Q1 2025 Newmont Corp Earnings Call

Speaker Change: Hello, and welcome to the Newmont's first quarter, 2025, Aryan's conference call. All participants will be in and listen only mode.

Speaker Change: Did 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 would like to send a conference over to Tom Palmer, President and Chief Executive Officer. Please go ahead.

Tom Palmer: Thank you, operator. Hello everyone and thank you for joining our call. Today I'm joined by Karyn Ovelmen, our chief financial officer and Natasha Viljoen, our chief operating officer, along with the rest of my deputy leadership team and will all be available to answer your questions at the end of the call.

Tom Palmer: Can you please state our course for restatement and refer to our SEC filings which can be found on our website?

We began the year with a strong operational performance. [inaudible]

which in turn has driven a robust financial performance. [inaudible]

Tom Palmer: These results enabled us to generate record first quarter free cash flow and have kept us on track to deliver on our full year commitments.

Tom Palmer: At last week, we also reached an important milestone for Newmont with the completion of our

positioning off to continue to strengthen our balance sheet.

returned capital to shareholders.

and apply our full attention to our Go Forward portfolio.

Tom Palmer: with the first quarter and our investment programs now under our belt. Newmont Priorities for 2025 remain clear and unchanged.

First, to strengthen our safety culture.

2nd, To Stipe Alive, Alan Layton, Managed Operations

and third to execute on Capitol Returns.

Starting with our safety culture.

Tom Palmer: For every person who works at Yemon, safety is more than a priority. It is a core value, one that is fundamental to who we are and how we operate.

Tom Palmer: In the first quarter, we saw a notable decrease in the frequency of significant potential events that we are experiencing across our business.

A key lagging indicator for such performance.

Tom Palmer: This improvement was driven by visible self leadership in the field, a more consistent application of our safety systems and an increased focus on learning from incidents and implementing corrective actions soon.

Tom Palmer: Over the last year, we have been diligently undertaking a refresh for their safety work.

Tom Palmer: and with the completion of our investment program and the clarity of our Go Forward portfolio this month we launched always safe.

Tom Palmer: Our reinvigorated safety program focused on delivering a set of prioritized improvements across our portfolio of managed operations and projects as well as our exploration and legacy science.

Living to Operations

Tom Palmer: During the first quarter, we produced 1.5 million ounces of gold and 35,000 cups of copper.

Tom Palmer: in line with our four-year guidance and the indications we provided on our last early school.

Tom Palmer: And as a consequence, we generated $2 billion cash flow for operations and $1.2 billion in free cash flow, both first quarter records.

on the back of size and stable operating performance.

Tom Palmer: These results were favourably impacted by the rise in Goldcrice in recent months. [inaudible]

Tom Palmer: driven by unprecedented volatility in our global financial and commodity markets.

Tom Palmer: and although it is still early days, we are closely monitoring the evolving terror situation and are very much focused on managing the variables that are within our control.

Tom Palmer: I'm really pleased that we have successfully completed an investment of all six of our high quality non-core operations through the program we announced early last year.

Tom Palmer: At the end of February , we finalised the sale of Musclewide and Eleanor in Canada, and Kruple Creek and Victor here in the United States.

Tom Palmer: and last week we completed the sale of Ponky Pine in Canada and a chip in Ghana.

Tom Palmer: From these five transactions, we have now received more than $2.5 billion in after-tax cash proceeds this year.

Tom Palmer: And when you combine these proceeds with those from the sale of Telsa and our other investments last year, we have generated a total of $3.2 billion in after tax cash proceeds.

Tom Palmer: and on top of that, when valued at today's prices, we now have nearly $1.2 billion in both equity and deferred consideration.

Tom Palmer: This is a significant milestone for Newmont as the completion of this investment program over the last year has enabled us to sharpen our focus on safely improving the performance of our Go Forward portfolio of 11 managed operations and three projects in execution.

Tom Palmer: To further strengthen our balance sheet, with $1.5 billion in debt retired over the last 12 months, including $1 billion in debt retired since the start of this year.

and to the liver on our third priority, Capital Returns.

Tom Palmer: We have now completed approximately $2 billion in sharey purchases from that $3 billion program.

including $750,000, so far, this year.

Tom Palmer: shooting upon our sole performance year to date and looking ahead to the rest of the year we remain on track to achieve our 2025 commitments and progress our disciplined capital allocation priorities.

Tom Palmer: As we move into the second quarter, we will continue to focus on safely generating imagery leading in free cash flow.

Tom Palmer: Maintaining a strong financial position and investment-grade balance sheet and returning capital to shareholders with predictable dividends and ongoing sharing purchases.

Tom Palmer: With that, I'll now turn it to Natascha to take you through our operational performance, and then Karyn to take you through our financial results and capital allocation achieved over to you, Natascha.

Thank you, Tom.

Tom Palmer: Our first quarter operational results were in line with our previous indications and we remain on track to meet our full-year guidance. So that's in mind from an operational standpoint, we are focused on two simple but very important objectives.

