NEWMONT Corp /DE/ Q1 FY2025 earnings call

• Safety culture: Notable decrease in significant potential events, driven by visible leadership, consistent safety systems, and focus on learning from incidents. Launched 'Always Safe' program to improve safety across operations. - Operations: Produced 1.5M ounces gold and 35,000 tonnes copper in line with full-year guidance. Generated record cash flow and free cash flow. - Divestment program: Successfully completed divestment of six non-core operations, receiving over $2.5 billion in after-tax proceeds. - Specific operations: Cadia focused on transition to new panel cave; Tanami advanced underground development; Boddington processed lower-grade stockpiles; Lihir delivered solid gold production; Penasquito achieved daily records; Ahafo South had strong production with Ahafo North set to start commissioning; Cerro Negro focused on safety; Yanacocha increased production.

In the first quarter, Newmont Corporation produced 1,500,000 ounces of gold and 35,000 tonnes of copper. It generated $2 billion of cash flow from operations and $1.2 billion in free cash flow, both first-quarter records. Gold all-in sustaining costs were in line with full-year guidance at $1,651 per ounce, and adjusted EBITDA was $2.6 billion with adjusted net income of $1.25 per diluted share.

• Remain on track to achieve 2025 commitments, focusing on strengthening safety culture, stabilizing 11 managed operations, and executing capital returns. - Gold production from core portfolio expected to be around 52% weighted towards second half; capital spend first-half weighted. - Sustaining capital spend expected to increase in second quarter, particularly at Cadia for tailing strategy.

• Tariff and commodity price volatility impacting costs. - Labor and material cost fluctuations, including grinding media, ammonia, and cyanide costs. - Geopolitical risks in operating jurisdictions, including potential changes in royalties, taxes, and foreign direct investment policies.

Q: Operational question on Lihir cash cost and how to think about the cash cost profile.

A: Tom and Karyn discussed Lihir's focus on configuring the mine and processing plant for stable performance, with sustaining capital to increase in second quarter.

Q: Question on tariffs and cost structure.

A: Tom discussed impacts on labor, materials, and energy costs, noting global portfolio helps manage risks.

Q: Question on Ahafo North progress.

A: Natascha discussed Ahafo North's progress, including highway diversion completion and plant commissioning steps.

Q: Question on Lihir's long-term sustainable gold production.

A: Tom discussed Lihir's configuration and future production potential as it exits stripping campaign.

Q: Question on divestments and portfolio optimization.

A: Tom discussed focus on bedding down go-forward portfolio and delivering on tier one assets' potential.

Q: Question on capital allocation and buybacks.

A: Karyn discussed continuing share buybacks with free cash flow and maintaining cash balance targets.

Q: Question on geopolitical risks in operating regions.

A: Tom discussed robust operating jurisdictions and monitored relationships but saw no immediate major risks.

Q: Question on Wafi Golpu project update.

A: Tom discussed ongoing constructive discussions with PNG government and Harmony for mineral development contract.