cadia, and Redcliffe. On our call last quarter, we provided an update on the opportunities we've identified at Lahear.

Turning now to Synergies.

We remain firmly on track to deliver above and beyond our initial commitment of $500 million.

In the second quarter, we achieved $100 million in synergies.

bringing our run rate to two hundred and five million dollars

since we closed our acquisition of Dewcrest only eight months ago.

With this solid momentum, we have now disbanded our back-office integration team.

and remain firmly on track to achieve a $335 million run rate by the end of this year.

Tom Palmer: Looking at the three components of our strategic delivery and starting with full potential, we're now advancing into the delivery stage for the initiatives we have identified, and we're here. With the largest value drivers coming from our two U-T-1 assets in La Hea and Kadeum. On our call last quarter, we've provided an update on the opportunities we've identified at La Hea. In this quarter, I'll briefly describe some of the opportunities we see in front of us and Kadeum. We recently completed our full potential diagnosis failure at Kadeum, from which we have identified a series of initiatives that are expected to deliver all the $100 million value by the end of next year.

well ahead of our initial estimates.

Looking at the three components of our Synergy Delivery and starting with full potential.

We are now advancing into the delivery stage for the initiatives we have identified at Lahia, Cadia and Red Crest.

with the largest value drivers coming from our two new Tier 1 assets in Lahir and Cotia.

On our call last quarter, we provided an update on the opportunities we've identified at Lahear.

Thomas Ronald Palmer: In this quarter, I'll briefly describe some of the opportunities we see in front of us at CADIA. We recently completed our Full Potential Diagnosis phase at KDR, which is expected to deliver more than $100 million of value by the end of next year. During this first phase, we had a team of experts from Newmont's Global Technical Services Group working to support the site to identify opportunities for higher production and improved cash flow.

In this quarter, I'll briefly describe some of the opportunities we see in front of us at CADIA.

We recently completed our Full Potential Diagnosis Phase at KDU.

from which we have identified a series of initiatives.

that are expected to deliver more than $100 million of value by the end of next year.

Tom Palmer: During this first phase, we had a team of experts from Newmont's Global Technical Services group working to support the site to identify opportunities to high production and improve cash flows. As one example of this, and through collaboration with Bonnieton, Kadeum is working to optimise the output from its high pressure running while circuit in the mill. With these HPGR improvements, Kadeum will be able to lift its mill feed by approximately 80 tons an hour or more than 600,000 tons a year. In quantity initiatives, we have identified and leveraging the experience we have gained over the last 10 years for our full potential program.

During this first phase, we had a team of experts from Newmont's Global Technical Services Group working to support the site to identify opportunities to higher production and improved cash flows.

Thomas Ronald Palmer: As one example of this, through collaboration with Boddington. With these HPGR improvements... Acadia will be able to lift its mill feed by approximately 80 tonnes an hour, or more than 600,000 tonnes a year. Implementing the initiatives we have identified and leveraging the experience we have gained over the last 10 years with our Full Potential program, we are working with the team at CADIA to increase average mill throughput to 34 million tonnes per annum, representing a meaningful step up in productivity from this world-class gold and copper asset.

As one example of this,

and through collaboration with Boddington, Cadia is working to optimise the output from its high-pressure grinding roll circuit in the mill.

With these HPGR improvements,

Acadia will be able to lift its mill feed by approximately 80 tonnes an hour, or more than 600,000 tonnes a year.

Implementing the initiatives we have identified and leveraging the experience we have gained over the last 10 years with our Full Potential program.

Tom Palmer: We are working with the team at Kadeum to increase average mill throughput to 34 million tons per hour, representing a meaningful step-up in productivity on this well-class, gold, and copyrighted. With the here, Kadeum and Repress All now entering the delivery phase of full potential, we are on track to meet our initial $200 million commitment. According to supply chain synergies, we continue to leverage our combined scale to provide improved commercial outcomes for both pricing and terms. In the second quarter, we relied 60 million dollars in synergies around 40 initiatives in copyrighted services, money equipment, energy, information technology, among other categories.

We are working with the team at CATIA to increase average mill throughput to 34 million tonnes per annum.

representing a meaningful step up in productivity on this world-class gold and copper asset.

Thomas Ronald Palmer: With Lahir, Kadia, and Red Chris all now entering the delivery phase of full potential, we are on track to meet our initial $200 million commitment, drive improved commercial outcomes for both pricing and terms, and finally, turn into DNA.

With Lahiya, Kadia and Red Crisps all now entering the delivery phase of full potential, we are on track to meet our initial 200 million dollar commitment.

Leading to Supply Chain Synergies

We continue to leverage our combined scale.

to drive improved commercial outcomes for both pricing and terms.

In the second quarter, we realized $60 million in synergies.

from around 40 initiatives.

in Contracted Services, Mining Equipment, Energy, Information Technology, among other categories.

Tom Palmer: And we had a clear line of sight to reach a 140 million dollar run rate by the end of this year. As we've progressed our commercial work across several spare categories, including chemicals, explosives, grinding media, tires, fuel, as well as spare parts and runables. And finally, 30 to DNA synergies. We have now achieved 95% of our initial $100 million commitment, with an additional $15 million realized during the second quarter. The latest G&A synergies have primarily been coming from continued labor rationalization and ongoing reductions in our contractor spent. Taking these synergies into account, combined with the high production volumes anticipated in the second half of this year, we expect to deliver lower unit costs in the third and fourth quarters.

And we have a clear line of sight to reach a $140 million run rate by the end of this year.

As we progress our commercial work across several SPED categories.

including chemicals, explosives, grinding media, ties, fuel, as well as spare parts and rotables.

Thomas Ronald Palmer: We have now achieved 95% of our initial $100 million commitment, and similar to the first half of the year, our operational results in the third and fourth quarters will be largely driven by production from our six managed Tier 1 operations. Moving to Barrington.

And finally to the DNA synergies.

We have now achieved 95% of our initial $100 million commitment.

with an additional $15 million realized during the second quarter.

The latest G&A synergies have primarily been coming from continued labour rationalisation and ongoing reductions in our contractor spend.

Taking these synergies into account.

combined with the high production volumes anticipated in the second half of this year, we expect to deliver lower unit costs in the third and fourth quarters.

Thomas Ronald Palmer: And with that, I'll now turn it over to Natasha, and then on to Karyn for an update on our operational and financial performance for the quarter.

And with that, I'll now turn it over to Natascha and then on to Karyn for an update on our operational and financial performance for the quarter. Over to you, Natascha.

Natasha Viljoen: How do you do to Natasha?

Natasha Viljoen: Thank you, Tom, and good morning, everyone. Our managed operations delivered solid second quarter results in line with our expectations and outlook for the year. With the focus of size and efficient production at each of our managed operations, we are heading into the second half of the year with confidence in our ability to deliver on our business plan and the commitment Tom really directed earlier. And similar to the first half of the year, our operational results in the third and fourth quarters will be largely driven by production from our six managed tier one operations.

Thank you, Tom, and good morning, everyone.

Our managed operations delivered solid second quarter results in line with our expectations and outlook for the year.

With a focus on safe and efficient production at each of our managed operations, we are heading into the second half of the year with confidence in our ability to deliver on our business plan and the commitments Tom reiterated earlier.

And similar to the first half of the year, our operational results in the third and fourth quarters will be largely driven by reduction from our six managed Tier 1 operations.

Natascha Viljoen: We're thinking of these and beginning with Panama. We delivered higher production in the second quarter as planned, while we significantly corroborating the second underground expansion. Panama continues to be a reliable solar and remains well-resistant to access higher-grade stoves in the second half of the year from the level rise of our body.

Reflecting on these and beginning with Tanami.

We delivered higher production in the second quarter, as planned, while effectively progressing the second underground expansion.

Panamide continues to be a reliable reformer and remains well-sufficient to access higher grade stoves in the second half of the year from the liberator ore body.

Natasha Viljoen: Moving to Wellington. We reported consistent results as stripping in the nose and South Vince continued ahead of plan in the second quarter. And with the land, lawns, and pressure maintenance now behind us, Wellington is expected to deliver strong mode throughput and slightly higher-grade and copper production in the third quarter. And being a skater, we delivered higher-grade and zinc production due to higher-grade rates from the Chili Colorada, but a strong mode performance in the second quarter. The reduction level is expected to remain steady in the third quarter with significant increase in goal production in the fourth quarter, as we return to mining all from the Banasco bit to when they end of the year.

Thomas Ronald Palmer: We reported consistent results as stripping in the north and south bits continued ahead of plan in the second quarter. At Benesquito, we delivered higher gold and zinc production due to higher grades from the Chile-Colorado put and strong mole performance in the second quarter. The giant drought spanned over 12 months and involved the fabrication of a new 6.5-meter diameter GERS gear along with the transport of more than 50 tons of steel all the way from Australia to Ghana.

Moving to Poddington.

We reported consistent results as stripping in the north and south bits continued ahead of plan in the second quarter.

And with plant, plant, and crusher maintenance now behind us, Boddington is expected to deliver strong mold throughput and slightly higher gold and copper production in the third quarter.

At Benesquito, we delivered higher gold and zinc production due to higher grades from the Chile-Colorado pit and strong mull performance in the second quarter.

Production levels are expected to remain steady in the third quarter, with significant increase in gold production in the fourth quarter as we return to mining ore from the Benasco pit toward the end of the year.

