Newmont Goldcorp Corporation’s (NYSE: NEM, TSX: NGT) (Newmont
Goldcorp or the Company) President and incoming chief executive,
Tom Palmer, will present Tuesday, September 17 at 10:30 am (MDT) at
the 30th annual Denver Gold Forum, the world’s largest gathering of
precious commodity equities. Mr. Palmer’s presentation is now
available on the Company’s website.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20190913005107/en/
Tom Palmer, President and incoming chief
executive officer (Photo: Business Wire)
“As the world’s leading gold company, Newmont remains focused on
keeping our people safe, while growing our profit margins through
operating, technical and financial discipline,” said Mr. Palmer.
“We will also generate value for our shareholders by leveraging
Newmont’s leading land position and exploration program in
favorable jurisdictions to grow our Reserves and Resources.”
Mr. Palmer’s presentation will focus on:
Exceeding targeted synergiesi
- On track to exceed $365 million in G&A and exploration
synergies, Full Potential improvements, and supply chain savings by
2021
- Achieved G&A synergies of $110 million versus targeted $85
million
- By year-end 2019, achieve a $200 million run-rate, representing
55 percent of the Company’s three-year commitment on value
delivery
- In 2019, expect $50 million per annum in value from Peñasquito
in Mexico alone, with an additional $200 million in improvement
opportunities identified
Portfolio optimization
- Process underway for the potential sale of Red Lake in
Canada
- Divested interest in Nimba iron ore project in Guinea
- Continuing to streamline portfolio to focus on high quality
assets in favorable jurisdictions
- Optimizing and effectively sequencing the development of
Newmont’s world-class project pipeline
Building on proven strategy
- Track record of superior operational execution, project
delivery and long-term value creation
- Continued focus on returns and disciplined capital
allocation
- Ahafo Mill Expansion in Ghana, Quecher Main in Peru and Borden
in Canada expected to achieve commercial production in fourth
quarter
- Disciplined approach to project optimization has delivered
eight projects since 2015 with an average internal rate of return
more than 30 percent
Newmont Goldcorp has the strongest and most sustainable
portfolio of operations, projects and exploration prospects in the
gold sector. This includes the largest Reserves and Resources, with
90 percent of Reserves located in the Americas and Australia.ii
These assets allow the Company to sequence profitable projects in
its unmatched pipeline to sustain six to seven million ounces of
steady gold production over a decades-long time horizon.
About Tom Palmer
A fourth generation miner, Tom Palmer will succeed Gary Goldberg
on October 1 to assume leadership of the Company as President and
Chief Executive Officer. Since May of 2016, when Mr. Palmer was
appointed Executive Vice President and Chief Operating Officer –
with more than 85 percent of the Company’s workforce reporting to
him – Newmont Goldcorp has generated more than $2 billion in free
cash flowiii and commissioned two new mines and six expansions on
four continents, on or ahead of schedule and at or below budget.
Mr. Palmer has also played a central role in leading the Newmont
Goldcorp integration and the establishment of the joint venture
with Barrick in Nevada.
Prior to assuming leadership of Newmont’s operations and
projects in 2016, Mr. Palmer led the Company’s business in the Asia
Pacific region, which generated nearly 40 percent of Newmont’s
revenues at the time. Before being recruited to join Newmont in
2014, Mr. Palmer served as Chief Operating Officer for Pilbara
Mines at Rio Tinto Iron Ore.
Mr. Palmer’s 25-year career in mining includes leadership roles
in Rio Tinto’s bauxite and aluminum, coal, copper, iron ore, and
technology businesses where he gained extensive experience building
and leading high-performing global teams to enhance safety,
profitability, sustainability, and diversity and inclusion.
About Newmont Goldcorp
Newmont Goldcorp is the world’s leading gold company and a
producer of copper, silver, zinc and lead. The Company’s
world-class portfolio of assets, prospects and talent is anchored
in favorable mining jurisdictions in North America, South America,
Australia and Africa. Newmont Goldcorp is the only gold producer
listed in the S&P 500 Index and is widely recognized for its
principled environmental, social and governance practices. The
Company is an industry leader in value creation, supported by
robust safety standards, superior execution and technical
proficiency. Newmont Goldcorp was founded in 1921 and has been
publicly traded since 1925.
Cautionary Statement Regarding Forward-Looking
Statements
This press release 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. Where a
forward-looking statement 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 events or results to differ
materially from future events or results expressed, projected or
implied by the forward-looking statements. Forward-looking
statements often address our expected future business, financial
performance and financial condition and may include, without
limitation, (i) expectations regarding future results (including
margin growth, value generation, reserve and resource growth,
project pipeline development and capital allocation), (ii)
statements regarding future achievement of targeted synergies
(including G&A synergies, exploration synergies, full potential
savings and improvements and value delivery run-rates), (iii)
expectations regarding portfolio optimization and completion of
possible divestitures (including the potential sale of Red Lake),
and (iv) expectations regarding future achievement of commercial
production and progression of projects (including Ahafo Mill
Expansion, Quecher Main and Borden). Forward-looking statements are
based upon certain assumptions, which may prove to be incorrect.
