NEM - Earnings call transcript Q4 2017

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Operator

Good morning and welcome to the Newmont Full-Year and Quarter Four 2017 Earnings Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded. I would now like to turn the conference call over to Jessica Largent, Vice President of Investor Relations. ahead. go Please

Jessica Largent

morning and Good you joining for Thank quarter and XXXX full-year fourth conference Newmont's you. thank call.

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

Turning X. to slide

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

Gary J. Goldberg

of and to improvements in operational morning. Thanks, you groundwork joining for XXXX I'm and thank laid report us even continued pleased we creation. the longer-term value this trajectory and Jess, that for financial all steady our

want or the for and operations four get meeting into prospects executing Before profitable and commitments, on cost, that financial, environmental hand-in-hand. expansions and strategy continents building social, details, safely by our do team advancing performance leading we congratulate our exploration exceeding and capital, running go I demonstrating the production and Newmont efficiently all and to

adds measured value. results. assessing which X, an greatest demonstrated our added operational Long Full production our so strong performance to and approach ounce Increasing highlights by from from support to sustaining we of a cost where we per a delivering continues with keeping XXXX and invest Turning technology costs deliver include to year as Potential for efficiency all-in execution production to taking on it of year by slide the that Canyon million full we program, the improvement overview superior which X% at and X.X $XXX gold first ounces Merian

of global in French Andes. targets five our X.X assets by strengthened depletion long-life our replacing across profitable that portfolio and exploration advancing Guiana, will and projects the and securing resource growing on-budget, Tanami Canada, production, options and our safely outperforming exploration reserves Expansion of base, on-time million also ounces add delivering We early-stage the

dividend drove billion, Finally, profitability in to billion, goal EBITDA $X.X improving and by to improving leading gold increasing sector we our the XX% our quarter our free adjusted toward reflect without I'll cash by the that performance. responsibility profile, our versus achieved XX% $X.X fatalities by both sustainability nearly sheet of our look flow year by our which, to trucks, of slide and the our roads an also prior balance fatigue updated XXXX it quarter and installed XX% based We portfolio tripling on of and XXX across in working our versus and as keep expand leader being strong for XXXX, production fleet To how numbers industry took steady industry we we standards. recognized fourth injuries with improve X. highest at helped second drivers a and we along consistency, training, in safer. topic the closer on categorize the haul of monitors on

years, five slightly overall As for the but XXXX improvement previous result, and you'll see rates the trend. a higher same

XXXX as Journal's Wall the and for in we make to test XXX recognized honor The we as It was our mistakes operations to Going safer. best consecutive have companies. to Street continue an be prevent from our and Sustainability company third be the top to Index to controls the forward, accidents Jones Dow work we'll in top named even the mining managed to learn place to in year

well as caliber areas responsibility, team and of performance of people speaks also as to This World's was of innovation. the our values. success in and strong long-term of ranked Companies living quality Fortune recognition on our our management, by strategy in Admired the one and Newmont social Magazine the Most management as the based our our executing our team investment,

differentiated their delivery also by teams record. project Our

slide Turning X. to

built the commercial last above on-time production with rate Tanami we Expansion, internal Merian at the and our of XX%. budget. reached three first in a phase And years, Long below project we Over Canyon of an XXXX, XX% return and

government also sulfide Africa, expansion in In Carlin approved America, the our announced in stability every North recently Mill XXXX. the advanced to and in oxide Underground Yanacocha's we region. Quecher We bridge Newmont's Ahafo mine Underground America, and lower as In production This decisions expansion facilitate another approved least the of we extending Australia, jurisdiction. extend and royalty Power which the fund view years, growth. until to at approved led and operating most five Ghana approved we to supports deposits. prolific to production Twin Exodus In and we developing Main mine Project extensive district. projects Northwest costs a investment Subika for Tanami South will to And future and emissions tax favorable profitable extend which

Twin XX%, commercial Exodus, and year. improve our to generate The Northwest here to projects rate internal helping Underground, this return reach expect of Underground outlook. at above We average six production will shown Subika an

to Turning slide X.