Natasha Viljoen: Turning now to a horror. The girls' gear replacement was precisely completed ahead of schedule, and I'm really proud of the horror team for completing this significant body of work so efficiently. The judge outspanned over 12 months and involves the bad fabrication of a new six and a half meter diameter goes gear, along with the transport of more than 50 tons of steel all the way from Australia to Ghana. During this entire time, the team continued to optimize the processing circuit, ensuring our most productive mining circuit was able to run as efficiently as possible. Beginning in the third quarter, we expected a meaningful step-up in production from a horror.

Turning now to our Hall of Fame.

The girth gear replacement was safely completed ahead of schedule and I'm really proud of the Harpo team for completing this significant body of work so efficiently.

The giant drought spanned over 12 months and involved the fabrication of a new 6.5-metre diameter girth gear along with a transport with more than 50 tonnes of steel all the way from Australia to Ghana.

During this entire time, the team continued to optimize the processing circuit, ensuring our most productive milling circuit was able to run as efficiently as possible.

Thomas Ronald Palmer: Beginning in the third quarter, we expect a meaningful step-up in production from AHAFO as we will improve mole throughput, deliver consistently strong mining rates from Subica Underground, and access higher grades from the Subica Open Fit. At Gaidia, we delivered solid gold and copper production as planned due to steady grinds and strong mold performance in the second quarter. As factored into our guidance, production at Cadia is expected to gradually decline through the rest of the year as we transition mining to the next panel K and just bring the Old Clive Chardonnay to the spectrum.

Beginning in the third quarter we expect a meaningful step up in production from OHAFO as we will improve mole throughput, deliver consistently strong mining rates from Subica Underground and access higher grades from the Subica Open Fence.

Natasha Viljoen: As we will improve more throughput, deliver consistently strong mining rates from supercomputer underground and access higher-grade from the Tobika Open Fit.

At Gaidia, we deliver solid gold and copper production as planned due to steady grinds and strong mold performance in the second quarter.

As factored into our guidance, production at Cadia is expected to gradually decline through the rest of the year as we transition mining to the next panel cave, and we expect these lower grades to continue until the next panel cave is fully ramped up.

And finally, I'd be here.

Second quarter production decreased from the first quarter, primarily due to heavy rainfall, which contributed to soft ground conditions that in turn impacted mine sequencing.

Production levels are expected to remain consistent in the third quarter as the site commences a planned 120-day shutdown of the primary autoclave.

Thomas Ronald Palmer: The process includes not only shutting down the autoclave itself but also removing the brick layer and pyroflex membrane, inspecting the 5.5 meter diameter steel shull, applying a high-temperature tolerant membrane, and re-bricking the 48 meter long structure, which is nearly the length of an Olympic swimming pool.

and just to bring the Old Clive showdown into perspective.

The process includes not only shutting down the autoclave itself, but also removing the brick layer and pyroflex membrane.

inspecting the five and a half meter diameter steel shoal, applying a high-temperature tolerant membrane, and re-bricking the 48 meter long structure which is nearly the length of an Olympic swimming pool.

Once complete, we anticipate gold production will return to normal levels in the fourth quarter, positioning Ligier for a strong finish to the year.

Karyn F. Ovelmen: Taking everything into account, we anticipate an increase in gold production next quarter, setting us up to deliver the year's highest production. At Hawthorne North, the construction of the Crusher and Mull is advancing well. On the surface, we are working to complete the Winder building, which will house the hoisting operations for many decades to come. Turning to the next slide, let's begin with a review of the financial highlights for the quarter. Building upon Tom and Natasha's remarks, Newmont delivered strong operational and financial results in the second quarter, with costs at full to sales of $1,152 per gold ounce. All in sustaining cost of $1,562.00, which was higher over the first quarter, primarily due to lower production volume and higher royalties from a stronger gold price environment.

Taking everything into account, we anticipate an increase in gold production next quarter, setting us up to deliver the year's highest production.

in the fourth quarter.

Our performance is the second of the year.

Our performance in the second half of the year will be driven by higher grades at Meniskito, O'Hofa and Fannemeye, improved throughput from Lahir and Boddington, along with an expected improvement from our non-managed operations.

During the second quarter, we continued to progress the four key projects we currently have in execution.

At our Hawthorne North, the construction of the crusher and mow are advancing well.

We have built the concrete foundations for the sag and bore moulds and have erected all six carbon-enriched tanks.

Earthworks continue for the tiling storage facilities, along with the pre-mine development activities for this very exciting new mine in West Africa.

At the second expansion at Tanami, our team remains focused on the concrete liner of the lower section of the shaft, and we continue to advance construction activities both underground and on surface.

Underground, we are progressing the pressure and conveyor systems and have just safely and successfully completed pouring nearly 200 cubic meters of concrete for the underground pressure chamber.

On surface, we are working to complete the Winder building, which will house the wasting operations for many decades to come.

turn into Kydeon

The two blockades are each progressing well. We are continuing to commission two new door points at Panel Caves 2 and 3, and we are anticipating that initial caving is expected to commence by the end of the year.

For Panel Case 1-2, we are advancing underground development and the engineering work needed to design the crushing and material handing systems at this Tier 1 gold and copper operation.

With that, I'll turn over to Karyn to cover our financial performance and the progress we are making on our capital allocation priorities.

Karyn F. Ovelmen: The most notable adjustment to net income for the quarter was an approximately 20 cent add-back related to a non-cash impairment to reflect our progress and the conclusion of phase one in the divestment process for North America. We also generated $1.4 billion of cash flow from operations.

Thank you, Natascha.

Turning to the next slide, let's begin with a review of the financial highlights for the quarter.

Karyn F. Ovelmen: $594,000,000 of free cash flow. However, it does include $263 million of unfavorable working capital changes, largely due to a bill in stockpiles of $185 million, primarily attributed to Lahir and Telfer. A bill in trade and other receivables of $140 million due to higher-grade concentrate produced at Penosquito and the timing of sales at KDL, with $166 million in reclamation spent to date. We expect that payments will continue ramping up in the second half of the year, which will be a working capital headwind in the third and fourth quarters. And while we are pleased with the improvement in free cash flow, we are still not satisfied and are working to further improve it.

Building upon Tom and Natascha's remarks, Newmont delivered strong operational and financial results in the second quarter.

We reported $4.4 billion of revenue at an average realized gold price of $2,347 per ounce, and costs appalled to sales of $1,152 per gold ounce, and all-in sustaining costs of $1,562 an ounce.

which were higher over the first quarter primarily due to lower production volumes, higher royalties from a stronger gold price environment,

and increased sustaining capital this quarter due to spend on tailings work at Cadia and the planned purchase of additional trucks at Marion.

Taking everything into account, we reported adjusted EBITDA of approximately $2 billion.

Driven by solid production volumes and higher gold prices.

Adjusted net income was $0.72 per dividend share and was more than 30% higher than the first quarter.

The most notable adjustment to net income for the quarter was an approximately 20 cent add back related to a non-cash impairment to reflect our progress.

at the conclusion of phase one in the divestment process for North America.

As a reminder, assets that are classified as and hold for sale require a specific evaluation under U.S. GAAP and need to be recorded at the lower securing value or fair value of the cost to sell.

And we will continue to assess the current carrying value of all assets held for sale each quarter, which may result in future adjustments until the assets are divested.

It is important to note that this impairment does not reflect the future potential at these operations in their entirety or what the ultimate purchase price might be.

We also generated $1.4 billion of cash flow from operations.

and $594 million of free cash flow.

which does not include the first $180 million payment received from the sale of the Lundin Gold financing facilities announced last quarter.

It does include $263 million of unfavorable working capital changes largely due to

A build in stockpiles of $185 million dollars, primarily attributed to Lahir and Telford.

A billed in trade and other receivables of $140 million due to higher grade concentrate produced at Penosketo and the timing of sales at KDL.

and $107 million of reclamation spend, primarily related to the construction of the Anacocha Water Treatment Facilities.

with $166 million in reclamation spent to date.

We expect that payments will continue ramping up in the second half of the year, which will be a working capital headwind in the third and fourth quarters.

And while we are pleased with the improvement in free cash flow, we are still not satisfied and are working to further improve margins.

Speaker Change: Looking ahead, we anticipate higher free cash flows in the second half of the year, driven by increased production volumes and lower unit costs, as Tom and Natascha just mentioned.

Karyn F. Ovelmen: Heading into the second half of the year, we remain firmly on track to achieve our four-year guidance for reduction, cost, and capital. And as Natascha mentioned, production is expected to increase in the third quarter with the year's strongest performance anticipated in the quarter, unit cost will be closely correlated to production with the added benefit of full potential improvements and additional synergies realized in the latter part of. Today, we announce two divestment funds.

Speaker Change: Heading into the second half of the year, we remain firmly on track to achieve our four-year guidance for reduction, costs, and capital spend.

Speaker Change: And as Natascha mentioned, production is expected to increase in the third quarter with the year's strongest performance anticipated in the fourth quarter.

Speaker Change: Unit costs will be closely correlated to production with the added benefit of full potential improvements and additional synergies realized in the latter part of the year.

Karyn F. Ovelmen: Including the monetization of our VATSUHU deferred payment obligations and the sale of our Lending Gold Financing Facility. In total, these divestitures are expected to generate nearly $530 million in gross proceeds by the end of the year. With this momentum, the benefit of higher commodity prices contributing to enhanced free cash flows, and the confidence in our asset divestiture program, we were able to prioritize shareholder returns sooner than anticipated, while concurrently executing a debt reduction.

