Newmont(NEM)2024-04-25 19:31Financial Data and Key Metrics Changes - In Q1 2024, Newmont produced 1.7 million ounces of gold at an all-in sustaining cost of 1,378 per ounce, along with over 480,000 gold equivalent ounces from copper, silver, lead, and zinc, including 35,000 tons of copper produced and sold [8] - Cash flow from operating activities in Q1 was 666 million reduction from working capital [8] Business Line Data and Key Metrics Changes - The company is focused on strengthening its position as a sustainability leader in the gold industry, publishing its 20th annual sustainability report and third annual taxes and royalties contribution report [7] - The operational performance in the first quarter was described as strong, with a commitment to delivering consistent results throughout the year [7] Market Data and Key Metrics Changes - The company has seen easing in contractor costs, particularly in diesel and explosives, while experiencing increases in steel wall costs and cyanide costs [10] - Energy costs have shown some reductions in certain areas compared to 2023 [10] Company Strategy and Development Direction - Newmont is actively pursuing a divestment strategy, with six assets currently in the process of being sold, engaging banks for price discovery and assessing interest from potential buyers [30] - The company is implementing a full potential program at various sites, including Lihir, focusing on productivity and cost improvements [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational performance and the ability to meet 2024 guidance, emphasizing a focus on safety and the impact of recent tragic incidents on the company culture [6][7] - The integration of Newcrest is progressing well, with management reflecting on lessons learned from past integrations to enhance operational standards [51] Other Important Information - The company is constructing two large water treatment plants at Yanacocha to treat water in perpetuity, designed to handle significant volumes of acidic water [33] - The total closure liability for Yanacocha is approximately 4.8 billion, which includes costs for the water treatment plants and other closure activities [42] Q&A Session Summary Question: On operations and inflationary costs - Management noted easing in contractor costs, particularly in diesel and explosives, while labor costs remained flat [10][11] Question: On asset dispositions and buyback policy - The company has a 1 billion buyback program approved, with flexibility to execute once cash flow improves and debt reduction is on track [15][14] Question: On the full potential program at Lihir - Management highlighted three main productivity and cost opportunities at Lihir, focusing on consistent feed management, improving plant availability, and enhancing mine efficiency [22][24] Question: On Yanacocha water treatment plants - The new plants are designed for both capacity and technology improvements, with significant ongoing operational costs included in closure liabilities [33][39] Question: On integration challenges post-Newcrest acquisition - The most challenging aspects included addressing safety standards and integrating tailings facilities to meet Newmont's operational standards [51]