Tom Palmer: I will now stick through the progress we made during the last quarter at each of the large long-life 18-hour portfolio, starting with our tier one copper gold operation carry-out.

Tom Palmer: In the first bullet area delivered consistent production, worth also successfully completing planned

Tom Palmer: We are continuing the transition to our new panel, KISPC-23, and expect gold and copper production to be approximately 60 percent whited to its first half of the year.

Tom Palmer: As factored into our guidance, we expect to continue delivering lower grades until the panel cave is fully ramped up and the law's toolbar is fired in the second half of 2026.

Tom Palmer: Instanding to this, we are progressing the underground development for PC12, and we are also continuing to catch up on the historical under-investment in both Thailand's remediation and storage capacity, as mentioned during our last earnings call.

Tom Palmer: At Tanya May, we focused on underground development as planned. At the direct result, we continue to expect to access higher-grade stirbs in the third quarter and deliver more than 30% step-up and production in the second half of the year.

Tom Palmer: In addition, we are also advancing the expansion project at Anami with a completion of the short and underground material handling systems, reminding on schedule.

Tom Palmer: We completed the installation of a painter's or an in-shot barrier which is significant milestone for the project. The painter's allows us to isolate the lower part of the shot from work happening in the upper portion.

Tom Palmer: This is just one example of the innovative work our team is doing to safely and efficiently advance this project.

Tom Palmer: Due to these efforts, we remain on track to begin commissioning of our 1.5 kilometres shaft in the first half of 2027 and reach commercial production by the second half of that year.

Tom Palmer: At Boddington, we completed our scheduled planned shutdown for maintenance and primarily processed

Tom Palmer: We continue stripping live-backs in both the North and South bits, which is expected to continue through early next year. However, by the fourth quarter, we expect to start adding higher grade gold or from the mind to our more feet.

Tom Palmer: As a result, Antal's supply is strong finish to the year from Bonington, with gold production approximately 53% wider to the second half of the year.

Shifting now to the here [inaudible]

Tom Palmer: We delivered solid gold production in the first quarter and successfully completed a total

Tom Palmer: We expect to maintain this production momentum into the second quarter before production declines slightly in the second half of the year when we begin processing lower-grade materials as part of our planned mind sequence.

Tom Palmer: Moving to Venezuela, in March we achieved a new daily record with 10,000 gold equivalent and answers produced in a single line.

Tom Palmer: In the first order we continue to deliver strong gold production and steady co-product production from high

Tom Palmer: Gold production levels are expected to remain relatively steady through the second portal, before beginning to shift to a higher proportion of silver, further lead in seeing content through the third and fourth quarters, and a lower proportion of gold as planned.

Tom Palmer: At our offer complex, a offer itself continued to deliver strong goal production from both the speaker open fits and underground operations.

Tom Palmer: We expect a strength to continue through the second quarter before we move to mining Lower

Tom Palmer: As we mind the last awe and complete the final phase of the Subika Openfit during the second quarter, we are closely monitoring and safely managing the interaction between the Openfit and Subika Underground mining activities beneath it.

Tom Palmer: and as production from our host ourselves declines in the second quarter.

Tom Palmer: My apologies in the second half of a year. We expect new love cross-owns to come in from a half-a-nose project lighter this year.

Tom Palmer: During the first quarter, we completed the highway diversion and are preparing to convince the commissioning of the mall and processing facilities next month.

Tom Palmer: We expect to pour our first gold in the second half of the year, and we look forward to declaring commercial production towards the end of the year.

Tom Palmer: Finally, I want to touch on two of the emerging Tier 1 athletes in our portfolio.

Tom Palmer: At Ironebra, our focus remains on strengthening safety performance and culture at this underground mine.

Tom Palmer: and all those, they were temporary pauses in milling during the first quarter as part of our focus effort to improve society. The team did an excellent job, stopped piling the all-mind and positioning ceremony to ramp up production in the second quarter.

Tom Palmer: and we expect to find this momentum through the rest of the year, as we continue to recover answers from the leach pads with the application of our patented injection leaching technology.

Tom Palmer: They give all of these factors into account and including the answers from our non-managed assets.

Tom Palmer: We continue to expect that Gold production from our Goldfolio will remind around 52% Whited towards the second half of the year, with approximately 24% of this year production volumes expended in the second quarter.

Tom Palmer: We also continue to anticipate that capital spins from our Cornwood Folio will remind first half-weighted and indecated [inaudible]

Tom Palmer: and with lower than planned capital expenditures for the first quarter, we expect sustaining capital spend at several of our global managed operations to increase in the second quarter. Particularly at Cardial, where we are investing in a tiling strategy.

Tom Palmer: to support co-development and extend my life as mentioned in our last earnings call.

Tom Palmer: I will now turn it over to Karyn for a review of our financial priorities and performance over to you, Karyn. Thanks for your time.