Speaker Change: Today, we announce two divestments, including the monetization of our VATSUHU deferred payment obligations and the sale of our LendingGold financing facilities.

Speaker Change: In total, these divestitures are expected to generate nearly $530 million in gross proceeds by the end of the year.

Speaker Change: With this momentum, the benefit of higher commodity prices contributing to enhanced free cash flows, and the confidence in our asset divestiture program, we were able to prioritize shareholder returns sooner than anticipated while concurrently executing on debt reductions.

Karyn F. Ovelmen: Since our last earnings call, we repurchased 5.7 million shares at an average price of $43 per share, for a total cost of $250 million, including $104 million repurchased during the second quarter and $146 million in July. And we purchased $250 million in nominal debt for $227 million, or $0.90 on the dollar. Additionally, we maintained an investment-grade balance sheet and ended the quarter with $6.8 billion. Additionally, we declared a fixed common second quarter dividend of 25 cents per share.

Speaker Change: Since our last earnings call, we repurchased 5.7 million shares at an average price of $43 per share.

Speaker Change: for a total cost of $250 million.

Speaker Change: including $104 million repurchased during the second quarter and $146 million in July .

Speaker Change: And we purchased $250 million in nominal debt for $227 million or $0.90 on the dollar.

Speaker Change: Additionally, we maintained an investment-grade balance sheet and ended the quarter with $6.8 billion in total liquidity.

Karyn F. Ovelmen: In line, the dividend declared at... Looking ahead to the remainder of the year, we will continue to execute our balanced capital allocation strategy, focused on maintaining a strong balance between steadily funding cash-generative capital projects and returning capital to shareholders. With that, I'll pass it back to Tom for closing remarks. Thanks, Karyn. At the start of this year,

Speaker Change: And, we declared a fixed common second quarter dividend of 25 cents per share, in line with the dividend declared for the past two quarters.

Speaker Change: Looking ahead to the remainder of the year, we will continue to execute our balanced capital allocation strategy.

Speaker Change: Focused on maintaining a strong balance sheet, steadily funding cash-generative capital projects, and returning capital to shareholders.

Speaker Change: With that, I'll pass it back to Tom for closing remarks.

Thomas Ronald Palmer: I outline the four key commitments that we have made to our shareholders, and I'd like to end today's call with a recap of the progress we have made against them in the second quarter. First and most important, we have begun a systematic review of our safety and risk management, and we safely delivered solar production as planned, keeping us firmly on track to meet our full year guidance for both ounces and cost.

Tom: Thanks, Karyn.

Tom: At the start of this year,

Tom: I outline the four key commitments that we have made to our shareholders.

Tom: And I'd like to end today's call with a recap of the progress we have made against them in the second quarter.

Tom: First and most importantly,

Tom: We commence a systematic review of our safety and risk management systems.

Tom: We safely deliver solar production as planned.

Tom: keeping us firmly on track to meet our full year guidance for both ounces and costs.

Thomas Ronald Palmer: We announced meaningful progress on our portfolio optimisation, with the monetisation of our Bata Hijau deferred payment obligation. We realized $100 million in synergies, bringing the total delivered to $205 million since we closed our acquisition of Newcrest in November last year. We demonstrated our commitment to shareholder return, delivering $540 million through both regular dividends and Sherry Pudge, and we strengthened our balance sheet with $250 million of debt reduction.

Tom: We announced meaningful progress on our portfolio optimisation commitments.

Tom: with the monetisation of our Bata Hijal deferred payment obligations.

Tom: We realized $100 million in synergies.

Tom: bringing the total delivered to $205 million.

Tom: since we closed our acquisition of Newcrest in November last year.

Speaker Change: We demonstrated our commitment to shareholder returns, delivering $540 million through both regular dividends

Speaker Change: and Sherry Purchases.

Speaker Change: And we strengthened that balance sheet.

Thomas Ronald Palmer: As we enter the second half of this year, I am confident in our ability to deliver high production. All potential improvements and additional synergies, all of which will contribute to lower unit costs in the third and fourth quarters, execute on our Portfolio Optimization Strategy through the divestment of our non-core assets, and to progress our capital allocation priorities, all positioning Newmont for a strong finish this year. And with that, I thank you for your time today. Turn it back over to the operator to open the line for questions.

Speaker Change: with $250 million of debt reduction.

Speaker Change: As we enter the second half of this year, I am confident in our ability to deliver high production

Speaker Change: All potential improvements and additional synergies.

Speaker Change: All of which will contribute to lower unit costs in the third and fourth quarters.

Speaker Change: and execute on our Portfolio Optimization Strategy.

Speaker Change: through the divestment of our non-core assets.

Speaker Change: and to progress our capital allocation priorities.

Speaker Change: All positioning Newmont for a strong finish to this year.

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

Speaker Change: and turn it back over to the operator to open the line for questions.

Operator: Thank you. We will now begin the question and answer session. We ask that you please limit inquiries to one primary question and one follow-up question. To ask a question, you may press star, then 1 on your touch-tone poll. If you're using a speakerphone, please pick up your headset before pressing the key.

Speaker Change: Thank you. We will now begin the question and answer session. We ask that you please limit inquiries to one primary question and one follow-up question.

Speaker Change: To ask a question, you may press star, then 1 on your touch-tone poll.

Speaker Change: If you're using a speakerphone, please pick up your headset before pressing the keys.

Operator: To withdraw your question, please press star then 2. At this time, we will pause to assemble our roster. The first question comes from Lawson Winder from... Bank of America Security. The line is now open. Please go ahead.

Speaker Change: To withdraw your question, please press star then 2.

Speaker Change: At this time, we will pause to assemble our roster.

Speaker Change: The first question comes from Lawson Winder from Newmont Goldcorp Corporation.

Speaker Change: Bank of America Securities. The line is now open. Please go ahead.

Lawson Winder: Great, thank you, operator. And good morning, Tom and team. Nice quarterly result. And thanks for the update. I also want to acknowledge the congratulations for realizing value on the deferred payments from Batu Hija, which I think most of us have forgotten about. But I wanted to ask about the larger asset sales process, the Chin, Telfer, and North American assets. What is your latest thinking on the timing of, and with the stronger gold price, are you seeing upward pressure on offer prices? Thanks very much.

Lawson Winder: Great. Thank you, Operator, and good morning, Tom and team. Nice quarterly result, and thanks for the update.

Speaker Change: I'd also like to acknowledge the congratulations for realizing value on the deferred payments from Batu Hija, which I think most of us have forgotten about.

Speaker Change: But I wanted to ask about the larger asset sales process, Achene, Telfer, and the North American assets. What is your latest thinking on timing of each? And with the stronger gold price, are you seeing upward pressure on offer prices? Thanks very much.

Thomas Ronald Palmer: Good morning, Lawson, and thanks for your question. And, yeah, it's a chapter that we closed in our relationship with Barnta E. Gell and an asset I've been associated with for my 10 years at Newmont and was an active part of the original divestment process. So, in some ways, it's a sad moment to close that chapter on what is still a great, great copper mine and one that Newmont built a generation ago.

Speaker Change: Good morning Lawson and thanks for your question. It's a chapter that we closed in our relationship with Partha E. Jail and an asset I've been associated with for my 10 years at Newmont.

Speaker Change: was an active part of the original divestment process. So, in some ways, it's a sad moment to close that.

Thomas Ronald Palmer: So it's nice to be able to clean up our non-core portfolio and realize that sort of value. In terms of our broader portfolio rationalization process, it's firmly on track, and we continue to follow a very rigorous process to ensure we get full and fair value for these assets and that these assets are sold to operators that can continue to operate them and maintain them with the principles that we have at Newmont. That'd be just covering the program.

Speaker Change: That chapter is still a great copper mine and one that Newmont built a generation ago. So it's nice to be able to clean up our non-core portfolio and realise that sort of value.

Speaker Change: In terms of our broader portfolio optimisation, rationalisation process,

Speaker Change: is firmly on track and we continue to follow a very rigorous process.

Speaker Change: to ensure we get...

Speaker Change: full and fair value for these assets and that these assets are sold to operators that can continue to operate them and maintain them with the principles that we have at Newmont.

Thomas Ronald Palmer: We've had four parallel streams. The first one we've just talked about is planning for the opportunities around our non-core equity portfolio. The two major items there were the London Gold transaction and Barter Hegel, but we'll continue to look for any opportunities there might be in that non-core equity portfolio. At Achim, we're well advanced in the process with Achim, so we completed phase one some time ago.

Speaker Change: That'd be just covering the program. We've had four parallel streams running.

Speaker Change: The first one we've just talked about is the cleaning up the opportunities around our non-core equity portfolio. The two major items there were the London Gold transaction and Barta Hijal, but we'll continue to look for any opportunities there might be in that non-core equity portfolio.

Speaker Change: At Achim, we're well advanced in the process with Achim, so we completed phase one some time ago. We had 20 parties through that process who made bids.

Thomas Ronald Palmer: We had 20 parties through that process who made bids, and we've taken seven parties into phase two, and we're at the end of phase two. So we've had all those parties visit the site and participate in management presentations, and they are now preparing their phase two bids for us to consider. So we're at that stage where, really, by the time you get into phase three, you're down to one or two parties starting to finalize that transaction.

Speaker Change: And we've taken seven parties in...

Speaker Change: into phase two.

Speaker Change: And we're at the end of the Phase 2 process, so we've had all those parties.

