NEM - Earnings call transcript Q3 2017

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Operator

Good morning and welcome to the Newmont Q3 2017 Earnings Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference call over to Ms. of President Vice Largent, Investor Relations. Jessica Ms. floor the is yours, ma'am. Largent,

Jessica Largent

good Thank to morning, Newmont's and third Welcome everyone. you call. quarter conference

Joining Chief questions end executive Operating team are at today They and Executive the Chief the be of President Officer. Officer; on our members Financial Palmer, Chief Buese, Officer; call. available Gary Tom of and will the other and Nancy us Goldberg, call to answer

X. slide to Turning

here and Before our further, shown the take cautionary which moment filings a website And now on review to we I'll over to refer can X. slide turn go please on newmont.com. found SEC our it statement be Gary to at

Gary J. Goldberg

joining Thanks, this morning. Jess. thank And all for us you

Vice in President joined planning, Investor Largent. I'd Jess and director our Investor Jessica XXXX Relations. of I moment take Before start, new like Relations, Newmont recently to closely with of senior our served most working as a to introduce

the you Jess leading mining many Bandy. to three me years leaving that, I wishing will them to our and IR contributions and position. of welcoming of join key I years function led Hill know leadership IR best role also brings her Newmont XX Meredith Turquoise at successful in and luck. thanking Meredith function. her after be in to thank Meredith for the we're both industry to this this Before opportunity have she excited take Resources. experience want new her She

team's global profitable to and in profitability pleased superior to production four look and Tom, our I'm prospects I latest results, expansions and long-life up and lead another consistently Nancy quarter assets commercial of operational sector project. portfolio the which at to execute includes living to Turning Expansion reaching report gold work sustainability. performance, presenting strategy, forward to on continents Newmont Tanami maintaining strong commitment at the our to our a delivering including and progressing

keeping Tanami ongoing in were production us in offsets the We as this mature on newest also Canyon, and be We production and XX%. the on us to efficiency mining performance of Superior investing schedule operational generate full-year the and operations. third underground investing more recognized budget year. and Turning Index leader at Jones cycle of cost and costs delivered completed This track slide guidance. mill honored for expansion industry production first Sustainability our the discipline in on lower the details the exceptional meet improving returns of continue X. at the mine safely, Long Merian means across as We consecutive future. mines, result for our expect gives from to in to quarter execution to growth Dow results about and more the the and is internal

on Quecher develop extend to focuses will project plans XXXX announced in also the We Peru. until development life future remaining at our deposits. Main considerable mining oxide of ore sulfide facilitate This which Yanacocha, and

robust next excellence to exploration returns. strong four free balance cash quarter. We than advance team flow, working Operational generation the the to and mines. nearly of on year prior translates in our Finally, sheet also continents million a double $XXX generated Newmont more is

X.X and EBITDA adjusted net million to generated more than times. lowered ratio EBITDA $XXX our of debt also to We

and Finally, by our to we quarter to is increased commitment our by underpinned sustainable XX% operations. performance This safe third $X.XXX. dividend running

to Turning X. slide

the to world. safest in continued mines among be the Newmont's

in cost we've by five gold injury XX% all-in more lowered years, that reduced sustaining the running. Sustainability the proving the rates XXth included ranked and Index leader year mining the the for in were XX%. World With hand Jones last that in month, for safety as by industry timeframe, to efficiency same also we We've and third hand. total than go be our Last year honored consecutive our to Dow be

also more translates and biodiversity sustainability points. based XXX corporate was Index citizenship. things, main The sector's data top ranking into on rated three working is leading management, at Newmont than performance good it, safe and improvement. environment water development for understand for way performer jobs the I always We're management strong communities shareholders. our we for proud But reaching growth host employees, room responsible prospects for and and milestones. of conditions these our economic and our there's returns for look also

to cost our on slide X. performance Turning

at performance regions. costs all sustaining all-in for quarter, the reflecting $XXX were an third Our operations ounce strong in

its This and we to on ore modeling operations. don't continue things the offset planning, maturing including managing grades throughput and technology on and focus body leveraging recovery us lower we viability. control, helps improving We control, mill and things value based mine increasing at the

increased in guidance investment is with value. all-in $XXX in per $XXX reflect XXXX focus long-term on and sustaining costs ounce. between and costs also all-in our of advanced keeping of ounce Year-to-date, well our projects exploration Our sustaining within $XXX per creating

