Q4 2024 Newmont Corp Earnings Call
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Hello and welcome to Newmont's fourth quarter and full year 2024 results conference 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.
Speaker Change: After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I'd now like to turn the conference over to Tom Palmer, President and Chief Executive Officer. Please go ahead.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Thank you, Operator. Hello, everyone, and thank you for making the time to join our call.
Speaker Change: Today, I'm joined by Karyn Ovelmen, our Chief Financial Officer, and Natascha Viljoen, our Chief Operating Officer.
Speaker Change: along with the rest of my executive leadership team and we'll all be available to answer your questions at the end of the call.
Speaker Change: Please note our cautionary statement and refer to our SEC filings which can be found on our website.
Speaker Change: I would like to start by taking a moment to provide an update on our safety performance.
UMONT is a values-driven organisation.
Speaker Change: and ensuring the health and safety of our workforce is at the very heart of everything we do.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
We are working diligently to strengthen our safety performance.
Speaker Change: and have been reviewing and refreshing key safety programs across our global business.
centered around three key areas.
Culture, Systems and School Development.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
maintaining and improving our culture.
of keeping everyone who works at Newmont always safe.
Speaker Change: relies on having simple, well-governed systems and standards to guide safe operations.
Speaker Change: along with a process to identify and then implement ongoing improvements.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
We are also enhancing our frontline leadership capabilities.
Speaker Change: for strengthening our hazard management, team leadership and task assignment training.
and supporting it with a fair, consistent accountability framework.
Speaker Change: This improvement work will empower everyone at UMON to confidently make decisions that drive safe, productive work each and every day.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Turning now to our operational and financial performance last year.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
2024 was a transformational year for Newmont.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: We took some very important steps to unlock the value of everything we have done so far on our journey to build a world-class company.
Speaker Change: with an outstanding portfolio of assets that will generate value and long-term success for decades to come.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
In 2024, we focused on three areas.
First, to complete the integration of the acquired assets.
Second, the rationalisation of our portfolio.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
and third, the stabilisation of our business.
both operationally and financially.
Speaker Change: at a time where there is excitement of the demand dynamics we are witnessing.
especially in the gold markets.
Speaker Change: but also at a time when Yearmont and the broader mining industry have some challenges to work through.
Let me start with the integration of our new operations.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
As with any acquisition,
This is large and complex work.
Speaker Change: We have run into a few specific hurdles that we will need to clear before the true potential of these assets becomes evident in both our production and financial results.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Two challengers have been Acadia and Lahia.
Speaker Change: and we are addressing them in a way to position these assets to thrive and deliver on their underlying multi-decade potential.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
As we address the challenges at both these assets.
Speaker Change: We are ensuring that we have robust operational and technical plans sitting behind the sustaining capital spend needed to get them up to a newmont and tier 1 level.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: and the investments that we're making now will set us up to deliver on that objective.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: We are putting this work in motion with focus and confidence.
and over the next 12 to 24 months.
Speaker Change: We are deploying the full force of our operational and technical experience.
including our sustainability leadership.
Speaker Change: with a view to preserving and optimising value for the long term.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Turning now to Rationalisation.
Speaker Change: Our divestment program over the last 12 months has been a resounding success.
Speaker Change: We have sold, or reached definitive agreements to sell, all six of our non-core operations.
As part of the program we announced last February.
Speaker Change: and we have the potential to deliver up to 4.3 billion dollars in pre-tax proceeds from this divestment program.
Speaker Change: which is expected to result in around $2.5 billion in cash proceeds.
Speaker Change: in the first half of this year after taxes and closing costs.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Importantly, the transactions announced so far, including TELFA, are also expected to remove approximately $1.8 billion in closure liabilities from our balance sheets.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: This rationalisation work is now positioning Yearbot with a core set of Q1 assets.
Speaker Change: that we see as being capable of capitalising on the gold and copper cycles for several decades.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: in tandem with our work to integrate and rationalise our portfolio.
We have also been working to stabilise production.
As a result,
Speaker Change: We were able to exceed our production guidance by delivering 6.8 million ounces of gold and over 150,000 tonnes of copper last year.
Speaker Change: of which around 85% was produced from our Go Forward core portfolio.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: We generated $2.9 billion in free cash flow last year, and record free cash flow for the fourth quarter of $1.6 billion.
Speaker Change: Driven by strong gold prices, higher sales volumes and positive working capital movements.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: It is also worth pausing for a moment to acknowledge that our fourth quarter reflects the true financial performance potential that our Go Forward core portfolio can achieve and the positive effect it can have on all its sustaining costs.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Building on the three focus areas I've just covered.
Speaker Change: We also continue to advance our capital allocation priorities in 2024.
We returned $2.3 billion through regular dividends and share repurchases.
Demonstrating our commitment to rewarding our shareholders.
Speaker Change: and we maintained a strong and flexible investment grade balance sheet.