Karyn Ovelmen: Let's turn to the next slide and get started with our first report of results.

Karyn Ovelmen: and Gold all in standing cost remained in line with her four-year guidance at $1,651 per ounce for the first quarter.

Karyn Ovelmen: Taking this into account, Newmont delivered a Justin Epida of $2.6 billion in adjusted net income of $1.25 per diluted share.

Speaker Change: The most significant adjustments to net income for the quarter of world, 25 cents primarily related to a gain from the sale of non-port assets as part of the successful completion of our Investiture program that Tom mentioned previously.

Speaker Change: and 25 cents related to unrealized mark-to-market gains on equity investments and options, primarily driven by an appreciation and the shares received from the sale of our teleph operation and interest

Speaker Change: But most noteworthy, we generated 2 billion of cashflow from operations and 1.2 billion in free cashflow, setting a new record for a first quarter cashflow performance at Newmont.

Speaker Change: And these results are exclusive of the $1.7 billion in after-tax proceeds received from the divestitures completed in the first quarter, and the approximate $850 million received in April.

Speaker Change: However, as we look ahead to second quarter, we expect working capital to be adversely impacted by.

Speaker Change: The regular timing of cash tax payments which are typically biased in the second quarter.

Speaker Change: and The Timing of Interest Payments, which are typically highest in the second and fourth quarters.

Additionally,

Speaker Change: We expect to pay approximately 200 million cash taxes related to the finalization of our non-core investments.

Speaker Change: Although the proceeds are recorded as investing activities on the statement of cash flows, these tax payments will come through as working capital adjustments.

Speaker Change: Additionally, we expect our sustaining and development capital to increase into the second quarter compared to the first quarter as Natascha just mentioned.

Thank you.

Thank you. Bye.

Tom Palmer: and with the recent completion of our divestor program, our financial resorts will no longer include the production and associated free cash flow from our non-core operating assets.

which was approximately 200 million in the first quarter.

Tom Palmer: While we are pleased with our record cash flow performance during the first quarter and the strong cash flows we expect to generate in future quarters, we realize that we still have worked to do to improve our margins and leverage the full strength of our portfolio to the benefit of our shareholders.

Thank you.

Tom Palmer: As we look ahead to the remainder of the year, we remain committed to our sure-over-focused capital allocation strategy, which includes maintaining a strong balance sheet.

Steadily funding cash-generative capital projects and returning capital to shareholders.

Beginning with our first commitment.

Tom Palmer: Remaintained a strong and flexible balance sheet, an end of the quarter with $4.7 billion in cash above our target average of $3 billion.

Tom Palmer: And it's worth noting that in addition to our cash balance, following the successful completion of our divestor program, our equity stakes in greatly gold, discovery silver, and our existing position in the oral amining are now valued at over $1 billion.

Tom Palmer: As Tom mentioned, the proceeds generated from our non-core investors program have more than exceeded the initial commitment. We made to the market when we announced the binding agreement to acquire a new crest in May of 2023.

Tom Palmer: As a result, we achieved our debt target of up to 8 billion faster than originally anticipated, and we reached an outstanding principal balance of 7.8 billion as of March 31st.

Thank you.

Tom Palmer: Taking into account the strong gold price environment we are benefiting from today and the feedback we have received from our investors, we are continuing to assess opportunities to further reduce our outstanding debt.

Moving to the Second Commitment in our Capital Allocation Strategy.

Tom Palmer: We continued to steadily reinvest our business with the goal of generating robust free cash flow over the long term.

Tom Palmer: and the first quarter we incurred 459 million in sustaining capital.

Tom Palmer: and 323 million in development capital as we continue to advance our highest return projects from our deep organic pipeline.

and Karyn Ovelmen.

Tom Palmer: and as we look ahead, we expect Apple to spend the several of our managed operations to ramp up in the second quarter, as I just mentioned.

Tom Palmer: and finally, moving toward third amendment, we continue to return capital to Sheryl.

Tom Palmer: We declare a 6th common first quarter dividend of 25 cents per share consistent with the past six quarters.

Tom Palmer: and we re-purchase $755 million and share so far in 2025.

Thank you.

Tom Palmer: and as we continue to generate free cash flow from our on-match portfolio of tiered-one operations.

We remain well-peditioned to reward our shareholders with predictable dividends.

and ongoing sharey purchases in 2025 and beyond.

And with that, I'll turn it back to tell you.

Thanks, Karyn.

Tom Palmer: to bring you all together. We have had a safe and strong start to the year.

Tom Palmer: producing 1.5 million ounces of gold, 35,000 tonnes of copper, as well as 60 50,000 ounces of silver, and 59,000 tonnes of zinc.

Tom Palmer: generating record first quarter free cashflow $1.2 billion, and Justin Evita from $2.6 billion.

and we remain on track to achieve our twenty-twenty-five guidance.