X.X the an ounces in gold million basis Turning the on quarter, slide over produced improvement year on a third We prior of attributable to production X% quarter. X.

newest to year ounces global our track South at mentioned North demonstrates earlier, on Outperformance I between pace mines. X.X cost million full portfolio. of and million on based is guidance As ounces. the in this Australia America and we of Africa weather gold and XXXX benefits in And overcome on America. also our helped us production It of lower us events of has remain performance production ounces X.X extreme our managing deliver X.X Year-to-date a puts million achieve to on commitments.

their year quarter. Before stride our are a hitting set we new production newest and their earlier who operation during the full moment I'll month take this turn with to team record the project, to of congratulate celebrated Merian a at first

to sulfide we extensive This Yanacocha's ores XXXX, to future Yanacocha's production between deposit including as the $XXX ounce. newest is on from of develop X. costs new per all-in this gold remaining $X,XXX capital facilities. add a Main to in approved heap improved to XXX,XXX slide gold at development extend serve leach our project million oxide and to Earlier week, and our options, profitable designed to $XXX and Turning Main $XXX Quecher will Peru. about a million oxide mine incremental maintain life and Quecher per project We've at growth sustaining project production developing between year bridge Yanacocha's deposits. ounces

production fourth to certain future a reach Yanacocha's for leverage XXXX project quarter defer will creating commercial December. will expect in and infrastructure while of guidance the and We platform our update growth. The in reclamation costs current

the X. the Turning an multiple up X Plateau see the at team Goldstrike and airborne underground to have growth earn than test working America, square program of agreement investment. we we're slide of In results advancing to we're nearly through continued Carlin. well Yukon at favorable geophysical sulfides explore encouraging diamond where (XX:XX) process XX% Peru. Chaquicocha Phase at now Long equity options land. And with stake more we from as projects X,XXX there. to as And and to our kilometers this our summer. drilling drilling the in North Canyon drilling America, completed Yanacocha longer-term on meters Canadian Plateau to And property surveys exploration In in expansions results covers XXX South very

with to XX.X% both Buriticá of launched in stake mine fund or greenfield a and Colombia. will system In Continental properties their are in we're exposure development high-grade which to prospects projects. also explore we Our safe the local working develop Akyem. exploration efficient Gold us Continental (XX:XX), Ahafo to This help and Main deposits week other studies support underground geologic project last sulfides opportunities acquired shows Ethiopia at Colombia. either in partner, Quecher and begin mapping. to with advancing this in airborne the Africa, both Earlier people's Yanacocha we're give not working newest in at Ethiopia. We're photo in And new the a and year, included to we

I'll in Finally, our turn pursuing and prospects discuss we're to Tanami. both at to exploring Nancy With second our expansion it financial Tanami over around KCGM Australia, performance. and greenfield that,

Nancy K. Buese

(XX:XX) operating had (XX:XX) Merian. quarter operations sheet. improved our to XX Adjusted financial a highlights. generation at a higher robust doubled net cash and $X.XX $XXX sales quarter with Long the per Revenue EBITDA balance $XXX X% And by new was covers billion driven and cash Canyon diluted Slide our stronger cash. income and million. free flow was $XXX $X positive to share. million flow flow to ending nearly than from XX% million with We quarterly cash improved of million or more our adjusted $XXX by

to our slide to earnings detail. Turning review XX per in share more

a from gain $X.XX related $X.XX adjustments net items acquisition up Third prior included certain to in the primarily quarter to income Boddington quarter. to related $X.XX interests, share, these net into income adjusted of the the gain per per a a of tax share. we and evaluation from $X.XX year assets. continuing delivered equity gain operations sale adjustments XXXX Primary tax allowance GAAP account, net related was on deferred of $X.XX Taking XX%

discipline execution, profitable returning to Turning portfolio industry-leading to investing balance priorities capital capital including cash continue to in and our sheet. platform Operational give shareholders us on to execute the maintaining growth, an a priorities slide and XX. strong

allowing and improve to margins, life continue projects reserve self-fund profitable mine We grow to us quality. extend

billion XX% the Taking total per over cash our which this returning XX. debt net up announced and liquidity notes to also from to to I'll is flow into fully debt are call structure. the quarter, nearly operational highlights on year With during We repaid dividend X.X July, million our we to reducing shareholders. Palmer starting account and at of is $XXX quarter prior and convertible In cash more with Tom times. share is capital the the quarter. hand $X free simplifying cover that, generated slide further third $X.XXX of we This our EBITDA week

