NEM - Earnings call transcript Q1 2022

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Operator

Good morning, and welcome to Newmont’s First Quarter 2022 Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] 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 over to Tom Palmer, President and Chief Executive Officer. ahead. go Please

Tom Palmer

team. thank call. earnings and and joining first the our Newmont’s Buese, to be Good questions answer Today, you I'm XXXX at executive of members call. with of Atkinson we joined quarter will along available the morning, end other for And by Nancy Rob

SEC can be found Before I cautionary our which note statement and our filings, website. begin, please refer to our on

whole, mining safely third challenging quarter, our industry a surge as the the of a through on three delivered Newmont over managed operations as Omicron the months and first this year.

of world's to the and through people side operating mining positioned the proven XXXX, strength It on disruptions. emerge we our portfolio, jurisdictions. remains our performance not our to Newmont clear leveraging this value model well is strategy to lives create As our The and deliver in us best solid other and sustainable the of and deliver brownfield and wave, only long-term endure responsible scale allows of to mining. from value consistent short-term Newmont’s foundation of stability improve

Turning to look take let's highlights. the our results, at quarterly a

lead health challenges flexibility and significant liquidity, a taking gold the the in $X.X sustain ratio continuing During well Newmont projects our gold zinc. we to billion debt to and XXX,XXX million I as and Newmont's preserving in With first EBITDA copper, where to Ahafo produced and equivalent global knock-on from despite move efforts and financial the silver, hand momentum grow workforce ounces of visited teams ounces as for the Boddington while we remain from our strength forward. and our second in And business. on have total mine the Omicron from as and I of X.X X.X quarter, are first we times, guides net safety Australia, Ghana the protect the pandemic, recently saw surge ranges build impacts full a this track to year achieve half. strong Akyem critical

to invest inspection profitable also Tanami including most We and second Sulfides. and the Ahafo Yanacocha in our at develop projects, continue near-term mill,

week, this our Newmont’s the acquisition project yesterday, and the and established interest exciting will framework in to per announced first within ownership our five last last $X.XX of we in Yanacocha, dividend operation bring XXX%. quarter sulfides which a Just we share dividend of declared with consistent set quarters. And Sumitomo’s

transparent and relief metrics look the launched performance $X to creating most affected our providing the world, the events March, are matter of around the today responsible impacted relevant is Last responsibility value values medical and employees. Newmont’s safety, essential million to supplies to and communities And at for and to ESG our our to and week, are its core Newmont in inclusion sustainability, annual long-term XXth stakeholders. millions sustainability investors, post-governments, integrity, issues people report, we committed our organization a commitment that the sustainable mining values we range being where Ukraine. core before. choose by and run our pride we more and the business in are ever value-driven a and that to war how surge so geopolitical We fundamental have line operate. in Omicron with to take In our many and than provide

the operations our surge provided quarter late first of how an pandemic fourth affecting were could quarter. stakeholders and update our we've February, the Omicron call effects and the expect in in impacts that the lingering our During on earnings the

graph since positive isolation absenteeism not pandemic. the to months the slide, on only positive here adhering include And does of the cases cases of COVID contact shows we see in this over can this close you first largest the year, Newmont from saw As three spike protocols. at and start

at identified site As to a case rule for coworkers days. minimum approximately every were seven sent isolate of home two of a thumb, positive

sick care many to our family also time children take COVID in of addition, to off needed team In members, and communities. spiked as surrounding for cases

Fortunately, remained severity any the low. vaccination positive of due cases has to status, high our very

As of a contractors, employee come. to other have our fully the operations that strongly others side this and eight managed vaccinated of today, of of and XX way on emerge us workforce positioning may

availability how various measures. close the chain However, disruptions as also managing impacted and through contact not the in experienced directly We've Ukraine, resulted critical input new equipment restrictions. productivity capacity our from various global complexities, pandemic-related by impacts isolation both a during and by the been of protocols, impacted And chains consequence border developing has affected state lower and and and the other surge, Omicron although, delivery it safety has the operations spares. and costs. and of quarter first This supply like Russian of supply the from labor were national operations have invasion constraints

factor escalation developed As when year. account higher our described we expected webcast we to December, plan business in we inflation during last this in our assured for XXXX, that guidance

During and remain and used the monitoring but quarter, production of the for materials the are commodities and we ammonium first closely we as cyanide. line such explosives assumptions, with inflation our critical in natural gas

disruptions high stage, may to range. unit and our our X% end by to cost another the of supply toward guidance difficult Although, at pressures predict from increase these X% this the new cost chain

you next earnings monitoring we'll And an closely July. with to our in the call be provide second during quarter. update will QX We

XX tracking positioned land land gold. our On to guidance, are well to the front, ounces within production below XXX,XXX we points for now

results. to and by Canadian of Newmont, and pipeline the deliver our of driven weighted of long-term of along expect production than have year, half we Cerro since to demonstrated as back the continue to on start both portfolio scale proven At will we projects long-term the cost uncontrollable transparent with leverage as with and we to can life the a deliver of updates Ahafo, global we XX a model with commitments. portfolio approximately robust have Negro mid-term continue XX% as more overcome operating And our and production operations and balanced mine the organic Tanami, market to unit with operations. improve created the we these disruptions our our pandemic, to and be through diverse We second our half to

will each X in of any equivalent year that million and ounces produce operating it most to next ounces ounces per gold industry. Newmont year And stakeholders XX% production company jurisdictions. tier important than gold our is the And X% the gold gold invest the our matters. zinc, copper, will XX for is full comes from note and is strategic attributable the Newmont's this choose mines and that almost nearly production, decade, XXX% superior at ownership more remaining and combined our receive equivalent operations the million X among X ventures, owned, lead million from least silver, nearly of is Yanacocha we acquisition joint focus be execution. We firmly of operate this clear where ensuring XX attributable two top managed our to XX benefit with and from of of in believe that that

a reserves XXXXs. pipeline disciplined and portfolio gold to risk into the we with risk tolerance have our is the cash flow mining results the project assess and Underpinning jurisdictions established best long-term industry's our steady foundation a and our production routinely We ensures of deliver robust organic well that which provides jurisdictions. from resources, pathway geopolitical combined program to

for in Peru. profitable exciting history Over quarter entering chapter a and continue Yanacocha to of Newmont’s more expansion advance a Sulfides are period over Tanami as at development in mill including it Territory, performance. the turn near-term our And project, to Ghana projects, then look Rob. Northern we reinvestments We long Nancy in our and meaningful in at Australia's to next and second of you, detailed and the I'll that, with first Ahafo the Rob

Rob Atkinson

Thank you, everyone. Tom, and good morning,

next the to Turning slide.

saw recently opportunity sublevel Let's Tom I visit supply border earnings impacting starting call, industry, progress availability equipment the challenging opportunities the and year. proven impressed into separately critical at operations to in of they Ahafo including disruptions the important of spares. with North quarter South dive impacted global shrinkage our Akyem and and chain as during indicated closures, with new of Besides course, projects start of Subika labor continued fourth and and both we was Mine as mining were the delivery and Ahafo this the the growth by to performance had and quarter operations advance first underground, Ghana the Africa.