Ending the year with more than $3.6 billion in cash.
and $7.7 billion in liquidity.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
In addition to shareholder returns,
Speaker Change: Over the last 12 months, we've further improved our financial position by retiring $1.4 billion in debt.
reaching our target balance of below $8 billion.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: As we move forward, we still have plenty of work ahead of us to capture the returns and margin potential we see as possible from our Go Forward portfolio.
Speaker Change: And while we do not speculate on where gold prices are heading.
Speaker Change: We do continue to see robust demand and strong pricing given the geopolitical environment and gold's place as a long-term store of value.
not only for individuals and professional investors.
but the central banks as well.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
to the next slide.
as the world's leading gold producer.
Speaker Change: It is our responsibility to maximise the full value of the unique combination of our people, our assets, our projects and our culture to generate long-term shareholder value.
Speaker Change: With this in mind, combined with a clear line of sight of our Go Forward portfolio.
Speaker Change: We are committed to making meaningful improvements to our safety, cost and productivity performance.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Allow us to better manage costs on a gold equivalent basis.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Can you explain where you are going?
It is important to first appreciate where we are today.
Speaker Change: UMONT's high quality portfolio is a great platform for investors to gain exposure to gold and copper fundamentals.
Speaker Change: while benefiting from the improvements we are making to drive operational performance.
Thank you very much.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Our portfolio includes more than half of the world's Tier 1 gold operations.
Speaker Change: We had the largest scale, longest life and highest quality combination of assets.
Speaker Change: with the capacity to perform for decades and through commodity cycles.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Another key characteristic of our business
is the quality of the jurisdictions in which we operate.
Speaker Change: This is an advantage that helps reduce some of the geopolitical risks inherent in our industry.
Speaker Change: So with the right mix of assets, we now have a laser focus.
Speaker Change: on Safely Improving Costs and Productivity at each of our Managed Operations.
Speaker Change: So that our Go Forward portfolio of Tier 1 assets operate with a Tier 1 cost structure.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
In our Go Forward portfolio, we have 11 managed operations.
and three key projects in execution.
Strategically diversified across the world's most favourable mining jurisdictions.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: But it's what we will deliver from this portfolio that will truly set us apart from our peers.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Over the next decade, we expect that Newmont will produce roughly 6 million ounces of gold and around 150,000 tonnes of copper on average each year.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
The investment cycle that we are currently in.
Unknown Executive: Combined with the cost of productivity improvement we are doing will help us maximise our margins.
Unknown Executive: Not only in a strong gold market like we see today, but also future commodity cycles.
enabling us to generate the highest possible margins.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
As is typical with large, long-life mines,
Speaker Change: There will naturally be some periods with lower production and some with higher production.
But overall, this unique combination of assets
Speaker Change: sets us up to deliver robust and sustainable production for the foreseeable future.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: and underpinning this portfolio is more than 40 years of high confidence reserves and resources.
Speaker Change: with decades of upside from mineral inventory and our ongoing exploration of endowments.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: In addition to the largest gold reserve resource base in the industry,
We also have significant copper reserves and resources.
providing organic opportunities to further diversify into the future.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Our gold reserves for 2024 were declared using a $1,700 an ounce gold price.
It was increased from $1,400 an ounce.
This increase was paid following our standard annual review process.
Speaker Change: and takes into consideration the three-year trailing average, price, analyst forecast and current economic conditions.
with the long life nature of our assets.
Combined with the maturity of our governance processes.
Speaker Change: We have full confidence that we will continue to develop optimal mine plans at these price assumptions.
Speaker Change: As demonstrated by no material reduction in the reserve gold grade due to the increased price.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: I'd also like to briefly note revisions we made to the reserves for two of our new assets.
Ligia and Bruce Jek
Speaker Change: These revisions were a result of applying year-month governance and technical rigour.
Speaker Change: and include appropriate updates to the final pitch shell design at the here.
Speaker Change: as well as updates to the resource model of BRICSJAC to appropriately increase grade reliability.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: I'll now step through each of the large long-life operations in our portfolio.
and the expectations for the year ahead, starting with Katie.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Kodia is one of Australia's largest gold copper mines.
and an industry leader in both block caving and automation.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Block or panel caves cycle through natural periods of harvest and investment.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: When we assumed ownership, Katie, it was just coming out of a harvester's phase.
Speaker Change: and Paddle Cave 2 was beginning to ramp down from peak production.
Today, we are transitioning to our next panel case, PC23.
Building Panel KF12
Speaker Change: and also catching up on a historical under-investment in both tailings remediation and storage capacity.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: As we progress this work, we are ensuring that we are optimising capital intensity and the balance between tailing storage capacity and the mine and processing plant run rates.
Speaker Change: Moving to the next slide I'll cover another of the new assets in our portfolio.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
At La Jilla.
The focus remains on recreating stability.
