NEM - Earnings call transcript Q1 2018

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Operator

Good morning and welcome to the Newmont Mining, First Quarter 2018 Earnings Conference 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 over to Jessica Largent, Vice President of Investor Relations. ahead. go Please

Jessica Largent

morning quarter Good you joining for Thank conference and call. first XXXX Newmont's you. thank

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

slide to X. Turning

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

Gary J. Goldberg

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

the Newmont XXXX. quarter of delivered in some strong first results

building the projects we development. seven continents, and Our stage generation the next four profitable with and costs remain we're in on advanced production Newmont of line next mines of to guidance, our global

among $X.XX that This We dividend making tragic six it also adjusted by Expansion overshadowed our declared and accident strongest fatalities. generated in senior million a $XXX at of Ahafo share, per however, EBITDA was the Mill gold resulted a in the performance, producers.

to X. Turning slide

their reaching roof slab in April to I a Ghana to leaders condolences. to an out And traveled successful. join traditional offer construction for of X our were you names and elevated immediately, government our leadership their here, heartfelt see team regional response Emergency As pouring Tom efforts whose background, to employees and in when concrete lives. lost our and families, process the were not teams were contractors the deployed collapsed. our on but six men,

and we the more suspended exactly impact to Akyem Ahafo with risk in and resume were commitment and is assessments suspended accident and to Mill safely. Ghana and loss happened. profound supporting that operations. assembled we but of is family, Expansion safety an have resolve resuming the authorities prior expert Newmont We has This wake the and Operations are on satisfied standards running, until Ahafo we on team review and work could can what now in Both so are entire been the conduct the working Nothing humility up investigation government's understand are investigation to that a important. renew our safely. work the great it certain had has temporarily

line to continuing we continue deliver $XXX our Turning all-in on of through operational to X, starting and ounces This at in potential cost gold the strategy, cost million with on guidance more details and full improve producing includes sustaining slide with quarter execution. X.X productivity superior of ounce, per to program. our

we're experts For at in centralized and first to raising collaborate performance. hub resolving allows process which instance, Australia, on control problems site each launching our

complete Underground on to We also continued our to Northwest the We and portfolio first quarter. later in Underground year. Exodus, this track Twin Subika Creeks remain strengthen

We gold near-mine strongest We project also $XXX share, per greenfields adjusted quarter and sector. the of dividend than XXXX, the nearly X first three progressed the to leading the declaring higher well quarter, we next million, sheets EBITDA first on quarter maintaining balance by Canyon year our stage And our advanced in increase a to pipeline. of and generating continents. as prior the $X.XX of study financial Ahafo North, XX% Yanacocha prospects one in times development delivered over a Chaquicocha of Phase Oxides Sulfides added exploration promising and four as of programs, Long performance the

website. the greenhouse water on you I uphold posted gas use Finally, Mine, Sustainability human rights our invite about our emissions. and is in we to sustainability our lower more met Beyond and read targets performance to which Report,

slide Turning to our on X. cost performance

and undertake stripping Twin trajectory temporarily Creeks. in Boddington, While Ahafo XXXX, steady cost our at improvement, a track we of our record as rise Carlin, shows campaigns

grades year. reflects profile Cost value. this as on projects, Subika Underground will reach in investment back production come and later higher lower at increased keeping down, bring Our our we and with also long-term creating and in exploration new focus cost

first with XXXX, cost recovery line guidance and we the continue mill in enhancing throughput to planning, body improve value of we quarter at its its and and by ore based technology mine increasing remain and Looking leveraging and modeling and efficiency, viability. on

slide production steady maintaining on production a to Turning X. also profile. We're

Our and planning as success mine production. and performance, well productivity mill mines in bringing gains extension outlook in as reflects into new

deliver attributable to X.X in expect track meet of on with quarter. million of an X.X million produced and gold to commitment attributable X.X ounces first million that and in between on gold We basis we're ounces XXXX the

As from the production Underground when and South production higher in to Carlin weighted recoup and the grades is a half Silverstar year bring second in we'll America Subika reach the reminder, Project at Africa Nevada, the online. mine of

current on on Turning our slide X. projects to more

and the America, As at work we reach I production involved. to commercial later Expansion to on we've and later Exodus mentioned, tasks year we at construction Northwest remain to on Ahafo risk Underground Underground commercial restart the this track track production North perform year. In on as detailed Twin begun this Subika various assessments reach the Mill remain

early This America, We also have underway. more to-date. to is extend shipping deposits. results designed Quecher mills is oxide our production sulfide from bridge extensive Yanacocha's Victor project South concentrates Main XXXX In well & processing and for Tom to developing in Creek our on and began Cripple in Nevada will