Tom Palmer: We also completed an investment program receiving more than $2.5 billion in net cash in the process this year.

and we continue to advance our Disciplined Capital Olication Strategy. Thank you.

Tom Palmer: through our predictable dividend and ongoing Carey purchases so far this year.

Robert Brackett, Carey MacRury,

and We Are Very Focused.

Tom Palmer: on ensuring that we carry this momentum into the second quarter and the reminder of 2025.

Tom Palmer: and with that, I thank you for your time and turn it back over to the operator to open the line for questions.

Thank you.

Tom Palmer: We will now begin the question and answer session. We ask that you please limit increase to one primary question and one follow up question.

Tom Palmer: To ask a question, you may press the star, then one on your touch-tone phone. If you are using a speaker phone, please pick up your headset before asking a question.

Tom Palmer: To withdraw your question, please press star followed by two. At this time, we will pause to assemble our Russian.

Robert Brackett, Robert Brackett, David Brackett, David Brackett, David Brackett,

http://TheBusinessProfessor.com

Thank you. Thank you. Thank you.

Speaker Change: The first question comes from Matthew Murphy, with the company BMO Capital Markets. Matthew Yilan is out open.

Thank you. Thank you.

Hi.

Speaker Change: Congrats on the strong start to the year. Maybe just a getting rate into an operational question, looking through sort of the details on the quarter, Lee here. Cash costs dropped a lot and I know you're focused on running it for margin. Thank you very much.

Speaker Change: How should we think about the cash cost profile there? And, you know, how is that program on mining for margin? Are you being surprised at all on the cost levels you're achieving?

Thank you.

Thank you.

Speaker Change: So our focus very much has got through some big shutdowns last year. We'll be able to do two other closings, including the large one on the closed forages.

Speaker Change: 40% of the triple capacity. We took that back to the shell and that built it back out again. So a lot of activity in the second panel last year in the plane setup with a couple of those big shutdowns.

Speaker Change: You'll see that step up in sustaining capital in the second quarter associated with continuing some of that work.

Speaker Change: So from up in the year operations perspective, very much about setting both the mind and the processing plan up with stable, reliable performance.

Karyn, if you want to pick up...

Speaker Change: and this is sitting on Matt's question. Yeah, yeah, Matt, in terms of the cost. So, here, there's a approximately 100 million impact from the inventory adjustments in the quarter.

This represents Natascha.

Impact Acast,

Speaker Change: and so that will normalize over time through the year so the expectation that that will here will meet its four-year cost-guides.

Thank you.

Speaker Change: Okay, okay, thanks. And then as a second question, just you know, you've been very active on the Buyback in April and, um,

Speaker Change: Capover Turn, because you've got more proceeds coming in, or do you look at maybe going a slower pace over the rest of the year?

and Karyn Ovelmen.

Speaker Change: Thanks, guys. Look, we're continuing to do the share by-back. We do have a building cash, and as you pointed out, we do have the investors.

that came in in, the proceeds came in in April , so...

Speaker Change: that couples with our outlook in terms of the gold price, elevated gold price. So we will continue to do the show by bank as the cash flow.

Speaker Change: Cubsin, and obviously it's been a very robust, share-by-back program with the over-performance on the [inaudible]

Speaker Change: and so the proceeds from that were continuing to do share buybacks with, and then of course would be elevated gold broids will continue to do share buybacks through the Winder of the Year into next year.

Thank you. Bye.

Okay, thank you.

Thanks, Brad.

Speaker Change: Next question comes from Daniel Morgan with the company Baron Julie. Daniel, you'll mind if that open?

Daniel Morgan: Hi, Tom and Tim, a philosophical question. The Gold price is near record highs higher than I think any of us anticipated. What does this mean for how you manage your business if anything? Thank you.

Daniel Morgan: Thank you, Dan. Thanks for the question. We've been through a pretty significant transformation acquiring a new crest, integrating those operations.

Daniel Morgan: by configuring some of those new operations to deliver on their long-term potential and completing pre-ambitious investment programme over the last 12 months. It's a literally last week we've got a hands-on-a-go portfolio and we're in investment cycle.

Daniel Morgan: So we've got a unit cost that is higher where they should be for a portfolio than the quality of the one we've assembled.

Daniel Morgan: So we are very very focused on delivering the safety cost and productivity performance that this portfolio deserves.

Daniel Morgan: Irrespective of the gold price. So we'll enjoy the benefit of the gold prices, but our focus is on delivering the potential of the 11 managed operations that we're currently operating. Thank you very much.

commissioning a Hawthorne North later this year.

Daniel Morgan: completely sharp, initially that in 27. Can you build our panel code 2-3 through the course of this year and in the next? And ultimately bringing on 1-2 in the years after that. So I'm very sober, focus on what we control.

Thanks, Dan.

Speaker Change: Thank you, and then maybe just turning to growth, could use a pine on which projects might become into consideration, you know, to the board level or, you know, what the timeline are, what the major projects that you might be considering over the next 12 months or more to sanction for investment.