Tom Palmer

In and reached at In growth in teams we're investing with Potential half. In to and record Shifting earlier Africa, Yanacocha. advancing in Ahafo to for America, recovery production And Thank set commercial our we're Full difficult continued results expecting focus primarily track our you, stronger our exceptional second are results continued weather And also our profitable from projects. deliver and this to in Australia, North Expansion. a to due we America, expansion year delivering and and expansions. solid mill performance. recovering improvements throughput remain regional South at throughput our Tanami recently we on Nancy.

to Turning slide XX. North on on more America

slide ore And access successful offset late Carlin, at strong a this for production ramp upside of first slide. that puts to step A de-weight ounces X.X year-to-date. million Our by a working us production second was in deficit At Silverstar delivering and results. to rehabilitation results XXXX. ground represents strong caused allows us XXXX and now covered at Leeville. about operations up mine half the produced delivering have gaining to the we're as to XXXX. gold the are in on Silverstar We're by track the This

Our Northwest Exodus commissioned recently and expansion also continues and course we systems. on ventilation power

and performing month Creek this which the semi-autonomous last Victor Some Long mining Canyon technology of Northwest autonomous at saw at operations you placements to visited We'll support well at & Leeville. in designed are Cripple also being and use we've equipment also leach our accelerated pad and operations. Nevada work operations. Exodus both is

of Twin in ahead Finally, ore mined Grid expected development Underground our project schedule underway. at improve mine August. and month extend and production began This life is we new processing to commercial mill mid-XXXX. a is in Twin recovery, reach first

Turning slide to XX. America on South

operations the first impacts fourth corner positioned year strong extreme the Our turned the have of well the half after quarter. for and a of we're weather

course have of deliver crusher half in improvement at strong and Potential the primary reach productivity plan production mill. Construction second and program As performance our is further value. will rock production mine to in out advancing launch the guidance. to and we the August Full in record meet identify as at our operations achieved team Merian XXXX. dried Merian we At quarter of in fresh on steady be remains fourth track new on the Yanacocha, And to completed at we XXXX Gary with and continued mentioned,

in However, processing we've Yanacocha. deep (XX:XX) laws cost we're region. transition and higher increased advanced now project our exploration And the at spend

region South As a X%. result, we're America raising for the guidance sustaining by our cost XXXX all-in

and Yanacocha giving us have approved This this developing will Quecher sulfides. mine the to life in earlier project our progress to We'll mentioned, Gary update to December. project approach optimize for time we XXXX, extend week. this an Main you As on project

to Turning slide Australia on XX.

layback. great and of During slightly record the the track impacts the earlier quarter. into Tanami, south record helping team year, solid pit a moving fourth on grades At with year the its a associated offset to done overcoming has quarter, month the fourth for throughput rainfall this of job Boddington mill lower deliver achieved is

year. impact a also wall We mill Pit. of above on on challenging conditions commercial congratulate At to report I'm the nameplate team we Tanami Fimiston pleased achieving this KCGM, the want slip the already the in capacity. production earlier are weather the also remediating Expansion for budget despite at that of the schedule and is performing to safely, west

XXXX its expect continues to the the in team XXXX. offset and We this in complete work work impacts to

third mill the also in completed scheduled for quarter maintenance We that originally the fourth was quarter.