Speaker Change: visit the site and participate in management presentations.

Speaker Change: and they are now preparing their Phase 2 bids for us to consider.

Speaker Change: So we're at that stage where, really by the time you get into Phase 3, you're down to one or two parties starting to finalise that transaction.

Thomas Ronald Palmer: So that is progressing very well. It's progressing on track, and we're certainly seeing a competitive process and good value coming through. In the North American process, we are just concluding Phase 1. So we've had some 67 parties actively participate in Phase 1, and we had around 24 bids submitted.

Speaker Change: That is progressing very well, it's progressing on track and we're certainly seeing a competitive process and good value coming through.

Speaker Change: The North American process, we are just concluding phase one.

Speaker Change: So we've had some 67 parties actively participate in Phase 1.

Thomas Ronald Palmer: And we had everything from bids for a single asset to North America's Cripple Creek and Victor, Eleanor, Porcupine, Musselwhite, and our coffee project up in the Yukon. So we've had a range of bids, from a single asset to a bundle of assets to the full portfolio. And we are busy now, having received those bids just in the last few days, working through a process of assessing those and determining which parties we'll take into Phase 2. Again, that's progressing well, and there's some very nice competition in that process. So I'm more than pleased with how both the Chim and North America are progressing. And then TELFA continues to progress well.

Speaker Change: And we had around 24 bids submitted, and we had everything from bids for a single asset. If you remember, North America is Crippled Greek Invicta, Eleanor, Porcupine.

Speaker Change: Muscle White and our coffee project up in the Yukon, so we've had a range of bids from a single asset to a bundle of assets to the full portfolio.

Speaker Change: And we are busily now, having received those bids just in recent days, working through a process of assessing those.

Speaker Change: and determining which parties will take into phase two. Again, that's progressing well and there's some very nice competition in that process. So I'm pretty... I'm more than pleased with how both the Chim and North America are progressing.

Karyn F. Ovelmen: We continue to actively work that process and are also quietly confident about how that process is progressing. So everything is on track and pretty pleased with what we're seeing in terms of bids coming through and the type of organizations that are looking to make offers and ultimately acquire these non-core assets. Karyn, do you want to build on that?

Speaker Change: And then Telfer continues to progress well. We continue to actively work that process.

Speaker Change: and also, I'm quite confident around how that process is progressing.

Speaker Change: Everything is on track and pretty pleased with what we're seeing in terms of bids coming through and the type of organisations that are looking to make offers and ultimately acquire these non-core assets.

Karyn F. Ovelmen: Yeah, and Lawson, just as a reminder, the accounting treatment under US GAAP requires that, you know, there's an advanced process, it's auditable, there's viable buyers, and the probability that the ventures will be completed in 12 months, which for us would then be March of 2025. Thanks for clearing that up. And just one follow-up on Telfer.

Karyn: Karyn, do you want to build on that? Yeah, and Lawson, just as a reminder, the accounting treatment under U.S. GAAP

Lawson Winder: requires that, you know, there's an advanced process, it's auditable, there's viable buyers, and the probability that the debentures will be completed in 12 months, which for us would then be March of 2025.

Speaker Change: Thanks for clearing up that timing. And just one follow up on Telfer. Thank you. Thank you for clarifying a lot of

Lawson Winder: Thank you. Thank you for clarifying a lot of, I think, folks' thoughts around Telfer in terms of both timing and value. But one bit of feedback we've been getting is just some concerns around the tailings dam issues and whether or not that might have impacted the ability to monetize that asset for value. Do you have any thoughts on that? Or is there any feedback you may have received from potential interested parties that might help calm some of those concerns?

Speaker Change: I think folks' thoughts around TELFER.

Speaker Change: In terms of both timing and value, but one bit of feedback we've been getting is just some concerns around the tailings dam issues and whether or not that might have impacted the ability to monetize that asset for value. Do you have any thoughts on that or is there any feedback you may have received from potential interested parties?

Speaker Change: that might help calm some of those concerns.

Thomas Ronald Palmer: Thanks, Lawson. The approach we took with Telfer, and I've certainly talked about this a number of times over the last few months, is ultimately being radically transparent around those tailings issues. So we, since we saw the first of the sinkholes develop on Christmas Eve, have been very transparent with the regulators, with our workforce, and with any potential buyers around what the issue is and what the work is to remediate those issues so that the issues are well understood, and the remediation is well understood, and we have been completely transparent around what that looks like and the pathway to remediation.

Speaker Change: Unknown Speaker

Speaker Change: Thanks Lawson. The approach we took with Telfer, and we've certainly talked about this a number of times over the last few months, is

Speaker Change: is ultimately being radically transparent around those tailings issues.

Speaker Change: So we...

Speaker Change: Since we saw the first of the sinkholes develop on Christmas Eve...

Speaker Change: have been very transparent with

Speaker Change: with the regulators, with our workforce and with any potential buyers around.

Speaker Change: What the issue is and what the work is to remediate those issues so that...

Natascha: The issues are well understood, and the remediation is well understood, and we have been completely transparent around what that looks like, and the pathway to remediate. So there is a clear pathway to remediate, and I might just get Natascha to give a little bit more detail as to what that looks like, and maybe a bit of the timing.

Thomas Ronald Palmer: So there is a clear pathway to remediation, and I might just get Natascha to give a little bit more detail as to what that looks like and maybe a bit of the timing around that because that then serves to understand, with that transparency, what any potential buyer is looking at in terms of the ability to acquire Telfer and to be able to run the operation for some time to come. I should add before I pass to Natascha, we continue to operate the mine, so we're building stockpiles in front of the mill, so as soon as the tailings facilities go through their remediation work, the plant can start up. We can continue to process the ore and produce gold. Thanks, Natasha. Thanks, Tom. Good morning, Daniel.

Natascha: around that, because that then serves to understand...

Natascha: with that transparency what any potential buyer is looking at in terms of the ability to acquire Telfer and to be able to run the operation for some time to come.

Natascha: I should add, for a pass to Natascha, we continue to operate the mine, so we're building stockpiles in front of the mill, so as soon as the tailings facilities, through their remediation work, the plant can start up and we can continue to process ore and produce gold again.

Natascha Viljoen: Firstly, I just want to reiterate the point that we've been transparent with all parties involved throughout the process. Secondly, I want to reiterate that both the TSA 7 and 8 DAPs are stable. We're progressing the TSF-7 rehabilitation as planned, and it is all about how we fill in the sinkholes, placing membranes, and preventing, in that way, any further erosion in those areas. So whilst we're working on the stability, on remediating the sinkholes in TSF-7 and TSF-8, we've completed the rehabilitation, and we have authorization to continue with a lift on TSF-8 that we are required to It is on schedule, and we are planning to start up TELFA in the fourth quarter when we... Wayne. The rehabilitation and the lift would have been done.

Natascha: Thanks for touching. Thanks, Tom. Good morning, Daniel.

Speaker Change: Firstly I just want to reiterate the point that we've been transparent with all parties involved throughout the process. Secondly, I want to reiterate that both the TSF 7 and 8 DAPs are stable.

Speaker Change: We're progressing the TSF-7 rehabilitation as planned, and it is all around how do we fill in the sinkholes, placing membranes, and preventing in that way any further erosion in those areas.

Speaker Change: So whilst we're working on the stability, on remediating the sinkholes in TSF-7, TSF-8, we've completed the rehabilitation.

Speaker Change: And we have an authorization to continue with a list on TSF-8 that we are required to do before we can do any more depositioning on that dam.

Speaker Change: It is on schedule and we are planning to start up Telfer in the fourth quarter when we start

Speaker Change: [inaudible]

Speaker Change: The rehabilitation and the lift would have been done.

Speaker Change: And apologies, I realize we're still talking to Lawson and we haven't progressed to Daniel. My apologies.

Speaker Change: Quite all right. Thank you very much for those responses.

Lawton: Thanks, Lawson.

Natascha Viljoen: And apologies, I realize we're still talking to Lawson and we haven't progressed to Daniel. Quite all right. Thank you very much for those responses. Thanks, Lawson. Thank you. The next question is from Daniel Major from UBS. The line is now open. Please go ahead. Hi, thanks so much. Can you hear me okay?

Speaker Change: Thank you.

Speaker Change: The next question is from Daniel Major from UBS. The line is now open. Please go ahead.

Daniel Edward Major: Yes, we can. Thanks, Daniel. Great, thanks. Yeah, my question's focused on the decision to start the buyback and sort of comes in two parts. Firstly, from a perspective of kind of run rate of cash returns relative to debt reduction going forward, how should we look at that? You've sort of indicated around half of the free cash flow would be allocated to debt reduction and buybacks. Is that what we should be considering for the second half?

Daniel Edward Major: Hi, thanks so much. Can you hear me okay?

Speaker Change: Yes, we can. Thanks, Daniel.

Daniel Edward Major: Great, thanks.

Daniel Edward Major: Yeah, my questions...

Speaker Change: focused on the decision to

Speaker Change: start the buyback.

Speaker Change: and sort of comes in two parts. Firstly, from a perspective of kind of run rate of cash returns relative to

Speaker Change: debt reduction going forward. How should we look at that? You've sort of indicated around half of the free cash flow would be allocated to debt reduction and buybacks. Is that what we should be considering for the second half? That's the first part of the question.

Daniel Edward Major: That's the first part of the question. Thanks, Dan. Okay, Karyn, I might be able to pick that one up.