delivery an ordered first last in the example, four third pit underground received remaining March As in year the quarter, expected the only open and later drills of planned. this site year, new we originally for much an operations. with drill in the drills sometime the And

has have equipment on helped availability rates that drills, the parts In delay compounding impacts hand affected existing improve no offset our today, the ramp addition performance with of ability pandemic as delays replacement challenges mining these up as And in to have And to from we XXXX. are the but underground. rates, our the and we to situation, creating with quarter to we Subika XXXX in the mining a level improve higher late to include expect to an earnings production a which into adding in access third have may our update two evaluating July. consequence, rates rates for

development host year while the the also through and with continue creating met open throughput the of complete which Tom we hiring the optionality to and and received life approximately four in I complete Ghana, first from lay And develop And is Ahafo in nearly communities, Boddington communities an procurement continues into back construction. and continue future at add region. North the sourcing project, additional to access pit operations we the And milestone important local is will for experienced and sustained with body. achieved The of we is Omicron mine the cabinet impacted mine and and convince traditional provide begin, When project. enhanced work Australia, strong important highway and and And that Ahafo open isolation due to per stakeholders quarter local turning quarter progress leaders as XX% through in the full we few just labor and both performance XXX,XXX surge lasting extend a contact stripping the growth. to solid this pit, value land regulators passes new formally approving availability section North we and underground the in of political site. first the as currently gold strong now close the a of as protocols delivered in recoveries. separately key expected give team an Our week, for impact last for support Tanami, next by the together engineering team divestiture last finally, weeks, the XX% ounces with of years this to

impacts we circuit to remain and grades the fully our fourth improved allowing The access higher by teams, was saw as grade In multiple ore in an to cases higher and we to in ore trucks. for and addition, lower tonnes reopened country Australian fleet increase to from the business many absenteeism first on leading were diligently months. West year. in partners expect contractors we through the face also autonomous the compared quarter freely Boddington’s At to grade March, site. positions at offset to and maintenance time early partially the working and cases, plant team on-site more mining COVID-related throughout production our to Boddington, strong the COVID is first mined due border These in move reported Tanami the tonnes but in

The second our Tanami, also at optimize autonomous team key a very Omicron year. to and a strong lower consistency, to to the fleet, quarter progress and in to delivered the impacts competitive in with despite and finish quarter efficiency life a first the the continue sequencing to surge unplanned strong site the At Australia. to maintenance processing market than continues potential facilities. project from grade labor a mine component extend at site productivity from we truck mine fourth ore XXXX. the the delivering delivered due Tanami beyond As The expansion a performance

milestone with months, completion, can activities. which the photo, assembly nearing the an commencing you frame important Nearly of the and shaft reaming as shaft see the is of ahead, we both another continued delivered coming from solid Colorado higher of here lower head transition the from due focus gold grade in to over bringing to production expected higher commencement the the lower Peñasquito delivering the efficient shaft project from America, gold As performance the efficiency and Peñasquito that the on and ore head large from sequencing of strong that looking has in now lining, Peñasquito significant installation frame over Stripping completion increase Tanami much And completed. production quarter, decrease improvements. mine. in a been the mine Colorado will closer to quarter, has from North and second due And lead cost is site gold the to grade production. ounce, the zinc but XX% this in the the polymetallic the coming of higher quarter Chile to co-product is engineering lining And to procurement mill pit and in first third offset Chile quarter. delivered and delivered

to Canada, Moving ongoing market. very as pandemic country operations and global in challenges, a be the a to by competitive continued standing the our from whole labor impacted

maintained constraints, Due stringent the were relaxed. protocols. restrictions reintroduced flight contact process pronounced mined And As ago, surge at remote fourth testing First to closely and we Éléonore lower our and the locations, the have testing particularly indicated isolation a sites tonnes working have regimes, couple and compared with capacity protocols requirements, close of delivered and strict Omicron months Musselwhite quarter. these where impacts even the to as both Nations,

grade result in we Canadian reduce an absenteeism to tonnes site place the As we seven operations. the workforce of and our during and Musselwhite, example, communities. And and and mill absenteeism Porcupine, the maintenance rates Omicron of in health decided was surge XX% COVID-related February our our for processed spread maintenance. ore virus the of to care a At high as the lower to by labor offset protect of XX% days as as peak the at saw

challenging layback, underway. fire some ventilation well Pamour is to through at mining and extend XXXX. ground for constraints to water at project the continues that conditions progress a site Pond, addition mine the will The the treatment Construction Hoyle plant In dewater Porcupine year. approval from to this prepares a And occurred advance mill shutdown funds a required at in towards during CC&V finally, half a team quarter. the that conveyor pit in of second full first the

towards despite develop only site. disruptions XXXX. the declaration grade investment and late performance. an XXXX. camp early small Marianas site site is to supply CC&V continues continue potential earnings ramping up progress to begin the at higher running and in Marianas first mill first conclusion does and to of And In and life Engineering strong a to advance Sulfides a update the higher delivered relatively performance Gold and improvements rains grade project, productivity, worked Merian mill July. strong Central surge. operating a pending the the of deliver Nevada This utilize complete assess XX% mill mine the that contract from North delivered as determine Coming federal in ore there finished ongoing an to Cerro to Mines, with if very which the to construction is and to of our have to stepping to the will an in the work impacting rich not result complexity of for record a as for Negro our And emergency quarter Peru of underway the With Omicron resulted two maintenance phase as longer we allow America. a only solid are value, construction Yanacocha, binding workforce operation amount our to activities despite performance finally, and concentrate mine. once we earthworks and a it is balance rain process first the during in continues the approximately leach while carry at to from the strategy we’ve expect to the South steady to quarter heavy simpler, a from production, back of strategy decision in a quarter, cost site continues ore

the Eastern roads, storage XXXX. During advancing team operations they the and facility quarter, is the quarter, project, district. progress it development platforms Marcos continued first The Negro, on next well I’ll turn access team of the of the the first the existing the that, Marianas extend successfully decline. the underway in infrastructure Cerro expansions of Nancy wave are the beyond the tailings the and the And can completed to and portal including expansion as districts to you at over San construction with in development Eastern And of slide. to see all

Nancy Buese

Rob. Thanks,

primarily with adjusted includes which cash start $XXX of flow of flow net gold higher first diluted cash look as cash over $X.XX payments, also working movements collections production, significant spend, solid billion a quarter, per period per and $X,XXX margins largely essential In Let’s $XXX million enters tax Newmont of free mine financial million improving a Free of ounce, capital in growing of or at the million and $X.X in XXXX. billion $X of and first the revenue delivered impacted highlights. timing $XXX $XXX to and of by at quarter, life in unfavorable by million, Adjusted life. extending EBITDA capital Newmont share. a the driven income of price attributable real was reinvestment component

from in Taking the related In income our quarter our provides share. world. on and leverage gold into first per gains $X.XX base quarter Yanacocha. significant First transaction a on prices discipline part net to from to tax related higher of operation net primarily $X.XX continuing related adjustments loss diluted from global charges. Adjustments $X.XX share. million our included the evaluation largest a annuitization per to reported balanced investments, the loss with allowance, Zanja we the to was unrealized these and related $X.XX $X.XX or the adjustments income market equity a settlement, La adjusted increase as non-cash of sale to to combined other $XXX account, portfolio of to pension production GAAP at mark ownership $X.XX $X.XX of

increase base prices the in gold attributable $X.XX $XXX in was world’s Newmont dividend industry flow, provide ability half every And above mining a $XXX predictable is a leading to year. Yesterday, only gold to capital million execute Newmont in the free allowing with company delivers from framework generate allocation of flow cash strategy a the per to our per incremental incremental gold company. gold with basis, per as our the assumption industry For quarter assumption, decisive A the build or first and at and priorities declared an free our these XX% stable of levels cash a distribution to us conservative dividend attributable share, confidently returns. and position and announce free clear annualized an cash. first of the year ago, share on calibrated price $X,XXX $X.XX we gold at Newmont

