Q2 2025 Newmont Corp Earnings Call
Hello and welcome to Newmont, second quarter 2025 earnings conference call. All participants will be in listen-only mode.
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After today's presentation, there will be an opportunity to ask questions.
Please note this event is being recorded.
I would now like to turn the conference over to Chief Executive Officer, Tom Palmer. Please go ahead.
Thank you, operator.
Hello everyone. And thank you for joining our call.
Speaker Change: Today, I'm joined by Natasha Lune, our president and Chief Operating Officer.
Speaker Change: Been a Wexler. Our chief legal officer and has, recently announced our interim Chief Financial Officer.
Speaker Change: Along with the rest of my executive leadership team and will all be available to answer your questions at the end of the call.
Speaker Change: Please start our course, free statement and refer to our SEC filings which can be found on our website.
As we reported yesterday.
On Tuesday of this week.
Speaker Change: 2 fall of ground incidents occurred at our Red Cross operation in British Columbia
Speaker Change: At the time of the initial incident, we had 3 business partner employees working Underground.
Speaker Change: More than 500 meters beyond the effective Zone.
Speaker Change: We asked them to relocate to a designated Refuge chamber.
Speaker Change: And concerned that they had safely arrived in the chamber before the second fall of ground blocked. The access way.
This second fall of ground also impacted our underground communication system.
Speaker Change: Activated.
And operations have reduced have been suspended. Whilst we're responding to the incident.
Speaker Change: Responders and teams from nearby. Mine sites.
Speaker Change: Storing Communications to The Refuge chamber.
Speaker Change: Safely reestablishing access Underground.
Speaker Change: And bringing our 3 teammates back to the surface and to their families and friends.
We are diligently responding to this incident with excellent support from the broader industry.
Speaker Change: And appreciate your understanding during this very large and evolving situation.
Chris: Although overshadowed by this incident at Red, Chris
Chris: You want delivered another strong operational performance in the second quarter.
Chris: Keeping us firmly on track to achieve our 2025 guidance.
Chris: Underscoring, this performance are our 3 key key priorities for this year.
Chris: Which remain clear and unchanged.
Chris: First and most importantly to strengthen our safety culture.
Second to stabilize our 11 manage operations.
Chris: And third to execute on Capital returns.
Chris: Because I just described we are concentrating. The full force of our organization.
Chris: On the safe recovery of our team members at Red, Chris.
Chris: And we will conduct a thorough and independent investigation into the factors that led to this event.
Chris: All findings and Lessons Learned will be leveraged across Newmont to strengthen our always safe program.
Chris: And will be shared across the broader mining industry.
Chris: You can also expect that we will continue to provide regular updates as those efforts progress.
Chris: Turning to our ongoing work to stabilize our operations.
Chris: Our portfolio of worldclass gold and copper assets, delivered, another solid quarter.
Chris: We produced 1.5 the announcers of gold and 36,000, tons of copper.
Remaining in line with our 4 year guidance and the indications we provided on our last call.
Chris: This strong production supported robust Financial results.
Chris: including 2, 4.4 billion dollars of cash flow from operations after working capital,
Chris: And an all-time record for quarterly, free, cash flow of 1.7 billion.
Chris: Of which more than 1.5 billion. Or 90% was generated by our core managed operations.
Chris: Our shareholders continue to benefit from our non-core asset development program.
Chris: That we successfully completed earlier this year.
Chris: As we announced last week, we expect to receive a proximately 470 million in cash proceeds after taxes and commissions from the sale of our shares in Greatland gold and Discovery silver.
Chris: Shares that we received as consideration for the Investments of tula and porcupine respectively.
Chris: As a consequence we now expect to generate 3 billion dollars in after tax cash proceeds this year from our investment program.
Chris: And these proceeds will be used to support our third key priority returning Capital to shareholders.
Chris: Since our last earnings call, we have retired 372 million of debt.
Chris: And returned over 1 billion dollars to shareholders through both regular dividends and share repurchases.
Chris: And in addition to making meaningful progress on our existing program,
Chris: Our board has approved an additional 3 billion, share repurchase program.
Chris: Doubling our total authorization to 6 billion dollars of which 2.8 billion dollars has been executed to date.
Chris: With our strong second quarter results, and can continue operational and financial momentum.
Chris: We remain firmly on track to meet our 2025 guidance.
Whilst also generating industry-leading free, cash flow and consistently returning Capital to shareholders through a predictable dividend and ongoing share repurchases.
Chris: With that, I'll now turn it to the Tasha for an update on our operations.
Tasha: Thank you, Tom. And I know,
Before we jump into the details, I'd like to Echo Tom's statements about our team members at redress.
Tasha: Focused on bringing them home safely and we are leveraging the strengths and extensive experience of our Global Technical operational and safety teams with the support of our industry partners.
Tasha: Shifting now to our operational performance.
Tasha: This quarter underscores the resilience of our world-class portfolio, which has been thoughtfully assembled around high quality long life assets.
With this robust foundation in place, we are exceptionally well, positioned to organically deliver multi- deck, guide value.
Tasha: To our high color operations.
Robust pipeline of projects and deep bench of Technical and operational leaders.
Tasha: Our second quarter, operational results outperformed our previous expectations.
Tasha: Effectively bookending the first half of the year and establishing a solid foundation for consistent delivery in the second half.
Tasha: This compelling performance was largely driven by production from our core managed operations.
Tasha: including higher than expected production from Kara, in the first half of the year due to higher grade or from the current panel guys,
Tasha: And in addition, we have been able to noticeably reduce downtime related to plant maintenance.
