Yesterday, Newmont’s President and Chief Executive Officer, Gary Goldberg, presented a business update at the 26th annual Denver Gold Forum (DGF), one of the world’s largest gatherings of precious commodity investors.
At this year’s conference, Mr. Goldberg discussed Newmont’s strategy and progress toward becoming the world’s most profitable and reliable gold producer. He also highlighted plans for taking performance to the next level by executing the Company’s strategy to:
- Improve the underlying business – by delivering ongoing cost and efficiency improvements
- Strengthen the portfolio – by increasing portfolio value and balance sheet strength
- Create shareholder value – by outperforming the gold sector in free cash flow and shareholder returns
“Our focus is fixed on delivering value to our shareholders,” said Goldberg. “We’ve improved our ability to do that – and our financial flexibility – by reducing our net debt by 35 percent since 2012, delivering positive free cash flow for the last five quarters running and maintaining our dividend despite lower gold prices.”
Building on strong momentum since Goldberg took the helm as President and Chief Executive Officer in 2012, Newmont is on track to:
- Lower injury rates by 50 percent and increase productivity by 40 percent
- Reduce gold all-in sustaining costs by 20 percent
- Decrease sustaining capital expenditure by 43 percent
- Deliver more than $1 billion in value through its Full Potential program
- Produce about 5 million ounces of gold per year, more than offsetting asset sales
The Company has also strengthened its portfolio and growth pipeline by generating $1.7 billion over the last two years from the sale of non-core assets at fair market value; self-funding the next generation of lower-cost, longer-life mines at Merian in Suriname and Long Canyon in Nevada; improving cash flow and upside potential with the acquisition of the Cripple Creek & Victor gold mine in Colorado; and optimizing its project approach to lower initial capital costs, accelerate payback and leverage existing infrastructure. Comparing gold assets sold over the last two years to acquisitions and projects under construction, Newmont has been able to increase average mine life by 66 percent, lower gold all-in sustaining costs by 19 percent, double annual production and lower its risk profile.
For more about the company and our performance, please visit www.newmont.com.
Cautionary Statement Regarding Forward-Looking Statements: This blog contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provided for under these sections. Such forward-looking statements may include, without limitation, estimates of future safety performance and productivity, production, cost and all-in sustaining costs, capital expenditures and other financial measures of performance, which are not historical. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s operations and projects being consistent with current expectations and mine plans, including without limitation receipt of export approvals; (iii) political developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) certain price assumptions for gold, copper and oil; (v) prices for key supplies being approximately consistent with current levels; and (vi) the accuracy of the Company’s current mineral reserve and mineralized material estimates. Where the Company expresses an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks in the countries in which the Company operates, community relations, conflict resolution and outcome of projects or oppositions and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s Quarterly Report on Form 10-Q, July 23, 2015, which is on file with the Securities and Exchange Commission, as well as the Company’s other SEC filings. Many of these factors are beyond the Company’s ability to control or predict. Given these uncertainties, investors are cautioned not to place undue reliance on those forward-looking statements. All subsequent written and oral forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements. The Company disclaims any intention or obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.