XX% facilitate outlook. we're Tanami will six will improve These lower Power return internal emissions in cost rate project, to and projects which generate progressing an average and Finally, the future our growth. above Australia, helping of

Turning to slide X.

profitable production remarks. a five-year during guidance, investment will Tom for ongoing We've but costs, with competitive growth. few not talk changed gold calls and site and about steady global changes our at Newmont's regional outlook his

XX. longer Turning on to our growth term slide prospects

Colombia. North favorable Phase prefeasibility regional one we've pursue expansions Our both on builds results And local project, working opportunities to and to and we're of well that included on advancing explore in projects new the In We're process pursue studies to Ethiopia. America, drilling review our America, Tom and the we're Plateau and a Peru to Canadian Long greenfields working four Chaquicocha also to Yanacocha in infrastructure, grade further and advantage at exploration Goldstrike relationships. will safe distinct in a We're Canyon high Gold early-stage Yukon. explore at is and and as In in support with assets Oxides property deposits Continental operating development Guiana. to competitive Ezana, an we're experience have Carlin. more project in with Buriticá ability study to South we and detail. exploration continue the efficient partnering proven Esperance, test see develop In nearby growth underground in as project French about property established excited Sulfides at advanced Ahafo Akyem at the multiple continents that strong X continue and a partner, with underground Africa, the to

exploration Finally, Wales discuss to Western the in New pursuing our With and Northern Australia, I'll financial South advancing second that, turn Territory. we're prospects expansion to Nancy in performance. and over Tanami our Australia, greenfields at it

Nancy K. Buese

Thank you, Gary.

realized to year to Compared first exploration quarter billion, diluted projects. XX by XX% quarter, increased gold $XXX outflows higher million million, slide higher and price. increased $X.X advanced in improved the prior working per to over net highlights. million. primarily Adjusted adjusted was for and $XXX to $X.XX capital revenue X% driven income share financial operations EBITDA $XXX due investment increased and Cash XX% continuing to to or from Turning

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

and prior income adjusted per the share, quarter. share. year per allowance deferred First $X.XX was included delivered of operations up $X.XX a net adjustments due XXX% quarter on from loss restructuring account, $X.XX Taking primarily GAAP these into costs net to diluted tax income a assets. loss $X.XX from adjustments to continuing Primary we valuation related diluted

of Turning on slide $X capital sector balance to to a with in have times. debt the net total XX, EBITDA we billion ratio one X.X and sheets the priorities of of strongest liquidity

We the reserve life build in operations generation a to and Newmont invest base. to continue stronger mine in next improve order of

dividend $X.XX declared increase share, returning the $X.XX quarter shareholders. quarter. this also per remain year, on an an we this to reflecting share per million We than this focused to quarter more return first annualized $XXX executed the prior shareholders quarterly in year. week, track first of plus upon share to on dividend cash of the a Based of Earlier program year over we're $X.XX buyback

strength balance strong hand it starting slide cash our operations us executing forward, our for and on sheet our allow continue now, XX. free And Looking discussion Tom of to over flow I'll strategy. to

Tom Palmer

Nancy. you, Thank

XX. slide on Africa to Turning

people, in Ghana at who accident look members our team again. community. went Not at is conditions. who extraordinary to We're family mining extending Expansion our leadership lost the working priority make Ahafo after have can so wrong, starting we with Mill and in to happens demonstrated tragic the Our difficult what sure but that broader Newmont, it under understand never very to only in those

securing and Both pleased agreement, improvements, helped benefits operations. stope delivered course. we focused and reach definitive Ahafo ore Akyem strong on Ghana and an studies performance. production even first where in are at were at ongoing to our permits outlook engaging approved seventh to Turning reach recovery with operational results driving second due for This we half. to the lower largely developing grade later both throughput and currently this offset optimizing quarter. of representing is continues funding year, which the and Underground And mill to project, harder, the We're impacts expect Subika The stronger to We Union. Mineworkers Ahafo on for also the fair feasibility an commercial wages stakeholders. North,