Thanks very much.

of the starting point, so it's linked to your first question is.

Speaker Change: But as we commissioned a half-a-dour, the second half of this year, importantly, as it ramps up, and it hits its straps in 2026, but they've got an opportunity to think about whether there is a project that deserves capital going forward in years.

when I look at our project pipeline. I'm, um,

Speaker Change: I would argue that Red Chris is in prime position and it's spot to lose. But we've got work we're doing this year to build out a feasibility study to a

Speaker Change: It is quite a bit of work happening this year on that study and we continue to do some underground development work to continue to develop out some of the early works in that case.

and it's important that we're going with... [inaudible]

Speaker Change: from Tautan, and the British Columbia and government to assure we've got the permits in place.

Speaker Change: says that when ultimately is the project Washington's face that we've got all faces in place. [inaudible]

Speaker Change: But as I look at our project pipeline and look at where we sit with Red Crescent and the quality of that all-body, we've got another catering with multiple blockcares ready to bring on and I think it's Red Crescent's blockcage.

Speaker Change: Spot to Lose in terms of the next project that we sanctioned.

Thanks so much Tom.

Thanks, David.

Next question, Carlos Palmer,

Speaker Change: Tanya Jakusconek, with the company Skosha Bank. Tanya, your life's not open.

Tanya Jakuskinec: Great, thank you very much for taking my question. I just wanted to ask about the tariff time. I'm sorry, I have a call.

I just wanted to ask about... I just wanted to ask about...

Tanya Jakuskinec: Your initial work and I understand that this tariff situation is quite fluid but I'm trying to understand from a very high level.

when you look at your cost rupture.

Um...

Tanya Jakuskinec: I'm interested in what what part of your cost structure do you think will be greatly would be impacted by the addition of tariffs. So I'm going to start first with the consumable side, which is about 30% of your cost structure. Maybe you can talk a little bit about.

where it's sort of consumable. [inaudible]

Tanya Jakuskinec: would you see being impacted? And then the second portion of the cost structure obviously is labor, which is a significant portion that would come with inflation.

Tanya Jakuskinec: and then I'm assuming another portion would be any sustaining capital that would involve new equipment and fleet, etc. So I'm interested if you have any new fleet replacement or other that's happening this year.

Thank you.

Speaker Change: Thanks, Tanya, and we're all done for getting through that with Agina Colbert. Obviously she's saying lots of moving parts at the moment that we're monitoring closely.

Speaker Change: I'd also say that one of the benefits of having a global, globally diverse portfolio is we can manage that, manage these sorts of risks across our global business, so we're a world place from that perspective.

Speaker Change: May be stepping through the different categories you talked about. [inaudible]

Speaker Change: We're what we're seeing in terms of the labour by our employees and the contractor services, and we enter into a long-term relationship with the various contractors is consistent with what we're seeing in our budgeted amounts. So we're seeing no particular impacts in a staffed cost base. [inaudible]

and some of the terrorist volatility.

Speaker Change: I look at that 30% of materials and consumables and the different components in underneath that.

Speaker Change: Grinding Media is heavily exposed to steel prices, so we are seeing a bit of upward pressure on grinding media. Again, we source that from a number of different locations, we have multiple supply chains with our operations around the globe.

Thank you.

Mania and Sinai, Mixed Trends,

Speaker Change: Primarily has been influenced by regional natural gas price fluctuations and we're actually seeing some reduced natural gas prices in Europe .

We look at Explosives and...

Speaker Change: 15% of our cost is energy and if anything, we're seeing some tailwinds in the energy price based upon what oil is doing so we're getting a little bit of a benefit from that. That's time.

Speaker Change: Lots of moving paths, monitoring closely, but at this stage, what we're seeing is consistent with what we are showing for this year.

Speaker Change: Maybe just a follow-up on my sustaining capital question as well. Are you having to replace any significant fleet tracks at the operations this year? That could be in passage to dark.

Speaker Change: Nothing specific for us, Tanya, but the new minor half are also there to leave the announcement there for some time.

Speaker Change: and then if I look across the rest of our business, there's nothing in terms of sleep change out for our managed operations through the course of this year.

Speaker Change: You're then looking at the wroteables that may be more parts of your mind that may come from different parts of the world and...

Speaker Change: and the two operations, the two areas that may start to see some tariff pressure would be in a skido with some...

Speaker Change: some parts in my part for the US, or Red Cruiser Bruce Jackson, that's not my part from parts of the US. But with monitoring that closely, but in the overall scheme of things, nothing material.

Okay. And no labor contracts are expiring this year.

Thank you. Bye.

in terms of library agreements. [inaudible]

We've got to... We've got to...

We've got an interesting one at Cairia, which is essentially...

Speaker Change: and Australian Workplace Lawyer have got some underpinning agreements that underpin up staff contracts so we're going through that.

Speaker Change: and a negotiation with our team, Katie, there's nothing particularly of no deal when it comes to...