Lastly, KCGM. And model XXXX. and recovery confirmed in our to decision we reach a expect quarter layback for to of we've the testing completed metallurgical at first Morrison the proceed

confirmation the and the of our supports mine. Ghana Finally, entire been mill for improvements due received XXXX ore extended about operating ounce progressing that for Subika are we're for delivered well. the another our had about turning five to improve for to investment and works the Ahafo, expansion region which continues allows per ounce agreement and government This region. program. terms projects Ahafo outperform building to Africa per on expansion to infrastructure support to the Civil Underground recovery $XX course advancing on Full is also Ahafo The jurisdiction. surface mining slide at through from throughput by We've our that our stable years Potential us view cost outlook Africa a favorable XX. and mill $XX are

we underground Gary. a back as to at studies our I'll overview, growth North. regional new which well developing it to potential Ahafo on advance regional hand mine Akyem at and continued Ahafo both Finally, that center With as resources

Gary J. Goldberg

Thank you, Tom.

slide Turning XX. to

production United investing and need Newmont time. same XX% the Australia. is amount are the than have in our reserves regions and located where to in the we of States four continue our and about stability resources More anchored of we over

position stable projects returns to return to decade and We to the factors high-margin us and improve on production over the fund continue future sustain beyond. employed. maintain next our capital These

and to projects. deliver continue profitable We optimize

Turning to XX. slide

quarter below the past both Exodus on will year, profitable XX% three production for production built exploration. reached expansions add the platforms We of our Merian Long and and we phase time For Tanami finish budget. this Northwest Canyon years, at commercial first and Expansion service and next further

decisions fund Creeks at projects extend announced improve life and and this four profitability Ahafo, We to that Twin expansion also will year mine Yanacocha.

projects annual X.X per years average gold at and years nine first to rate last add generate the of the over we've together, above five XX%. cost three about ounces ounce $XXX will production an of all-in internal approved million the of Taken sustaining up for return

Turning to our project pipeline on slide XX.

you the North Nevada Exodus Mill and Expansion outlook in projects power that Ahafo among and to capital included is Projects gold Ahafo our projects sector Underground and reserves. depth the gives it Northwest the see capital green, are Underground steady And Our current project of in Tanami shown pipeline Australia, outlook in Twin margins in the and Midterm and efficiency. improve and will in and Ghana. Morrison us Subika in the Australia. growing in Ghana in are best maintain terms the means our here, our our production sustaining while in

to scalability. to build by Tanami and and which by shift new two to current significantly costs shown to the optimizing in we to and a addition power take projects Tanami, plants on to on is At site, improving months I'll construct in which invest XX. with Finally, gas and commission. slide here expect project expected Tanami reliability power from blue. power we're dark and to fuel, that's about experts create and longer-term reliance XX pipeline, pipeline. natural is is by diesel trucked to continue the the project power carbon delivered a We'll advancing the reducing to describe our our supply project project contract emissions pipeline The value

this reach year. to expect decision later a We funding

production slide longer-term our on XX. to Turning profile

value Our years. attributable believe at Newmont. outlook focus production foreseeable on In outer future. seven-year long-term we asset provided forecast X profitable with remain our production a And base And to considerable projects we and the stable short, for mid- about with We've differentiates keeping gold Newmont is production to ounces our long-term has in upside. in million continue profile a creation. advance this the sustain to

reserve in leading Our creation focus profile. our long-term up value shows on

XX. slide to Turning

years, And geologists. the cost our reserve this more Over at the last to bit of year drill $XX million XX per half was gold the discovered a than ounces our by ounce. mine we'll base XXX we've just added by

Our ounces United Australia. gold States compares average reserve XXX profile per with than the sector the reserve our favorably shares XX to years in of and reserves operating X,XXX located and of almost more and life XX%

about more converting record million of on in proven success. build to a track And invest our year, our to have resources We $XXX that plan this exploration into we than of XX% program reserves.

drilling have represents everything XX years technology information This unparalleled also terabytes productivity, strategic Four of a and along a more than we database. ago, Newmont. our performance exploration than We of of era proprietary exploration and worth asset. more in our growth or XX Putting at together. launched years results new with an direction new

in Going exploration continue one margin mining We'll positively eye by project operational of with and demonstrate a ongoing teams differentiated and and the reserve long-term superior improvement cost the horizon. growth, on a industry. through global the strategy base. continuous delivering We'll profitable forward, strongest safe, an our assets of execution and production, to sustain longer-term we'll execute but long-life results and productivity stable development leading gold portfolio

questions. to now frontrunner you leading the and Finally, strength we'll over governance and sheet create environmental, the and across to the protect to and terms through social and investments and through responsibility balance time. I'll operator superior establish ability discipline Thank it ongoing of for line your in turn ourselves as value dividends profitable cycles, capital for our performance. open