As previously mentioned, we expect production to decrease in the second half of the year as we continue to transition to our new panel Kai pc23.
Tasha: The mosquito exceeded our gold production, expectations in the first half of the year due to higher growth or from the pinasco pit.
Tasha: However, production is expected to shift from a higher proportion of gold to a higher proportion of silver lead and zinc content primarily in the fourth quarter as we move to lower gold grade areas in the pinasco pit.
Tasha: As part of a plant sequence, in this large poly metallic Minds.
And ugly, here we delivered. Consistent production in the first half of the year.
Tasha: However, this will begin to decline in the second half of the year. As we begin processing, lower grade material, as part of our planned mind sequence,
Tasha: What really stands out at you is the steady progress, we're making in bringing stability to both the mind and processing plant.
Tasha: For example, we are beginning to see the benefits from improved drainage and Water Management around our whole roads along with cleaner. Access to both fit, and stock piles, creating a safer and more efficient design for this mine.
Tasha: As a result we've been able to park 9 trucks and materially reduce the contractor. Footprint generating significant cost savings from this initiative alone.
Tasha: For the last 2 years, we have been on a journey of integrated integration a rationalization and optimization with a view to creating value over a period of decades.
Tasha: With a rationalization phase largely complete. We have been applying the full force of our operating and technically technical capability to systematically optimize operations across all 11 of our managed operations.
Tasha: And as reflected in our results, these stabilization effects are delivering tangible benefits positioning us to confidently. Continue, our optimization works.
Tasha: So the deep understanding of each, and every asset we are working on productivity, enhancements and improvements to the cost structure across our managed operations.
Tasha: Ensuring each each site needs, the performance metrics required to earn its place in our world-class portfolio.
Tasha: You saw an example of this at the beginning of the year, when we paused our investment in the underground expansion activities, that Sarah nebro. And again, more recently with a cost Improvement, measures we are working on at Marion.
Tasha: Building on the strong production performance from our core managed operations in the first half of the year. We remained firmly on track to meet the full year guidance ranges, we issued in February
Tasha: turning now to our cost performance.
Tasha: We remain on track and our continuing to focus on driving improvements across our portfolio.
Tasha: As mentioned sharpening, our efforts on cost discipline and productivity enhancements has been primary focus for all of us at Newmont.
Tasha: Applicable to sales and our all-in sustaining costs are in line with the guidance expectations set at the beginning of the year.
Tasha: Finally, our Capital spend for 2025 is on track to land within the guidance ranges, we set at the beginning of the year.
Tasha: Starting with sustaining capital.
Tasha: We anticipate spending to be approximately 57% wider towards the second half of the Year driven by deliberate decisions. To defer expenditures for Key activities across several sites.
Tasha: Including plant spending at tanmay associated with our expansion of our ventilation system in the second half of the year.
Tasha: Service, fully moving, some of our ongoing optimization work at Le here to the third and fourth quarters.
Tasha: With a specific.
Tasha: Focus on.
Mobility.
Tasha: And a continued surface work at represent brucejack during the warmest summer months in Canada.
Tasha: Hi. Is this signing capital in the second half of the year will also include an expected increase at kadia to support the ongoing panel Kai development as well as addressing the historical underinvestment in tiling stream. Mediation and storage capacity while we continue to evaluate more efficient tiling Solutions at this worldclass operation.
Our development Capital follows a similar guidance and is now expected to be 51%. Second half weighted. Primarily due to the timing of spent related to the projects. Currently in execution,
Tasha: At our half of North project, we are progressing as planned and are preparing to call first goal in the coming months.
Tasha: Keeping us firmly on track to declare commercial production in the fourth quarter, as previously indicated.
Tasha: In parallel, we successfully completed the 160 meter race, for at the bottom of the shaft and our second expansion at tanomi and have removed the pentas, or an insurer of barrier.
Which allowed the siphon efficient completion of this critical path work.
Tasha: And finally, at Gallia.
Tasha: Driving from PC to 3 has continued according to plan while steadily advancing the underground development for pc12 and progressing. The important tiling 3, remediation and storage capacity works. I mentioned previously, I now will turn it back to Tom to go through our financial results for the portal.
Tom Palmer: Thanks Tessa.
I'd like to start this update by a recent departure of Karen Overman at Chief Financial Officer.
Tom Palmer: While the timing was unfortunate, we respect her decision and thank her for her contributions to Newmont over the last 2 years.
We had commenced a comprehensive search for our next CFO.
Tom Palmer: And while we do that work, we continue to have a very strong and experienced Finance team in place.
Tom Palmer: In case we led by Peter Wexler on an interim basis.
Tom Palmer: Importantly, there are no changes to our financial policies or Capital allocation strategy.
Tom Palmer: And we remain on track to deliver on a 2025 commitments, and continue returning Capital to shareholders.
Tom Palmer: As I mentioned.
A call, you might reported strong financial results in the second quarter.
Tom Palmer: Driven by robust production, steady unit costs and a supportive gold price environment.
Tom Palmer: Gold all in sustaining costs for the quarter.
Tom Palmer: A slightly below our guidance, for the full year at 1,500, an ounce on a co-product rate.
Tom Palmer: This is largely due to lower sustaining Capital spend in the first half of the year.
Tom Palmer: Which is Natasha just described.
Speaker Change: Is expected to increase in the second half by comparison.
Speaker Change: As a result, all is sustaining costs are expected to be higher in the third and fourth quarters. But overall in line with the indications, we provided in February, for the full year.
I also want to highlight.
Speaker Change: That going forward, we plan to more prominently present our unit costs under both, the co-product and byproduct methodologies.