We billion confidence business quarter $X.X shareholders demonstrating determine continue while dividend financial our along payout over our months to XX from future. review financial assessing our ability in each of perform framework. the dividends, its price and board to in long-term Newmont returned the value the ago, Since reinvesting flexibility, introduction our our operational long-term our has outlook our gold maintain our steadily to levels and with dividend with within to

we X.Xx, advancement to and robust projects shareholders. on of to EBITDA allocation sheet priorities with strength with the returns price projects, priorities unchanged financial a asset sheets organic leading maintaining per financial and project, remain an each to the on strong class leading and enhancing growth strategies, first Yanacocha of and in on Our our remaining in and through industry industry balance our net by and progressing to across acquisition our our delivered our near-term cycles. the the through Newmont’s Sulfides our basis the in billion interest profitable dividend these improving business jurisdictions capital balance ownership the of an a provide with ongoing mining preserving into $X.X $X.XX flexibility reinvestment of ratio exploration In to of commitment quarter, our and to world a continue debt exploration of flexibility to clear business share annualized sustaining strategy liquidity reinvest and maintain

world’s the in XX. confident and priorities, position disciplined I’ll hand business are to our maintaining gold we company. our our value for on that, to leading capital long-term ahead, back look ability With we it creating deliver Tom As the as Slide on allocation

Tom Palmer

Thanks, Nancy.

the its the Newmont company’s these Part our suite company. report. have environment, a to approach our of week, Last long been and and ESG and woven very practices our governance including acceptance, and have areas in inclusion in diversity. practices the history XXXX safety matter of sustainability embedded into in the are strategy culture change that most Newmont our and health, security, and reports our of key fabric to of annual rights, leading launched stakeholders, and social ESG human

spend, important workforce, billion represents an our played and contributing $XX.X operating wages financial finally, and to our contributions this in industry in sustainability health, to year prevent visible holds bonds workforce to Some every ESG from report performance, include of royalties bond a for that verifying XXXX the decision important continue we and fatalities provide wellbeing host first put COVID areas our awareness work-related fully of meeting near this Global operations. reach facilities, targets, performance and and controls workforce communities requirement leaders the performance. was in our Fund, critical role bond, to equality vaccine to With established at aligning leadership host paid coaching we self for costs, with and the the for Community of highlights to the fatalities this By of economic the the on A And interest key and adopting creating our our to capital initial rate focus We taxes. sustainability campaigns Newmont a and jurisdictions third year’s zero vaccinated. made the rollouts row reduction testing safety next heart linked our and supported communities a Support vaccine XXXX. step by pandemic. leadership. this our see of our through all with gender frontline in part account of Continuing make that benefits, during linking to also Newmont to be value, our

risks regularly scale We only and with ranking believe second we mining will we issues to world our and a opportunities, the gold communities And cash we a month, report, are of will our the successful we climate we one achieve will matter and one disclosing and people. we understand strong been planning performance transparent and mine and annual today, the our related partnerships launch Newmont’s to taking protects ability in We’ve ESG strategic the of and targets. face which life, be non-financial is if the outline the that of pathways for our that In climate Newmont leading industry to forge generation, flow Next those will the an the critical Newmont strong an global order demonstrate unwavering is sectors maintain indicator run leaders XXXX, local ESG sustainability organization, environment XXX need commitment address recognized as practices. leaders. and since mine positioning creates superior companies is opportunities most S&P leader. climate performance and to for

our differentiate leaders. global with a to ourselves focus edge and operations an projects portfolio and experienced of model clear operating We integrated strategic continue deep will and unmatched through of our discipline

As it over we line to that, years operator sustainable responsible the I’ll next and And to of with in for mining. our continue the open questions. turn XXX

Operator

Capital Jackie is with Markets. question you. comes [Operator Przybylowski BMO Jackie, now Thank Our open. line first your from Instructions]

Jackie Przybylowski

much. Thanks very

you the could what like I you working was and if and that ask give I in us capital? quarter, It Thank cash you’re for to reasons capital want statement. had I pretty about wondering high with a a working think some the question spend color looks your you. doing on flow

Tom Palmer

Jackie. morning. pick Thanks, you Good up to Nancy, this. want do

you, up to Jackie. question Nancy pick that Just across passing to for

Nancy Buese

– working in working of in payments – revenue capital related capital were sorry, tax the to and in that related So tied XXXX. changes QX really, that income were to was made received to related that was QX relatively

that was the So biggest.

some that the sold the as yet also of end We been had of inventory quarter. not had

So the key were drivers. those

Jackie Przybylowski

guess regions, spending, specifically I in because color Thanks, Yanacocha other is like you for And on and guess, spending specifically isn’t a will same there run some probably some look you I’m expect yet. thinking projects I guidance. is Looks pickup development rate weighted Africa. the decisions South been haven’t your below Or should like? us Do CapEx expect But have Can year major which in of because of December just full Nancy. sort quarter before to really you little give like fund Sulfides can And one the your spending question. bit sense CapEx spending we in the in your the the lit American-Africa, the color makes at give full some full green that least terms us spending? those fourth and see terms of reached? thinking what decision to until I’m it’s the of due maybe funds

Tom Palmer

Thanks, Jackie. I’ll pick up Yanacocha first.

of decision. the You will full ahead spending pick up funds see

terms of quarters. double considerably. we quite quarter spend largest spend move the into We’ll up more certainly was than that the builds that in first the three as So remaining

So spend in second first waiting the XX% spend half in through you’ll the quarter the to the second. XX% build half versus half

with the be at end full a similar for year are of that So we spend North. right, story will And you towards Ahafo the fund approval Yanacocha. building

will moving be We diversion, are doing of cleared structures the the and areas farms. spending and important to And the the land able and procurement work on money around regulators engineering do traditional the like of to getting which now break and with we and expecting approved leaders get this for highway the to to will all in come us which that are in – been be place. really ground, and through has quarter which start to Cabinet by just the

see doing start build North – ground you get for Ahafo get the as a as the people on really the workforce to up half. spend so And second that you build earthworks, in and you’ll

waiting So Ahafo in seeing for the half. a I’d be North similar second

more So XX%, if look for you’re XX% like HX. versus something I’d at modeling, HX

Jackie Przybylowski

questions. all That’s That’s Tom much Thanks my Nancy. and very perfect.

Tom Palmer

Thanks, Jackie. Okay.

Operator

you, Thank Jackie.

comes question from now RBC Capital is next your Our line open. Josh with Wolfson Markets. Josh,

Josh Wolfson

to spot X% you the versus, at guess, the Is high current costs of Great. the upside there sort take that play? very What on guidance I’m X% that much. what for end the you you additional of assuming the towards could continue expectations. I that Thank duration color of Thank the other range. are for that incorporated? does prices or the guidance year factors wondering

Tom Palmer

in than if cost Josh. end another X% of of it’s to that on you closer total makes XX% the the that’s about looking well level somewhere look our of back talk as contracted are But and of modeling the on as just labor us operating X%. as Thanks I is employees. unit spend metal, our top costs probably our you portfolio off it’s up basis, of gold And think if a detail guidance. between X% and towards that, our the drivers what Yes. labor it, might across if you X% of terms ahead look you through at we

to community. and specialized of labor that both combination wage that to shuts coming So specialized we being for major what for come of get do Western into as with we And see COVID being services, Also, in to Australia starting time into well availability instance, were couldn’t through because actually as shutdown. of maintenance services a or scope labor, large arms shut one you the the in site through we bring that had the their for released be and labor simply the or seeing shuts. the are prices it quarter. the first labor Boddington reduce mine premiums general supply of legs starting that contracted services shortage to for you whether If of are quoted

be will we’ll But to quarter. really flow is it costs, And that you for think and So second the it plays through for we being come bringing operations it feast. around of also of quantity what through if X%, in X% that want exploration, We to through seeing, by the out to XX% that operating moving through in see – that we’re are through. some starting see how globally. because that contracted is about of of services will flow of And given a the then projects. bring driven some of indicative some of to that contracted to we want that contracts the services are to is capital money play that watch X% lot seeing our a what for our you of sort Josh,