Care of Volatility

We've just completed one at a mosquito in recent times.

Speaker Change: and we're working through one at Mirians. So again, I'll describe those negotiations as pretty standard fair and nothing around our volatility that's part of those discussions. There are more domestic issues in terms of shift rofters and a lot.

Speaker Change: The next question comes from Lawson Winder with the company Bank of America. Lawson, your line is out.

Lawson Winder: Thank you very much operator and hello Tom and team. Nice quarterly result. And thank you for today's update. I ask about half a North key project for Newmont.

Lawson Winder: Could you maybe describe the progress in 2025 to date and how it's tracking to your expectations in terms of uh...

Lawson Winder: Development Wrap-up, Spend, and then have there been any surprises whether positive or negative? And then the question I really want to get to is when you turn to 2026 and you think about the progress to date, is that run rate production level of 275 to 325,000 ounces?

expected to be achieved in that year. Thank you.

Speaker Change: I'll not pick up the second part, make Natascha to, it was a pretty exciting time for Arthur North, as you've seen everything come out of the ground.

Speaker Change: The Blueprint for Arfo North is essentially the same, Face Shooters Miriam, and Jim, and Arfo South.

Speaker Change: So bringing on that mind and the process of facility is something we, is in our world house is something we know well and lots of people have got lots of experience of commissioning that type of all through that plan.

Speaker Change: Commercial production towards the end of this year, and then going through our paces to get up to that level.

It's on the side, north of this.

Upside to that, I think it's a robust...

Speaker Change: view of bringing on a mine or a place that we know well through 2026 but...

Speaker Change: Natasha, you want to sit back and talk about how the projects going here and now? Yeah, I can probably and I'll also just go into a little bit more.

Speaker Change: Forum to details on what we've completed this year so far. I think the project is really tracking well. The first thing that's important for us, considering that we did lose a colleague we lost, Curvy Lost here, is of course safety, so it's a material amount of focus. [inaudible]

Speaker Change: We have, it's the high construction period that we're in now, we have high numbers of people on site and making sure that the concurrent work multiples of contractors on site are being done safely.

Speaker Change: A critical milestone for us to really start the opening of the stripping and complete Italian

The diversion of the highway diversion.

Speaker Change: That was completed, so we've managed to really get into telling them and continue the stripping of the mind.

Powerlines with HD voltage.

Speaker Change: switch, switch yard completed, Sagan Ball more completed and our C.I.L.T.T.T.T.T.T.T.T.T.T.T.T.T.T.T.T.T.T.

Speaker Change: so quite a bit of cobbling coming in now and the critical part is absolutely on the flawed cobbling and piping to get ready for commissioning of the processing facilities.

Speaker Change: I think tracking well, good focus from a scientific point of view, and we're all looking forward to the first poll, Paul.

Speaker Change: Okay, fantastic, thank you for that Natascha. If I could ask my follow-up question on here, with the benefit of another quarter...

Speaker Change: What are you thinking now as a long-term sustainable level of gold production for that asset? You did 800,000 ounces last year, obviously. No, you've got it to 600,000. This year is something in the middle like 700,000 good through the cycle average number to think of. [inaudible]

Thank you. Thank you.

Yes, thank you.

Speaker Change: Lawson, if you look closely here, we're basically getting that pick and figure to the size line that it is, and I'm sure we've not been processing plan in good neck in terms of...

Availability and Reloability.

Speaker Change: and as we can figure that out and build out a place for a day where we're in the lower month of race or four for the next couple of years. So you're in that security of, um...

Speaker Change: I'm configuring that mind and living waste and therefore processing more low grade oil and stockpile.

Speaker Change: as I indicated in the February call that we come out of that stripping campaign in the 20-28 timeframe.

Speaker Change: So, you're going to be relatively consistent with where we are now, but as you step out of that stripping campaign and get into the high grades, you just start to get into the...

Speaker Change: for an underpipine, a high twos in terms of ground sputum, then you're looking at about a 30% increase in the

Speaker Change: and then our expectation will be that how do you then start to ensure that you can maintain those production levels because we've got the mind.

The mine appropriately can see it, I'm going forward, so...

Speaker Change: We're taking the time to configure that tip properly, step away from the engineer wall around a low rock and do a more traditional layback. And then as we've indicated, plus 30 per cent increased production on 20-24 levels, kicking in from about 20-28.

Thanks, Lawson, I think you probably got that. Thanks, Thomas.

Speaker Change: I have a question from Hugo. Absolutely. I have a question from Hugo Nicolaci with the company Goldman Sachs. Hugo, your line is not open.

Speaker Change: Yeah, it's pretty, it's pretty, pretty vanilla, Hugo, productions, productions, Q-1, Q-2, go look very similar.

Speaker Change: So the starting capital is the one me, I think it was Robert Brackett, so a bit of a liner in the first quarter and then as we get into some of fond of weather in different parts of the world, some increased spender and caddy up.