Speaker Change: The better assist our investor base with industry benchmarking and comparisons to our peers.
Speaker Change: While providing our unit costs, under both methods, we aim to offer our investors better insights into the individual contributions of the metals that we produce in addition to gold.
Of the amount overall margin performance.
To put this into perspective.
Speaker Change: on a byproduct basis, our goal all in sustaining costs for the second quarter for 1,375 an ounce
Speaker Change: Which is more than $200, an ounce lower than our unit costs under the co-product method.
And from our core managed portfolio in the second quarter, our goal, all is starting costs for 1,276 an hour on a byproduct basis.
Speaker Change: For the second quarter, you might generate a 3 billion dollars in adjusted Evita.
And reported an adjusted net income of $1.43 per share.
The most material adjustments to net income for the quarter include 63 cents related to a gain from the sale of the chimp and porcupine as part of our non-core asset investment program.
Speaker Change: 14 cents related to market to market gains on Equity Investments.
Speaker Change: Primarily from the gain on the sale of shares received as proceeds for the sale of our telephone, for operation and interest in the havon project. Could rate them goals
Speaker Change: At 31 cents in offsetting taxes, primarily related to these adjustments.
Speaker Change: But most notably you might generated 2.4 billion dollars of cash flow from operations.
Speaker Change: And 1.7 billion dollars of free cash flow.
Speaker Change: Well, above the first quarter and setting a new record for quarterly cash flow performance.
Speaker Change: Our operating cash flow of the second quarter benefited from 156 billion of favorable working capital adjustments.
Speaker Change: Primarily driven by sales timing.
Speaker Change: Higher revenue, and pre-tax income associated with strong little prices.
We are encouraged by the strength of our cash flow performance in the first half.
Speaker Change: Which underscores the quality and potential of the world-class portfolio. We have assembled.
Speaker Change: And continued to shape and optimize.
Speaker Change: With this in mind, we remain committed to our shareholder focused Capital allocation strategy.
Speaker Change: Which remains unchanged and has 3 priorities.
Speaker Change: To maintain a strong balance sheet.
Speaker Change: To steadily fund, cash generative, organic projects.
Speaker Change: And to continue to return Capital to shareholders.
Speaker Change: Starting with our balance sheet.
We finished the quarter and the first half of the year with 6.2 billion in cash.
Speaker Change: Well, above our Target of 3 billion, dollars on average.
Speaker Change: It's worth noting that this cash balance includes 330 million.
Of the approximately 470 million in cash proceeds net of taxes and commissions from the sale of equity shares in great and gold and Discovery. Silver.
Speaker Change: In addition, we continue to surpass our debt Target of up to 8 billion dollars.
Speaker Change: And reached an outstanding, principal balance of 7.4 billion as of June 30th.
Speaker Change: And we are proactively assessing opportunities to further reduce our outstanding debts.
Speaker Change: Creating a flexible and resilient balance sheet, that is able to navigate the commodity cycle.
Speaker Change: Turning to shareholder returns.
Speaker Change: We declared a fixed common second quarter, dividend of 25 cents per share consistent with the past. 7 quarters.
Speaker Change: and since our last earnings call in late, April,
We repurchased 750 million in of shares.
Speaker Change: Bringing the total shares we purchased in 2025, to 1.5 billion dollars.
In total since February last year, we have executed 2.8 billion in Sharing purchases.
Speaker Change: And as I mentioned earlier, our board has approved an additional 3 billion share in purchase program.
Speaker Change: This brings our total authorization to 6 billion dollars.
Speaker Change: Demonstrating the confidence that we have in our business and our commitments, to rewarding our shareholders with predictable dividends and ongoing, sharing purchases in 2025 and Beyond.
In closing.
We delivered, a strong second quarter and first half of the year.
Speaker Change: Deliver on our commitments, for the benefit of our shareholders.
Speaker Change: We achieved an all-time record. Quarterly free cash flow of 1.7 billion dollars in the second quarter.
And we continue to advance our discipline Capital allocation strategy.
Speaker Change: Which includes strengthening our balance sheet through ongoing debt. Reductions
Speaker Change: And returning Capital to shareholders through a predictable dividend and continued share repurchases for which we have approved and additional 3 billion dollars.
Speaker Change: Looking at.
Speaker Change: We will leave into the full capability of our teams and portfolio.
Speaker Change: To leverage the momentum from our core managed operations in the first half of the year and continue building a stable and resilient future for New Market.
In turn we are well positioned to reward our shareholders through growing free cash by per share and consistent Capital returns.
Speaker Change: However, we recognize that none of this matters.
Speaker Change: Until we bring our 3 red Crest teammates home, safe and sound.
And with that, I thank you for your time 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 1 farmer question and 1, follow-up question.
Speaker Change: To ask a question, you may press star then 1 and your touchtone phone.
Speaker Change: If you are using a speaker-phone please pick up your handset before pressing the keys to withdraw your question. Please. Press star then 2
Speaker Change: At this time, we will pause to assemble our roster.
Lawson: Our first question today comes from Lawson were from Bank of America Lawson. Please go ahead.
Speaker Change: Hi. Thank you very much, operator. Hello Tom and team. Um, very nice quarterly result. And thank you for today's update. Um, can I ask about your Capital um allocation priorities as a pertains to uh Acquisitions. Um,
Certainly your, uh, valuation is improved your, your results have improved and you're generating significant free cash flow, is there an appetite for further Acquisitions at Newmont and then um, further to that is, uh, Copper Still viewed as a strategic. Um uh um metal for uh for new model as it pertains to Acquisitions. Thank you.