So, space obviously ammonia, explosives And driver that we’re to consumables. used The which an to watching were extent, real next carefully. is we XX% due for cyanide. steel The prices. rising in and and is the media that materials grinding

also that actually the carefully mine the materials is consumables increases sites and explosives operations flowing a what’s you probably a on our that than of seeing XX% small XX% representing to of we’re to monitoring more it’s cyanide. but really costs monitoring of have flow increasing when cost, probably, landed our proportion that and to through cost, our happening see supply getting less pricing, cost We’re there’s consumables and operating cyanide through. obviously carefully our ensure And to our impact global That’s we freight keep in higher to chain. operating per running. What that X% for those we’re need

actively obviously the [ph] eye barrel, our So our we those assured about last level that’s $XXX materials then on over critical cost, but a wary of XX% a is and more for focus and keeping and consumables. $X a And is barrel. one, see the driver energy prices some of We supply diesel. monitoring

But that So we part operating that’s I labor, to number our terms through the in through the year. going look as be will of flowing business of drive remaining at think the cost. Josh, what’s

Josh Wolfson

some about there some I challenges of chain in Wondering a or on some localized item comments it is of as more earlier chain is of Great. the for specific the topic. maybe, specific on that. this across provided Maybe, the well But Thank Or years on jurisdiction disclosures is challenges stocks you I for question were Or from these kind supply Ghana. supply XXXX as, areas? guess, had the one well. There XXXX, as it board? major all components?

Tom Palmer

underground opening components, to we example, it’s the up development Yes, need fronts. suppliers. specific it’s pit more the the getting both Josh. Africa and it’s In equipment the guess [indiscernible]. in, I drills but open And

components are up, some which in of through. together, get a a components are can are but that equipment You that means lot there coming delay filled there

sublevel African mining at underground, globally. drills up shrinkage. will the a be it’s beaker opening time example, It’s particularly industry impacting which in critical needs So a just the drills,

specific the the Western some Australia that the people were issues. of to that’s operate equipment. type Western global and supply some So come closures the and specifically boarder Australia of of boarders key chain equipment And or key then resource that out of

so restrictions we’ve now And some of had open. those some that back challenges are through navigating forth border and

so And flowing. that we’ve got

getting of in supply Robert, do but work that? to to our that do those we’re in operations. chain you some pieces we an So to build mining constraints the plan still that issue, equipment of critical less on want order do seeing is

Rob Atkinson

just Yes. to little Tom. And more Thanks, a add color. bit

drilled Tom project, It everything. specific for graders, trucks, haul it our as But our of rightly was trucks, water specific types Tom gears, As says, types specifically those the it of our through. Ghana North coming we’re said, are Ahafo parts. receiving was isn’t is really

Josh Wolfson

that beyond Great. And that there had stand else on is that anything tightness? item kind would one that can is Or number out? of of you equipment of really that think level

Tom Palmer

I one equipment on us, particular Josh. that’s – side, type think been a issue the the for that’s the

to I think and supply as costs earlier, the tight, we indicated I to that’s labor. be is need monitor, but be for to that going area going

we’re weak, this and of a to of very, at for lead operation to we’re time, is the to we’re deeper very, some better up to open that making decision headings mining I and that take coming think to manage making that level volatility recent is of back and and very key we’re operations. potentially And to that and ensuring It’s a monitoring that’s decisions Knowing issue derisk closely. some driver. going supply relationships, going consumables, – some our to global those linked long-term our be the chain, our obviously, managing be also we just this into stepping from operation able world drop third be ore, to ahead. the to disruptions around underground the more now have investment which looking some down industry that the derisking

to that forward. these decisions make we’re So, issues manage some help us going of starting

Josh Wolfson

Thank you, very much.

Tom Palmer

Thanks, Josh.

Operator

you, Thank Josh.

Tanya Jakusconek comes question is next Scotiabank. with Our your Tanya, now open. line from

Tanya Jakusconek

and questions. Good thank you my Great. for taking morning everyone

just to I if it keep could. three, I’ll but many, So

and because ounces just of for little sure you there you Just wanted that. provided X.X the come bit looking make XXX,XXX did year? I on thank back for Tom, you to guidance static this I heard was just that below correctly the to want at it phone. to million a we’re say that

Tom Palmer

Yes. that’s so and below – color more see to we’re open you ounces that It’s about Good XX I come I’m are morning, I that XXX,XXX Josh will just the X.X we little level the Yes, that down, third do managed open to as starting commenting with midpoint a really, it’s million Subika up. derisk ounces. up from bit forward. move on correct. around and to And about Underground back, that give referring if that, we of XXX,XXX Tanya. to step operations that drop operation really that was work XX%

XX% think Creek about I Cripple and will come from Victor.

year, the that seen this site. the look As impact and through that of the we’ve the very mining that delays heap to fully last important we to operation, vaccinated plus we, decision go part of start and surge to year at both the took again, leach simpler of latter through of Omicron and just the move some incorporate to

operation some open of heap-leach of we’ve think get to the move some will have ahead first been contribute pads. Canadian operations the remaining up more ore the quarter. And pretty made I to to up waste work across So, the XX%, about a the we’ve get then disrupted through now got the significantly that to simpler do life XX%. onto to three longer them And

about XX% Canadian underground be about will around CC&V, XXX,XXX So Tanya, XX%, operations. XX% ounces.

Tanya Jakusconek

going all your And asset weaker. to one obviously, a that second first the that Does you was you half different only bit stand? and does breakdown in noticed Okay. still Peñasquito. of XX QX – was be numbers the provided your The guidance mentioned half I is

been I QX weaker. you I think be is mentioned guidance had think going equally weighted, but to

Just that make understood correctly. wanted sure to I

Tom Palmer

That’s correct.

gold and production, when you a course see of look bit year. that, of to going we’re the mining You’ll kind see of the see through a you’re at seesaw where with

gold, So you’ll see you’ll in it on dropped – the quarter. second see

in and it the again the effect. third, seesaw then two it’s climb a but in of drop again the halves will weighted fourth, that across bit evenly We will about with

just So mines through the we’re phases metals different as tenant. the come you’re through mining the of different both different seeing

Tanya Jakusconek

these have an performance? to question you your Have seen on last how guidance. been see, the jurisdictions? in my just with And April productivity and I performance Okay. to just in in like improve wanted respect Omicron

Tom Palmer

for, the where communities very I of with testing in the work because strict might side, I’d out mine. except side, out still isolating certainly with the our close Tanya. coming quickly other connections that and we Éléonore, through four protocols Certainly regions, the around First Coming of our just Canada, say, Nation other are

is common moment. open place So, Ghana we have kept – Australia, is is well. in general, Australia some progressing general, in early and certainly where in U.S. see the the a in Cripple at think pretty as controls in its Victor But stringent I wash on. up. Creek the at virus and Canada with

come [ph], Yanacocha to pretty Peñasquito and Tanami communities in still solid other to other through side you’re starting is mill through really the solid being Merian terms Australia. in the of is and around [indiscernible]. the is April side the out of but impacted getting Negro So Cerro being that of Boddington, and in the

Tanya Jakusconek

Okay.

looks through more if good. it is it, could. which to just you’re then I’ll coming like And So one it question, leave I

and closely on contracts pressure year more up other you’re I that costs obviously, could ask your you above mentioned You monitoring labor? your beyond? come any this your put that Can contracts, or about renewal that Do and consumables. have labor for unit

Tom Palmer

agreements. July, and Peru currently Mexico and for got then process We’ve Ghana. scheduled collective of got contract in a then delayed, is that process number by in been covered Surinam, it’s in negotiations aren’t we’ve sites

are those negotiations that seeing we’re there’s So nothing how but they’re terms proceeding. in active, of unusual

Tanya Jakusconek

Okay.

within guidance contracts. these assumed. Whatever guidance your range assumed that’s your in for So is you’ve wage inflation

Tom Palmer

That’s correct, Tanya.