expected and Full Underground Potential Our as new five and rise our down bring the at Covering operations. on key Boddington, stripping improvements as in Ahafo, Creeks, from advanced then year higher production slightly reach highlights, higher back projects. and work, at cost reflecting XXXX come in grades costs lower as and well guidance in Subika exploration our XXXX, production at to reflects we Twin higher Carlin, are cost investment

have and cover approve through approved. We're productivity slightly and capital as XXXX tailings the our increase reflects water XXXX performance. And projects construction. and reviewed, capital costs is guidance in capital increase as mill to that just I projects planning we mine production maintaining will discipline. improve treatment Sustaining as been profitable covers also projects. production Our yet to in well in expansions expected we expect to new and facility which operating Development existing not gains outer-years and

options. Ridge which Tom million fund longer-term $XXX in more our of cover reflects in to growth include This detail. the investment continued Mine Tanami now the Project, and Project numbers these instance, guidance also advancing Optimization Power will For Turquoise our portion

Long X. Carlin. as America, XXXX. studies slide opportunities explore the deposits to results South Canyon and in X where assets we're we're also multiple property we project to continued at In Ethiopia. advancing well as both North program test And to underground process expansions the Peru. from drilling efficient the Canadian Ahafo as further Yukon. to And at we're with to In resources the we Gold of in project Plateau explore positive Ezana, working America, Sulfides we're Turning our Colombia. in Chaquicocha as Goldstrike nearby develop to results Akyem. Yanacocha safe advancing working local And in development at at added support exploration greenfield and with underground Buriticá favorable at Phase see drilling Africa, Continental with well In high-grade a the working and We're partner, in

expansion Tanami. Finally, advancing we're our pursuing exploration and in Australia, both at KCGM second Tanami and prospects around

creation in off investment and reserve long-term Our strong resource paid through value additions. also

gold for Turning of X. In XXXX, prices time we X.X X while depletion maintaining same year. reserve We slide since our the reserves, XXXX. milestone and to added replacing achieved the prior this target ounces of first million million the ounces exceeding

North. improving resources underground target and million Sabajo X.X X.X X% We and exceeding also of ounces at of Akyem ounces, million our Apensu at by first and grade added additions making

ounces our drill in can additions were by delivered X.X see bit on million chart, you revisions this ounces delivered and As of reserve the were through million acquisition Yanacocha. stake the waterfall of X the and IFC

delivering at revisions with for ounces our & Australia, Ridge; these were over turn additions I'll at Our Boddington; ounces additions performance. Turquoise and ounces and mines; I North Carlin our at Nancy operations resource in primarily included financial Tanami. discuss surface four and at to more collaboration XXX,XXX and Creek acknowledge spread exceptional base reserve at XXX,XXX results. America XXX,XXX additions X.X And our their to XXX,XXX our our to it ounces Victor; Cripple teams our reserve Ahafo and equally across regions. that, Positive to Underground million ounces want exploration were and in

Nancy K. Buese

balance for report year to Gary. Thanks, the our momentum the quarter and results continued in financial and dividend, strong sheet. pleased improving cash flow, I'm and

a primarily operations per I'll impact prior-year XX. allowance $X.XX prices. we to assets slide, to $XXX a XX% the this income quarter we We of losses million. U.S. the million driven revenue a top and fourth through long-lived and Newmont at $X.X effect And due tax $XXX to assets, losses, in due was the valuation Merian impairment to with diluted on and XX% and earnings take tax how EBITDA GAAP higher share. from continuing about moment. We a net the cash gain million to to Let's quarter start improved tax adjustments at billion. to $XXX with Starting improved adjusted by or and just the quarter, included by net these gold $X.XX from of share. and of a increased to our the law sales I'll share X% $X.XX walk by slide results by affiliates higher per the to changes for slide flow income as Other on for adjustments to reclamation remediation items. $X.XX quarter XX. look by increased you to adjustments at recorded we related moment quarter, well these in loss $X.XX of the free per and on XX% this equity Long Compared talk adjusted as related adjustments Canyon