Such assumptions include, without limitation: (i) there being no
significant change to current geotechnical, metallurgical,
hydrological and other physical conditions; (ii) permitting,
development, operations and expansion of 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 Newmont
Goldcorp operates being consistent with its current expectations;
(iv) certain exchange rate assumptions for the Australian dollar or
the Canadian dollar to the U.S. dollar, as well as other exchange
rates being approximately consistent with current levels; (v)
certain price assumptions for gold, copper, silver, zinc, lead and
oil; (vi) prices for key supplies being approximately consistent
with current levels; (vii) the accuracy of current mineral reserve
and mineralized material estimates; and (viii) other planning
assumptions. In addition, material risks that could cause actual
results to differ from forward-looking statements include: (A) the
inherent uncertainty associated with financial or other
projections; (B) the prompt and effective integration in connection
with the recent business combination by which Newmont acquired
Goldcorp Inc. (the “integration”) and the ability to achieve the
anticipated synergies and value-creation contemplated by the
integration; (C) the outcome of any legal proceedings that may be
instituted against the parties and others related to the
integration or the Nevada joint venture; (D) the ability to achieve
the anticipated synergies and value-creation contemplated by the
Nevada joint venture; (E) unanticipated difficulties or
expenditures relating to the integration and Nevada joint venture;
(F) potential volatility in the price of Newmont Goldcorp’s common
stock due to the integration and the Nevada joint venture; and (G)
the diversion of management time on integration and
transaction-related issues. For a more detailed discussion of risks
and other factors that might impact future looking statements, see
Newmont Goldcorp’s Annual Report on Form 10-K for the year ended
December 31, 2018 as well as Newmont Goldcorp’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2019 under the heading
“Risk Factors” available on the SEC website or
www.newmontgoldcorp.com. Newmont Goldcorp 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 press release 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.
i Full Potential cost savings, improvements opportunities and
annual run-rate improvements as used in this press release and the
Company’s Denver Gold Forum presentation are considered operating
measures provided for illustrative purposes, and should not be
considered GAAP or non-GAAP financial measures. Full Potential
amounts are estimates utilized by management that represent
estimated cumulative incremental value realized as a result of Full
Potential projects implemented and are based upon both cost savings
and efficiencies that have been monetized for purposes of the
estimation. Because Full Potential savings/improvements estimates
reflect differences between certain actual costs incurred and
management estimates of costs that would have been incurred in the
absence of the Full Potential program, such estimates are
necessarily imprecise and are based on numerous judgments and
assumptions. Expected Full Potential cost savings or improvements
are projections are “forward-looking statements” subject to risks,
uncertainties and other factors which could cause actual results to
differ from current expectations.
ii Reserve percentages reflect both the closing of the Goldcorp
transaction and Nevada Gold Mines joint venture. For information
regarding Newmont’s historical reserves prepared in compliance with
the SEC’s Industry Guide 7, see the Company’s Annual Report filed
with the SEC on February 21, 2019, which is available at
www.sec.gov or on the Company’s website. The reserves percentages
represent gold reserves only, are based upon Newmont, Goldcorp and
Barrick’s previously published reserve figures. Newmont’s reserves
were prepared in compliance with Industry Guide 7 published by the
United States SEC. Reserve figures for former Goldcorp sites and
Barrick sites contributed to the Nevada Gold Mines joint venture by
Barrick are sourced from Goldcorp’s and Barrick’s previously
disclosed public information. Goldcorp and Barrick’s reserves were
prepared in accordance with the Canadian National Instrument 43-101
(“NI 43-101”) pursuant to the requirements of the Canadian
securities laws, which differ from the requirements of United
States securities laws. The definitions used in NI 43-101 are
incorporated by reference from the CIM Definition Standards adopted
by CIM Council on May 10, 2014 (the "CIM Definition Standards").
U.S. reporting requirements are governed by the SEC Industry Guide
7, as followed by Newmont. These reporting standards have similar
goals in terms of conveying an appropriate level of confidence in
the disclosures being reported, but embody different approaches and
definitions. For example, the terms "Mineral Reserve", "Proven
Mineral Reserve" and "Probable Mineral Reserve" are Canadian mining
terms as defined in NI 43-101, and these definitions differ from
the definitions in Industry Guide 7. Under Industry Guide 7
standards, a "final" or "bankable" feasibility study is typically
required to report reserves or cash flow analysis to designate
reserves. Further, under Industry Guide 7, mineralization may not
be classified as a "reserve" unless the determination has been made
that the mineralization could be economically and legally produced
or extracted at the time the reserve determination is made. Newmont
has not been involved in the preparation of Goldcorp’s or Barrick’s
reserve or resource estimates. Accordingly, Newmont assumes no
responsibility for Barrick’s estimates. Investors are reminded that
Goldcorp reserve estimates remain subject to review and adjustment
in accordance with Newmont and SEC standards. No assurances can be
made that all Goldcorp reserves will be recognized as Newmont
Goldcorp reserves.
iii Management uses free cash flow as a non-GAAP measure to
analyze cash flows generated from operations. Free cash flow is Net
cash provided by (used in) operating activities less Net cash
provided by (used in) operating activities of discontinued
operations less Additions to property, plant and mine development.
Net cash provided by (used in) operating activities for the same
period was over $4 billion. For a reconciliation of free cash flow,
see the “Non-GAAP Financial Measures” section of the Company’s Form
10-Q filed with the SEC on the date hereof, or the Company’s most
recent earnings release, available on the Company’s website at
https://investors.newmontgoldcorp.com/reports-and-filings/.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190913005107/en/
Media Contact Omar Jabara
303.837.5114 omar.jabara@newmont.com
Investor Contact Jessica Largent
303.837.5484 jessica.largent@newmont.com
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