Speaker Change: in both the mine and processing plant by addressing the critical issues that we have identified in both systems.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
We have optimised the mine plan.
Speaker Change: for Mine Layout and Sequence and Equipment Reliability to deliver a more sustainable long-term mine plan.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
We have also established a run-of-mine stockpile.
decoupling the mine and processing plant.
Speaker Change: and ensuring that we can deliver stable and quality feed to the mill where asset reliability is our key focus.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: This work will result in stable production in 2025 through to 2027 as we move waste in the Phase 14a layback in order to access higher grains.
Speaker Change: This will then result in an estimated 30% lift in production in 2028 and beyond.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Touching briefly on Bruce Jack.
Unknown Executive: The underground development and drilling work to improve our knowledge of this nuggety ore body and reduce grade variability is progressing very well.
Unknown Executive: We are applying the lessons we learned a dozen years ago in Tanami with a similar raw body.
Moving then to our legacy Newmont operations.
and starting with our large polymetallic mine, Petasquita.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Following a successful stripping campaign in 2024, we will deliver higher gold grades for the Panasco Pit this year, resulting in a 30% increase in gold production compared to last year.
Speaker Change: 2026 will then see a higher proportion of silver lead and zinc content due to higher production from the Chile-Colorado pit as per our normal mining sequence.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: at Boddington, a large gold and copper mine in Western Australia.
Speaker Change: The investment in stripping of planned laybacks in both the North and South pits progresses well.
Speaker Change: Paving the way for higher grades to be accessed. 30% more gold to be delivered starting in 2027.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
and our half-oat complex.
Speaker Change: 2024 was a record production year in the 20-year life of our South Harbour South operations.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
This strong performance.
Unknown Executive: will continue through the first half of this year, at which stage the Sabika Open Pit reaches the end of its economic life.
Speaker Change: and we move across to mining lower grade ore from the Awansu Open Pit.
Speaker Change: driving a slight reduction in production compared to the record levels of last year.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: This reduction will be partially offset by our new Hapa North mine.
which comes online in the second half of this year.
Speaker Change: enabling their half-oak complex to continue to contribute around 750,000 ounces per year in 2026 and beyond.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: At Tanami, we expect production will remain consistent in 2025, but will be weighted around 60% to the second half of the year, driven by the higher grade stopes we'll access from both the Auron and Liberator ore bodies.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: We continue to advance the expansion project at Tanami, which will provide a meaningful reduction in operating costs and increased gold production by around 35% beginning in 2028.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Finally, we expect that our production in 2025 will be further enhanced.
Speaker Change: by around 1.4 million ounces of gold from our non-managed joint ventures.
Speaker Change: and in the medium term, a managing partner has indicated that they will deliver approximately 20% more gold in 2027 compared to last year.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: So as we look beyond 2025 we expect to add more than 10% of annual gold production by 2028 as we bring forward the high quality low-cost ounces from the laybacks and projects that I've just described.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Turning to the next slide.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: And I have full confidence that we'll continue building on that momentum this year.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Beginning with a half I know.
Speaker Change: We made a notable shift from land access and clearing activities in 2023 to the construction of the mine of processing infrastructure, progressing the highway diversion and commencing stripping last year.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
with this solid progress.
Unknown Executive: We remain on track for first gold in the second half of 2025.
and declare commercial production towards the end of this year.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Turning to the second expansion at Katamon.
Unknown Executive: We made really solid progress last year, achieving two important milestones.
Pouring over 30,000 tonnes of concrete.
Unknown Executive: and we successfully backfilled with concrete the 160 metre section of overbreak at the very bottom of the shaft.
and it is now ready to be raised forward.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Unknown Executive: In 2025, our focus shifts to equipping the top 1.3km section with services whilst we race for that bottom 160m in parallel.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Unknown Executive: In conjunction with this critical path work, we'll also be progressing the construction of the underground crushing and materials handling infrastructure, along with the surface infrastructure.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Unknown Executive: We continue to expect to declare commercial production in the second half of 2027 and significantly reduce operating costs in 2028.
underpinning Tanabye's future as a long-life, low-cost producer.
Unknown Executive: Moving to the panel codes at Cadia, which I touched upon earlier.
We reached some important milestones last year.
Panel K23, we achieved CAVE establishment.
Unknown Executive: and have now delivered more than 1 million tonnes of ore from this new cave to our processing plant.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: At Panel Cave 1-2, we completed more than 12 kilometres of underground development.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Combined, these two caves are expected to deliver more than 5 million ounces of gold and a million tons of copper.
Speaker Change: and will position Kardia to continue operating to the middle of this century.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Turning now to the impact from our investment cycle and the current gold price dynamics on our costs.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: 2025 has already proven to be an exciting year for a variety of reasons.
Current gold prices are at near record levels.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Will higher gold prices contribute to our free cash flow generation?
and will continue benefitting our shareholders.