our the see quarter the can fourth slide. You the adjustments related on EBITDA bottom to of

results exceptional for also We full delivered year. the

we $XXX to adjusted XX% diluted billion. we to Turning and the or adjusted results share $X.X prior per $X.XX We to increased improved XX. X% to income year, net slide by XXXX EBITDA to revenues Comparing improved by million billion. $X.X

free Finally, from and by billion. $X.X continuing to billion our boosted $X.X we XX% flow cash operations cash increased to our

a income earnings expenses per tax XX, to to the at gold Nevada slide to $X.XX impact to equity interests; a on impact assets year slide. you reclamation our gain and the Once EBITDA on from share. the per sector. related due of results adjustments one too, a loss for from valuation the costs at adjustments share impairment of long-lived operations; see at Turning remediation and and allowance these to sheets in former in of again, from the net gain of of operations $X.XX of sale of adjustments related from maintain a adjustment to closed investment; see site full strongest balance of a These year items. restructuring, bottom GAAP tax help the the $X.XX from you a continuing $X.XX included Other related to effects $X.XX the and Newmont can the loss here,

in invest allows stronger seeing profitable growth, to three worked capital reserve XX. foundation mine life hard in executing form One margins and investment continue is a to build our of We've our improve slide Turning on a that projects base. to and we're priorities. returns and exploration the us strong and priority to in

an investment our priority fourth X.X to and done further quarter grade Another times. balance in net since credit to our is sheet lowering adjusted debt maintain XX% debt reducing EBITDA the by by rating. ratio that XXXX, and We've to net

Our fourth billion, the until total XXXX. have and was liquidity due we $X.X XXXX no at end the quarter of of debt maturities

Our final how our excited to shareholders. share priority capital that return to by doing significantly we're is cash improving to I'm dividend.

gold our our North to declaring week and we American dividend Earlier in quarter announced by prior plans and fourth XX% growth. which yield industry-leading per producer on continuing the XX. and commitment, share production dividend the translates long-term dividend profile. superior than X.X%. our ability generate profitable increase is $X.XX and this to to quarter a returns it average our $X.XX a senior an This a in to cash also from three times of balance higher It reflects slide X.X% to sheet to nearly XXXX. we reflects flow of than that XX%. of of gold raise strong quarter invest the approximately while steady delivered In compared least to December, confidence fourth de-link at Turning higher price

year. equity our increase, part goal The this million. we a board compensation, program potential to In this from and this directors $XX share also of vesting addition authorized of dilution the in up to of expect first the is to of to dividend approving annual a repurchase our occur offset program of

the Before here. to I U.S. to changes Tom, take Tax slide complexities Cuts minute about but talk cover hand of aspects evaluating Act, Jobs law We're on tax I'll I'll a XX. over still U.S. it four the new primary and

operations, XXXX. First, income our we tax to in expect to rate benefit North reduce America starting

good is for Newmont. for and deduction unchanged, remains depletion industries percentage the Second, extractive companies which

one-time Re-measurement Third, our and decrease total financials. the Fourth, our This sales two also rate expected on tax charge non-cash however, of charges global prices. structure XX% to international in at are, higher in our million. of elimination position tax the resulted based retain and tax rate costs. for a to remain $XXX million. gold could tax tax U.S. between In We've is credits election restructure our relative that ahead. allows the deferred operations projected positive minimum in $XXX an optionality of AMT have XXXX us of resulted expect years on Newmont. taxpayer and we year-end earned legislation XXXX reflected our in to charge holding to This as a of of to alternative short, a decision forward. the made foreign to a going also cash the flow is monetization favorable impact There the new XX%

as We highlights slide will starting to to cover now, And year over on the matters XX. keep on progresses. tax operational you Tom posted