Operator

sir. you, Thank

question-and-answer the session. begin now will We

will Please ahead. John first go of question JPMorgan. The from we Bridges come have

John Bridges

to is base the maybe from next that a ounces difference a layback seeing give you and Morrison the recovery costs from presumably us bit maybe there? the the been that, if of ounces to year. to that what can add was reserve reserve I Could on color mentioned going wondering, existing we expect ore just you there's and we've

Gary J. Goldberg

John. Sure, Yeah.

project. we yet it. Morrison, In a capital terms approved of sustaining haven't and It's

about extending mine life. been So, it's through we've basically, going And process. a

we the would probably a ago really were In months, we out to get Investor is three chance recoveries, a delayed go we weeks what together Day testing. to And Vice information or had update. one expected focused they're as update and further which look the that, at an Tom President, at where have additional good. metallurgical about out confirmed provide have our an with have from did just there and on we fact, couple And can on December the I through project. metallurgical when four approval provide of Regional we Alex Bates, on to kind drilling, results that's in update

John Bridges

So lower the are than recoveries going to seen we've previously? be

Gary J. Goldberg

what That's It see no. no, we to confirm coming there. good No, fine. through confirmed wanted and we we'd see recoveries that

John Bridges

night. we've And reserve Okay, first busy are you be the you're you fine. reserves then reserve going you the the think that where through exercise adding feeling wondered Just moment? seen reporting about could at year. How last this

Gary J. Goldberg

we ounces down Well, to potentially at focusing. market we bit. it's we see to terms Subika in around at think, and had that Tanami about we how million by put still of see And the potential, out been a we've target, days We early both Yanacocha. where delivers look as the continue drill also X where I

John Bridges

Yanacocha.

Gary J. Goldberg

as Merian I've got background at Grigore well. here whispering in the me.

John Bridges

Okay.

the be Main Yanacocha would Quecher coming material it? in, So would

Gary J. Goldberg

this Yeah. there Chaquicocha It at with resource could more the be stage.

John Bridges

of Oh, course.

having layback there, were another right? some success with You

Gary J. Goldberg

Correct.

included stage. in though of at that's Quecher not terms In it, this at Main looking

John Bridges

the developments coming were reiterating new Any sulfides well. there? And you were Okay. that on

Gary J. Goldberg

Day Gehring and – at December. team update will the Dean an providing Investor in Nothing new. be Tom the actually,

John Bridges

Okay, cool.

a to guys. forward lot. Thanks, it. Good Looking Thanks luck.

Gary J. Goldberg

Appreciate John. it. Thanks,

Operator

Vertical Dudas Michael have we Research. Next of

Michael S. Dudas

morning, Good and everybody, Jessica. welcome,

is to offsets Potential Full – the starting the guys have budgeting what to you downturn? going question maintain you Gary, information outlook First But more inflation, strong performance from and through basis the raise the vendors beyond, for cost do to to lot an going prices, how operating could into long-term in any had we're get a on XXXX December. see cost provide

Gary J. Goldberg

Full in working the guidance and the business Now, to efficiency to say, in Michael, Potential focus what as a to pull as the team both the we be core continues has it. December demonstrate I And you on think been XXXX be looking with able together here at that improvements. we and as plan, our present with business we'll cost

inflationary terms one In of keep and eye on; obviously, see element directly an is the pressures, that don't we that the we flow we things dollar through. control key Aussie

kept been that's price. up little much But line pretty As with price, using there bit. the gold We've in bouncing a Oil come come it's $XX. prices been up, around. that's

that outlook our going pretty in same in continue forward be much to We ballpark.

teams only of in big and It's an I turnover watching but build keep it's one – North the in an parts out as and jump focus. Remember, eye not the on plans leading inflation the developing planning think years. first are inflation we're as our in is a a both the plans as five of overall, any for that indicator into on. place our Australia we their We eye process sort keeping the year America. labor X% up,

year. offset than And Potential that inflation. the X% to each is at X% least offset or of the effort more objective Full So

areas, other inflationary-wise. likewise of a major extended the supplies, so equipment And inputs. agreements, and our we've way commodity in terms in seeing on So mining anything there not