Karyn F. Ovelmen: Sure. Yeah, we have time on the debt. So, we purposely put out the billion tranche for 2026, and so our commitment was over a 24-month period when we put that in place. So, we do have time on the debt. The BATU, as well as the Lundin, just allowed us to be able to opportunistically enter the market and do some open market purchases. Hello.

Speaker Change: Thanks Daniel, Karyn might be able to pick that one up. Sure.

Karyn: Yeah, we have time on the dad so

Karyn: We purposely put out the billion tranche for 2026.

Speaker Change: And so our commitment was over a 24-month period when we put that in place. So we do have time on the debt. The BATU as well as the Lundin just allowed us to be able to opportunistically in the market do some open market purchases.

Speaker Change: Hello?

Speaker Change: sorry and the bio

unknown: [inaudible] No, Daniel, we missed the second part. Did you want to build it? Yeah, sorry.

Daniel Edward Major: Well, the other part was, what the run rate of the buyback going forward should be, what we should be thinking. And then just to add to that, what gave you the confidence to initiate the cash returns earlier? Is it the gold price environment, the operational visibility for the second half, or the certainty on or narrowing in on the proceeds for divestment? All three of those, Daniel, provided that opportunity for us.

Speaker Change: No, Daniel, we missed the second part. Did you want to build?

Speaker Change: The other part was the run rate of the buyback going forward, what we should be thinking. And then just to add to that, what gave you the confidence?

Speaker Change: to initiate the cash returns earlier? Is it the gold price environment, the operational visibility for the second half, or the certainty on narrowing in on the proceeds for divestments?

Thomas Ronald Palmer: You know, in terms of the pace of the share buybacks as we go forward, that will be driven by our free cash flow realization and proceeds from the divestiture. So, you know, as we've just mentioned, we're proceeding very well and are very confident in the ultimate execution of those divestments. But we'll pace our share buybacks as we realize those proceeds as well as the free cash flow. And maybe just to build on the debt side, Daniel, opportunistically during the second quarter with those proceeds coming through, we've got that tranche sitting out there for two years, and we'll look to be opportunistic in terms of where there might be some good buying while we manage that period out to when that tranche is due Great, thanks very much.

Speaker Change: All three of those, Daniel provided that opportunity for us.

Speaker Change: You know, in terms of the pace of the share buybacks as we go forward, that will be driven by our free cash flow realization and proceeds from the divestiture. So...

Speaker Change: As we've just mentioned, we're proceeding very well and are very confident in the ultimate execution on those investments, but we'll pace our share buybacks as we realize those proceeds as well as the free cash flow.

Speaker Change: And maybe just to build on the debt side, Daniel, there was opportunistically during the second quarter with those proceeds coming through, we've got that tranche sitting out there two years and we'll look to be opportunistic in terms of where there might be some good buying whilst we manage that period out to when that tranche is due.

Daniel Edward Major: Great, thanks very much.

Tanya Jakusconek: Thank you. The next question is from Tanya Jakusconek, from Scotia Bank. The line is now open; please go ahead.

Dan: Thanks, Dan.

Tanya M. Jakusconek: Thanks, Dan. Thank you. The next question is from Tanya Jakusconek from Scotiabank. The line is now open. Please go ahead. Good morning. I think that's me.

Dan: Thank you.

Speaker Change: The next question is from Tanya Jakusconek from Skotia Bank. The line is now open. Please go ahead.

Tanya M. Jakusconek: Good morning, I think that's me. Thank you, everyone. I want to have just a question on the technical side. Maybe Natasha, to you, just on the pen of Tato. You did mention, and thank you, that two, three should be similar to Q2 on the gold side. Strong Q4 driven by Gray, so as we get into the new pet. But the production from the non-gold metals did very well in Q2. A previous guidance had been that they would be evenly distributed throughout the year. How should I think about pen of Tato on the non gold side as we go through Q3 and Q4?

Tanya M. Jakusconek: Thank you, everyone. I want to just ask a question on the technical side, maybe Natascha to you just on Penasquito. You did mention, and thank you, that Q3 should be similar to Q2 on the gold side, strong Q4 driven by grades as we get into the new PIT, but the production from the non-gold metals did very well in Q2. Previous guidance had been that they would be evenly distributed throughout the year. How should I think about Penasquito on the non-gold side as we go through Q3 and Q4? Thank you, Tanya.

Tanya M. Jakusconek: Good morning. I think that's me.

Tanya M. Jakusconek: Thank you everyone. I want to ask a question on the technical side.

Tanya M. Jakusconek: Maybe Natascha, to you, just on the Panasquito, you did mention and thank you that Q3 should be similar to Q2 on the gold side, strong Q4 driven by grades as we get into the new pit.

Speaker Change: but the production from the non-gold...

Speaker Change: metals did very well in Q2. A previous guidance had been that they would be evenly distributed throughout the year. How should I think about

Speaker Change: Penasquito.

Speaker Change: on the non-gold side as we go through Q3 and Q4.

Natascha Viljoen: I think, as we've spoken about before, we are mining predominantly in Sierra Nevada in the first three quarters of the year, as we are progressing a pushback in the Nazca Fit. Sierra Nevada, as you would remember, is higher in zinc, lead, and other metals, and therefore, our production of those other metals in the first three quarters is higher. We have been progressing this step back in Penobscot Bed faster than expected, so we do expect to be back in the fourth quarter in Penobscot Bed, giving us the advantage of higher gold grades in that fourth quarter.

Natasha Viljoen: Thank you, Tanya. I think, as we've spoken about before, we are mining predominantly in the clinical order, but this first three quarters of the year. As we are progressing, I wish back in the Nascalset. So let's go to the order, as you would remember, is higher in the in-sync lead and the other the other metals. And therefore, our production in those other metals in the first three quarters is higher. We have been progressing this step back in the Nascalset for the next three quarters. So we do expect to be back in the fourth quarter in the Nascalset, giving us that long reach of higher gold rates in that fourth quarter.

Speaker Change: Thank you, Tanya. I think, as we've spoken about before, we are mining predominantly in Serenet, in Playa Colorado, the first three quarters of the year.

Speaker Change: As we are progressing a pushback in the NASCAR fit. Shelley Colorado, as you would remember, is higher in zinc, lead, and the other metals.

Speaker Change: and therefore our production in those other metals in the first three quarters are higher.

Speaker Change: We have been progressing this step back in Penobscot Bid faster than expected. So we do expect to be back in the fourth quarter in Penobscot Bid, giving us the advantage of higher gold grades in that fourth quarter. And we'll probably see about a 25% increase.

Natascha Viljoen: And we'll probably see about a 25% increase in gold grade in that fourth quarter. And Natascha, maybe just building on that, I think the second quarter, with ore coming from Chile and Colorado, good performance through the mill, Tanya, so we're getting good throughputs and recoveries? Yes, absolutely.

Natasha Viljoen: And we'll probably see about a 25th cent in which gold rate in that fourth quarter. We've been in the test for just two weeks on that. I think the second quarter, with all coming from Chile, Colorado, with performance for the mill. So we're getting good throughput and recovery. So we, in a third quarter, there's also got feed primarily coming from Chile, Colorado. And so you can milk and perform, and then the grades present. And when we look, we can potentially see some better lead synzings, because the horse coming from Chile, Colorado, but it was third bit higher.

Natascha Viljoen: and Natascha Viljoen.

Thomas Ronald Palmer: So it's a third quarter that's also got feed primarily coming from Chile and Colorado, so if the mill can perform and the grades are present, then we could potentially see some better leads and zincs because the ore's coming from Chile and Colorado, but it was a bit higher than maybe you were expecting, was due to really good mill performance by Dave Meador and the team down there. Okay, as I think about, you know, the second half, and I think you, you know, you mentioned that there'll be a step up in production, so volume, and then stronger volumes in Q4.

Natascha Viljoen: So as we, and it's a third quarter that's also got feed primarily coming from Chile, Colorado. So if the mill can perform, and the grades present, then we'll be able to move forward.

Dave Meador: And we could potentially see some better leads and zincs because the ore is coming from Chile, Colorado, but it was a bit higher than maybe you were expecting was due to really good mill performance by Dave Meador and the team down there.

Natasha Viljoen: Then maybe your expecting was due to really good meal performance by Dave Mead, or on the day down there.

Natasha Viljoen: Okay. I think about, you know, the second half, and I think you, you know, you mentioned that there'll be a step up in production. So volume and then stronger volume, thank you for. And I think about this cost structure, because in order for us to get these cops down. We do need the volume number one. And obviously that's 130 million in synergies that you mentioned. I'm just trying to picture for myself. Should I be thinking that the, the step up into Q3 that's almost like 26% of production coming out of the year. And then 28 in Q4, and 130 million, majority of those.

Speaker Change: Okay. As I think about, you know, the second half, and I think you, you know, you mentioned that there'll be a step up in production, so volume, and then stronger volumes in Q4, and I think about this cost structure, because in order for us to get these costs down,

Thomas Ronald Palmer: And I think about this cost structure, because in order for us to get these costs down, we do need the volume, number one, and obviously, the $130 million in synergies that you mentioned. I'm just trying to picture for myself, should I be thinking that the step up into Q3, like almost 26% of production coming out of the year, and then 28 in Q4, and the $130 million majority of those. You know, savings are coming in Q4.

Speaker Change: We do need the volume, number one, and obviously the $130 million in synergies that you mentioned.

