Yesterday, Newmont’s President and Chief Executive Officer, Gary Goldberg, presented a business update to attendees at the 27th 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 disciplined progress toward becoming the world’s most profitable and responsible gold producer. He also highlighted plans for taking the company’s performance to the next level by executing Newmont’s strategy to:
- Improve the underlying business – by delivering safer and more efficient operations
- Strengthen the portfolio – by building longer life, lower cost assets by converting our exceptional project pipeline into profitable operations, on time and on budget
- Create shareholder value – by generating superior free cash flow, shareholder returns, financial flexibility and balance sheet strength
“Our goal is to grow value by improving margins and returns, and developing the next generation of profitable mines,” said Goldberg. “We positioned ourselves to invest in growth during the downturn and benefitted from lower competition for construction resources and equipment. As a result, we’ve been able to self-fund five projects that generate double-digit returns, and buy Cripple Creek & Victor, where we’re on track to deliver the improvements we targeted at acquisition.”
Building on strong momentum since 2012, Newmont has:
- Lowered injury rates by 54 percent
- Been ranked for the last two consecutive years as the mining industry’s overall leader on the Dow Jones Sustainability Index
- Produced roughly the same amount of gold (~5 million ounces) with 27 percent fewer people
- Generated $1.9 billion in non-core asset sales ($2.8 billion once sale of Batu Hijau closes)
- Lowered net debt by 49 percent
Newmont’s balance sheet remains among the strongest in the gold sector, giving us the financial flexibility we need to execute our proven strategy while self-funding the next generation of lower-cost, longer-life mines. In fact, by this time next year, Newmont will be producing higher margin ounces at two new mines and three expansions. Taken together, these five projects are expected to add about one million ounces of gold at competitive costs over the next two years. Comparing the gold assets we sold over the last three years to acquisitions and projects under construction, Newmont has been able to double average mine life and lower costs considerably. In addition, despite lowering our exploration budget by 60 percent in 2013, Newmont managed to add five million ounces in Reserves by the drill bit last year, and 60 percent of our 2016 production will represent gold discovered by Newmont’s exploration team.
To watch Gary Goldberg’s interview with Bloomberg TV during the Denver Gold Forum please click here.
For more information about Newmont and our performance, please visit www.newmont.com.
Legal 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, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Such forward-looking statements may include, without limitation: (i) estimates of future production and sales; (ii) estimates of future costs applicable to sales and all-in sustaining costs; (iii) estimates of future capital expenditures; (iv) estimates of future cost reductions and efficiencies; (v) expectations regarding the development, growth and potential of the Company’s operations and projects; and (vi) expectations regarding the completion of the sale of the Company’s interest in PTNNT, including, anticipated receipt of sale consideration and contingent payments. 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 exchange rate assumptions for the Australian dollar to the U.S. dollar, as well as other the exchange rates being approximately consistent with current levels; (v) certain price assumptions for gold, copper and oil; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineralized material estimates; and (viii) other assumptions noted herein. Investors are cautioned that no assurances can be made with respect to the closing of the pending sale of the Company’s interest in PTNNT, which remains contingent on the receipt of regulatory approvals, buyer shareholder approval, and satisfaction of other conditions precedent, including, without limitation, government approval of the PTNNT share transfer, maintenance of valid export license at closing, the concurrent closing of the PTMDB sale of its 24 percent stake to the buyer, resolution of certain tax matters, and no occurrence of material adverse events that would substantially impact the future value of Batu Hijau. Potential additional risks include other political, regulatory or legal challenges and community and labor issues. Where the Company expresses or implies 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 the “forward-looking statements”. Other risks relating to forward looking statements in regard to the Company’s business and future performance may 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, 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 2015 Annual Report on Form 10-K, filed on February 17, 2016, with the Securities and Exchange Commission (SEC), as well as the Company’s other SEC filings. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” including, without limitation, outlook, to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors’ own risk. Investors are reminded that this presentation should be read in conjunction with Newmont’s Form 10-Q filed on July 20, 2016 with the SEC (also available at www.newmont.com).