Speaker Change: I also want to be very transparent about the impact that both our current investment cycle and higher gold prices have on our unit costs.
Speaker Change: All the sustaining costs for our core portfolio are expected to be around $1,620 an ounce in 2025.
Speaker Change: This increase is the result of a variety of factors that can be split into two major drivers.
by Sustaining Capital Investment and Macroeconomic Factors.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
First...
Speaker Change: We are estimating a $40 an ounce increase tied to the Elevated Sustaining Capital Spend at Cadia.
Speaker Change: Associated with the investment in both tarnage remediation and storage capacity that I described earlier.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Next we are estimating a $35 an ounce increase of a higher proportion of the costs at our four polymetallic mines.
being allocated to gold over other metals.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: This non-cash impact to our gold oil sustaining cost is due to the way we categorise co-product costs under US GAAP.
Speaker Change: and driven by the increase in our gold reserve price compared to our reserve prices for copper, silver, lead and zinc.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Next.
For 2025, we have assumed a $2,500 gold price.
Speaker Change: We expect a $10 increase in our all-in sustaining costs due to taxes, royalties and profit-sharing payments.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: And finally, we are forecasting a $44 an ounce increase linked to a 3% assumption for inflation this year compared to 2024.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Unknown Executive: We recognise that our all-encompassing costs are not where we want them to be.
Speaker Change: So in addition to the work we are doing to bring on new low-cost ounces and normalize our sustaining capital spend over the next three years, my team and I are working to reduce costs and improve productivity across our go-forward managed portfolio.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Over the last few years, UMON has been on a journey to build the world's leading gold and copper company.
Speaker Change: After doing the work to rationalise our portfolio, we are now firmly focused on improving costs and productivity across our entire organisation.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: This is key to ensuring that our assets reliably and predictably generate the most profitable 6 million ounces of gold per year over the long term.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: The program behind this cost and productivity work has three key components.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Our G&A costs are too high for our Go Forward portfolio.
Speaker Change: We have a laser focus on ensuring that these costs are reduced as we transition from 17 to 11 managed operations over the course of this year.
Second.
Speaker Change: We are well into the process of evolving our commercial work at Newmont.
Speaker Change: to ensure we have the capability to extract the full benefit of our scale.
both in terms of our supply chain spend
Speaker Change: as well as the revenue we received from Door A and Concentrate Sales.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: With the clarity of our Go Forward portfolio, we are applying the full force of our operating and technical capability.
Speaker Change: to systematically improve productivity across all 11 of our managed operations.
whilst achieving the industry-leading safety record that we demand.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: and I will provide further updates on this program as we progress and move forward through this year.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Bringing it all together.
Speaker Change: and the work ahead of us to deliver meaningful improvements to safety, costs and productivity this year.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
And while we progress this work,
Speaker Change: We are providing shorter term and high confidence guidance for 2025.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: This year we expect gold production from our Go Forward Tier 1 portfolio to be around 5.6 million ounces.
At an all-sustaining cost of $1,620 an ounce.
Our sustaining capital is expected to be 1.8 billion dollars.
Speaker Change: and will remain at this level over the next couple of years as we complete our current investment cycle on the tailing storage facilities at Cadia.
Speaker Change: and we will continue to maintain discipline with our development capital spend, holding our investment to $1.3 billion for 2025.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: We expect the production from our core T1 portfolio will be around 52% weighted to the second half of this year.
Speaker Change: driven mainly by the timing of production from our non-managed operations.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Taking this trend into account, in the first quarter, we expect to deliver around 23% of the forecast gold production from our core portfolio.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
This will then be supplemented.
Speaker Change: by around $250,000 higher cost ounces from our non-core assets held for divestment.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Our unit costs will also be impacted by the timing of sustaining capital spend from both our managed and non-managed operations.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: This is currently expected to be around 52% weighted to the first half of this year.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Unknown Executive: So, compared to the rest of the year, we anticipate that our all-in sustaining costs will be highest in the first quarter.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Unknown Executive: As a consequence, we anticipate a notable decrease in our first quarter free cash flow compared to the fourth quarter of last year.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: And with this momentum, we'll be well positioned to deliver on our commitments in 2025, whilst also funding our capital allocation priorities.
and building a stable future for Newmonts.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Our capital allocation strategy remains unchanged.
and is driven by three key priorities.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
First.
Speaker Change: to maintain financial strength and flexibility with cash above $3 billion and debt below $8 billion.
Speaker Change: Second, to steadily reinvent our business with the goal of generating long-term sustainable free cash flow.
Speaker Change: And third, to return capital to shareholders through our predictable $1 a share annual dividend and our share repurchase program.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
in order to maintain consistent cash levels through this year.
Speaker Change: The timing of share repurchases is likely to be closely correlated with our projected free cash flow.
Speaker Change: along with the timing of proceeds from our non-core asset investments.
