Newmont Announces Balanced Capital Allocation Strategy and Return of Capital Framework Supported by Portfolio of Tier 1 Operations and Projects*
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Announced a Focused Tier 1 Portfolio*
- Intend to divest six non-core assets including Éléonore, Musselwhite, Porcupine, CC&V, Akyem and Telfer, as well as two non-core projects including Havieron and Coffee
- Focusing management efforts on portfolio of Tier 1 assets and emerging Tier 1 assets
- Sequencing development projects to focus on enhancing project development capabilities to bring forward the gold industry's best pipeline of gold and copper projects
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Identified an additional
$500 million of cost and productivity improvements over and above initial synergy commitments**
Provided Long-Term Outlook for the Tier 1 Portfolio**
- 6.7 million ounces of gold production targeted by 2028; gold equivalent ounce (GEO) production of 8.3 million by 2028
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Average annual sustaining capital spend of
$1.5 billion expected over the next five years to support key tailings management, water and infrastructure projects, as well as fixed and mobile equipment reliability -
Average annual development capital spend of
$1.3 billion expected over the next five years focused on advancing the most value-accretive opportunities at the right time and in the right order
Established Balanced Capital Allocation Strategy and Return of Capital Framework***
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Commitment to an investment grade balance sheet, targeting approximately
$7 billion in available liquidity, including$3 billion of cash with an increased$4-billion five-year corporate revolving credit facility -
Near-term debt reduction of
$1 billion to approximately$8 billion through free cash flow and divestment proceeds from sale of non-core assets -
Disciplined development capital spend of approximately
$1.3 billion per annum with a focus on safely and efficiently bringing forward opportunities that are aligned with the Company's strategy -
Continued focus on return of capital to shareholders through a fixed dividend of
$1.00 per share annualized*** and a$1 billion share repurchase program to be executed over the next 24 months with excess free cash flow and proceeds from asset divestitures** -
Declared a dividend of
$0.25 per share of common stock for the fourth quarter of 2023 payable onMarch 28, 2024 to holders of record at the close of business onMarch 5, 2024
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* Newmont’s go-forward portfolio is focused on Tier 1 assets, consisting of (1) six managed Tier 1 assets (Boddington, Tanami, Cadia, Lihir, Peñasquito and Ahafo), (2) assets owned through two non-managed joint ventures at Nevada Gold Mines and Pueblo Viejo, including four Tier 1 assets (Carlin, Cortez,
** See discussion of outlook and cautionary statement at the end of this release regarding forward-looking statements.
Expectations regarding productivity improvements, synergies, asset divestitures and return of capital are also forward-looking statements.
*** Expectations regarding 2024 dividend level
s, annualized dividend and share repurchases
are forward-looking statements. The declaration and payment of future quarterly dividends remains at the discretion of the Board of Directors and will depend on the Company’s financial results, cash flow and cash requirements, future prospects, and other factors deemed relevant by the Board. See cautionary statement at the end of this release.
Tier 1 Portfolio Outlook Focuses on Growing Margins and Disciplined Reinvestment
Production from Newmont’s optimized portfolio is expected to increase over the next five years while benefiting from cost reductions on a per unit basis. The growth necessary to meet the Company’s production targets is expected to be driven by
2025+ OUTLOOK
Tier 1 Portfolio gold production is expected to improve to 6.7 million ounces by 2028 with the completion of the Ahafo North project in
Non-managed operations will also improve production levels through 2028 mainly driven by
CAS and AISC per ounce are also expected to improve through 2028 with higher production volumes and productivity improvements gained from delivering on synergy commitments.
Conference Call Information
A conference call will be held on
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833.470.1428 |
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404.975.48391 |
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960159 |
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Replay Number |
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866.813.9403 |
Intl Replay Number |
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929.458.6194 |
Replay Access Code |
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672728 |
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Dial-In Number |
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833.470.1428 |
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404.975.48391 |
Dial-In Access Code |
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431401 |
Conference |
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Replay Number |
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866.813.9403 |
Intl Replay Number |
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929.458.6194 |
Replay Access Code |
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615787 |
1For toll-free phone numbers, refer to the following link: https://www.netroadshow.com/events/global-numbers?confId=49005
Webcast Details
Title:
The fourth quarter 2023 results and 2024 guidance will be available before the market opens on
About
Cautionary Statement Regarding Forward Looking Statements, Including Outlook Assumptions:
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws and “forward-looking information” within the meaning of applicable Australian securities laws. Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. Forward-looking statements often address our expected future business and financial performance and financial condition; and often contain words such as “anticipate,” “intend,” “plan,” “will,” “would,” “estimate,” “expect,” “believe,” “pending” or “potential.” Forward-looking statements in this news release may include, without limitation, (i) estimates of future production and sales, including production outlook, average future production and upside potential; (ii) estimates of future costs applicable to sales and all-in sustaining costs; (iii) estimates of future capital expenditures, including development and sustaining capital; (iv) expectations regarding asset sales and related timelines; (v) future expectations regarding sites with recently started operations, including Peñasquito; (vi) expectations regarding future investments or divestitures; (vii) expectations regarding free cash flow and returns to stockholders, including with respect to future dividends and future share repurchases, the dividend framework and expected payout levels; (viii) expectations regarding future mineralization, including, without limitation, expectations regarding reserves and recoveries; (ix) estimates of future cost reductions, synergies, including pre-tax synergies, savings and efficiencies, Full Potential and productivity improvements; and (x) other outlook. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of operations and projects being consistent with current expectations and mine plans; (iii) political developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) certain exchange rate assumptions; (v) certain price assumptions for gold, copper, silver, zinc, lead and oil; (vi) prices for key supplies; (vii) the accuracy of current mineral reserve and mineralized material estimates; and (viii) other planning assumptions. Uncertainties include those relating to general macroeconomic uncertainty and changing market conditions, changing restrictions on the mining industry in the jurisdictions in which we operate, impacts to supply chain, including price, availability of goods, ability to receive supplies and fuel, and impacts of changes in interest rates. Such uncertainties could result in operating sites being placed into care and maintenance and impact estimates, costs and timing of projects. Uncertainties in geopolitical conditions could impact certain planning assumptions, including, but not limited to commodity and currency prices, costs and supply chain availabilities.
Future dividends beyond the dividend payable on
For a more detailed discussion of such risks and other factors that might impact future looking statements, see the Company’s Annual Report on Form 10-K for the year ended
View source version on businesswire.com: https://www.businesswire.com/news/home/20240222692687/en/
Media Contact
globalcommunications@newmont.com
Investor Contact - Global
investor.relations@newmont.com
Investor Contact -
apac.investor.relations@newmont.com
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