Akyem. of to and continue longer-term our both at we development advance underground Finally, Ahafo resources

slide rates with in ramp-up North our mines. ground work higher grades control stope At underground Turning design improve improved XX. on production, to solid allowed America turned to Carlin, us has in North to quarter. America development and and also a

of Mill recoverable improve At expected well. with & the We quarter. shipments and we shutdown quarter, from Nevada. by we to ore planned concentrates the and on value. But second the expect concentrates Silverstar expect seeing higher the production recoveries X. to Phoenix, to and our during first processing But maintenance higher than than de-weight lower been and of expect the CC&V's to mine annual stockpiling impacted on higher have recoveries. and production of ounces improve, year. continue reach is timing Victor in full-year sent as recoveries undertake performing sequencing was plans Cripple concentrates reconfigured Creek later We're cost leach Mill leach expected we the pit to X this first

higher are XXXX. zones we'll XXXX focused grade and gold to beginning in in zones copper We shift on

unchanged. costs Finally, we exiting manage This and Creeks production remains reflect Mega higher shifting have impacts revised guidance year the outlook XXXX. issues pursuing for last and The is campaign layback team to offset for geotechnical North to slightly at pit. is these next earlier result to and expected than stripping actively America focus a our to Twin of our lower opportunities production

Turning Twin remain to to XXXX. Phase Long Canyon prefeasibility later growth. paving track this advanced the We stage, production the potential Exodus have for Creeks Underground on and the X studies to Northwest at commercial production way reach by year and

a also venture joint district. agreement prospective the resource for and Long purchase growth this land in into We securing with recently Agnico optionality highly future Eagle executed potential near Canyon, extension interest

mill to providing South solid with we the high mining light deliver separate to the slide Maraba on productivity Turning commenced ore And mine improvements America (XX:XX:XX) pit, in ongoing XX. in continues to mill. Merian performance grade

Sabajo course slightly advancing at any as do guidance. and to of delayed and we at Amazonia completed half is the year is timing exploration Our underway to leach due Suriname. is but expect changes reach at in be installation not second in primary on recoveries, the the longer-term fresh we Medium-term Yanacocha production Production rock. of crusher expansions also will

improving the And to Main continue first oxide two optimized Stripping at guidance strategies cost early existing of see drill is at underground north XXXX. the to the of in or and back we on at gold production begun track results and we pit. promising Yanacocha's the Quecher deposits Chaquicocha However, where remain on dividing mill. blending are has for we south

of to confidence prefeasibility to we yellow This this the exploration in stage has of bottom Chaquicocha deposit given the Oxides project us resource at You and can to end pipeline at to oxide our add convert at shown the work slide. this expect see the some XXXX. the of successful

optimize earlier, work continue Gary Sulfides advanced feasibility As we to study approach. we technical first and the to Yanacocha mentioned our quarter, our in

and the resulted lower in the production QX. the year from gold Mine optimized ounces to strategy reduce but number plant three. we Boddington, to This the copper first Australia to our we XX. slide recover of mill Turning in production quarter, per expect those sequencing to At some delayed total course maintenance shuts over higher of on four in at year. Boddington change

remain our during west gold KCGM to on full considered We quarter a targets. track we expect also We're remediating as achieve and our grades the approach year pit. slip the mine at re-sequencing to high take in plant second Fimiston reach the wall to

to value a mine reduced to to already our and of to second bore setback, focus the short-term outlook guide access to this shaft As Despite program match term. potential sinking Tanami XXXX refresh with the our positioned we've ore consequence, our hole maximize productivity mill We've drilling allow approach us started have production we our progress that strong to ounces. a body. expansion. a high-grade performance Tanami, ores continue XX,XXX we deeper full over will a raise from on pilot a we're for by longer launched increasing well At

decision our of finally, main project a funding construction two years. source. stations take construction natural begun have two pipeline energy fuel for we the a Power switch diesel and to to building and Tanami from Project which will on reach second to allow XXXX to as expect in gas And power the on us half involves the around We that

We the to and commissioned XX%. expect XXXX first of be lower energy emissions and project half to costs during the by

cost on reducing XXXX and KCGM. global of remainder our XXXX lowering for remains Twin Creeks cost at despite the and to guidance production outlook South production and XX, our Looking and slide America America unchanged, North guidance in our capital

higher the new stripping We cost quarter. to fourth grades half. lowest lower achieve half second XXXX, Subika Underground continue higher from in production costs back-half shutdowns expect the and production And in maintenance and weighted in the first highest to we results in reflecting expect the and and our

hand at commitments to we course With learn our to XXXX, will productivity on in projects. and lessons slide that, our costs Gary to but and safety, and back operations we're XX. it improve I'll So to challenge continue on meet ourselves

Gary J. Goldberg

Thank you, Tom.