Thank you. Bye.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
After a period of integration, rationalisation and stabilisation,
Our focus is now on our Go Forward portfolio.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Last year, we focused on integrating four new assets.
for vesting our six non-core assets.
Speaker Change: and laying the foundations for delivering cost of productivity improvements for a safe, productive and profitable future.
with 2024 now behind us.
Speaker Change: We move to strengthen our value proposition by leveraging the true potential of our assets and projects to improve our safety, costs and productivity performance, positioning Nearmont to focus on margins and growing free cash flow for the benefit of our shareholders.
And with that, I thank you for your time today.
Speaker Change: and turn it back over to the operator to open the line for questions.
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 one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two. At this time, we will pause to assemble our roster.
Speaker Change: The first question is from the line of Hugo Nicolacci with Goldman Sachs. Your line is now open.
Hugo Nicolacci: Hi Tom, Karyn, Natascha and team. Congrats on the strong finish to 2024 and thanks for all the colour already so far in the presentation. First one maybe for Karyn, just post the recent debt reduction and the divestments to come through. How should the market think about the gearing and debt targets going forward? I appreciate you've talked to the $8 billion of debt and $5 billion of net debt, but with gold prices and cash generation where it is and where you're seeing it going
Hugo Nicolacci: to come into that growth pipeline. Do you think something like a leverage ratio might be more appropriate in terms of being able to then look at accelerating some of those growth projects?
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Hugo Nicolacci: So, maintaining that strong balance sheet with around $3 billion in cash on average over the year, debt below the $8 billion as you said, and steadily funding those cash-generative capital projects. So, we've got $1.8 billion sustaining capital, that's at an elevated level over the next few years with Acadia tailings, and then $1.3 billion.
with Development Capital.
and then, of course, returning capital shareholders.
Hugo Nicolacci: $1 annual dividend, no change there. And then continuing with our share repurchase.
re-purchases as part of that $3 billion.
Hugo Nicolacci: Program that we have. We've executed on 1.2 and we have 1.8 remaining on that authorization. So no change to the financial policies.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Great, thanks for that Karyn. And the second one maybe for both Tom and Natascha, just looking beyond the current growth projects to that next phase of growth, are you able to give us a bit more on what's needed to firm up the sequencing and timing of projects like Red Crescent and Yanacocha on the sulfides and, you know, is it studies and permitting?
Speaker Change: Just given where you've already got the significant capital invested in those projects and when should we expect an update and then just as an attack on how many projects do you think is the right number to be progressing concurrently for the portfolio?
Yes, thanks Hugo and good morning.
Speaker Change: Our focus is firmly on delivery of the three projects we've got in execution and the $1.3 billion spend.
Speaker Change: for a portfolio of our size is a healthy amount of money to be investing back in the business. Delivering on those, hitting commercial production, improving the value from those projects is our firm focus. Hitting our milestones this year and ensuring that they come through. That earns the right to be able to bring anything more through your project pipeline.
Speaker Change: Red Crest is, we're working through its feasibility study this year.
So to it, you won't stand it.
ensuring that we have not only the
Speaker Change: Technical work done as part of a feasibility study, but you've got the permits and the support of the Taltan for that very, very long life project.
at Yannacocha, the potential at Yannacocha, we've been...
Speaker Change: At Peru for 40 years, at Yanacocha for mining for 30 years, we've produced 40 million ounces of gold out of Yanacocha, there's more, we haven't even passed halfway yet.
Speaker Change: So, a very low loss in front of us again in Concha, but we're at an inflection point.
Speaker Change: We move from oxide operations to sulfides and other deposits that sit there. The important piece of work for us to do now at Yenikotja is to build the water treatment plants.
Speaker Change: We've got Waipegulpu in PNG that we continue to work with Harmony in that.
Speaker Change: and the PNG Government on. We've got Nevae Iona and Norte Epiderta down in Chile and we continue to understand where they might fit. And we've got Galore Creek up in British Columbia. So we continue to understand and work those projects.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Thank you. Thank you.
Thank you.
Speaker Change: The next question is from Daniel Morgan with Baron Joey. Your line is now open.
Daniel Morgan: Hi Tom and Tim. First question just, I know you've increased your reserve price assumption to US$1,700 an ounce.
Your 2025 All Incident Cost of Gardening is $1620.
I'm sorry, that just struck.
Thanks, Daniel.
When we look at it, they're two separate things.
Daniel Morgan: Our process has been many, many years at Newmont, the team that works through our annual process to assess our reserve pricing.
Daniel Morgan: is looking at price, looking at the three-year trailing average, looking at forward estimates and making a judgement on price as to where our reserve price should be and then how that informs the work we do then in and around our mines, my plans and the like.
Daniel Morgan: On the other side of the coin, separate from that, we look at what our unit costs happen to be for 2025. Ends
Daniel Morgan: There are 16 2025s because we've got some pretty, one of the main drivers is we've got some pretty significant investment going back into Dacadia to ensure that we've fixed that tar mix facility to ensure those caves are able to realise their value.