Tom Palmer

Thank deliver you, we leveraging don't geotechnical and we us the weather to events. performance planning modeling, at XXXX, Potential Nancy. based to including on control than lower on million in and Full offset improvements, grades viability. technology focus $XXX value and the delivered more operations, focus mine extreme Improving its mill-throughput This and control. things maturing and We solid ore-body helped issues continuing recovery, execution, and in while increasing things

control our $XXX slide to than mine year in half ounces a ore Silverstar we photo. XXXX. at our produced and in track surface latter us cost one running reach at on team Exodus of Twin stope stope to Leeville Carlin, XX. ramp-up of million the operating new continues and and into The Creeks, at first this production in and can ahead X.X per America allowing gold production at improved ounce. At underground slide XX%. ground Leeville commercial see de-weight the and Turning Work North all-in remain reach region we development mine by sustaining we'll schedule At on below XXXX was them to the of We're covered by more from fleet rates of this in production month and and autonomous now that to loaders improve you the design, Northwest mid-XXXX.

also manage We in four-year some the Mega stepping bottom to the a geotechnical issues. Pit, completed layback out of

& now in from the to we're agreement quarter earlier with funding our offset planned mine Creeks little partner through to process online of production approve planned. While that project the signed will Long Creek and ore we're continue production from Statement and Optimization layback on Victor, exiting and Sage the costs give first to portion Phase of a access milling batch at mills. finally to Cripple over for impact seven-year of up Impact richest we us on improve originally XXXX. a And unit X first Canyon, sinking part We Turquoise and Mine it processing the loading shaft deposit than expect Turquoise rates when Twin The centers comes the a XXXX. process our Ridge and to course complete XXXX, we this the At Nevada Ridge Environmental XXXX the our of toll autoclaves, reviewing of concentrates in in opportunities new Project. studies

slide XX. Turning America on to South

XXX,XXX on of focus ounce. with results second production team an Our year rock of about with the ounces building in is improving the have sustaining we Full operations the primary its fourth ending mill launched already this Merian second the dried of targets. and half advancing completed operations delivered out XXXX, the Yanacocha, and new team on turned will on year. At fresh our in at of corner an Potential as strong course all-in and the and crusher reach half be cost per strong Construction initial mine gold productivity of quarter $XXX performance. XXXX achieved

sulfide advanced our And region. begun project However, also and mine. cost at in exploration Main to studies. we're increased we've we the the Engineering continue and is at Quecher stripping advance deep higher now transitional ores we've Yanacocha and completed spending in processing

to below on ounces continued at and outperform of produced all-in The ongoing XX. Africa just on we're commercial improvements reach additional progressing Akyem, expansion. mine recovery to harder and of stope our begun a rose still throughput of second of existing surface gold per build strong helping mill beginning Turning costs we're and third And expected projects half to At cost Ahafo, to second in mill the expect XXX,XXX is layback well. our unit for the performance as the mining the We're of sustaining crusher $XXX the year. are in of at this mine production foundations back primary XXXX impact and the growth Subika have tanks At but Subika offset region ounce. our completing ore, the Underground half mill in currently slide grinding XXXX. and leach to over and

at we studies advance on our which developing center Akyem North. underground a continue both Ahafo resources and as at regional mine growth new well as potential Ahafo Finally, to

Australia to the region $XXX sustaining ounce. XXXX, costs XX. than slide at per all-in more on of X.X produced million of Turning gold In ounces approximately

team Tanami from and and grades Mine applications, this performing significant remediate complete XXXX. a a reach We of throughput mill At in to but proceed decision Expansion this broke work KCGM, quarter four we capacity. times commercial safely, rainfall the plan with XXXX. reached still laybacks Fimiston to the above the layback for wall ore our also permit a Boddington of timing to XXXX, Morrison can year, helping south to in also in change quarter that in schedule, west optimize combine with record continue expect to QX January We'll into production moving of high and year layback Pit resource expect stope Boddington, year. schedule. deliver is slip nameplate grades to set the is improvements. the optimization we design, impacts the and half in the At no pit. We approval of there the records associated lower expanded delayed begin mining in last in on first offset of second allowed Increased has on We XXXX. overcoming two resulting us delivered in fourth budget, recovery and so confidence the mill the at at the to of production first Tanami and

ounces we XXXX, million ounces continued Gary mentioned, As also new a positive of expansion. added X.X million We've revisions. in reserves of to to were X.X support which Tanami approved from project

to Turning slide XX.