Michael S. Dudas

In semi-autonomous month, working in last the on the enjoyed out trip equipment. I mines Nevada to the the joystick

expansion of the are new of plans to be put developing mine equipment new how you going those the to Newmont types forth you're generation in look mines to forward plans, much As and as help concepts you move mine or for greater or to forward? and

Gary J. Goldberg

all look Tom bit designing update We I more have background But the it it's designing in an he's autonomous mines got at at. extensive give in I'll background. value because give little that clearly and then of we terms And technology shot. delivers. Palmer brief a take I'll look Yeah, mines, think an of part a the

Exodus equipment Northwest have developing we've for. there. at we'll we're use And what where in autonomous at look You allowed

We already next use at door. Leeville in right it have

you at travel We're operation to on don't use Subika and time face another (XX:XX). a have to you through that as as technology back transfer It's can limited surface. saw, there; And at the not easy forth equipment. go Ghana that's by So and the autonomous equipment, example looking in the Subika. you put location. good place of up And the to to

don't have same blast. after You to clearing have procedures the a

it So to And we'll are look leads operations. these really of productivity. at higher our things all at

hand On to the surface I'll a over give to it Tom side, little bit of background.

Tom Palmer

Yeah, thanks, Gary.

experience automation my technology fundamentally with and think foremost, I this and safer. is, it's first

beings it the without system You're to of taking human of build out same level of it particulates. say, and they're Gary's can risk. does, other that an the exposed take thing things where diesel the an environment people underground out the process of not runs to environment, like some comment, on And

there's improvement as safety, as well a So health there first and foremost.

Exodus, the to of going Northwest equipments. are autonomous talked forward, accommodate designed about we terms as underground with design mines our In of mines, our

you're running mines, in that was the you to new equipment it's the to ore still to forward. bring equipment a And surface So experience this of we've something My with cost industry really got look catch equipment option go in. type the iron a up. that is bring The you as at something there offset capital when that needs in. that is mine of building

But still you work there's the allow to to So have to improvement into do cost existing and that'll a industry that some mines at is still that equipment we're retrofitting or that do autonomous considering. has retrofit. introducing something looking

eye on So those developments. we're keeping an

Michael S. Dudas

appreciate Well, from hard gentlemen. that I your is you. well. I as Caterpillar trust thoughts, on their Thank working end

Gary J. Goldberg

Thanks, Michael.

Operator

Next go we Please have ahead. David Haughton of CIBC.

David Haughton

Tom. Good for and Thank the update. Nancy you morning, Gary,

us to? an and to the dedicated most Quecher and a would the about the you. Thank just be throughput just heap the or the Now Main. outline via of Can what you would grade leach the of over give whether mill going CapEx bit you expect, material processed be

Gary J. Goldberg

Regional as RSVP Dean took David, question. I'm months about we the going and to I'll handle that who And four him over now just to Dean. ago Gehring Vice happen have President have here. introduce

David Haughton

Thank you.

Dean Gehring

said is of good question. we've just Gary. just Most new is the Thanks, for existing capital what building leach equipment. Gary And Okay. The Yanacocha we it's to toward and what earlier we've pad years. about facility. in area. some the number a mining in David, been our extension similar things largely of been expect reflected an it's of are see of to Main that at use a grades terms what in doing Quecher production. of guidance a We'll largely before dedicated that

There all our it's So going anything going that's oxide to be mill. gold leach to production. isn't

David Haughton

oxide be so what the stacking you Okay, think leach. all do might And there? rate

Dean Gehring

in We'll two put we Well, about lifts. XX-meter be doing a year.

So see about per XX meters of year. stacking you'll

David Haughton

that tons, does please? into translate What

Dean Gehring

if it it in tons, I what you have to to then I look that in tell wouldn't up because necessarily you gave it was meters.

So different people ask the question differently.