Speaker Change: We separate those two things. 1620 is not happy with that number. It needs to come down.
Speaker Change: Our GoForward portfolio is generally tier 1 and we need to get our cost base down to tier 1 levels. We need to get through this investment cycle, we need to bring on those lower cost ounces and we also need to improve our cost and productivity, but they are two separate streams.
Speaker Change: We set our pricing to a reserve price over here through a rigorous process that's conducted every year.
Speaker Change: We managed our costs this year and we need to get after improving those costs going forward.
Speaker Change: Thank you for that. Separate question, Lahir, I know you've done a reserve update, you've done some optimization on the pits. Just curious, how much closer is your team to concluding what the go forward plan is at that asset?
Speaker Change: I imagine there would also be a reinvestment plan to upgrade asset integrity and set it up well into the future. So when might that be concluded and when might you share that with us? Thank you.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Thanks Daniel, so as you commented on the, we've now done a UMONT standard final pitch shell, which impacted the reserves. The other important work we did was to step out from Alaia Rock.
Unknown Executive, Thomas Palmer
Speaker Change: Now it's about making sure that the roads are in good nick and then maintained so we can manage the
Unknown Executive, Thomas Palmer
Speaker Change: Then setting up the skyway and having the bomb stockpile to separate.
Mine and Processing Plant now allows us to get greater
Speaker Change: So those pieces are in place, that team is now getting after that, they know what they need to do. We need to deliver on what we said we're going to do this year, as indicated in my remarks.
Speaker Change: that as we work through that layback, get into the 2028 period.
Speaker Change: and Lahir will return to the historical levels that you've seen and our plan is to maintain that into the future. So we've got two or three years of getting that work done.
Speaker Change: and then Lahir is a long-term asset in the Newmont portfolio. I mean, it's got the reserves and resources to a Newmont standard north of 30 million ounces.
Speaker Change: It is, by any measure, a world-class asset. We're setting it up right over the next two or three years to deliver on the value it's been looking for for the last 30 years. Very pleased that it's in our portfolio.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Thank you. The next question is from Lawson Winder with Bank of America. Your line is now open.
Thank you, operator. Hello, Tom and team.
Lawson Winder: Thank you for the update. Thank you for taking my question.
Lawson Winder: I just wanted to ask your thinking around the provision of one-year guidance, and so I had understood that you had considered maybe doing three-year, and then as you look forward,
Lawson Winder: Is one year guidance what you anticipate continuing going forward, or could we get back to potentially longer term guidance? Thank you.
Thanks, Lawson. Good evening.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Thomas Palmer: Massive transformation last year. I mean I've 35 years in the mining industry, worked in many different places, been fortunate enough to be involved in many transactions.
Thomas Palmer: I haven't seen much more complicated than the work we've run through successfully last year in terms of integrating assets, investment program and coming out the other side.
Thomas Palmer: What's most important for us now is stabilising this business and focusing on a high confidence set of guidance that we can get after and safely deliver. So our focus is on stabilising this business in 2025 and delivering on those numbers that we've committed to in our release today.
Thomas Palmer: As part of that work, we're getting after cost and productivity improvements and understanding what the potential is of this go forward portfolio. We've had it for a midnight, a New York minute rather.
Thomas Palmer: We've only had it for a second, so how do we actually understand what the true potential of this portfolio is? We're getting after that this year, we're going to take all of this year to understand that asset, that portfolio of assets and build a plan for 2026. So our focus is on 2025.
Thomas Palmer: Delivering on our commitments and understanding what these assets might do as we work with them through the course of this year.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Thank you for watching.
Okay, fantastic. Now,
Thomas Palmer: Just a follow-up on the R&R gold price assumption of $1,700. You kind of indicated that that was how you're thinking about the business, at least for
In the past, you've thought about the dividend.
Thomas Palmer: with respect to gold price ranges as well. So previously the $1,400 represented the base level dividend. When we think about the current dividend as it was reset last year, is $1,700 per ounce the gold price at which that is sustainable? Or is that still at $1,400?
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Thanks Lawson, decoupled. Our common dividend is $1 a share, full stop.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Okay, thank you very much.
Unknown Speaker.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Daniel Major: Thank you. The next question is from Daniel Major with UPS. Your line is now open.
Hi, thanks for the questions.
and I'm on a Mississippi.
Speaker Change: you would be above that towards the end of the sort of three to five year period. Is that the wrong assumption? Are we missing something in the portfolio that would go backwards to prevent you getting above six million ounces on a three year view?
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Thanks Daniel, you're seeing it correctly as we work through those laybacks and bring on the new low cost ounces.
Speaker Change: I think the comments I said were 10% higher over that time frame. That will, of what we've got for our core portfolio of 25, that will certainly push you through and out the other side of 60.
Speaker Change: Now roll forward, another three, another four, another five, this portfolio goes out decades.