will site, costs and emissions to Tanami by to gas Project XX% pipeline. and natural via diesel mitigate reliance lower is which on delivered Our trucked Power by carbon fuel our moving

scalability have develop to We we to as pipeline deposit. project and the power supply and The reliability XXX-kilometer with will onsite continue experts a contracted plants. world-class Tanami develop improve two

online to $XXX than the $XXX XX-year an with and of the of of internal ounce net $XX an period million We approximately half be investment expect will from XXXX. between project is come first XXXX the million cash XXXX expected covers capital and A generate XX%. to least Tanami savings in greater to over rate return at project that of paid at

ahead prior Potential benefits improvements. XX. outlook costs our The to ongoing than Looking and reflects year production of slide and unit we the XXXX guidance presented in Full on December better the

result second discussed highest with expected weighting in as the However, plant in half fourth sequencing we production and our lowest maintenance cost shutdowns and in December, quarter. mine

to half reach as ramp-up Carlin's year, process finish X We of surface plant slide year grades. during it use our operations the maintenance we we Gary. we strong our advance quarter. South at then that, at grade to mine. each in this look and back automated third Ahafo production Subika mines. regions at new second Silverstar annual online the and expect And higher on and shows The the With both quarter to stripping to reaching our to Underground ore ores campaigns the high execute begin and Underground Subika haulage in I'll with hand efficiency We a to Mill make in improve safety first the of will photo coming American

Gary J. Goldberg

Tom. you, Thank

stable located return production in high we Turning and and return amount Australia. continue to United we slide of our next fund XX, Newmont the four employed. of the to and and investing factors than future we on stability sustain is to States improve resources and where have decade And anchored our XX% More on our over These time. maintain over us returns reserves position to about same need continue beyond. regions production the in the capital projects are to

by Our differentiated new mine prospects. portfolio is also our growth

Turning XX. to slide

of Underground our expansion reserves. is Northwest here. it Project maintain in gold growing pipeline Ahafo in and the Mill current depth outlook sector that in best Our Exodus means and Underground the shown the and capital Morrison capital while in in A Subika efficiency, will terms and and here see Projects and you us in Power project are Peru. Main mid-term our outlook and to margins the among the is included our Ahafo sustaining steady the Nevada; Australia; in gives production Tanami our improve Quecher green. in Twin and North the Ghana; projects

second North the definitive execution half in Ahafo advance expect reach year and the to XXXX. We feasibility of this at

progressing for production the dark and improving This blue. to in margins. longer-term foundation our invest we here continue Finally, pipeline projects in shown steady lays

Turning to XX. slide

over Here's production a seven next our years. the look at profile

project and our guidance. year, included layer to about and gold represented per current and layer share pipeline our is Our profile. grow production of production are the does from production operations reserve projected dark million in a further Newmont's robust green global This current to attributable Tanami project in as X Expansion The distinct projects shows competitive from long-term our ounces our by remain that profile XXXX. X.X% projects it advantage the existing X% is that upside production at asset from up, includes well leading mid-term as And base and in to shows blue our are guidance. included sustaining to mine Ahafo is current Sulfides, XXXX as in Summing X our represent which North prefeasibility, guidance. stable Yanacocha two not which current forecast

to Turning XX. slide

and of One that price. never depletion reserve stopped investment off increased Newmont in practices that that operating also of value resources. our cycle. base paid across to a the thousand based average. U.S. at XXX the is our gold And reserve ounces an We of investing as and XX% are shares gold about At risk same than profile the compares reserve in time, in replaced life and constant distinguishes of we price the exploration favorably per sector offer the XXXX, we XX years, more and we also The Australia. reserves

as our that same mined is our grade. the is distinction grade reserve Another about

focus And you of quality your floor Putting the top helped Thank strong delivered value it has longer horizon. we over results positioned since reserves XXXX. more together, open total for maintain time. in Our XXXX us all quartile for a and returns business and shareholder questions. that, with year time to another achieve I'll on generate the