Speaker Change: I'm just trying to picture for myself, should I be thinking that the step up into Q3, like, almost like 26% of production coming out of the year, and then 28 in Q4, and 130 million, majority of those.

Thomas Ronald Palmer: I'm just trying to understand how I'm going to get to your guidance on the costing side with the volume and the synergies and also where these $130 million in synergies are coming from, if I can have a breakdown of those. If I paint the picture this way, and I think you're not too far off the mark, you're certainly going to see the synergies kick in, particularly those coming from Ford Potential in the fourth quarter as those programs get their momentum going. You're certainly going to see the highest quarter for gold ounces in the fourth quarter.

Natasha Viljoen: You know savings coming into you for I'm just trying to understand how I'm going to get to your guidance on the costing side with the volume and the synergies. And also with the 130 million in synergies are coming from if I can have a breakdown of those. Thank you.

Speaker Change: You know, savings coming in Q4. I'm just trying to understand how I'm going to get to your guidance on the costing side with the volume and the synergies and also where these $130 million in synergies are coming from, if I can have a breakdown of those.

Speaker Change: I paint the picture this way, and I think you're not too far off the mark. You're certainly going to see the synergies kicking through, particularly those coming from Ford Potential in the fourth quarter as those programs get their momentum up.

Speaker Change: You're certainly going to see the highest quarter for gold ounces in the fourth quarter. That's from some of our key assets that Natascha covered in her comments. The two non-managed joint ventures, so NGM and PV, need to deliver on their commitments and they've got that strong fourth quarter.

Thomas Ronald Palmer: That's from some of our key assets that Natascha covered in her comments. The two non-managed joint ventures, so NGM and PV, need to deliver on their commitments, and they've got that strong fourth quarter. Our direct costs are pretty stable across the year, and certainly what we're seeing in the first half flowing through the second half is pretty stable. I think the picture you're painting in terms of that third quarter weighting to the fourth quarter weighting is a reasonable position to be thinking about in terms of that weight between the third and the fourth quarter.

Speaker Change: Our direct costs are pretty stable across the year and certainly what we're seeing in the first half flowing through the second half pretty stable. So I think the picture you're painting in terms of that third quarter weighting to the fourth quarter weighting is a reasonable figure.

Thomas Ronald Palmer: You will see a step up in the third and then a step up into the fourth to get to our... And maybe just if I could have an understanding. Thank you. Maybe just an understanding of the $130 million in synergies. Can you just give me a breakdown of what's coming from?

Speaker Change: position to be thinking about in terms of that weight between the third and the fourth quarter. You will see a step up in the third and then a step up into the fourth to get to our numbers.

Speaker Change: And maybe just, if I could have an understanding, thank you for that, maybe just an understanding of the $130 million in synergies. Can you just give me a breakdown of what's coming from, is it like, you know, what very little is left in G&A, is it supply chain, like $30 million of it, and $100 million in the operations? I'm just trying to understand how I should think about that $130 coming in yet.

Thomas Ronald Palmer: Is it like, you know, how little is left in G&A? Is it supply chain, like $30 million of it and $100 million in operations? I'm just trying to understand how I should think about that $130 coming in. Yes, certainly when you think about G&A, and it's the same we saw for Goldcorp, similar-sized companies, that's around about the mark. So we've largely seen that come through.

Speaker Change: Yes, certainly when you think about J&I, it's...

Speaker Change: and it's the same we saw for Goldcorp, similar size companies, that's around about the mark, so we've largely seen that come through. Still pushing hard on, we've got a strong commercial team working hard on all those fronts.

Thomas Ronald Palmer: We're still pushing hard; we've got a strong commercial team working hard on all those fronts. So you're going to see a good amount come from that supply chain work. And then you'll start to see, both Lee and Katie, a bit of red grease in the fourth quarter.

Speaker Change: So you're going to see a good amount come from...

Speaker Change: that supply chain work, and then you'll start to see both Lee and Katie a bit of red grease in the fourth quarter.

Thomas Ronald Palmer: So a lot much from G&A, still a good percentage coming from the supply chain as that work starts to kick in. And then you'll start to see in the fourth quarter some of the full potential, the operations starting to kick in. Really, they start to show up in 2025.

Speaker Change: A lot much from G&A, still a good percentage coming from supply chain as that work started to kick in. And then you'll start to see in the fourth quarter some of the full potential for the operations starting to kick through. Really they start to show up in 2025.

Thomas Ronald Palmer: But again, the split you're articulating is not too thorough. Okay, great. Thank you so much. I appreciate you taking my question. Thanks, Tanya. Thank you. The next question is from Matthew Murphy from Jeffreys. The line is now open. Please go ahead. Hi. Just a follow-up on the share purchases. Just, you know, margins are good, and they're getting better.

Speaker Change: But again, the split you're articulating is not too far off the mark.

Speaker Change: Okay, great. Thank you so much. I appreciate you taking my questions.

Speaker Change: Thanks, Tanya.

Matthew Murphy: You still have asset disposals ahead, and you're pretty early and strong out of the gate on the buyback. So how should we think about what happens when you hit the billion mark? I think that's the total allowed right now through 2026. So should we be thinking, you know, the board will reevaluate that, um, potentially earlier than then, or should we think about, you know, once you hit the billion, do you start picking up CapEx again? Good morning, Matt.

Speaker Change: Thank you.

Speaker Change: The next question is from Matthew Murphy from Jeffreys. The line is now open. Please go ahead.

Matthew Murphy: Hi, just a follow up on the share repurchases.

Matthew Murphy: Just, you know, margins are good. They're getting better. You still have asset disposals ahead and you're out pretty early and strong out of the gate on the buyback. So how should we think about what happens?

Speaker Change: When you hit the billion mark, I think that's the total allowed right now through 2026.

Speaker Change: So, should we be thinking, you know, the board will re-evaluate that potentially earlier than then, or should we think about, you know, once you hit the billion, do you start picking up CapEx again?

Thomas Ronald Palmer: Certainly, certainly the billion dollars was our initial commitment, and it was a billion dollars. So we committed to $2 billion of proceeds from divestment of the seven non-core assets, and a billion dollars going to share repurchase, and a billion dollars going to debt reduction. So that's how that comes together.

Speaker Change: Good morning, Matt. Certainly the billion dollars was our initial commitment and it was a billion, so we committed to two billion dollars of proceeds from divestments.

Speaker Change: of the seven non-core assets.

Speaker Change: and a billion dollars going to...

Speaker Change: share repurchase and a billion dollars going to debt reduction so that that's how that comes together.

Thomas Ronald Palmer: Now, as we start to see the divestment process come through, and as I was talking earlier in terms of what we see coming now in terms of offers, both Phase 2 and Phase 1 offers, and get a view as to what the proceeds are, plus the cash that we'll generate in this price environment, as we near the end of that billion-dollar program, we'll sit down with our board and discuss what another tranche may look like. But certainly, as we think about our return of capital, it's buybacks that will be the vehicle that we'll use.

Speaker Change: Now, as we start to see the divestment process come through, and as I was talking earlier in terms of what we see coming now in terms of offers, both Phase 2 and Phase 1 offers, and get a view as to what the proceeds are, plus the cash that we'll generate.

Speaker Change: in this price environment. As we near the end of that billion dollar program, we'll sit down with our board and discuss what another tranche may look like.

Speaker Change: But certainly, as we think about our return of capital.

Thomas Ronald Palmer: So you would expect that we would look to extend that program if everything plays out as we expect going forward, a conversation we'd have with our board at the appropriate time. Karyn, did you want to build on that?

Speaker Change: It's through BIMAX that will be the vehicle that we'll use, so you would expect that we would look to...

Speaker Change: extend that program if everything would play out as we expect.

Karyn F. Ovelmen: Absolutely. As I already indicated, the free cash flow realization and the divestitures will be what drives the share buyback. And administratively, as Tom said, we'll work with the board if we have to re-up the authorization to meet the proceeds as well as the free cash flow to execute on share buybacks as we go forward. Okay, great. That's very clear.

Speaker Change: Administratively, as Tom said, we'll work with the board if we have to re-up the authorization to meet the proceeds as well as the free cash flow to execute on share buybacks as we go forward.

Matthew Murphy: And then maybe just as a follow-on on the CapEx question, do you view increasing CapEx down the line? Is that kind of like a timeline thing where you integrate Newcrest for a number of years and kind of focus on capital returns and then eventually get back into, you know, potentially higher development CapEx? No Matt, we've been clear on our strategy.

Speaker Change: Okay, great. That's very clear. And then maybe just as a follow-on on the CapEx question, do you view an increase in CapEx down the line? Is that kind of like...

Speaker Change: a timeline related thing where you integrate Newcrest for a number of years and kind of focus on capital returns and then eventually get back into, you know, potentially higher development capex.

Thomas Ronald Palmer: We've built a portfolio of T1 long-life assets, 11 managed operations and non-managed joint ventures, something that hasn't been seen before in the gold industry. I think for the first time, we have a long-life, very long-life gold mining business with tier one assets. Key to running a long-life portfolio is your discipline around capital allocation. So we think about this portfolio going forward and our pipeline of projects, that's six big projects sitting in our pipeline. Our discipline around the amount of capital we'll put towards sustaining capital for that portfolio and the $1.3 billion towards development capital doesn't change. It's the discipline around managing a long-life portfolio and having a view on capital, two decades out and thinking about what that means is key to what we've built.

Speaker Change: No Matt, we've been clear in our strategy. We've built a portfolio of Tier 1 long life assets, 11 managed operations and non-managed joint ventures.

