Newmont (NEM) FY 2025 Annual General Meeting April 30, 2025 10:00 AM ET Speaker0 Hello, and welcome to the Annual Meeting of Stockholders of the Newmont Corporation. Please note that today's meeting is being recorded. During the meeting, we'll have a question and answer session. Registered shareholders can submit questions or comments at any time by clicking on the q and a icon. It is now my pleasure to turn today's meeting over to Newmont's corporate secretary, Logan Hennessy. The floor is yours. Speaker1 ...

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Group 1: Gold Market Overview - Gold has increased nearly 24% over the past year and over 900% since 2000, outperforming the S&P 500 index's 489% increase during the same period [2] - The current surge in gold prices is attributed to heightened uncertainty in the stock market, leading to increased demand for gold as a safe-haven asset [2][4] - Historical patterns show that gold prices have gone through boom-and-bust cycles, influenced by the quantity of gold produced and prevailing market prices [5] Group 2: Newmont Corporation Insights - Newmont Corporation is the world's largest gold mining company, also producing copper, silver, zinc, and lead, with operations spanning globally [3][4] - The company's financial performance is heavily dependent on gold prices and production levels, with a total return of 240% since 1989 [4][7] - Newmont's current price-to-earnings ratio is 15, with earnings of $3.48 per share last year, but only $1.57 per share in 2023, indicating potential challenges ahead [11] Group 3: Market Sentiment and Future Outlook - The VIX index has spiked, indicating high anticipated stock market volatility, while consumer sentiment has dropped to near record lows, suggesting increased fear among investors [9] - There are signals that gold prices may be at or nearing a short-term peak, making it a potentially risky time to invest in gold mining stocks like Newmont [8][12] - The timing of investments in cyclical stocks like Newmont is crucial, as buying during peak earnings may not yield favorable long-term results [11][12]

Core Insights - The article discusses the importance of accurate information in the financial sector and the challenges faced in ensuring this accuracy [4]. Group 1 - The author emphasizes the need for reliable reporting in the financial industry, highlighting the potential consequences of misinformation [4]. - The article notes that while efforts are made to ensure accuracy, there are inherent limitations in guaranteeing the information provided [4]. - It is mentioned that the content is intended solely for informational purposes and does not constitute a solicitation for financial transactions [4].

Core Viewpoint - Newmont has reported strong quarterly results driven by historically high gold prices, leading to a significant increase in its stock price [1][2]. Financial Performance - Newmont's revenue for the first quarter reached $5.01 billion, nearly $1 billion higher than the $4.02 billion reported in the same period last year [2]. - Non-GAAP adjusted net income more than doubled to over $1.4 billion from $630 million year-over-year, surpassing analyst expectations [2]. Operational Highlights - The company completed the divestment of several projects, generating over $2.5 billion in sales from these assets [3]. - Gold production fell by 19% year-over-year to slightly more than 1.5 million ounces, attributed to asset sales and safety improvements at certain sites [3]. Future Guidance - Newmont maintained its gold production guidance for 2025 at 5.9 million ounces and forecasted exploration and advanced project costs of $525 million for the year [4].

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content delivered by the team includes insights across various sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans to maintain quality and best practices in content production [5]