Tanya Jakusconek

other global about that’s your what chain? supply any your on you supply cyanide through? renewals have And Do – coming and/or

Rob Atkinson

No, there’s on nothing medium coming Tanya. through term front, that in the

go. needs So to of and where cost it gas one, the landed managing logistics costs getting it more to of for that it’s from the input cost the

Tanya Jakusconek

the chain within renegotiated? that else to supply nothing And be has Okay.

Rob Atkinson

Tanya. Nothing material,

Tanya Jakusconek

you let someone I’ll perfect. ask. Okay, so Thank much. else

Rob Atkinson

Tanya. Thanks,

Operator

Thank you, Tanya.

your line next from of Lawson Winder with is Our Bank now Lawson open. question comes America.

Lawson Winder

able we stay just within stayed were to assumption to go and Nancy just barrel, still some Thank well. very you, that on per today. per to back be If to Rob $XXX and sort Tom, the $XX clarity that of I fuel. the get time if guidance, within specific the barrel ranges maybe Is and your to believe correct? one Good that And for verify else morning, you’d cost you could as WTI mark-to-market update exposure all versus of guidance. the operator. at sort just Thanks more your

Rob Atkinson

million Good price, generate incorporating our we’re every free that staying congratulations on price, your X%. fuel gold but but flow. certainly additional barrel when is making million within have Yes, cash guidance costs. cash around of morning. at that $XX top our of increase in levels hand, portfolio and due push That every talking But year. about morning, we and probably, impacted that our information an for Good And per us range, in the assumptions looking role. new at is range Lawson, to guidance towards current other Newmont by in the piece flow to the $XX $XXX oil per change $XXX free seeing

as the top or obviously, in And diesel earnings. we’ll forward but QX is this So update going we provide making that what of through around world oil. our of this to a bit cost quarter. oil that But more certainly thinking current prices remarks, oil’s into I year, move compensating the the a further the giving our additional end with to indicated as we’re to do want we’re being understand revenue that guidance. and this side going we’re the around is assumptions for about But the incorporated indication

Lawson Winder

the Okay. costs, on That’s typically, pricing very regional. And is then cyanide excellent color. cyanide

are particularly, across those where seeing to regions? inflation I’d to all you’re increases prices there particular inflation the regions if So, Or than reference XX% that seeing more in be that curious And in you’re seeing? others? know you’re XX% to

Tom Palmer

board. the across by happening with board, that across the and of driven price seeing what’s gas much been pretty the it’s We’re natural

little driver a it’s the of different than, bit So I circumstances. normal because guess,

Lawson Winder

that vein, build. might the capital part be might then That’s on in the that also, sort that curious to structural And great. inventory of if you that I same could build – what to year? the I’d be up build extent Nancy, of Okay. is extent chain inventory what of the build. related? follow mentioned that And through unwind supply rest or working

Nancy Buese

That to just quarter-end Yes. happens truly that convention a was from time time.

then So a taken those of sometimes, place quarter the as consistent think sometimes, buildup a the that wouldn’t that variable that modeling of have year. the a will already into all end we And throughout April. and of sales we don’t. release of little have But at bit I for yes,

Lawson Winder

would a you so expect typical And unwinding?

Nancy Buese

Yes, absolutely.

Lawson Winder

Great.

Okay. buyback. What that that just with the And opportunistic you tell intend Obviously, I you a then. be then latest the shares? understand it’s on indicators your one your thoughts to final that. are question to get repurchase good just to time Maybe,

Nancy Buese

of our Yes. myriad current own kinds some trading look We things. at valuation, amongst of peers including our always factors, and of those forecast, a

time a when proper buy So, we’ll and always think get about shares. what’s is and value out good to

do. current we as that tool the use a that volatility evaluating in just that have on program. always some at do continue left times seeing we to we’re We still today, as we’re So certainly opportunistic and runway appreciate

Lawson Winder

Excellent. all Okay. you Thank very much.

Tom Palmer

Thanks, Lawson.

Operator

Thank you, Lawson.

is line your with Greg next from Greg, TD Our comes question Barnes Securities. now open.

Greg Barnes

the to projects impacts want and I Rob, capital you your talk about on CapEx-wise? seeing and across Tom timing supply issues pressures Are you. board. and chain cost Thank

Tom Palmer

a Greg, little color. I’ll more bit Rob, for maybe, you I’ll throw that morning, Good to pick and up

And years the shaft the Greg, And are up from kilometers, capital through line Tanami seeing X, we drive three really three that that the that now that ones is maybe, air nearing the just for in them, frame of as two we – we set that impacts we are of order away that talk complete so then So will need it. the line capital key a X.X projects key or to matter in couple month well. to certainly completion having the to spend. the on labor of specialized of completed next shaft. reading a development

ready is a that set, line job in that labor to key. specialized for go to specialized is So getting shaft site what in very

milestone finish We of cost have and understand the important to that work, as pause fit an that we both program the that and to schedule and reaming out. shaft

say specialized more good of on a we’ll going one. want That’s the on view So pause I’ll any like. drive Greg, in some position a quarter the matter will a did impacts months. third need we I run of of looks have to to on be say, that X. be there. that Rob, each But couple X? in to would color but what labor to within you Tanami a good the Tanami home get to this is build pretty it’s going There to

Rob Atkinson

work the Australia. only Tom good in other have think is it But the that so Greg that just that, supply we procurement, planning I and highlights availability said, good engineering really around is done we’ve and XX% color particular in the labor done. as that the in work

the the a of helps pleased creeping that. skills are rates seeing open third up that are that We’re and that very borders being these specialist that are we

Tom Palmer

Ghana to North question. landed complete a We’ve of earlier Ahafo as is answer in engineering lot indicated [ph] and procurement equipment heavy a Rob key got then completeness the XX% now. XX% And mobile

that, getting getting access. land we into So the are really

works. the open And the facility. breaking start getting them, to civil into of ground business then We’re serious build mind a do up and starting build processing to the

like engineering by clear then more view clear unfettered that of the for what quarter, we The date looks milestone for where that’s pricing a that back and to project understand us have there. to schedule will important one step to have gives us So the that happen to have cost. which and access again equipment second that that’s definitive through that land, that getting schedule then

milestones. during in you Tanami we’ll give So similar I on getting based timing key probably a upon position two to update to an think quarter, add Rob, good X there the third be those Ahafo. anything