Turning to slide XX.

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

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

differentiated Our also near-mine portfolio is our by growth prospects.

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

reach this to in project of fund We half XXXX. the a decision second expect to

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

Turning slide XX. to

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

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

you slide XX. Turning to

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

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

continue quarter performance return portfolio to invest technology do of Our to since XX, XXXX. And floor longer team to was your by for it pack we marked recommit our time for for the at thing strong reserves focus generate learn that, to strategy, best gold standards of all stay quality in on fatalities next shareholder all it horizon, business you across production mines, at is first on in I'll suffered strong term and a our value the terms the six at total and and Summing and indelibly uphold. our deliver our top Ahafo. we in with steady results a from which we longer costs that position open create together, time sustain to we loss is more questions. and helped our team of the generation over The the to value the and competitive and slide time. horizon. Thank continue head quartile safely over Putting the shareholders our the up leaders deliver the but can has

Operator

you. Thank

will question Terry now Deutsche our from session. We of comes Bank. ahead. go Chris Please And begin the first question-and-answer

Chris Terry

Gary taking my for team. Thanks questions. and Hi,

is one Nancy. First probably for

quarter, a something those to in do that working year or we of for as terms other capital look for this in there during the quarters? one-off think moves is Just the about

Nancy K. Buese

There free that we just and I it and couple to was shipments as would Merian build accounts flow. Nevada. of ship Boddington. And at an pads reminder, America drivers Phoenix. inventory also AR was to then, around question on cash for North really this don't more leach a we differences created on bit timing bit bit just guidance prepare mostly payable is timing particular and Great timing and a con of over give a think of build and a a of of both of from at CC&V there in Sure. of quarter,

this a for just those So be particular anomalies of I would consider quarter. to bit

Chris Terry

Okay. one's you a through the in bit and talked that? Mill XQ, of result run the as that Can the Tom, allowed you've Thanks, operations during you Nancy. for at a just just about Thanks. on terms And of maintenance this maybe X the CC&V. impact for production XQ in specifically other

Tom Palmer

Thanks, our Chris. work, the The major X. second it's do we every maintenance on – shutdown quarter Mill annual annual

So major maintenance the across quarter. and that's three-week business that's so a the impact production typically on shutdown in at the second

from concentrates X Mill now taking Now, CC&V. is

again, we impact they'll of then you'll stockpiling see the and mill shutdown. So come the terms come concentrates those of some out through that in of as

shutdown weeks. that three runs about it and commenced for just So

Chris Terry

Okay. there? of moment, the at investment changed the And side Thanks, the obviously You've looking has organic environment of opportunities. outside the anything anything organic terms M&A great on opportunities? just at other But of or in divestment are Tom. you then, overall got pipeline a

Gary J. Goldberg

No.

as last we've We that on America, that see like to scan look at over we've in my earlier the areas keep do work put potential the we're on those. as we projects continue organic horizon the North the Africa, but the over CC&V on have America, of done Chris stage having production from in We'll we comments things And projects I really years. of do. and South great and the pipeline of of in some in it, in years. look in continue we And and we mentioned focusing these to the one Australia. think, we remain and focusing tires got and focused exploration five I kick actioned the those. and really only been a terms you – the

Chris Terry

you it's last some Then mind. Gary. royalty reasonably the one the me thoughts the Northern comments don't and Thanks. if for just hike. about just you on Thanks, that? small got Have think Territory any but I talk is Okay.

Gary J. Goldberg

Yeah.

hand Nancy. I think over I'll to that one

I the been think, that Australia in been been I through rounds. has where mean, We've focus it's has Western of a couple been. talk primarily

working facts hand Our true key royalties to Northern producers impacts region. with has been over that in In gold the regards what other the are I'll where terms that's Territory, in focus getting out on at. of to on Nancy and

Nancy K. Buese

Sure.

impacts have been area been perspective as We our operations people, watching that our people department gov-rel and from movements a well have closely that the as one and carefully. legislative tax either generally valorem-based, very been There in that. tied considered evaluated of our very We plan. ad we've thinking around or to royalty-based have the and profit have understand a our which an on

that our plan build to guidance into later we are changes, way we that certainly and don't the represented also our We this out our watching as gave figure as expect reflect incorporate appropriate. be will in significant XXXX, those we So but that business best and will guidance we'll year.