Operator

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

first Terry comes Bank. Chris Our ahead. of Deutsche Please from go question

Chris Terry

of I guys. in couple, have for quarter. taking XX that each my just Hi, show Thanks a terms question. you slide

have you at of think you about in phase comfortable execution the couple Given of and inorganically (XX:XX) acquisition organic at are the early given with obviously that progressed the years CC&V. options major projects now of number already? are last or here the Do done you you a this think you do look other you've from a is if number – the or mix the JVs to opportunities opportunities you've need you point of think maybe

Gary J. Goldberg

for Thanks Chris. that

important. making efficiently, those and line on look, you we the as have get are we execution, that think, do number I safely, sure a is across budget so in

the I capital progressing the over and pointed size to the you that So Yanacocha with right, pretty I'd others, Ahafo look And the Expansion projects development substantial likewise Sulfides, of out, when some the if at see we on you X, into potential those Tanami look North, are those. stage projects. next at year continue those as two the this

I at So year the and the not that's that good and importantly, different this we to are with he's progress left, the Colombia to in investment side there. Guiana, efforts a want got where you're to a French hand in focus to and more continue project, or where But over team decision kind And or on efforts if think, next that of more on we number with Tom Yukon of is I'll that getting in far whether into working Australia, greenfield and to projects. make our early so in later mix. to year, see greenfields couple the a add Continental

Tom Palmer

Thanks, add. also Gary. I'd

opportunities and Carlin look at still in need you If prospective. that around Underground and the conceptual potential around the some underground we there's the district of real under there scoping, some is prospects pursue Ahafo particularly and to the very still

my we're bring so continue to is of So Phase to And as the forward. part Canyon it's opportunity really is Canyon I only Eastern X, about Long those to Nevada. in work Long making mentioned the notes, sure on we continue our to opportunities progress do in

Gary J. Goldberg

kick organic years, several as We've seen We'll our speak, the the Chris, But last pipeline assets. in tires, got our focus that one we and pipeline. did summary, organic clearly, So, CC&V. that shareholders to the you've other continue to on the on was for a value strong so made very we is only over added sense have.

Chris Terry

so Yanacocha terms step the couple Sulfides, Thanks. or years? you main just Thanks, can next Gary, the in be timeline And over of of expecting we should there the what Okay. Tom. through

Gary J. Goldberg

one that Tom to hand cover. I'll to Sure. over

Tom Palmer

Gary. Thanks,

the still we that operational XXXX. or out mark this proceed per because production XXXX to year, looking a the life at looking to studies there's piece in latter we very Yanacocha's XXX,XXX that over of opportunity the about until well at billion XXXX year, this end feasibility see of – we're commence really extending as phase decision of lot be to that the of and to life deposit. wouldn't the We that equivalent course we're copper is get late expect We're gold project. first annual for – about first year So out to to phase $X of gold to is extend about the at that and work this ounces sulfide part with and a around of looking as the year

Chris Terry

Okay. Thanks, half? the Tom. should first you And or productions, weighted, half some second I through can XXXX but you your movements the the QX last just guess, just maybe quarterly one of, talk in second can for of operational I and think through in of just we me production, conscious progression? be the talk terms

Tom Palmer

Thanks. It's Tom here. I'll take that again. one

half weighted the mentioned second Silverstar to the to in X fourth And You're as the I comments, the stripping quarter. see quarter. the quarter. plant we certainly driven in ore going fourth in third the maintenance well then, quarter we into the that start Again, in and Mill and second access Carlin do to annual by my

second weighting. So that a Carlin significant is contributor to half

high You'll campaign stripping certainly our first half it through see in at in Merian as to we ores some grade the three reach work quarters, Merian.