Speaker Change: Bit more standardly here around roads and drainage, bridge track, bridges, again into the better weather, some greater spend than, but in the tip-to-to tip-to-to-step way to steady capital in the first half of the year versus the second. So that balance account, you'll see heights of steady capital spending in the...

Speaker Change: in the second quarter, but everything is tracking with what we would expect, so it's no particular call out for them.

Speaker Change: Great. Thanks for clarifying, Tom. And then just the second one, picking up on Karyn's comments around the opportunities to repay debt early. I just have to be thinking about the objectives there. I mean, is it debt levels or flexibility or interest costs? If I look at the debt facilities you have in place at the moment, you know, other than the 20, 39 notes, most still have pretty compelling rates in today's environment and your liquidity continues to grow organically on the capital management framework. So I guess the crux of the question is, you know, with gold rarity is what do you think you need that flexibility for? Yeah. Yeah. Yeah. Yeah.

Sure.

Speaker Change: coupled with a very uncertain economic time. We'll look for opportunities to further buffer the balance sheet. So while we're continuing this reinvestment in the business and returning capital to shareholders with the predictable dividend coupled with the continued share by back.

Speaker Change: Well, if there's opportunities for us to continue to offer that balance sheet, we'll look to do that. Again, we've got a robust

Speaker Change: and of course we've got the dividend is where it needs to be from a fixed predictable dividend that we believe the market will prescribe value to yourself.

Speaker Change: Again, I think we have an opportunity here as we go forward to continue to shore up the balance sheet but no specific intent at this point.

Thank you.

For more information, visit www.fema.gov

Speaker Change: Next question, comes from Daniel Major with a company UBS. Daniel, your line is open.

Daniel Major: Yeah, yeah, thanks very much for the questions. The first one,

Daniel Major: Well done on the execution in the investments so far. When you look at Portfolio now, I know you've done what you've targeted. Is it still optimal? Is there anything else in the Portfolio?

Daniel Major: You know, that you think could be monetized, I'm thinking specifically like Marion, Sarah Negros, but it's still relatively higher cost and...

Daniel Major: and smaller scale. You know, why do they sit in the core portfolio?

Speaker Change: Thanks Daniel, it's been a significant body of work for us over the last.

Three years to integrate aggression lies.

and the most important thing for us to do now.

Speaker Change: is dead down our go for portfolio. We've literally had to go for portfolio for seven days and we're ensuring that we're focused on safety, cost and productivity, delivering on the potential of the elephant in that portfolio, that's a big P1 assets.

Speaker Change: and then realising the potential of those emerging to what happens.

Speaker Change: and having a red hot-go, a realising of potential loss, emergency one has it.

Speaker Change: and at the end of the day, if we can't see a pathway to P1. [inaudible]

Speaker Change: then Natascha Decision down the track. But we'll literally seven days into our go for follow-up with the full band with the star of this leadership team. So our focus is getting after delivering on the potential of the T1s and proving up the potential of the emerging T1s.

That's very much it, thanks.

Okay, thanks. And my follow-up on the…

Speaker Change: The intention to return the investment proceeds, but at this kind of gold price environment, you're generating meaningful additional cash flow above that sort of level. I mean, could we expect, you know, buybacks to, you know, significantly exceed the investment proceeds this year, if the gold price stays at this sort of level? [inaudible]

Thank you.

Speaker Change: So no change to our financial policies, so we've talked about holding an average of $3 billion in cash.

Speaker Change: on the balance sheet, a quarter ends, that'll be a higher balance just in terms of the timing of our cash needs. But generally speaking, that's where our cash will be. We've always set up to $8 billion. Like I said, we'll continue to look at maybe some opportunity to spring that down a bit. Our dev cap and our sustaining capital are set.

Speaker Change: And so beyond that, we've got the dividend that's also set, fixed dollar dividend, but beyond that any free cash flow that we're generating, the expectation is we will continue to return that capital via share buybacks.

Speaker Change: The next question comes from Anita Soni with the company CRBC. Anita, your line is not open.

Hi Tom, congratulations on a solid start to the year.

Speaker Change: We've everyone's asked a lot of questions on proper allocation and probably the most of the questions I would ask about Tanya, about Tara. I guess I'm now at the point where I'm like, could you go through. Thank you.

Speaker Change: just from a geopolitical standpoint, the regions that you operate in. Is there anything that you're thinking about or concerned about with? [inaudible]

Speaker Change: not just tariffs, but more of a sort of a, you know, as you know, foreign direct investment and foreign aid is pulled from various areas. Are there any regions where you're you're concerned about your investments or changes in government stance on royalties and taxes and things like that?

Thank you, thanks, senator, that's been the up.

Speaker Change: where we are able to have respect for the rule of law. A stability or investment agreement is in place and respected. And the relationships we build with the government are strategic and long-term.