Financial Data and Key Metrics Changes - Newmont Corporation reported record first-quarter free cash flow of $1.2 billion and adjusted EBITDA of $2.6 billion, driven by strong operational performance and favorable gold prices [9][30][39] - The company generated $2 billion in cash flow from operations, marking a significant increase compared to previous quarters [9][30] - Gold all-in sustaining costs remained in line with full-year guidance at $1,651 per ounce for the first quarter [30] Business Line Data and Key Metrics Changes - In the first quarter, Newmont produced 1.5 million ounces of gold and 35,000 tonnes of copper, consistent with full-year guidance [9][39] - The divestment program resulted in over $2.5 billion in after-tax cash proceeds, enhancing the company's focus on its core operations [11][39] - The company anticipates a strong finish to the year from Boddington, with gold production expected to be approximately 53% weighted to the second half of the year [21] Market Data and Key Metrics Changes - The rise in gold prices has positively impacted cash flow and operational performance, with unprecedented volatility in global financial and commodity markets being closely monitored [10][39] - The company is focused on managing variables within its control amidst evolving tariff situations [10] Company Strategy and Development Direction - Newmont's priorities for 2025 include strengthening safety culture, stabilizing managed operations, and executing capital returns [5][13] - The company is committed to maintaining a strong balance sheet and returning capital to shareholders through predictable dividends and ongoing share repurchases [13][37] - The focus remains on delivering the potential of the 11 managed operations and three projects in execution, with a disciplined capital allocation strategy [12][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 commitments and emphasized the importance of safety, cost, and productivity performance irrespective of gold price fluctuations [56] - The company is actively monitoring geopolitical risks and maintaining strong relationships with governments in its operating jurisdictions [112] Other Important Information - Newmont completed its divestment program, allowing for a sharper focus on core operations and a significant reduction in debt [12][39] - The company has a robust share buyback program in place, with $755 million repurchased so far in 2025 [37] Q&A Session Summary Question: Lihir cash cost profile and mining for margin - Management highlighted efforts to configure the mine for sustainable performance and indicated that Lihir will meet its full-year cost guidance despite a $100 million non-cash impact from inventory adjustments [42][46] Question: Share buyback pace and capital return - Management confirmed ongoing share buybacks, supported by elevated gold prices and divestiture proceeds, with plans to continue this through the remainder of the year [48][50] Question: Impact of high gold prices on business management - Management stated that the focus remains on delivering safety, cost, and productivity performance, regardless of gold price fluctuations, while benefiting from the current high prices [54][56] Question: Progress on Ahafo North project - Management reported that Ahafo North is tracking well, with significant milestones achieved and a focus on safety during the high construction period [80][86] Question: Concerns about geopolitical risks - Management emphasized the importance of operating in stable jurisdictions and maintaining strong government relationships, with no immediate concerns regarding risks [112] Question: Future project considerations - Management indicated that Red Chris is a prime candidate for future capital allocation, with ongoing feasibility studies and engagement with local governments [60][104]

Core Insights - Newmont Corporation reported $5.01 billion in revenue for Q1 2025, a year-over-year increase of 24.5% and a surprise of +12.22% over the Zacks Consensus Estimate of $4.46 billion [1] - The EPS for the same period was $1.25, compared to $0.55 a year ago, resulting in an EPS surprise of +48.81% against the consensus estimate of $0.84 [1] Financial Performance Metrics - Newmont's shares returned +14.7% over the past month, outperforming the Zacks S&P 500 composite, which declined by -6.6% [3] - The company holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3] Production and Cost Metrics - Attributable Gold ounces sold for Ahafo were 199 Koz, exceeding the average estimate of 137.86 Koz [4] - Average Realized Price for Zinc was $1.13 per pound, slightly below the average estimate of $1.17 per pound [4] - AISC Consolidated for Nevada Gold Mines was $1789 per ounce, higher than the average estimate of $1518.2 per ounce [4] - AISC Consolidated for Peñasquito was $1091 per ounce, compared to the average estimate of $1174.5 per ounce [4] - Attributable Gold ounces sold for Yanacocha were 113 Koz, above the average estimate of 102.64 Koz [4] - Attributable Gold ounces sold for Boddington were 135 Koz, slightly below the average estimate of 137.28 Koz [4] - Attributable Gold ounces sold for Tanami were 75 Koz, below the average estimate of 79.83 Koz [4] - AISC Consolidated for Merian was $1864 per ounce, higher than the average estimate of $1775.8 per ounce [4] - AISC Consolidated for Tanami was $1659 per ounce, slightly above the average estimate of $1627.2 per ounce [4] - AISC Consolidated for Cerro Negro was $2857 per ounce, significantly higher than the average estimate of $1246.1 per ounce [4] - Attributable Gold ounces sold for Cerro Negro were 38 Koz, below the average estimate of 71.34 Koz [4] - AISC Consolidated for Yanacocha was $1170 per ounce, above the average estimate of $1051.2 per ounce [4]