Rob Atkinson

that my the that. that’s lease. is goes road We’ve I other one, the in the move think through about significant a got only a approval milestone just cabinet full Greg, that road to that preamble mentioned

positive was terms again, very step. in of that a schedule So

Tom Palmer

locked delay that And driven by we the Yanacocha of then we’re the electric of made decisions equipment is to for the XX circuit. the factory and mills, committed or the core think in ground year. committing motors, fortuitously key the full of – pricing major with continue on but pressure vessel end plants, Sulfides, oxygen to The instances to the a this I to we’ve to given in third actually part with forward autoclave, pause will one we pandemic and approval, funds lot pieces by packages the the slots what seeing be world were Yanacocha equipment, autoclave the oxidation the of move

some got project number construction the those So to a we’ve to of advanced. is work. been of commit able to making around elements of that Engineering derisk by complete. decision well of camp packages XX% We’ve

we towards full the funds. And need that project move whilst as closely then and come engineering, a labor, very a that we out understand both working we that with things stuff to pieces gear take are build of bunch as that that de-risk there’s doing to facility So that the with you we to other costs. detailed the inflationary around all up other work that of with workforce, detailed construction and we’re a project engineering pressures Bechtel

front year. for So the input that? to Rob, that’s later decision anything this add full important

Rob Atkinson

the and start proceeding workforce is other key think of autoclave obviously construction of to along continues Greg, to this you only come go where but covered the it. the You the that facilities the of plant allow thing, Tom, in to camp major update and is majority construction And Well, the very of that’s process I the well. the really well. rest the

Tom Palmer

sort of does that give looking Greg, the you’re color you for?

Greg Barnes

Yes, that’s exactly it.

going project so think Or event? that update Sulfides, do QX that a Yanacocha And we’re be looks what on as more to well? early will a QX XXXX like in you on get

Tom Palmer

drop to month we’ll schedules. of and Greg, And the line out, you've as build engineer QX, an the estimate funds basically piece then so or the we’ll next got drop say, cost full schedule to flick quite detailed on those towards the extensive do all work decision. out flick the in engineering More

quarter. quarter, the before So the that the other that’ll you quarter third third together, have but all of be in two so certainly the fourth it’ll come end consume of projects

Greg Barnes

you’ve range the seeing worst And is Okay. appears about you of and to off just the of Ahafo on XX%, inflation talked in think at least others, Tanami XX% finish North? what that to that you’re do CapEx avoided or

Tom Palmer

of that talking the elements and the cost the certainly engineering we've to been terms mining that There's we’ve because the about escalation of that we’ve and like. underway got industry in are done able procurement avoid

However, so the has more impacted the is pandemic the work. for issue pace do us you which the at can that

what pause And it’s schedule work so us, as actually, to you what and and we going look the you forward be. – as milestones going assumed the it for to those against is at understand at be we we

an be to a probably longer it’s time potentially carry you going us you’d than issue the of for For costs assume. of more indirect period that

shaft think that some us escalation. aligning I going a and see we’ll cost to a be labor factor that’s So we’ll elements elements, for for have and specialized that we’ll see of

given element it don’t Rob, whether if around wanted there’s Greg, I think a pandemic projects. of related, into bit, that’s jumping you an element know be And we there’ll an were of sort I So to. those it.

Rob Atkinson

to cost into all that that on. seeing the been we’re of eye obviously, mentioned where goes to to particular I Tom an Greg we’re our very is, that’s and something making we’ve provide engineering. decision labor time items is going But Australia, we’re before, I going the – of which and reinforce the no and that issue, the in as would to and managing cost doubt long just biggest capital in advancement is it’s And have risk got closely there’s of the pre-planning keep the around that’s upside. the labor, it with risk lead biggest we’ve good think the the that

Greg Barnes

idea give or early to labor of it? I to don’t much the percentage specialized terms is an This is but this, you say up how of what too believe can wise? perhaps costs, expected, want in going you it it’s

Tom Palmer

give think the probably projects You just definitive capital better and milestones number definitive – numbers two I then those and hit wait generic. you projects I more rather Greg, costs we throw think as apply out schedules sort than given and of they to the those have that’s a to bit a those

Greg Barnes

Okay. Thanks Fair enough. Tom.

Tom Palmer

Greg. Thanks,

Operator

Greg. you, Thank

question next – go ahead. comes from Our

Tom Palmer

until stay to we’ll everyone’s welcome the line we’ll stay you But stay move question. question, we’re asked so until before exhausted on more everyone’s here Just than on. their on, until

Sorry operator.

Operator

Thank Understood. you.

next Our Fahad question line Suisse. now comes is from of your Fahad, Credit open. Tariq

Fahad Tariq

answered. Thanks. been questions you. Hi. Thank have My

Tom Palmer

Thanks, Fahad.

Operator

from is Our Anita, now Anita with next question Soni your World open. CIBC line Markets. comes

Anita Soni

Hi, Tom, good morning, Nancy Rob. and

to question, wanted Greg’s up just I related follow So, to on CapEx.

on and capital you like in transcript that had said QX guys through was So would this it looking year. previously XX:XX I be back the a split

whatever about next see you perhaps about in perhaps reasonably, budgets should the that, has it second It’s you if So you as of be after that rate sort might can’t was the because into work what labor that’s Yanacocha is understanding, moved rate you’re Yanacocha the of kind if this, that safe not little, you I’m – in of like because it’s year because might delay the happening, Sulfides, now, delays next have what the because go of been and the we a that of Sulfides? year of half or XX%. impacted we spend, that spending’s and And assumed moved be spend. assume to year I thinking a but the think the saying of only get at a the the startup by came timelines out up and

Tom Palmer

that still year of terms half, think I that. I you’re weighting first the – see the think, and morning, Good year, describing of we’ll Well, flow think in you’re profile, or you’re the nature following following projects it. just second will spend Yes, after these going into into Anita. that similar forward to flow year that I spend the

maybe you’ll year. also into So it’ll XXXX a an be But more it’ll of element I that as spend move well. bit next I think think see

just like year, of for the once taken, the be progressing is felt funds Still moving forward. towards full will funds complete. end that that decision it’s And decision sulfides. So full camp

up. higher that gearing X,XXX So are it’ll basically workforce And lot Bechtel the Bechtel have of we a for beds people, work. directly for

the with so decision full and And the at year, gear the a up up ramp funds we get end we assumption to of will start into XXXX.

on So I in starting us [ph]. delay a wouldn’t to sulfides break see ground seriously

Anita Soni

Okay. and of And big then all I assets a question look the the bit through is pictures. second operations.

I a that bleach, definitely Omicron, just most grade, assets the on recovery the really most thought to were but you to I prior part, compared but as do heat And in Eleonore to may was low it is substantially of impact actually rates versus where operations, For last prior grade that low grades, of CC&V the one you be kind I And that came was had if of quarter. one the in in that quarter, quite rebound more the below. an grades reserve of what name a Ahafo, wondering would’ve there the that, the tonnage then them, decision. are like expect team like closer grade some with weighted

of could color you little that’d give grades operations, at if a these great? of about So some be bit

Tom Palmer

give a a talk color I we impacts costs about what this bit the to indirect the of been of Rob, pandemic, in I get surge a and is just give pandemic think also from operations. call do impacts the quarter labor I’d Thanks overview you’re of the seeing bit a on But the has Omicron that Anita. might those and to terms direct note chronic. But some of you where like. availability in What a on it’s general particular

if what as are otherwise business sequences mine your were your different been from have unfettered just would’ve so normal. they you access And to run

of grade or So discrepancies as the get some this would month where that certainly offline particular wanted in into that where Peñasquito, indeed is and we you stick of of happy you you compared Creek assumed and Victor you moving of as to well. a be, that to stronger more the than quarter mine sequence second I some where & is half if to up higher year, Rob and part are or with you And detail linked know grades. Cripple for pick you through to go don’t

Rob Atkinson

Yes.