Speaker Change: and they're big minds and you'll move through periods of lower grade, you'll move through periods of where you're stripping, so you'll ebb and flow, so you'll have some years where you're above six.
Speaker Change: You'll have some years where you're below 6, but if you get in the time machine and move forward, 5, 10, 15 years and look back at this new month portfolio...
Speaker Change: You're going to see on average about 6 million ounces of gold and 150,000 tons of copper. You're going to see a management team here that's going to focus on improving the margins in that not chasing volume, we're chasing margin. That's what we're going to be focusing on. But we will ebb and flow through the course of that very long life portfolio.
Speaker Change: Dan, you haven't seen this before in the gold industry, this portfolio is like the likes of which has not been seen before.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Unknown Speaker 00.25. Okay. Thank you.
Speaker Change: your overhead costs to G&A. They've come up a lot. And they're going up even more in 2025. And that comes against you executing on significant synergies as a consequence of the Newcrest deal.
Speaker Change: Why are they so high in 2025? My feeling would be that a lot of the costs associated with the divestments and the integration would be done, but the G&A is going up further. What's the explanation? And how much might it moderate in the medium term?
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Thanks, Daniel. Good call out.
Speaker Change: We did see the G&A synergies that come from a transaction like the Newcrest acquisition where you collapse two public companies into one, so that element comes out, but you're still seeing us carry unacceptably high G&A.
Speaker Change: as we work through the divestment and rationalization of our portfolio. So we've closed out Telfa late last year but we're still carrying five assets that are held for divestment and that we'll work through.
Speaker Change: closing out those transactions through this quarter and into next and we're still doing work around integrating systems from bringing two companies together that carries up an elevated cost for a fixed period of time.
Speaker Change: But the number we're going to is an unacceptably high number for our Go Forward portfolio. And as we see those assets leave our portfolio...
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: I expect, and you should expect, to see a glide path of that GNO cost coming down to match.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Thank you.
Speaker Change: The next question is from Kate McCutcheon with Citi. Your line is now open.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Thanks Tom and Karyn.
Speaker Change: This was done in UCASP integration. So last quarter, you reiterated that the 5 million per annum synergy run rate had been achieved.
Speaker Change: But I can't see that in the 4Q release, but I may have missed it. Can you just pull out for me where I see those numbers, the financials? If I look, it seems like OPEX and expenses both look higher and not lower. So just trying to reconcile.
The Synergies and Where the Baby Lives.
Speaker Change: Yeah, thanks, Kate. Thanks for the question. So as we went through 2024, we had a run rate expect expectation coming out of 2020 for those synergies.
Speaker Change: and we hit that run rate at the end of the year.
Speaker Change: at a much accelerated pace than we thought we would. So you'll see these synergies, again, GNA, although it's high.
Speaker Change: because we had a lot of one-time costs in there, as well as additional functional spend and consulting spend associated with some of these efficiency and productivity initiatives that you're seeing, that we will see the benefit in future years. So those were...
Speaker Change: You had those synergies in there, but the cost, the accelerated cost overwhelmed those synergies that were in GNA.
Speaker Change: All of those, you don't necessarily see in the bottom line. As we know, our costs were elevated through 2024 and into 2025. And that's where, as Tom was speaking in his prepared notes, we have to get after those costs.
So we saw an acceleration in the cost.
Okay, got it.
Speaker Change: And then on capital allocation assets, sales and free cash flow this quarter exceeded consensus expectations. You've got another 1.8 bill authorized under the buyback.
Speaker Change: It doesn't really look like much stock was repurchased over the past quarter, yet the share price was not a lot higher. Sorry, certainly was not at a high. How do we think about the cadence of that buyback throughout the year?
Sure.
Speaker Change: So we ended the year with approximately $1.2 billion in buybacks, but at 1231, our 10b-5-1, the expiration of the 10b-5-1, so as you see in the beginning of 2025, there was just some effective settlements of some of those.
Speaker Change: Buybacks from 2024. So really no share buybacks at the beginning of 2025.
Speaker Change: Post the earnings release, we will be in a position where we can begin to execute share buybacks as we go forward. The timing of those share buybacks, that will be closely correlated with the free cash flow generation and the timing of the proceeds from the non-core divestitures.
Speaker Change: So right now we're expecting a net of cash around $2.5 billion in divestiture proceeds, about $1.6 billion in Q1 and $0.9 billion in Q2. So all expected in the first half of 2025.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
and Karyn Ovelmen. Thank you.
Thank you.
Speaker Change: The next question is from Josh Wilson with RBC Capital Markets. Your line is now open.
Speaker Change: Thanks very much. I just wanted to go back to this discussion about some of the long term expectations. I appreciate the disclosures earlier in the call on changes over 26 and 27, but maybe back to some of the comments by Lawson and Daniel. I feel personally like we don't have a lot of information here on the long term or even the short term outlook beyond 2025 for the company.