Speaker Change: Yeah, thanks. Thanks Wilson and good afternoon. Um, I'll be as clear as I can. Our focus is internal
Speaker Change: And the best use of our capitalist to buy back new on stock. And and that's where you'll see us spend our time and attention. So internal Focus uh buying back the amount stock
Speaker Change: The question around Copper. We have a we have copper producing Assets in red crisp, spotting, and Cadia.
Speaker Change: Uh, and we have a magnificent, organic project pipeline next cab off the rank, is the, uh, likely to be the red crisp block cave, which is a copper gold mine. And so you will see us uh focus on on a balance of copper um in our portfolio as a gold mining company uh but that copper exposure will come from our organic growth.
Speaker Change: Thank you very much.
Thanks man.
Speaker Change: Thank you. Our next question. Today comes from Daniel major from UBS Daniel. Please go ahead.
Daniel: Hi, uh Tom Tim, thanks. Um, thanks for the question. Um yeah, the first 1, um perhaps on um management uh changes and management succession, um obviously uh I guess Karen's departure was somewhat, um unexpected. Um Sunny has been some discussion in the market uh around uh Natasha's appointment of President. Whether that's a precursor
To, uh, any other management changes. Um, wonder if you can make any comments on this, uh, and whether Karen's departure impacts any other uh, potential thinking about succession.
For the next exciting chapter of of new month. So that's that's part of a natural progression evolution in, in organizations. So, uh, very, very comfortable with where we sit with our existing team at the interim and very actually pretty excited about the, um,
Daniel: about the opportunity we have in terms of that recruitment process.
Speaker Change: in terms of, I mean, I I didn't pick it up in, in, in our paper marks, but I'll take your question to to have the opportunity to congratulate Natasha on that promotion, to president, and Chief Operating Officer, which we announced back in early May
Daniel: The tax has been with us, almost.
Daniel: Years now.
Daniel: and is consistently, demonstrated strong leadership and a deep commitment to
And disciplined operational delivery.
And the expanded role um is the opportunity to give Natasha a balance of both strategic and operational Focus.
And also an opportunity for her energy and passion, and resolve to be uh, uh, continue to be critical attributes. As we work to improve safety cost and productivity. Um, over time.
I moved to president, um, is part of ongoing leadership development and something that you might has done for Generations. Something that new man has done incredibly well,
Daniel: Um, and um, I wouldn't rate anything more into it. Other than a, a natural process of of nouman, doing what you might have done very well for many years. And I'm sitting in this room looking around a number of people uh who have benefited from neumon having a focus on leadership development. And I'm also a beneficiary of that. So hopefully Daniel that gives you some color in terms of both um, the finance.
Speaker Change: Team. Uh and also Natasha's been in prison.
Great. Uh, thanks so much, that's some great color. Um, and then the second question, um, sort of cash flow
Speaker Change: Outlook. You benefited from, um, some working capital items during this, uh, this period. I think payables receivables, um, any color on, uh, kind of any reversal, uh, and how much that that might impact free cash flow in to age. And then the second part to the question, can you just remind us on how much, um, a deferred proceeds from the devest you have remaining and when they will um, expect to be uh, coming
Speaker Change: Yeah. Thanks Danielle. Um, what you'll see with a free cash by generation in the, in the second half of of the year is uh, is going to be pretty steady production coming through. So for instance, third quarter is going to look pretty similar to the second quarter has the cached cover. We'll see you step up in our sustaining Capital. Um, in terms of that the first half the second half waiting pushing up to around.
Speaker Change: Speaking the same way in the second half. So obviously that'll come off our free cash flow. The the other 1 to look at is our our Reclamation, um, and you if you see first quarter the second quarter that stepped up, and that's that's about us building the momentum around the construction of the, the 2, big water, treatment plants out of Yin COA. So you, you'll continue to see um, an increase in that spend. I think it's around 600 million or thereabouts. We want to spend this year on that, so that, uh, will step up to a steady state rate. So you'll see bit more sustaining Capital steady, steady production, uh, and some of that Reclamation spend, um, will be be factors in the second half 3, cash flow. And and of course the other area that to keep in mind is where we're enjoying a a, a current gold price levels and we'll start to see some tax payments from from those higher gold prices taxes and royalties start to start to flow through. Um
Speaker Change: In terms of, uh, uh, the some of the equity positions. Um, we're able to basically we're, we're we're out of Discovery silver, so there's nothing left there, for those sales are the last couple of months. I mean the titanium team can can charge on and and deliver from from Porcupine, but we still got some shares in Greatland gold that that are part of that transaction. Um I think and added a deferred. Uh we got deferred cash payments from both uh Discovery and we've got some deferred contingent payment. I think we announced um that discovery that a third cash payments are um around
Speaker Change: 150 million and they're payable in equal tranches over a 4 year, period starting at the very end of 2027.
Speaker Change: Give you that some of the chaos in terms of that the vessel program.
Speaker Change: Great. Thanks very much.
Speaker Change: Thanks. Bye.
The next question, today comes from batari from Jeffrey's about how to please go ahead.
Thanks for taking my question.
Speaker Change: Clearly very strong technical quarter on high grades. Can you take a walk through?
Speaker Change: the production of
Speaker Change: third quarter for these.
Speaker Change: Position. But
I'm just thank you to see a pretty significant breakdown, third quarter to to see
Speaker Change: Um, so I'm just trying to get more color on.
Speaker Change: The third quarter and just product.
Speaker Change: Third quarter.
Speaker Change: Thanks.