Financial Performance - Net income from continuing operations attributable to Newmont stockholders was $1,891 or $1.68 per diluted share, an increase of $1,725 from the prior-year quarter[14]. - Adjusted net income was reported at $1,404 or $1.25 per diluted share, an increase of $0.70 per diluted share from the prior-year quarter[14]. - Adjusted EBITDA reached $2,629, reflecting a 55% increase from the prior-year quarter[14]. - Net cash provided by operating activities was $2,031, a 162% increase from the prior year, with free cash flow of $1,205[14]. - Cash dividends declared per common share remained steady at $0.25 for the period ended March 31[14]. Production and Sales - Consolidated gold ounces produced were 1,460 thousand, while sold ounces were 1,442 thousand, showing a decrease from 1,619 thousand produced and 1,599 thousand sold in the prior year[10]. - Average realized gold price per ounce increased to $2,944 from $2,090 in the prior year, representing a significant rise[10]. - Attributable production included 1.5 million ounces of gold and 348 thousand attributable gold equivalent ounces from co-products[14]. Liquidity and Cash Position - The company ended the quarter with $4.7 billion in consolidated cash and $8.8 billion in total liquidity[14]. - The company completed the sale of the CC&V, Musselwhite, and Éléonore reportable segments for total proceeds of $1,860 million[14]. Market and Currency Risks - As of March 31, 2025, the short-term gold price assumption is $2,860 per ounce, while the long-term assumption is $1,900 per ounce[293]. - A hypothetical 10% adverse movement in local currency exchange rates would result in an approximate $76 increase to costs applicable to sales per ounce for the three months ended March 31, 2025[297]. - The average provisional price for gold sales is $3,127 million, with a potential effect of a 10% change resulting in a $61 million impact[300]. - The company has significant operations in multiple countries, including Canada, Mexico, and Australia, which exposes it to foreign currency exchange rate fluctuations[295]. - The fair value of the Cadia Power Purchase Agreement cash flow hedge could decrease by approximately $37 due to a hypothetical 10% adverse movement in forward electricity rates[304]. - The foreign currency cash flow hedges could see a decrease in fair value of approximately $211 from a hypothetical 10% adverse movement in AUD and CAD exchange rates[304]. Credit and Interest Rate Risks - The company’s fixed rate debt does not expose it significantly to interest rate risk, but there is fair value risk if long-term debt is repurchased or exchanged prior to maturity[294]. - The company mitigates credit risk by entering into derivatives with high credit quality counterparties and monitoring their financial conditions[306]. - Market liquidity risk is managed by spreading out the maturity of derivatives over time and ensuring counterparties cannot require immediate settlement except under specific default conditions[307].

Core Viewpoint - Newmont Corporation reported strong quarterly earnings of $1.25 per share, significantly exceeding the Zacks Consensus Estimate of $0.84 per share, and showing a year-over-year increase from $0.55 per share [1][2] Group 1: Earnings Performance - The earnings surprise for the recent quarter was 48.81%, following a previous surprise of 47.37% when earnings were $1.40 per share against an expectation of $0.95 [1][2] - Over the last four quarters, Newmont has surpassed consensus EPS estimates three times [2] Group 2: Revenue Performance - Newmont's revenues for the quarter ended March 2025 were $5.01 billion, exceeding the Zacks Consensus Estimate by 12.22%, and up from $4.02 billion a year ago [2] - The company has topped consensus revenue estimates four times over the last four quarters [2] Group 3: Stock Performance - Newmont shares have increased approximately 46.5% since the beginning of the year, contrasting with a decline of -10.1% in the S&P 500 [3] Group 4: Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, including current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.85 on revenues of $4.18 billion, and for the current fiscal year, it is $3.71 on revenues of $18.34 billion [7] Group 5: Industry Context - The Mining - Gold industry, to which Newmont belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8]