I I need think, Tom, just what reinforce things said. Tom key the to you to covered

It the COVID challenges with the developments We’re not some major timing through great any truly seeing of challenges. our go is behind. that

CC&V the particular, we’re underground right certainly We the availability happened major bleach or Canada as – different fresh see there. the we’ll you moment, mines but able bleaches there’s heat the grade And coming mentioned. see that rebound again, in the we is that And or months. you’ll as had haven’t lower and that’s nothing in people, those to the in said, stops. that each terms the quickly nothing of If uncover in And heat Peñasquito, quite sequence, at raise. Tom in

issues. by expected, getting certainly that has Omicron, ground but is development some rebound impacted, the it sequence. later you’ll the the around to of So the year. still underground no It in grade sites in timing. and at the those time were we stops is around in major The the is see of that the the just can underplay, affected especially we And mining lack

Anita Soni

Okay.

assets, these years compare things, of getting at be, development on work if where right. look trying you we culmination as so, it’s some basically on we slightly behind so, the would to And were these of, two

Tom Palmer

have Yes. up be two to to the other there’s There’s months. is unaffected, operations which been two worst so relatively Up years, only much but years. six may

Anita Soni

All right. much. you very Thank

Tom Palmer

Anita. Thanks,

Operator

you, Anita. Thank

Josephson now with KeyBanc. your Adam, open. Our is next question comes line from Adam

Adam Josephson

Good morning, cost, everyone. taking on for of don’t you questions. couple if questions for you Tom, Thanks mind. my

this XXX So has it up your being call gold XXX, if year. ends

your of Just which about imply a just affect highly are your would general at per does experiencing, if and ounce, others inflationary many given environment. thinking inflation decline cost healthy amid this quite next stickiness and you guidance that for all, the how that gold year,

Tom Palmer

numbers. don’t inflation assume we yearly morning, Good guidance, any those our at They’re cost Adam. you unescalated. When look Yes. in

next combination that in guiding out year seeing get a the So typically pandemic, with towards world playing the in what’s for was that it to number we of pandemic X% this to of the were if would year. we into the in have unprecedented Ukraine. as we with before X% and are war standard built built is What terms escalation seeing we them

and year, we out terms regarding to to how to the more next build in business So going out our we happen then other the December. in And next play map work key to start Meeting to year. pandemic, plan of going What’s with what our like key around leaders with chains what’s settle look starting going I play this our got in in approve Board down events week supply of actually a think business and out the towards we’ve is Ukraine? to as plan few see October

looking So happening macroeconomic how to in coming What’s a that’s at are like are structural, like? step back, unit at… And we XXXX therefore we our will look next months ones the what’s So costs look look sense. and which is what on what going what’s year? cyclical,

Adam Josephson

way relatedly, as – long one, we’ve just is would in cycles you on Yes. been through. cycle there seeing last inflationary said, question? seen to none that unprecedented. inflation things just, we’re cycles to past you’ve Because that. that and appreciate or And this then never I How this for, consequently no that seen is past answer meaningless you said, or this, is us like on No drawing drawing have expect you this environment? just you almost of

Tom Palmer

we territories, it's observing I'm seen an industry of think – in I throughout terms we similar the what as so Adam, caution. a than very, we out commentary, reporting as so unchartered see cyclical macroeconomics mining folks still, as I But more say you've think in there's cycle and in very at would it still after in I I and – long are unchartered the a some are territory. unchartered that are and debate, territories, the look structural.

Adam Josephson

those And long what of previous has what inflationary just roughly the for – just duration cycles speaking? been how have, you,

Tom Palmer

a of drawing I'm years couple inflationary but speaking, cycles, really here. straw Roughly on

Adam Josephson

No... Yes.

Tom Palmer

history. It's just unprecedented is circumstance that in modern a

Adam Josephson

Thank understood. very Tom. No, Yes. you much,

Tom Palmer

Sorry, can’t help Adam. you,

Adam Josephson

No, thank you.

Operator

Thank you, Adam.

with is Mike, National Parkin your now Mike from Bank. comes line question next Our open.

Mike Parkin

for guys my Most asked. question. taking been Thanks have

is equipment? it on a get getting of more of function sourcing function just of is you the to; and terms speak one, underlying terms site? it a more bit equipment. follow-up delays shipped in color to is of in of delays it containers situated? just where challenges the Or and the you with Can delay Just a securing manufacturing in Can

Tom Palmer

been the delay morning of Good manufacturing. key is have drills Mike, that problematic Yes. particularly equipment for that that us for some that is

drill in actually manufacture. it's and the the So queue getting

So it's then within those and those the you need availability have and to door. then come having out shops, them labor – materials aggregate the the drills

got we've North Rob Ahafo So equipment the in has ground heavy is on what for the Ghana. indicating, of a all mobile

from our build want some a But although on we and do key Robert, get, with there facilities, freight, that? within logistics warehouse delays. are to the manufacturing is to challenges So albeit the with issue manufacturer's shop. can you

Rob Atkinson

I'd just delays their – the cetera. microchips, of they're the Mike. think hear new cars, each that very manufacturers, get carefully. And know very all automobile things. capacitors, And but in you And to add similar very, equipment can one the it's a industry things, managing supply couple the whether some it's not et they we for significant points I of whether that what chains there,

excellent the it's supply and global chain. but their of And have manufacturers, those well India, whether equipment advantages which just key elsewhere. cetera, et as from one challenges, staying are car ones in – we relationships got our they're from electrical of Newmont with nothing it's got whether we is China, in what that So abreast different – manufactured those it's to as components, We've the a are manufacturers again, seeing. are

Mike Parkin

Great. Really appreciate the Thanks color. guys.

Tom Palmer

Mike. Thanks

Operator

you, Mike. Thank

from question with Cleve is Our open. UBS. line next Cleve, now comes your Rueckert

Cleve Rueckert

for Thanks, a I and of and appreciate When ounce? possibly time. you At gold everybody the thanks move quickly. point couple staying want with pretty work to generosity $X,XXX We budgeting? on I just the can price assumed question bit questions, through we line. inflation Great. little ask for reevaluate your an the what have from could a the you first would differently. hopefully

Tom Palmer

question. very good and morning, a Good Cleve

We that now. actively debating are

same is to about into for working and active the start that as we're gold that inflation the piece We're seeing piece understand, business our that levels at current in think work. we start price way price we'll Adam and time now for macroeconomics – like internal us resetting our at debate price. do now, through way debate is gold and does and floor is explore we're whether is I I what we as it price in now and our as driving our gold heading are look think, the Where the planning starts is indicated trying to flow amongst seeing, and the have with to you get to was be think gold gold to we debate as look coming getting having that it's the price. over months where zone, the inflationary

Cleve Rueckert

– budgeting So of in that be would sort sounds it terms timing, I it year-end just of guess, a decision? like

Tom Palmer

whether are we processes we this into planning our actively it's debating year. incorporate something something certainly It's around,

are unpack As you seeing the fundamental gold, shifts. you macroeconomics around some

Cleve Rueckert

Right.

it projects mean, being the can with construction color. on any any a is at don't and I on And following is Bechtel plus? just basis Or you on Are Okay. Yanacocha know risk all? you. I Tom, the said doing CapEx. fixed if give cost you subcontractors? engineering work your those then, that think cost for done I is side shared there the price us up