Speaker Change: Thank, thank you. Just looking for some color in terms of the uh the balance between first half and second half for Katya and Peter, and I'll ask um, the passion maybe to talk about those those operations and how we see that, um, that product and bread.
Thanks, Tom. Thanks for that question, a lot. And this is, um, obviously both of these operations key, um, to to our portfolio, if I can start with fisko, we this year, we seeing the benefits of the work and the investment we've done in that open bit and push backs that we've done during last year. We've moved into 5 7 of the
Speaker Change: Moscow.
Speaker Change: Um, largely moved out of chili colorado.
Speaker Change: And now it's got a bit, um, very variable all body, um, specifically variable as forests are different. Um, metals are concerned and it's just the natural progression as we mine and follow our mind sequence through the um,
Speaker Change: Through the pinasco bit that we do. See different about rides. Coming coming through. So we will see lower grades in of gold in the third quarter and we will see higher grades of silver lead and zinc, um, coming through. So,
Speaker Change: Typical indications about 2% higher, silver, um, and about 1 and a half percent, higher zinc, and we'll see a um, a reduction in as an Associated reduction in our gold growth.
As far as careers concerned, um, cardio of course, um, 1 of the newer operations in our portfolio. We have done quite a bit of work to understand this operation and all of the um, requirements to run it as on the as a quality asset as we should
As we see the first 2 block, Hive pc1 and PC2 come to, um, the end. We do see some model benefits, um, from bc2, where
The the model has been predicting lower grades um through bc2, as we come to the end of its life, but we do see the grades still hold strong. Um, as we, as we complete the mining of bc2 and then of course, we will slowly but surely we starting to ramp up bc2 3. And we will see that going through an original lower grades and then ramping up steadily into full production and higher grades.
Speaker Change: And it's, um, it's doing exactly as we expected. Um, it's that um, as we expected it,
Speaker Change: Great. Thank you.
Speaker Change: Thanks a lot.
Thank you. The next question, today comes from Matthew Murphy from beimo, Capital markets, Matthew
Speaker Change: Please go ahead.
Matthew Murphy: Hi um great quarter. And uh we wish you a great success in this uh rescue operation. Um, I wanted to ask a question about lie here. Um, it seems to be doing really well and Natasha, you talked about some of the improvements uh, being realized. And um, that's even before you've spent much capex on it, so um, as the span picks up in the the back half, how does that set it up for, um, 2026?
Um, Matthew a really great question and it is I I know the 1 of our big operations that we feel quite excited about. And I think you might remember that for a period of time, we've been talking about how we build stability in that operation. It gave us the opportunity to relook the Mind design. Um, some of the basics like Road design, specifically around Autumn Management on the various roads,
Matthew Murphy: Can run faster. Um and we've been I will to park um a number of trucks. As I say now, remarks 9 trucks. Um in the process we've built on that um by creating a buffer between the mine and the plant with intermediate stop calls which gives us both the opportunity to ensure a stable feed into the plant, disconnect the mine, from the plant, and get more stable, grades through the plant as well. The team has made material progress in how we think about the managed asset management of of that asset.
Matthew Murphy: Specifically, starting with our big shutouts ensuring and being very considered around our big large shoutouts. You might remember at the end of, um, last year, we had basically 2, our biggest autoclave and another autoclave down for maintenance.
Matthew Murphy: And with the skills that the the team has been developing focus on big shutdowns. We have seen that that shut down coming ahead of ahead. Of time, we continue to build on that maturity in really creating stability in the plant. Not only through more stable feed from the mind but just a higher levels of reliability. I have to recognize though that we still have a bit to do the plants still needs quite a bit of work in terms of asset management and reliability.
And we are continuing to build the capability the planning and execution um capacity that we have on site.
Matthew Murphy: Maybe just a couple of builds Matt, on on masha's summary. Um,
Matthew Murphy: Very much about as we've talked about over the course of a number of these calls, a big mind likely here, setting it up for the long term. So what Natasha's describing is the access we're taking for an asset. That's been a big asset in a portfolio so it's been the elephant in the portfolio. Now sits with a number of other peers in the numerical portfolio and we're making deliberate decisions to set this. This mine up for the long term. It's what that all body and that, that that installed infrastructure and the people in the here are looking for from us. Uh and we also have at atler here, 1 of our strongest general managers in David pores.
A man, I've known for better part of 25 years and a really, really strong general manager, big complex, mind. Like this is well, suited to his, uh, his set of capabilities, I know. And it's very um, skilled people leader as well, which is something that that operations right under
That's great. Thanks for the color.
Matthew Murphy: Thanks.
Our next question today comes from Josh Watson from RBC Capital markets. Josh, please go ahead.
Matthew Murphy: Thanks very much, uh, great job on the Cost Containment, uh, for total cash cost to your data. I'm wondering if you can provide any more details on some of the trends. You're seeing here, underlying cost structure. I guess, you know, including inflation rates, uh, and, and if there's anything notable regionally as well, thank you.
Yes. Thanks Josh. Good afternoon. Um, largely what we're seeing play out is consistent with expectations. We said as we build our business plan and guided um, at the beginning of the year, uh, some some swings in roundabouts, uh, with fuel energy, materials and consumables, but not not significant. So we're, we're, we're largely at the costs. We're expected to see. We're we're seeing, uh, seeing seeing this, uh, this year and Labour's pretty labor is pretty much holding us, we'd expect, but contracted services and, uh, our own employees. So what we expected is is certainly playing out this year and um the assumptions we made about in place for impacts at all of those different categories is is is consistent with what we, what we assumed even in the in the elevated, gold price environment. Clearly we're seeing the higher taxes and and royalties associated with that.