Subika underground in we Ahafo, it And Subika. get into see the into higher get plant in we on start in half the that start bring the out more some around move production some the of at higher and and on and bring then, – we open Underground. grades more Africa, into Subika refrigeration we'll to So, we're commercial ventilation Ahafo, at second the ore Subika as particularly Underground grade weighted mine, to Others ores in pit the quite as to weighted are to are layback, we'll second-half.

they half that us weighted have the fourth So the the into and to of features second some quarter. are

Chris Terry

Tom. Great. Thanks very much,

Operator

comes question Please next David of from Our ahead. go Haughton CIBC.

David Haughton

got team. a morning, questions. Good and you Thank for the I Gary update. of couple

million, take it Tanami you of is $XXX for or sum outlay and for a you've lease throughout the that's give at or looking does lump the year? work? Power, a million got outlay a CapEx capital How payment, that $XX Just here spread is that

Nancy K. Buese

Yeah, David. be to one. I'll take happy that

XXXX. XX-year that lease we cash $XXX of also to and million and So indicated for capital. development will starting as XXXX, as in reflect over annual accrued be in then And $XX that's have see payments costs we $XXX you'll XXXX will of million then owner a that and about period million project paid been

David Haughton

that a year? payment, that is it to or going lump throughout with single the So spread is be sum

Nancy K. Buese

spread the year. throughout It's

David Haughton

Okay.

it's equal So, I just quarter-by-quarter then? presume could

Nancy K. Buese

modeling fair that's purposes. Yeah, for enough

David Haughton

Okay. mill the recovery outlook the of there ore? very Question for I'm low, then what for the is still wondering component CC&V, just

Tom Palmer

of Tom into at and moved here. moving other We've I'll two (XX:XX) question, the take pit pits we're just CC&V. that out David.

we're of think going time. recoveries which lower on grades over see to impact is I period So next the going through the to mill

So look forward. guidance going forward, what been to that's I grades going and our if similar see you're included seeing going grade, CC&V to in at you're

higher two other grades out it's of pit grades. have of that So a some factor pits a into had lower that moving

David Haughton

to should we XX% expect something component? in mill XX% So range recovery that the then for

Tom Palmer

Yes.

In terms mean, consider. – of modeling to I that purposes, something is that's

just mentioned on. of as concentrates we to send first from comments in so there, and that bring we've the my thing circuit that as out is other to Mill The X, Nevada benefit will I higher taken that through mills our of recoveries the CC&V in put some particular

now, we've sales year. put through a the this got into to con of rougher course recoveries the to cleaner coming it got extra we've some improve So over make con flotation

of the in for included and that's be equation also part will CC&V our guidance. that So

David Haughton

the of Okay. be looking we XX should or Over nearly sort to thinking on Merian, through that's pretty throughput good move going more annum into over harder material? year basis, tonnes of What throughputs harder next you'd be material the you the once transitioning about so an annualized into per softer some saprolite million material.

Tom Palmer

we'll first the XX fresh mills' was around the the rock to in the Thanks, nameplate saprolite the annum. per tonnes million and Yes, half we'll come David. through see capacity Tom that again. move year, down of through crusher the start this second

harder of down sorts those rates saprolite. tonnes, it'll XX running So been of be the around and come it'll and up I fresh ore, as to we've some rock process be start to still it'll we think combination

tonnes million something XX the probably XX is So worth to per annum million modeling.

David Haughton

would of be XXXX Okay. And in XXXX and sort that timeframe?

Tom Palmer

would Yeah, David. be I think that reasonable,

David Haughton

included And be reserve far the in released the with were lower Okay. thought calculations that for Tanami, just your were as the implications the they base? what with one savings, about could reserves operating thinking yesterday cost as other on cost

Gary J. Goldberg

reserve We that haven't carried calculation yet, David. into the

end would upside our reserves. as update we into XXXX year that of an XXXX So be –

David Haughton

Thank me. you. from it that's Okay,

Gary J. Goldberg

David. Thanks,

Operator

Please ahead. Vertical Michael next go comes of Our Dudas from question Research.