David Haughton

and mean. don't model that meter I Because it on I know ounces. gets lifts it. recovery grade, me tell how tons, model you I'll Okay. I what

Gary J. Goldberg

starts a the at going production year basis David, of think XXXX. end a it's about you I But to can XXX% day, add the count on XXX,XXX it – in later ounces once

David Haughton

Okay.

billion for you got of debt additional cash. in thoughts $X forward? Debt maybe going Now of repayment retirement one any you still the quarter, Have Nancy.

Nancy K. Buese

Yeah, David.

where due look coming not for work that. to those And As retirement. it in due evaluate management this we'll one we've got with early point us we bit around those in sense at But do and XXXX our continuously coming set make trading, XXXX. in time, tranches. are do to continue maturities, at a We liability does

off pay at those mature. time would on tranches hand with cash be to they that the plan current Our

David Haughton

that. you Thank for much Okay. very

Operator

The next question we Jakusconek have Scotiabank. will Tanya of come from

Tanya Jakusconek

everybody. morning, Good

Gary J. Goldberg

Good morning, Tanya.

Tanya Jakusconek

Thank much talking about. you you're very I you, the if Tanami project for for Gary, that questions could. power

I a your of they'll diesel think to just cost get percentage you're where are natural power? little me Can structure your remind to and now, mentioning go know currently what information costs wanted from Just bit you what more is gas. going power you there.

Gary J. Goldberg

folks I'm draw help Yes. of here because having that the have at my up that tip I tongue. don't

that moment. a find I'll come back here let's in and So

Tanya Jakusconek

and there? you them don't - All getting those It's mines have

Gary J. Goldberg

in it memory top. have have just banks We don't them my there. at the I

Tanya Jakusconek

for then Well, maybe, you. question Okay. another Gary,

Just I Creek the every It's to away. talked your we know How the mineralization the going to know between Twin Twin Barrick I with through negotiations resolve on negotiations too and two far autoclave? December is not are amicable you coming contract I about Creeks. get coming. ask But back trying to an quarter.

Gary J. Goldberg

No.

extension of Turquoise We there and what about with be as take the agreement. to the would next Ridge. the partner expansion also working they're expansion assessing this step potential continue effectively different talk to our through plans at how efficiently We're for and of

work continues. So that

Tanya Jakusconek

think they on you're next that year. of mentioned a on And correct? to that that Is their make going January I call in decision

Gary J. Goldberg

what they're expansion. targeting that January a that's believe capital is decision I on

Tanya Jakusconek

And have Okay. and in feet, talking maybe if terms of we we are the about power Tanami back just from capital. sort those also range? coming the of What XX,XXX just the just

Gary J. Goldberg

Tom. in more hand to give cost be number capital the the over I'm will to going we'll to on we of terms costs of by both But believe which bit detail I – can this little over the closer power the a approval, end get and he's he got as year. on power.

Tanya Jakusconek

you. Okay. Thank

Tom Palmer

XX% you coming diesel-fired And roughly $X.XX in, the stations power morning, Good there. in kilowatt expect gas-fired Tanami. at stations, Tanya. can of with to hour today, cost power see order Gary. The gas power Thanks, improvement

diesel So source. emissions as quite factors year in we improvement a the that other fuel we the with experienced cleaner reliability carbon – key same result issues to a earlier and those of significant this see supply are that won't

pleased very I'm that. about So

In of - terms

Tanya Jakusconek

– percentage percentage of yeah, what is - and of your what And cost

Tom Palmer

XX% our about up makes of costs... It

Tanya Jakusconek

Okay.

Tom Palmer

generation. ...power

Tanya Jakusconek

Okay.

So that the that. would impact from be

Tom Palmer

Yeah.

Tanya Jakusconek

the could about get decision is that think once Gary XX in, in And you said, I made. months

Tom Palmer

a line the in that there's north-south power Yeah. through Alice Springs approval up dropped we – Once proceed, the we Australia. got runs to

across So that and you then run connect site. the mine to to

a of the pipeline. order to the that's kilometer we'll that then to power So run stations. XXX, and right XXX connect DBS mine And through at underground

you processing mine underground the and XX kilometers around recall, the If plant apart. are

power lines those So two and up. (XX:XX) connecting join

is to So path to it's time sink line. critical around that – power that

there conditions season. and imagine can you wet So the the dry up through

You've got that. around to sequence

to get place. into of So timeframe sort it that's

Tanya Jakusconek

the So you're of least talking at towards early XXXX, end XXXX?