Chris Terry

me. for it all for the That's Okay. answers. Thanks

Gary J. Goldberg

Chris. Thanks,

Operator

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

David Haughton

morning, Thank what very production Chaquicocha, for what's now? you update. maybe team. My first to and Good Gary can for Tom, question, you much into required get mind. see from it's that don't the if you

Tom Palmer

Thanks, David.

you still your we But as But that production exploration understand if as deck. drifted in can the don't drifts. exploration drifts pit know -- to deposit. in sulfides define we see the slide XX have I sized So and underneath drifted we drifts

capacity there. that So have we

that and mine (XX:XX:XX) then we'd drifts further exploration drift stopes to oxide as to identified – we'll ore. develop now, So that deposit, define have that us And and infrastructure ready through those as exploration mine enable them defined and to up will the those. the

of for sulfides the on is it actually underground drifts bring mill at from of Chaquicocha. in so the it at process current a through synergies will And to to provide further terms Main mill upsides bridge grade, infrastructure. sulfides. ore The provides Quecher infrastructure exploration then our Yanacocha. provide So we that some the work can That do

David Haughton

to look you're So there South presume. called having at the blobs I XX, Oxide, referring slide a

sitting accessible the underground, able tell be to where to pit, by the So wouldn't hard but it's it's only you pit? relative it's to lay-back

Tom Palmer

options, We deposit. you see see but And one blobs the that then, sitting can't that little in in drifting through on you the at where further a through underground those is certainly out those to north taking pre-feas are exploration picture the the that drifts to explore those. access looked we're is we're side underneath mining,

So well. we're pretty might months excited the that what over present about coming as

David Haughton

Okay.

Just a level here. higher question

your development it's at for around year, the CapEx Looking guidance about $XXX million.

Your run rate there well spend that. into balance the we various projects for CapEx the there that risk the big the for the was or on first any that that of lower the there of first And Is implication is catch-up the pipeline. quarter of of in of quarter year a in a below sliding A, delivery XXXX? either, see is some

Gary J. Goldberg

I'll Tom that. let cover

David Haughton

you. Thank

Tom Palmer

David. our rate is run Thanks, The predominantly spend driven Tanami by Power. on

work season We'll now see that Territory. I sinking – the pipe. right we've into delivered, it's Northern pipe you'll five the as in being that we're have got fronts think So

You'll see construct to that's pipeline and start been increased the stations the both at Tanami. power as we

David Haughton

expect balance year? Chris asked understand cap unwind million this it, for through of just about working so to thank the back And the an $XXX of that can some answer. the that the Okay. I Nancy, you of But had and quarter incurred we

Nancy K. Buese

Yes.

Some of to will sure. for that unwind begin

David Haughton

Right.

Nancy K. Buese

as view the how don't will as we'll to we provide year to cash goes transparency free give that some unwind. flow, so a on to of that it's you exactly give on. try Again, hard But guidance kind to

David Haughton

Okay. Great. very Thank you much.

Gary J. Goldberg

Thank you.

Operator

Tanya from comes Jakusconek question of next Please our go Scotiabank. And ahead.

Tanya Jakusconek

that Tom, going on get on What's I've there, everybody. technical I morning, Good Morrison? with on Tom, Yes. a with few were the questions, an timing thought the probably Morrison we side. got QX. decision supposed for update in the

Tom Palmer

Thanks, Tanya.

So and that and made out quarter. a decision with expect Morrison, talked to schedule probably lay-back in with some the other but fourth with permits we'd previously lay-back through it application. that combine first line government third permit the the road facility fourth to the in in quarter, about That's the the on into in final to start a see the we're for Morrison, single the associated scheduled processed come that we in quarter. with approving to now permits being starting We quarter, tailings had

Tanya Jakusconek

Okay.

Okay. Thank you.

into same on permit being it's It's and timeline. So, forward. just the moving put another still

Tom Palmer

correct. That's That's correct.

Tanya Jakusconek

safely. down And reopen let do then, and and number and making in maybe the if done being Mill to of line miners Ahafo schedule? just slipping safety I – and focus fatalities Expansion is we're while, hear obviously sure and appreciate is that what to sorry one the in just the everything looking at Can about know we you in the a point, us start is for at exactly what Ghana

Gary J. Goldberg

Yeah. Thanks, Tanya.

our the they they focused need doing focus families on talked I work weeks, about the providing to the we're over are are sure ensure the as making that safely. last support to So two that impacted tragic getting the ensuring by support really is accident and teams that our

Tanya Jakusconek

of Yeah, course.