Speaker Change: Something that hasn't been seen before in the gold industry. I think for the first time we have a long life, very long life gold mining business with Tier 1 assets.

Speaker Change: Key to running a long life portfolio is your discipline around capital allocation.

Speaker Change: So, we think about this.

Speaker Change: This portfolio going forward and our pipeline of...

Speaker Change: and the next slide shows the next six projects sitting in our pipeline. Our discipline around the amount of capital we put towards sustaining capital for that portfolio and the $1.3 billion towards development capital doesn't change. It's the discipline around managing capital.

Speaker Change: A Long Life Portfolio and having a view on Capitalist.

Thomas Ronald Palmer: So we will demonstrate that over time. $1.3 billion is the amount of money that we allocate to reinvest back in the business each and every year. Okay, great. That's clear.

Speaker Change: Two decades out and thinking about what that means is key to what we've built. So we will demonstrate that over time, but the expectation you should expect from us.

Speaker Change: $1.3 billion is the amount of money that we allocate to reinvest back in the business each and every year.

Speaker Change: Okay, great. That's clear. Thanks, Tom.

Matthew Murphy: Thanks, Tom. Thank you. The next question is from Anita Soni from CIBC World Markets. The line is now open. Please go ahead. Hi Tom and team.

Speaker Change: Thank you. The next question is from Anita Soni from CIBC World Markets. The line is now open. Please go ahead.

Anita Soni: So a lot of the questions have been asked and answered. I'm going to ask about the working capital as it evolves over that rate, and how much would that spend again? I thought I heard $185 million, but I could be wrong about that. Good morning, Anita.

Anita Soni: Hi, Tom and team. So a lot of the questions have been asked and answered. I'm going to ask about the working capital as it evolves over the back half of the year. So I think you said you had about $166 million of the $600 million reclamation spend set to date, so that leaves around $434 million.

Anita Soni: So is it an even split for that spending in Q3 and Q4? And then also, the other aspect would be the Telfer spend, are you going to continue to mine at that?

Speaker Change: at that rate. And how much was that spend again? I thought I heard $185 million. I could be wrong about that. Thanks.

Thomas Ronald Palmer: Thanks. I'll get Karyn to pick up the working capital question and then Natascha on the approach to TELFA. Thanks, Anita. The first half of the year traditionally tends to produce adverse working capital changes, so we expect pre-cash flow generation to improve in the second half of the year. But, as I mentioned in my prepared remarks, we do have some unfavorable impacts.

Speaker Change: Morning Anita, thanks. I'll get Karyn to pick up the working capital question and then Natascha on the approach to Telfer.

Speaker Change: Thank you. Thank you.

Karyn: Thanks, Anita. The first half of the year traditionally tends to produce adverse work and capital changes, so we expect a pre-cash flow generation to improve in the second half of the year.

Karyn F. Ovelmen: So the Yenicocha water treatment, and as you said, yep, we've spent $166 today. And you're right, it's about $400 to $450 to be spent in the second half of the year, with more of that weighted towards the fourth quarter than the third. And just to, and then also just a reminder, the other kind of one-time cost is the remaining stamp duty, which is about $30 million. That'll be expected to be paid in the third quarter, and then Jenna and Anita from the ATAF Production Exhibit.

Speaker Change: And as I mentioned in my prepared remarks, we do have some unfavorable impacts of the endocrine water treatment. And as you said, yeah, we've spent 166 today.

Speaker Change: And you're right, it's about $400 to $450 to be spent in the second half of the year with more of that weighted towards the fourth quarter than the third. And then also just a reminder, the other kind of one-time is the remaining stamp duty, which is about $30 million. That will be expected to be paid in the third quarter.

Karyn F. Ovelmen: We will continue to mine as we know this solution for the tailings dams and as we're working through that solution, and then we do have capacity in the plant to catch up to get that production through, and as we get that production through and declare the ounces, we'll also declare our unit cost. Okay, and then what was the other one that I think there was another um asset that oh had some working capital change. It was, was it Lahir that that should unwind in q4 I guess when you ramp up but perhaps draw down again in q3.

Jenna: And then Jenna and Anita from ATAF Productions. We will continue to mine as we know that the solution for the tiling stamps and as we're working through those solutions.

Speaker Change: And then we do have capacity in the plant to catch up, to get that production through. And as we get that production through and declare the ounces, we'll also declare our unit cost.

Speaker Change: Okay, and then what was the other one? I think there was another asset that had some working capital change. Was it Lahir that should unwind in Q4, I guess, when you ramp up, but perhaps draw down again in Q3?

Karyn F. Ovelmen: The buildup in Q2 from earlier here, about a $75 million impact, so the average carrying cost per ounce of stockpiles increased from the initial low value that we had on the acquisition, and a lot of that has to do with purchase price accounting adjustments. Okay, if I can ask just one more question. You reiterated your target of $2 billion from asset sales. Would you include the $500 or so million you've realized from these non-core activities within that $2 billion?

CastingWords: Transcription by CastingWords

Speaker Change: The build up in Q2 from earlier here, about a $75 million impact, so the average carrying cost per ounce of stockpile is increasing from the initial low value that we had on the acquisition, and a lot of that has to do with purchase price accounting adjustments.

Speaker Change: Okay, if I can ask just one more question, you reiterated your target of $2 billion from asset sales. Would you include this $500 or so million you realized from these non-core within that $2 billion? Thank you.

Karyn F. Ovelmen: Is that excluding those two assets, Lundin and BATU? Thanks Anita, the $2 billion that we're committed to excludes proceeds from Lundin and Bata Hijal, so we're committing to at least $2 billion from the divestment of the seven non-core assets. Okay, thank you very much. That's it for my questions. Thanks, and I know.

Speaker Change: Is that excluding those two assets, Lundin and the Batuu-Hiju?

Speaker Change: Thanks Anita, the $2 billion that we're committed to excludes proceeds from Lundin and Barta Hijal, so we're committing to at least $2 billion from the divestment of the seven non-core assets.

Anita Soni: Okay, thank you very much. That's it for my questions.

Anita Soni: Thank you. The next question is from Bob Brackett from Bernstein Research. The line is now open. Please go ahead.

Speaker Change: Thanks. Good night.

Speaker Change: Thank you.

Speaker Change: The next question is from Bolt Brackett from Bernstein Research. The line is now open. Please go ahead.

Robert Alan Brackett: Yeah, good morning. Thanks for taking my question. I'm a bit in the weeds around here.

Bolt Brackett: Good morning. Thanks for taking my question. A bit in the weeds around Lahir, I'm trying to understand the cadence of the shutdown and the guidance. So there's roughly five months left in the year. The shutdown is four months?

Thomas Ronald Palmer: I'm trying to understand the cadence of the shutdown and the guidance. So there are roughly five months left in the year. The shutdown is four months, but we should think about volumes as being sort of evenly split first half and second half. Are all four autoclaves being shut down, or is it in series or parallel, or how should I think about that?

Speaker Change: But we should think about volumes as being sort of evenly split first half and second half. Are all four autoclaves being shut down or is it in series or parallel or how do I think about that cadence?

Thomas Ronald Palmer: Autoclave 4 is the largest of the four autoclaves, represents 40% of the throughput, so you're still at the other three autoclaves running, you get some lower recoveries running through those other three autoclaves, so the guidance filler here for the year reflected the largest of the autoclaves being down for 120 days shut down, and then you're obviously going to see that impact through predominantly the third quarter and into the start I think Natascha said in her remarks that the third quarter is similar to the second quarter, and then you'll see a fourth quarter higher as you get that autoclave back up and running again with the year. It's not too far off being 50-50 waiting for the year as a consequence. Okay, that's very clear. Thanks for the color.

Speaker Change: Autoclave 4 is the largest of the four autoclaves. It represents 40% of the throughput.

Speaker Change: So you're still with the other three autoclaves running, you get some lower recoveries running through those other three autoclaves, so the guidance filler here for the year reflected that the largest of the autoclaves being down for 120 days shut.

Speaker Change: And then you're obviously going to see that impact through predominantly the...

Robert D. Atkinson: Unknown Executive, Robert Atkinson

Speaker Change: I think Natascha said in her remarks that the third quarter is similar to the second quarter and then you'll see a fourth quarter higher as you get that autoclave back up and running again with the year, it's not too far off being 50-50 waiting for the year as a consequence of that.

Speaker Change #100: Okay, that's very clear. Thanks for the color.

Speaker Change #101: Thanks, folks.

Robert Alan Brackett: Thanks, folks. Thank you. The next question is from Brian MacArthur from Raymond James. The line is now open. Please go ahead.

Speaker Change #102: Thank you.

Speaker Change #103: The next question is from Brian Mark Arthur from Raymond James. The line is now open. Please go ahead.

Brian MacArthur: Good morning, and thank you for taking my question. It has to do with reclamation. And obviously, there's some significant money going into Yanacocha. But as we think longer term, when you talk about your $1.3 billion sustainable capital, are there other assets, I think, at three to five years that could have, you know, significant capital requirements, i.e. cash out the door as opposed to book accounting that I need to think about in my long-term cash flow analysis? Good morning, Brian.

Speaker Change #104: Good morning and thank you for taking my question. It has to do with reclamation and obviously there's some significant money going into Yanacocha but as we think longer term when you talk about your

Speaker Change #105: $1.3 billion sustainable capital. Are there other assets, I think, at three to five years that could have?