Tom Palmer

Tanya. earlier, bit a Possibly

Tanya Jakusconek

Okay.

Tom Palmer

up be I'd after than and bit running weather that. a us; the well, we'd going All that looks earlier see

Tanya Jakusconek

so Okay, XXXX in the frame.

Thank to Okay, you number. that getting forward look much. I perfect. capital very

Operator

Pipes have from we question of next will Markets. FBR Capital come The Lucas

Lucas N. Pipes

Hey. everybody. Good morning,

Gary J. Goldberg

morning. Good

Lucas N. Pipes

a Indonesia, And with. Obviously, call was very lasted yesterday, they're have the Indonesia. Freeport not long but for a you. Gary, bigger just it's had you issues I I picture that exited question dealing on about

of importantly, I Thank the you want across wrong industry, kind Am your portfolio I look think think then changing you. think more allocate longer you that? capital? do how the is about problem. as assessment? And you term, a when it to in you is resource that about nationalism way And

Gary J. Goldberg

I was standpoint. go of for get Lucas. that in the what from another try view terms the No. at that to stayed case a metric And better making to represented part, in a But couple most sustaining all-in of it we've true look the cost of and true direction everywhere. to I And we to is of for in cost measure World what costs terms costs. production approach of look industry very been out is question, get how different a at Thanks The hasn't ways. think itself the the world the to a effort sustaining what One, means. even there. to the presents that the out to necessary all-in right I a actual Gold everything's production and That step taking the in cost Council know world is. not the sure of

important get I numbers the bigger say cost pie. is right people price because are of the look a sure the what thing at out's So want piece and first making what cost we they the on gold is think view and

to or I working I the the rest in. stable other we rate. help Australia consistent royalty process world. raising it's operate, royalty Western rates in Western had that we stage, the politicians in effect we're Alex At Bates educate the regions mean been Western this Australia of and a and That got know we of to terms team. Australia that's we've And immune. anywhere in I very the with in Australia in marketplace whether I else what of gold this the and has. the team, they're is the to producers operate in think congratulations look think the to doesn't in where And of think raise efforts terms big recent Western the

through cutoff you mine If raise of lives. grades it rates, reduces cost and the production having raises royalty higher

long-term for good not it's investments. So

You on transparent and fair at is more just taxes. revenues. improving of own know have look have I being your our ICMM. being reporting to in what we're And I something share shared think We about that, that's working with

On But that have got top governments. that, We a key we've of provide agreements area. information. report. think I responsibility our with that's social We

of that, in where in an five of to Suriname heard for consistent a we've little agreement lived got extension Indonesia. just and good You and in agreement very years the as well. up was the agreements Peru different in been having than And experience agreements as our they've example a Ghana

I in jobs the the day. looks government the what life, economic mine like can term officials on at So the situation and sure what understand working end long they community it's with making and impact the think be and our of

Lucas N. Pipes

look your luck I your very Well, with in good appreciate Great. everything. much December. and Investor forward to answer Day

Gary J. Goldberg

Thanks, Lucas.

Gary J. Goldberg

everyone, you, thank this joining morning. And call our for

Our team keeping cost meet quarter, capital us on delivered track another for strong XXXX. production and guidance to

Yanacocha. continue the Main our reaching in budget also time and life with Quecher on extend and set production commercial future invest to Expansion to project at Tanami our We

business join Finally, at industry to to regional performance day. our means by of the returns we we'll sustainability. Thank where we're you us and outlook December safe end raise cash share you inviting in flows, X, have the how stronger distinguish to leader leveraging us next Investor to to an and in our and generated on a for joining us our maintain you giving to leaders, refreshed you Day introduce level. speed technology robust ourselves as our the rest five-year even up bring I'll

Operator

And disconnect a have you your day. for take we great and again. thank you has time time, care the now Thank the lines. Again, At conference this sir, rest the call concluded. you, your today. and Everyone, may of team to management also

Newmont (NEM) 26 Oct 172017 Q3 Earnings call transcript