Gary J. Goldberg

very mill of piping status work project. construction XX% this the of the of much In around accident terms for the through itself, that and the mechanical the the and we're civil into it, structural, expansion moving phase about in happened project

the of the status and reasonably the project. you recall commercial half if second next that's production's in well-advanced year. So We're of

process, what through assess the commercial impact structural, second of as mechanical have the for year we'll ultimately But we look we project then, half piping all has And speed. ramp refreshers on and risk into it and next that production. to So inductions, a the to we bring timetable. project up stage of fronts doing the we're across work that up, going assessments as of robust on

Tanya Jakusconek

in in know is is just that don't And running, year any timeline we safely. term if point which and at course, or QX we point I slippage. are sure mine there Is number a by making there of up can of that safety say, QX if come in this of slipped. one let's we're down and not that up time the

Tom Palmer

Thanks, Tanya.

and existing the the accident. was were running in hours all surface Underground and the XX the up similar after and to Subika mines mill So timeframe. running The XX Ahafo at Ahafo back up

normal. per So the running is as Ahafo operation

is then we're that I the really this working working to mill. – say, through So we're And as process. the extension

actually his through any As risk not we We're working work and as said restart in Gary anticipating process. through guidance activities now. to our we're change those this talk assessments

Tanya Jakusconek

Okay. the that QX. And then, just three roaster maybe for QX my down the last question weeks maintenance Is to that safe a and assume you we may operationally mentioned be in for it have than panning then, quarter weaker into a up because year the QX? roaster QX, Is slightly out? you how with strong of downtime QX see for picking that at the bit obviously, operational and

Tom Palmer

see It's pretty yet to certainly I second maintenance quarter, be of reasonable, through going think up cost that's flat the it work. the Tanya. pretty because will

to a start to But up, we be see at Subika bit. but into into to grades Silverstar come up actually as the ramp the into we the starts get – or Underground QX, you going be higher will get You'll certainly Merian. QX

Tanya Jakusconek

what then, And capital the of with said, cash flow generation. will adjustment Okay. the Nancy free unwinding help working the

Okay. you much. Perfect. Thank very

Nancy K. Buese

(XX:XX:XX).

Tom Palmer

Thanks, Tanya.

Operator

MacRury from comes ahead. Canaccord next Our of go question Carey Genuity. Please

Carey MacRury

Hi, good morning.

Gary J. Goldberg

Good morning.

Carey MacRury

level at you're You've talk about prefeasibility Canyon I'm X potential you in targeting what of just wondering mine stage. there can and high-level, moved into Long terms production Phase the a life?

Gary J. Goldberg

cover along, this at a Usually, get but to details Yeah. until that. we stage I'll Tom. into Tom I'll where little stand the don't hand we with have big it further moves over

Tom Palmer

Gary Thanks, and Thanks. Carey.

the in we're Gary of this said, still As stages early fairly study.

below the table. and of the pre-feas moving moving moving pit into open extension about really into water and underground Just the project is

impact with working water models pre-feasibility and part de-watering. work agencies key with is work of our the a field the to do and various the the understanding associated state national advance So study of

XXXX year well, really XXXX stripping that as and we XXXX that If we're Phase to in through looking starting, line would and looking and a be to that it's at out and up we the X probably, So year. production seamless first moving work through work be X. current it that over next your proceeded stage after as Phase that come this then into of all you'd would at transition into be

Carey MacRury

production to Phase So X about is up? more expected or levels it go maintaining production is

Tom Palmer

do on of understanding a bit still stage, that it's we're whole But probably maintaining We've to it's early At fair levels. stages be I'd the that balance. in pre-feas. water more current – got the saying work

Carey MacRury

that. And pre-feas Okay. the you've on then, North, on secondly Ahafo completed

can Just question, that? details there is you a similar share on any

Tom Palmer

Yes.

around we optimizing standalone XXX,XXX project ounces as move funding. XX now full production an of it's got about we working looking about for in of about the at mine. X.X second So We're a next the decision forward million existing ounces And $XXX about feasibility, We're a ounces million. range million resource. of three-year definitive northeast life around It's year XX-year move investment out kilometers at annual that development really reserves the in and We've and looking towards really we're mine a of as schedule. into and of half on of of a around operations. X

Carey MacRury

Great. Thank you.

Operator

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

Gary J. Goldberg

our this joining all appreciate Thank you I for morning call and the questions.

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Operator

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

the disconnect You may line. now

Newmont (NEM) 26 Apr 182018 Q1 Earnings call transcript