Michael S. Dudas

Good morning, gentlemen, Nancy.

Gary J. Goldberg

morning. Good

Michael S. Dudas

$XXX continue it's worried there enough been success given because is about forward, there to I in calculations is harder million of their or comments? think get out sure he been it's the expectations? remarks, cost in so creep successful some the of that in to extracting savings. offset which replacement value. to everybody development about I'm Does it And Tom's a talked relative great for going the full prepared is program How

Tom Palmer

Tom take question. again, Michael. I'll Thanks, that

the terrific think was set to teams million out. program Full ourselves the drive think Newmont mentioned, all we significantly quite I as Gary I on and of was it hard – at work Potential by targets exceeded the our it $XXX

certainly of for continuing spades their site each escalation, potential of mining our There Potential organization. drive get around upside point about as a still regionally in very upside globally upside deliver opportunities site-by-site still Potential encourage certainly offset on our that, is together in of to moved footprint productivity. team global Full to starting in it's real all plenty to and upside still cost Full milling we Full to in of from But and accountability an the work we to our that commitments teams but see Our the around seeing is we really XXXX. improve and And leverage we're and our program. to much and Potential. plenty and It's achieved focus

to upside continue we there's hard the So, and years program of that still in ahead. think plenty I drive

Michael S. Dudas

of refunds that, flow any or be Tom. for couple the metrics And Nancy, of that for implications, next you can soft put cash over years? the the positive around anticipating target might you Thank tax some you a

Nancy K. Buese

Yeah.

level flow this to And high our is the our amongst rate with change other to Again think the in piece think associated in American all I world. then regions just the really that's of about operations. relative is positive the that. North way diversified cash all portfolio

we'll So next a the that be monetization credits, on of over will the ops. rate will piece American the North for reductions refund be second the expect AMT the pieces two five years. then And

the that's way So, think of to it. about kind

Michael S. Dudas

it spending, how your purchase, That's do keeping it certainly (XX:XX) job to, fine. to the Gary, thing that the new the is, get to need final of you to given how have you've of is lead, the capital iron see starting a opportunities you a relative And be we you great buying done to it program? – do you Is maintained. Is in have yellow going cap there more point to replenish. a the age average

those how may your capital out numbers and going budgets put sense be on and a Just that prices into today? you that

Gary J. Goldberg

Yeah. Thank you.

as those look in think looked guidance built where years, at improved we're of I gave you that the capital for at at we've out into lives and equipment five plans. sustaining that we our next terms

bump no the five-year in there's next that's big plan. replacement of So in equipment sort any

I think that how not of the we looking the going get life more equipment, we utilize and equipment team's at how but effectively more done equipment of just a out great job components forward.

– taken apply terms think, we purchase manufacturers, our longer-term have on our working equipment sites. a them operating that of with job that So, also I really all agreements with to good done, very I closely

Michael S. Dudas

everything policy. their Gary, board should And up it. dividend Thanks, (XX:XX). its for be finally, commended I confidence for think, in Appreciate the bringing

Gary J. Goldberg

Thanks, Michael.

Operator

Gary like closing question-and-answer for concludes back Goldberg to to I session. This the turn any over conference the would remarks.

Gary J. Goldberg

Thanks.

invest Just joining morning. to we brief to for But commitment it day. continuing mines, standards in staying the Thank the the and the safe at head leaders, generation we and technology competitive and gold uphold. create have a do pleased you to will next at of terms is delivering of joining all we Thank of and our for the us as which of value costs, in performance pack always, you our by the call comments here. production a this level We're XXXX. steady our next with set in take

Operator

has today's now Thank presentation. attending The you concluded. for conference

You may disconnect. now

Newmont (NEM) 22 Feb 182017 Q4 Earnings call transcript