Tom Palmer

a clear, But the across variable but bit some you so a who very bit just key without across pass manages – EPCM things contractors, projects, It's It's Yes. Rob – depending to those speak. relationships what the on a I we're that in It close with to is lock there's labor And doing, might – that doubt. as we the which up, prefer things where such in confidence it's we've areas we've that clarity. got we've but are making explained sure capped, got capped, gone the before, have we've costs, other the costs much materials flexible. is got labor the are manufacturing

typically a we're full the it's confidence full planning, have of and knowledge little like on So work that doing. to we depending what and bit bearable, we're but

Rob Atkinson

world, supply that team look in as that hand those status in other – to steel assemble packages. around working the key as hand work those are and the what's the application The big or that team the those glove But take elements, steel Bechtel supply chain all of all processing capacity what plan project, we Yanacocha XXXX now. of chain in understand, Cleve their and are the terms obviously, to work packages glove we at workshops out understanding and of the there things our working a

where to that contractor elements value and want that time promises with are So for their of, but best deliver budget and causes. on there so variable, outcome to elements to – the project on get the it, as from working be expecting hand you're you actually deliver the glove in

Cleve Rueckert

to kind the little if it. very Got bit to the sites Tommy, I'm severity just that the clear. adapt of variants. I previous of adapt finally, wondering virus. you're then That's I'm in again was that just you use, that have to, of the a saw severity. able if call of that your you think just protocols you varying I beginning to guess, Omicron lower you're I protocols you but than wondering pretty said And the protocols unrelated, able COVID at the much mean, in circumstances place the changing your the

Tom Palmer

other that resilient. and workforce saw I the health person underlying fully decision, to half decision And in works is that stead hospitalized us we us going spike years. is to And two companies taken, every Omicron surge, having going took is put highly an very with future very saved has for and but colleagues you a Clearly, the important We to that be we we glad so the in had condition. Thanks. those have one decision over lives. lost waves, at cases this have made good And person through think because forward and now positive we who the XX took Newmont I'm few virus last to require vaccinated. a

managing up Rob, did underlying to lot position. good about you we gives the of So our in vaccinated that obviously, tighten or in as open a to to workforce ability us a And us put fully how going decisions made? up is about confidence protocols. talk we think want maybe

Rob Atkinson

great Certainly, Cleve. question. a And it's

have meet we We which a open sure that respond up, regular that. COVID on that committee, up in couple when to was the we And I to for make of an basis have. that it's we weeks as just things measures a as Ghana ago. a exactly And open example,

the which a additional to two constantly at start last Canada up. separately the we the in are clear launch, at For similarly, then, masks. been for longer same about, relaxing the that coming well. sitting et that we've because are sure need of everybody relaxed Tom the the is as those masks, years, metrics. of been spoke are do no monitoring of making Everybody sit protect are has the need dinner through variants has different at cetera. we and first partners, similarly, There's terms But nations. CC&V. our Éléonore We've But people In at at we Porcupine. those Peñasquito, wearing lunch. taken First likes precautions separately to at plan health Nation And there's no And how longer for got

we very less We the those So in us quickly back people when in able more because vehicles as get up cetera. vaccination, more ramp get can to But the allowed – has on planes. and to vehicles. back of because needed. as utilize are protocols it to can get buses, the We et people to people

where we're assess we need So at. if back on and times, it's is But we the really at very quickly that a can be, all responding regular go virus to basis. something

Cleve Rueckert

Thanks for again clear. taking Really appreciated. Very questions. the

Tom Palmer

Thanks, Cleve.

Operator

you, Thank Cleve.

comes Our now Michael is Dudas Research. next with your from line question Michael, open. Vertical

Michael Dudas

thoughts gentlemen very job your on this perfect sharing guys on what's the being in morning frankly of and have going morning and you good Hi, a industry. done Nancy and

are we'll best of So luck you to talk questions next quarter. all done and my and

Tom Palmer

Thanks, Michael.

Operator

Thank you, Michael.

with from Brian, line James. next Brian comes Raymond Our MacArthur question open. is your now

Brian MacArthur

– X%, again cost when one to we've and questions my X% have thing. can been this on time the We're all today. and answered be think this, when your maybe gross copper. zinc I you cost but I'm just for it's only off thing, saying a this, taking morning you're $X.XX put for going on way, I I I thank where Good it any is been sort did of check this of talking And the the base. lot, dollars in you used for $X.XX mean if you silver up Most and lining guidance, with I guess

at anything where copper – talking because we're a we So prices talking should pretty big not margin are. factoring not I the when if prices You're I – we still? plus we're least you on here, not all stay a you that on talk basis, X% million offset stay get zinc X% where $XXX is your GEO to this, mean basis per mean, of there or up? in credit guidance and a a are

Tom Palmer

Thanks Brian. Yes.

if then a benefit And that quite million ounces in metal of benefit quite as a play X.X a you some And costs. of probably out. those some are give the terms nicely. you You cost of our you out in equivalent we another on It get prices I ounces are gold how X% will unit calculate pointing all-in sustaining bit use how And think lighter than predominantly is maybe ounce, rightly GEO the profile to model we back will were in come with you gold cost-driven. as metal I'd per to total X%. honing good

Brian MacArthur

very much. Thanks Great.

Tom Palmer

Thanks, Brian.

Operator

Brian. you, Thank

comes Jakusconek Our your is with now next line Scotiabank. question Tanya, from Tanya open.

Tanya Jakusconek

an – Thank guidance, just of cost embedded as thinking, the of within much costs the structure. year, when this beginning X% you you all in I for were gave to I so taking December, the you thinking and I'm question know from my another Tom, – me. on at listen

that of know more the XX% is the of I'm the thinking, most looking a think of come we're And And the what ours to at really through low. price saw impacts we structure, full the I that X% I Now, structure. just quite kind QX, lot for in we of cost didn't in see companies. oil

can or at to ounce the looking spot of pricing? I'm $X, per And move. per trying sensitivity my $X just get that barrel more see, to on get we like, per do, it's are through as get into you. just at $XX I only $XX $XX so what to move? given guidance when wondering, of when a $X You've we to barrel through or we and exposure, kind we actual Thank numbers. point a hedges I'm of kind barrel, ounce a work and full a look move a am XXXX going do I

Tom Palmer

Thanks, Tanya.

or we'd first You're – the saw that the certainly assumed. was what in seeing at we levels out play inflation quarter escalation

of as the around story really, that and now into we Omicron is the more the of story more it's QX. production And inflation we additional move So into to quarters sell surge as remaining three a cost a pivot we related year. of

through. prices starting to oil. you're quarter, And see clarify, So hedge flow of to those don't in our this diesel higher just any we

you’ll through spot price it's our So flow in see base. cost that

price into oil that seeing as we're quarter our moving certainly forward. in you're second So costs the

Tanya Jakusconek

Okay.

per good to is that forward? going So $X a use ounce number

Tom Palmer

Yes. That great. sounds

Tanya Jakusconek

you much. Okay, great. Thank so

Tom Palmer

Tanya. Thanks,

Operator

queue. are [Operator no further currently Tanya. you, There Instructions] Thank questions in

Tom Palmer

to the might we by up, good finish think looks I of operator it. be

Operator

see. Let's

Okay.

you session. would remarks. we session, like turn close do to one This Q&A answer Q&A out now If would Tom to that, conference the the for concludes the like to back can I closing over Palmer moment.

Tom Palmer

a for Thank forward look up please with in everyone. and a extra through to taking you call catching and today, And everyone our work lovely analyst us you to have on our I week’s weekend. operator time you, with time. roundtable couple thank Thanks, of the

Operator

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

disconnect. now may You

Newmont (NEM) 22 Apr 222022 Q1 Earnings call transcript