Speaker Change #106: You know, significant capital requirements, i.e. cash out the door as opposed to book accounting that I need to think about in my long term.

Thomas Ronald Palmer: Certainly, when we think about, as I was commenting earlier on our capital allocation, whether it be development capital or sustaining capital, we think about this portfolio going forward having a reliable, predictable spend on sustaining capital to manage our businesses going forward, tailing stamps and the like. And in terms of the broader part of that question... As it relates to reclamation, remediation, and the like, Karyn might get you to pick that one up. Yeah,

Speaker Change #107: cash flow analysis.

Brian: Good morning, Brian .

Brian: and in terms of the broader part of that question as it relates to the

Brian: [inaudible]

Karyn F. Ovelmen: Just to clarify, that comes out of working capital, but those are actual payments for accruals that have already been recorded on the book. So the expense has already been taken for those, and so it's truly just a cash outflow that has been for accruals that are already recorded on the balance sheet. The Anticoagulant Water Treatment Facility is the big one.

Brian: Yeah, I just said just

Speaker Change #109: to clarify, that comes out of working capital, but those are actual payments for accruals.

Speaker Change #109: That have already been recorded on the book. So the expenses have already been taken for those and so it's truly just cash outflow that has been for accruals that are already recorded on the balance sheet.

Karyn F. Ovelmen: No expectation of any significant changes to what we've been outlining as we go through. As we've indicated, the spend will be approximately around $600,000 in total in 2024, and it goes up higher in 2025, and that's above our historical outflow, which was annually around $200 million to $300 million. So yeah, it's specific to Anticoagulant Liability, but don't expect any other significant increases in that. If anything, we'd expect that to go back to historical levels, beginning in 28, 29.

Speaker Change #109: The Anacostia Water Treatment Facility is the big one, no expectation of any significant changes to what we've been outlining.

Speaker Change #109: As we go through, as we've indicated,

Speaker Change #109: The spend will be approximately around $600,000 in total in 2024. It goes up higher in 2025.

Speaker Change #109: And that's above our historical outflow, which was annually around $200 to $300 million.

Speaker Change #109: So, yeah, it's specific to the intercultural liability, but don't expect any other significant increases in that. If anything, we would expect that to go back to historical levels, you know, beginning in 28, 29 time periods.

Karyn F. Ovelmen: And then Brian, thanks Karyn, in terms of our portfolio, certainly our GoPort portfolio, Yanacoatra is an order of magnitude larger in that reclamation liability than any other of our operations. So the other big mines, the Penosquitos, the Boddingtons, the Nevada Goldmines complex, an order of magnitude lower, so Yanacoatra is quite unique in that respect.

Karen: And then Brian , thanks Karyn, in terms of our portfolio, certainly our go forward portfolio, ganacotia is an order of magnitude larger in that reclamation liability than any other of operations. So the other big mines, the Penosquitos, the

Speaker Change #111: The Boddington's, the Nevada Goldmines Complex, order of magnitude lower, so Yenacotra is quite unique in that respect.

Thomas Ronald Palmer: Great, that's what I thought, but I just figured I'd check. And the second part, I think you've been very careful in talking about when you're selling these assets, you want them to go to operators to maintain them going forward. Can I assume, I'm going to assume, that you're going to sell the reclamation liabilities to the buyers of these. And the second part of that, I guess within those assets, the one that's highlighted in the 10 Q is probably porcupine has. [inaudible] Yes, thanks Brian.

Speaker Change #112: All right, that's what I thought, but I just figured I'd check. And the second part, I think you've been very careful. You talk about when you're selling these assets, you want them to go to.

Speaker Change #113: Transcripts provided by Transcription Outsourcing, LLC.

Speaker Change #114: Potentially there's studies going on there about reclamation. I'm again, I'm just trying to, I know you're very careful like this and reclamation is very important in the overall analysis, but I'm just trying to figure out how I can think about that.

Thomas Ronald Palmer: Yes, the expectation is that as we divest these assets, and particularly when you're in a competitive environment, which is what we're seeing, that reclamation liability passes on to the new owner. And I'd also look at our track record as we've sold and rationalized and optimized our portfolio over the last 10 years; that has been part of how we've gone about it. So what you've seen in terms of a KCGM or a Red Lake or a Waihi, or a Bantahi Jail, a similar process going on.

Speaker Change #114: Yes, thanks Brian . Yes, the expectation is...

Speaker Change #115: that as we divest these assets and particularly when you're in a competitive environment, which is what we're seeing, is that that reclamation liability passes on to the new owner.

Speaker Change #115: and also look to our track record as we've sold.

Speaker Change #115: and Rationalised and Optimised our portfolio over the last 10 years, so that has been part of how we've gone about it. So what you've seen in terms of a KCGM or a Red Lake or a Mawaihi, a Banta Hijau, similar process going forward.

Brian MacArthur: Great, thanks very much. Thanks, Brad. Thank you. And the next question is from Mike Parkins from National Bank. The line is now open. Please go ahead.

Speaker Change #116: Great, thanks very much.

Speaker Change #117: Thank you.

Speaker Change #118: Transcribed by https://otter.ai

Speaker Change #119: And the next question is from Mike Parkins from National Bank. The line is now open. Please go ahead.

Michael Parkin: Hi guys, thanks. Questions, just a couple of follow-ups. One, Natascha, can you just give me an idea of when we should expect that fourth autoclave to go down and add a service for the reline? Mike on the 1st of August, and it's 120 days. And then a couple questions for Karyn.

Michael Parkin: Hi guys, thanks for taking my questions. Just a couple of follow-ups. One, Natascha, could you just give me an idea of when we should expect the fourth autoclave to go down and edit service for the reline?

Speaker Change #121: Mic on the 1st of August and it's 120 days.

Natascha Viljoen: Appreciation for ounce rates on the Newcrest assets, I'm assuming they're not quite stable yet, or have you finalized your purchase price accounting, and or should we still expect those to kind of bounce around a bit? I mean, there should still be slight variations as we go through and adjust from a purchase price accounting perspective, but they should be generally speaking well set. You know, I think we've had some there are some ups and downs and depreciation.

Speaker Change #121: Okay, perfect.

Speaker Change #122: And then a couple questions for Karyn.

Speaker Change #123: Depreciation for ounce rates on Newcrest assets. I'm assuming they're not quite stable yet or have you finalized your purchase price accounting and is it fair to kind of use Q2 rates on a go-forward basis?

Speaker Change #124: Or should we still expect those to kind of bounce around a bit?

Karyn: There will be slight variabilities as we go through and adjust from a purchase price accounting perspective, but they should be, generally speaking, well set. I think we've had some ups and downs in depreciation.

Natascha Viljoen: They're higher a bit, ounces mined at Penesquito, higher ounces mined in Acid Additions at Ajapo and increased as a result of the drawdown in inventory at Unapocha, and all of that is partially offset by the decrease as you record things as assets held for sale.

Speaker Change #125: They're higher a bit, ounces mined at Penesquito, higher ounces mined in Acid Additions at Ahapo, and increased as a result of the drawdown in Inventory at Unicocha.

Karyn F. Ovelmen: You cease depreciation and amortization on those assets once you put them into that classification. So those will be the big variants as you go forward. But generally speaking, the new crest from a purchase price accounting perspective has been pretty settled. And then there is the question of taxes. Are you making payments and installments based on your budget gold price, or given that we're sitting closer to, well, it was $2400 12 hours ago, a little lower now, but obviously a much more robust metal price environment, truing up your payments? Or should we, you know, this metal price environment sustain? Should we start to think about catch-up payments in Q1, Q2 of next year to make up for the difference between budget and real estate?

Speaker Change #125: and all of that partially offset by the decrease as you report things as assets held for sale. You know, you cease depreciation and amortization on those assets once you put that into that classification. So those will be the big variances.

Speaker Change #126: as you go forward. But generally speaking, the new crest from a purchase price accounting perspective, it's been pretty settled.

Speaker Change #126: Okay.

Speaker Change #131: And then a question on taxes.

Speaker Change #127: Are you making payments in installments based off your budget gold price or given that we're sitting up closer to, well it was $2400 12 hours ago, a little lower now, but obviously a much more robust metal price environment, are you

Speaker Change #128: Truing up your payments or should we, you know, if this metal price environment sustains, should we start to think about catch-up payments in Q1, Q2 of next year to make up for the difference between budget and realized?

Speaker Change #130: Yeah, it will start accruing in arrears as we go forward.

Natasha Viljoen: Thanks, Mark. Thank you.

Speaker Change #129: Okay, thank you.

Speaker Change #132: That's it for me.

Mark: Thanks, Mark.

Unknown Executive: This concludes the question and answer session.

Robert Alan Brackett: Yeah, it will start accruing in arrears as we go forward. Thanks, Bob. Thank you. This concludes the question and answer session. I would like to turn the conference back over to Tom Palmer for closing remarks. Thank you, Operator, and conscious switch has hit the top of the hour, so thank you all for your time over the last hour. Have a good day, and we'll look forward to catching up with you soon. Thanks, everyone. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Tom Palmer: I would like to turn the conference back over to Tom Palmer for closing remarks. Thank you, obviously, sir. Thanks, everyone.

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

Thomas Ronald Palmer: Thank you, Operator. Conscious Switch has hit the top of the hour, so thank you all for your time over the last hour and have a good day. We'll look forward to catching up with you soon. Thanks, everyone.

Operator: The conference has now concluded. Thank you for.

Speaker Change #135: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.