God, thank you. And as you sort of uh navigate uh you know stabilizing the operations.
You know, when you think about, uh, 2026 and and what we should expect at that point is has there been any thought towards you know which of the larger project updates? We can expect uh and whether the Outlook will be uh you know beyond uh uh, just the 12-month basis. Thank you.
Matthew Murphy: it's just probably a couple couple of, uh,
Matthew Murphy: Thoughts in terms of answering that question. Very much you know sitting at the halfway mark focused on ensuring, we safely deliver second half of this year, such a critical year, given the change we've been through so want to make sure that our our eyes are are firmly on on that task. And in that, as we move into, we've started the process now, building our, our business plan for next year and that's that's work. That's that's very active at the moment. Our expectations would be that in February of next year. We do something similar to this year and be be focusing on giving giving the market a set of numbers for the 2026 year. But we're the the, at the moment, the, um, the, the sleeves are rolled up and we're, we're head down tail up getting after, uh, getting after what we, what we can do to deliver a 26 business plan. So, very much very much working progress on the project side of things. Um, so really important that we, we deliver safe to deliver first goal, and, and commercial production, out of a half a North continue to progress.
Matthew Murphy: Uh, the Tamar expansion and continue to progress. The 2 panel Kaiser kardia, but we are actively working our project Pipeline and I think as I've mentioned on previous calls its red, Chris is a project that's close to shovel ready and we're ensuring that, we have feasibility study to a Newark standard that that project washes its face. And that we have the the various consent and permits, uh, to be able to progress with that project. So very much focused on on that project. And whether that could, um, could come up to the market to, uh, be considered for full funds, uh, in the 2026 time frame.
Speaker Change: Thanks Josh.
Speaker Change: Thank you.
Speaker Change: Our next question today comes from Daniel Morgan from Baron Joey Daniel, please go ahead.
Daniel Morgan: Uh, hi Tom and Sam. Uh, uh, how, how should we read, uh, production guidance? Uh, basically, you know, I think you beat your own plans by Circa 100,000 Oz, this quarter, uh, just trying to clarify, you know, it was that, uh, unexpected bonus versus the plan, was it to bring forward of stuff in the second half to first half or, you know, how do you, you know, why not lift guidance on? What is a, is a pitch conservatively, or have you just brought forward answers from half to thank you.
Speaker Change: Yeah. Thanks Danielle, good morning. Um, if you think about, I think it's Natasha answered the earlier question. You've you've certainly got big, couple of big Assets in Catia and, and Pisco Katya. Um, moving into some lower grades out of those, those panel caves, um, is is what our expectations are. And we had the benefit of some, um, positive reconciliations in the, in the first half that's, that's flowing through. So we, we will still remain sober in terms of, uh, in terms of what the model is, telling us for kardia out of those cases of the second half.
Speaker Change: Uh Peter's running beautifully and so we were able to get some good production through and and and through through through some of that material and and and benefited from the some some some high metal production in the in the first half but we do move into those lower grades in the second half.
Speaker Change: Um, we looked at the second half, um, we've got Nevada. Gold mines is a pretty important. Contributor in the second half, fourth quarter waiters. So again, we've you know, it's a, it's a not insignificant part of our new portfolio and so we we we want to um make sure we're we're cautious around ensuring that we can see that line of sight um in the second half and we've got yet a koecher
Speaker Change: Uh, we'll get some expecting. We'll have a stronger second half in terms of, uh, some of the injection Legion work. We've got happening, um, on on the heel bleaches there, and we've got a half a dose commission, um, commissioning a new project has a uh, some some risk associated with it. So again, the improved in terms of uh, how we think about the second half. So it's a little bit of color. Hopefully Daniel. And, uh, when I think about where we sit with our production, yep, we've had a good solid first half. We provided a number, which had a range around it. And I think we're still sitting comfortably within that range and so we're firmly on track to meet our guidance.
1 of my shaft Works uh is the risk of overbreak now behind us. Is a concrete line, maybe going a bit more detail and then just on a half hour uh can you expand on The Works remaining to First production and any risks uh that are front of mind. Thank you.
Speaker Change: Um thank you Daniel. Leave me start with um Tanner Tanner my expansion too. Um, the risk of the override on this on the lower part of the shaft is is truly behind us. Um, we have completed, the rise ball through the, the concrete super buns that we've, um, that we've bought over at the beginning of well, end of last year into the beginning of this year.
Um, the pentas has been removed. So we now have, um, clear access to the entire shaft. And we've started with we still putting a lining in at the, the bottom half, or the bottom end of that shaft to make sure that there's alignment with the top half and that the smooth access to the bottom
Speaker Change: The, um, equipping of the top half as is progressing. Well, and um, as as soon as we complete the lining in the bottom half, or the the the last bit of the, the shaft, we will complete that equipping as well underground operations are going to to schedule. So, um, I think everything there, the highest risk elements are behind us and now it is the focus on completing the the remaining work um, under the leadership of
Speaker Change: Also a very strong Project Director general manager, Lee Cox. Um and that team is going from strength to strength.
I often know these making good progress. We are getting ready for commissioning. We have indeed
Started commissioning in certain areas of, of the plant.
Um, as you would remember, we have started mining. We stopped mining material to, um, to get ready for the commissioning of the commissioning of the plant. So we very well on track. There's a little bit of a small ball pipe being left, a little bit of electrical work still left. Um but by and large the the the large construction work, basically complete and we're very excited.
Speaker Change: To um, to go and see the first of all.
Speaker Change: Thank you so much for your perspectives, Tom and Natasha.