Speaker Change: And that's been very much part of who's been for a long time, a very much part of how we shake a, how go forward portfolio which is, which is globally diverse, which helps balance out some of those risks.

Speaker Change: But I think about the different locations that we input. We're input, that'd be Australia, Papua New Guinea, Ghana, Canada.

Mexico, Suriname

Peru, and Argentina.

Zowell, Barry Busturistations, and Singh.

It's certainly something we'll continue to monitor, but we certainly...

Speaker Change: and continue to manage those relationships distractedly but seeing no particular risks as we see the world in front of us.

Speaker Change: Okay, thank you. And then just another follow-up, I guess, on capital allocation. You've done a pass of obviously investments and, you know, someone else just asked about, you know, for the rationalization support portfolio, but are there any areas where you think, you know, you might want to, um,

Speaker Change: I'm just trying to understand with the cash balance that's obviously going to grow at these gold prices.

You know, is there a way?

Speaker Change: Are you looking to perhaps invest in some smaller-scale projects or improve your sort of the JD portfolio or things like that?

Robert Brackett, Carey MacRury,

Speaker Change: We're pretty clear that we've done to arrive at the portfolio we have. [inaudible]

Discipline around the capital allocation to the development projects.

and ensuring that we...

Speaker Change: We stick to that at $1.3 billion discipline and that's as much about the cashew allocator, that is it is encouraging execution risk.

Speaker Change: No changes, no changes on that front of the big old saying, but the earlier questions.

Speaker Change: who have been through two or three years of pretty significant transformational change for a week. We have had our hands on our go for portfolio projects, operations, and our joint ventures and I think very much focused on stability, and safely delivering our commitments from that portfolio.

Thank you. Thank you.

Speaker Change: Next question comes from Andrew Bowler with Company, McCuary Andrew, your line is not open.

Thank you.

Andrew bowler: Get a Tellman team. Thanks for not going on an exact day, a lot last year, but just a question on the pipeline. I mean, obviously, you know, loud and clear. It sounds like Bruce Shakespeare. Sorry.

Speaker Change: Red Chris is certainly an excellent cab off the ramp, but there's loads of wacky gold who can just give it an update as to how that's going any discussions you've had recently with the government or very loose timeline on that project list.

Thank you very much.

Thank you.

Thanks Andrew.

Speaker Change: The process with Waffigalt Overseas, John Venture with Harmony. The process with Waffigalt Overseas,

Speaker Change: A very competitive basis for ultimately a middle-development contract that can then be converted into a special mind-English

Speaker Change: and we can change it to work constructively with the PDG government and work very well with harmony of that to prevent your partners. We're very clear on the boundaries of which we prepared to negotiate.

Speaker Change: We continue to have robust discussions, we continue to have regular engagement with the PNJ government up to and including the Prime Minister and we've...

Speaker Change: who's looking forward to continuing to have constructive engagement and to be able to convert, which I think is a very robust competitive if, in the end, of understanding, you know, have been able to develop a contract in all of my special morning days, but, uh, we'll, we'll prepare to, uh,

Speaker Change: should sit at the table and negotiate and take the time needed to ensure that we have an ingredient in place that ensures the capital intensity for a project that their size can be considered a return of any investment at the time.

Thank you.

Speaker Change: Okay, Chris, you know, long story short, you're just at the stage where you're trying to hammer out a deal in terms of, you know, an economic share arrangement with the government essentially. Is that a good way to somewhere else?

Speaker Change: Yes, that is a good way to summarize this, Andrew, and it's really important you get those agreements in place at the start before we start making big commitments, so that's what we'll put the time in effort.

Speaker Change: The last question comes from Al Harvey with the company, JP Morgan. Al Yolanda is not open.

For more information, visit www.FEMA.gov

Speaker Change: Yeah, good day, also just a quick follow-up on the divestments. You did mention you've still got some value there and equity stakes in Greatland and Discovery, so just wanted to get a sense of the option for these and just remind us of any lockup periods on those calm stakes.

Speaker Change: Thanks, Ali. There is some lock-up periods on those different agreements.

Speaker Change: I don't actually have that at the tip of my fingers, I'm looking across a piece of top is in the road who can maybe talk to both of those, but Discovery is definitely going to lock up at the order of employment and we're just close at the transaction in the last time.

in the last week of September .

Speaker Change: and then Great Britain's link to the existing on the ASX and obviously I'll get a little bit of media coverage in Australia is they gear up for that in the due time frame and then the ability to maybe think about what that holding might look like and how we might transact that. There are some lockups and...

Speaker Change: and also some listings on the ASX to go to tap it out.

Sure, thanks, Thomas.

Thanks, mum.

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

Tom Palmer: Thank you, operator, thank you everyone for making us the time to join this call and for the Australians on the call. I hope you get some time off for Anzac Day and

Speaker Change: and bit of time to respect upon the second process that others have made. And otherwise, enjoy the rest of your day or evening. Thanks, everyone.

Tom Palmer: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.