Speaker Change: and there's a large difference in this release versus what the company has issued previously. Should we expect to receive any substantive information beyond one year in future releases, maybe in 2026? Thank you.
Speaker Change: Josh, very deliberate this year, good evening Josh I should say, very, very deliberate after a year of transformation and maybe a year of stabilisation to firmly focus
Speaker Change: This organisation on delivering a commitment, Safely Delivering on Commitments in 2025 with High Confidence Guidance.
Speaker Change: That's our focus, both the delivering on safety, cost and productivity and the projects. And I think we've signalled that well over the last many weeks and months, that's what we're going to be doing with this release.
Speaker Change: And we've given you, through the release and the comments today, a view as to how the investments in the laybacks and the investments in those three projects in execution will play out over the next three or four years.
Speaker Change: We're going to take every part of 2025 to get after cost of productivity improvements in our Go Forward portfolio and understand where we might be able to take this essentially new portfolio for us and build that into a 26 business plan.
Speaker Change: and we'll come out this time next year with a set of numbers for 2026.
Speaker Change: that we'll commit to with high confidence and we'll make some decisions through the course of this year as to whether it's 2026 only or whether, based on the work we do this year, whether we give a bit more colour for years two or three. That work is in front of us, Josh, and we're head down, tail up, getting into it.
Speaker Change: You know, the success of the Newcrest acquisition, you know, given the
Yeah, so so Josh I I would look through
Speaker Change: The work we're doing this year, to look at what we're doing to configure and fix KDR.
for DECKARD.
Speaker Change: We're building two caves, PC23, PC12 and we're considering whether PC12 extends to PC13. You build those caves...
Speaker Change: You build a supporting tailings capacity and you've got decades of ore coming out of that mine. You've got here with a resource base of some 36 million ounces.
Speaker Change: You've got Red Crisp that we're doing the feasibility study on a magnificent underground mine with a huge endowment And you've got Bruce Jack as we as we get the resource model to a Newmont standard very long life So we're doing the work this year
Speaker Change: To ensure that those assets can figure deliver on their long-term potential and we'll share stories on our progress as we go through each quarter
Speaker Change: Another way of answering your question is to look at the fourth quarter on the record free cash flow we generated.
Speaker Change: That's an insight into what the Go Forward portfolio can do as we get into it, fix it up, put it in position, make sure every asset understands what it needs to do and we get after it. So that's another little signal as to the strength of this portfolio.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Thank you.
Speaker Change: The last question for today is from the line of Al Harvey with J.B. Morgan. Your line is now open.
Al Harvey: G'day team just I'm wanting to follow up on projects again I suppose usually you have three in an execution at once so
Al Harvey: I think Harpo North kind of coming towards the end, by the end of the year.
Al Harvey: Guess I'm just wanting to get a sense of whether or not we can expect a fairly rapid transition into the next project and suppose
Al Harvey: I want to get your thinking on which project is the most logical step.
Al Harvey: I kind of assume it's Red Chris if you've got the study to come later this year, but yeah, is that the most likely candidate or is there a chance he holds fire on FIDing that project?
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: Dick Gale, I think it's important that we just don't have a conveyor belt of projects. You've got to wash their face.
Speaker Change: and so the fact we have three projects in execution, we want to make sure you hit commercial production, you're still on a ramp, a half an hour top and make sure it's delivering on the value we committed. So that takes you a good chunk in the 2026 to get that done.
Speaker Change: You've got to watch your face, your project execution, risk you need to manage.
Speaker Change: And you've got to make bloody sure you've got a feasibility study that's well understood and it's going to deliver good returns. So we're doing the feasibility study for Red Cris at the moment, and there's a number of moving parts, not just the technical piece to make sure you've got it in place.
Speaker Change: but I would say as we think about next cab off the rank at at Newmont when we're ready if the value is there
Great. And maybe just a quick follow-up, I suppose.
So I think about copper.
Speaker Change: Two big laybacks, North and South Pitt at Boddington, they're going to swing back into high grade, that's gold and copper, get some nice copper coming back there. PC23 is it, becomes the main supplier of ore, and Cadia, get some nice copper coming back up through there.
Speaker Change: Red Cris, and that's the one that links to the previous question, if it wins the race and it washes its face.
Speaker Change: and that's as much a copper mine as a gold mine so it's the one that can give us not only the pathway to maintain that 150,000 ounces over the long term I talked about but maybe even push through that.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Unknown Speaker. Thank you.
Thank you.
Speaker Change: That concludes the Q&A session. I'd like to turn the conference back over to Tom Palmer for closing remarks.
Speaker Change: Thank you Operator and thank you everyone for making the time for the call today and look forward to seeing or speaking to you soon. Thanks everyone.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Speaker Change: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer
Karyn Ovelmen, Karyn Ovelmen, Unknown Executive, Thomas Palmer