Speaker Change: Thank you.
our next question comes from an
Anita. Please go ahead.
Speaker Change: Hi. Uh, good evening, Tom. I, I just wanted to ask a little bit more about, um, redress
Speaker Change: um,
On on red. Chris, uh, could you just let me know? Um, I think, um, you had mentioned that there was an initial fall of ground.
And then the um and the workers were asked to go to a Refuge Station that fall of ground, did that happen in the decline?
Good afternoon. I know. Yes. So the the day I got 200 meters down the day.
Ground that was detected. And and so the, the emergency response, protocols kicked in place, we only had those 3 people in that area. So it's a it's not an operating mind. It's it's a it's developed, it's been done as part of preparing. Hopefully for the red Chris project, um, in in the coming, uh, coming period of time. So, these 3 folks, um, when that event occurred call went out, please, please make your way to Refuge chamber, which they did. Uh, they, they got themselves into the Refuge chamber radioed in that, they were safely there and then shortly after that, in that same area in the, in the, uh, in the decline, we had the larger fall of ground that blocked that blocked the access way and took out the Leaky feeder cable, which is taken out our communication to the refugee chamber. So as I talked about, then in that in my prepared, remarks is our focus is on re-establishing, communication back to the Refuge chamber to to confirm that all the safe and well, uh, whilst we
Speaker Change: Um, obviously work on various plans for um getting access to um to to rescue them. So we're working on plans to get access down through that decline again, uh, to do so safely. Uh, we're also, we also have a, a, a secondary area to assess, which would be through a vent sharp. So, we're considering different methodologies to do that. So,
Both at Red Chris The Wider Newmont and and it is amazing. The Wider industry how The Wider industry comes together to support um with with Solutions and equipment and and plans so uh they're the 2 things that have to be parallel getting communication reestablished and determining the the safest and most effective uh rescue plan for for the 3 people.
Speaker Change: I hope they're safe and well and you get them out quickly. Um, my second question, uh, is with respect to, um, some of the changes that you made that I, I the capital spending, I just want to get an understanding why the capital spending was shifted. Um, I think you said it was deliberately, but in terms of, I think Natasha said that there was some, um, in order to maintain Integrity of the mind at Le here. Could you just elaborate on those comments?
um, I need to, I think, as I as I probably a little bit earlier on the work that we are,
Speaker Change: Doing.
Speaker Change: Advance.
Speaker Change: Um, and there's also a big power plant that that will be online training. We have been as we plan and make sure that when we take large large shutdowns that we do effective work, and that we spend our Capital effectively. Um, as whilst we talking about Capital, allocation, I think hand in hand with that is capital discipline. And, um, being sure that when we start to spend the capital that we're ready to spend it effectively, so we did make a deliberate decision on on spending that a little bit later in the year.
Um, are there areas where there's been, um, our vent price 9 at at tanomi that is work. That has also developed through the productivity work that we have been doing identifying. Um, a need for us to enhance some of our ventilation work to enhance some of our um, productivity and development work at um, at Tami.
And um, that's why that work, um, will actively happening be happening in the second half and then lastly, just the summer period, um, of works with bush Jack and and Drake Chris. And it just happened that, um, the spend moved a little bit more into the second half than was, what was planned originally?
Speaker Change: All right, thank you. Uh the rest of my questions have been asked and answered, thank you very much.
Anita: Thanks Anita.
Our next question comes from Tanya Yaki from Scotia Bank Tanya, please go ahead.
Oh great. Uh, good evening everyone. And thank you so much for taking my questions and again I just hope that uh the miners get out safely as well. Um, just a couple of questions if I could. Um, the first 1 is just coming back to your portfolio and see. Tom, this is for you. You mentioned Greatland, gold. You still have some positions there. I think you mentioned their non-core.
So those ones could be divested of, um, you mentioned Orla. Um, you have an equity investment in that as well. Um, is that non-porous position as well?
Thanks. I think the simplest answer to both of those um ten years I think as we think about the new model portfolio and and how we want to focus that time and effort and manage this portfolio and simplify this portfolio as much as we can. Both those positions, you described I was put in the non core category.
Okay? And and I just want to check where your London. Um, goal position also stands in terms of of, of that position because that's also a big position
Anita: Very comfortable with our 32% interest in London, Gold, and the fruit of the naughty assets. Um, and it's, I think it's something that we've only had it a minute, um, with all of the other work we're doing. So Ron Hawken and crew are doing a terrific job, running that asset. And um, there's a bunch of stuff we can learn from a a great operator like Ron. Um, so we we want to understand learn from from that asset but very comfortable with that that position in our portfolio.
Okay and and sorry. Lastly I just want to ask you does waffy go through, have you had a chance to look at that? Does that set at all?
What you got poo is um is certainly we see that as a as important asset important project, you know, organic project pipeline. It's something that we're we're we're we're actively working on in terms of um the negotiations with the the PNG government on um converting a framework memorandum of understanding to a mineral development contract, which then is able to get a special m.
Running late uh working very closely with the team at Harmony. Um, as we as we navigate through that so very much looking that that what the golfer was an important project in our organic project Pipeline and these negotiations are important in getting some clear um stability around any investment decisions that may come down the track uh, with a, with a project such as what we've got.
Speaker Change: Where do you see and you talk about all of these productivity improvements, where do you see the the greatest bang for the for your buck in terms of productivity? Like what assets do you think that, you know, we could see really improvements in productivity that would actually show really good cost.
um,
Speaker Change: it's going to be a difficult.
Speaker Change: Thing the opportunities are different, um, at every asset, but there are certainly opportunities for us across the board. I can brag to take to, um, book ends, um, to as examples.
Speaker Change: Um, the 1 book in would be absolute Ashley here. Um, 1 of our big assets, plenty of opportunities that will help us to make big step changes, um, long-term asset and continuously thinking about, and it's got several different aspects to how we improve that. There's there's that your um, people aspects that we focusing on Asset Management, Focus areas. Um, mine layout and design for productivity all the way into into our tiling management. So really I I diverse set of, um, opportunities for us at Le here.
Speaker Change: Um and then obviously I I think at the year also a very unique opportunity for us to make an impact on the community um of that the hero Island.
On the other booking, probably.
Speaker Change: I'll reflect on Sarah nebro, which has got a beautiful whole body and our biggest challenge is productivity. We have assets that's in Good Start. We don't have major challenges with reliability and productivity reliability in of our assets.
and um, we are working closely with, um, with our employees with our unions on site to, with a with an unwavering focus on how do we lift the productivity, um, on
Um, on that, that asset. So more of a singular Focus um on on how do we do more with the assets and the teams, um, that
That we do have and then we have in between a couple of assets that are there in as a full asset or in unique opportunities. And unique areas are certainly Benchmark in mosquito is once 1 such an asset.
Speaker Change: Um, we've recently worked through asset reviews where we did a multi-disciplinary deep dive through all of our assets and besito, in every aspect. Um, there's, there's quite a bit of for us to type learnings and, and like that across, um, all of the operations, and then very recent. Um, we've had this
I've experienced with kadia on their Asset Management, strategies Asset Management processes specifically that we will leave a reach from and make sure that we, um, we use that across all of our other assets. So different for different assets and everyone, um, unique opportunities
Speaker Change: Thank you.
Our final question. Thank
Our final question today comes from Hugo Nico, Le she from golden sacks, you go, please go ahead.
Morning Tom Karen Peter um congrats on the quarter and the first half uh just a couple of operational questions from me. If I can firstly just Don Nevada. The production improvements in the second quarter um looking promising but the costs there obviously remaining High. You know, how much of that's the ongoing production Improvement works and and Fleet replacement versus just underlying cost pressures. And how confident do you remain in that 4? Year cost guidance?
Speaker Change: Yeah, boring morning. You guys.
Speaker Change: think about
Speaker Change: Are, um, a firmly for the, for the operator? Uh, so I don't think it's, I don't think it's appropriate that, um, that we, we give that that level of, of granularity. Uh, and we also haven't had our, um, our, our board meeting for this quarter yet. Um, so Natasha Franco and I will all be in in Nevada next week with the team there. And we'll have our board. We'll have our board meeting. And, uh, these are a couple of the operations, and, and start to unpack.
Uh, in a bit more detail second quarter performance with the team and and also uh, discuss uh, the, you know, the views and approach for the for the second half of the year and how opportunities are I got after and a risk manage. So uh, if it's okay, if you go I think that's probably a, a question best best out of the operator when they report that on their results in a, in a couple of weeks time.
Forward and sort of holding that name plate capacity.
Speaker Change: Very observant here again. But I'll ask to Natasha to, uh, to to give us give her perspective on on, body to, maybe both mine and plan. Yes, yeah, and I'll definitely do that. Um, so you go, let's start with the, with the mine. You would remember. Um, just as we, um, we started to go through, um, through Co we rolled out an autonomous Hall Fleet at at bodington, and it has been a continuous Learning Journey For Us on re-establishing and redesigning and existing mining operations to, um, be appropriate for an autonomous falling Fleet. The team has really done an amazing, um, amazing work with our technical team with under under the French West leadership. Um, considering my design roadworks, um, the the the road La layouts to be far more appropriate for an autonomous Wall Street.
Speaker Change: um,
we have certainly time learnings, from, from others on on how to to improve productivity, and we have seen a 10% lift uplift in productivity through that, for with that autonomous wall feed. We see that at the moment. Um, as we as you might remember, we are still in a, um, in a push back campaign and we see the benefits of, um, us lifting
Speaker Change: Just the, um, the total materials movement has left materially year on year, on the back of um the productivity improvements. We have not increased that Fleet so on the mining side certainly the team is doing a really, really good work.
On the plot side, it's all about asset management and reliability.
Speaker Change: It is closely related though, to mining performance. It is closely related to fragmentation. Um, so back to mining discipline, ensuring that, um, that at the fragmentation from the mining side is appropriate for feed and then the work that the team has done on on asset management and establishing that reliability levels that we need. So, in both instances,
Speaker Change: um, it is a
Speaker Change: Working on.
Speaker Change: Making sure that the basis is strong, um, so that we can continue to benefit, um, from the work that we're doing.
So, if I can just pick on that a little bit, so should we expect that plant to continue to run close to name plate? And if if the mine is slower to to get access to, or then you'll draw down that, I think 60 million ton classes of of stockpile, and continue to run closer to that 10 million tons of quarter.
Um, we continue to draw on the medium-term stock pulse. We still very much in the size of push back and we will still be there for, um, for the next uh,
Speaker Change: At least 12 months.
Um so our Focus here is to getting the the the push backs complete and that and and making sure that we can um adhere to the the rights that we need to get that push back done in time.
This concludes the question are the session. I would like to turn the conference back over to Tom Palmer for closing remarks.
Thank you, operator. And thank you everyone, for taking the time to join our call today, and appreciate your, your full range of questions. And, and please enjoy the rest of your day, or all your recordings. Thanks, everyone.
Speaker Change: For conference is now concluded. Thank you for attending today's presentation. You may now disconnect your lines.