Newmont Corporation (NEM) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

April 27, 2023 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks：

Operator

Good morning, and welcome to Newmont's First Quarter 2023 Earnings Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Tom Palmer, President and Chief Executive Officer. Please go ahead.

Tom Palmer

Thank you, operator. Good morning, everyone, and thank you for joining Newmont's first quarter earnings call. Today, I'm joined by Rob Atkinson and Brian Tabolt, along with other members of our executive leadership team and will all be available to answer questions at the end of the call.

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

Newmont continues to lead the gold industry in safety, sustainability, profitable production and shareholder returns. Our solid first quarter performance is underpinned by our unmatched portfolio of world-class assets, our proven operating model, a balanced, disciplined approach to capital allocation and most importantly, our values-driven commitment to leading sustainability practices. With a strong outlook, combined with the strength of our team and the quality of our assets, we remain on track to continue safely delivering long-term value to all of our stakeholders.

During the first quarter, Newmont produced 1.3 million ounces of gold and 288,000 gold equivalent ounces from copper, silver, lead and zinc, generating nearly $1 billion in adjusted EBITDA and all in line with the expectations we provided in February for Q1. We continue to expect the gold production for this year will be weighted 55% to the second half and we remain firmly on track to achieve our full year guidance ranges.

With $6.5 billion in total liquidity, we continue to maintain an investment-grade balance sheet providing the financial strength to sustain our business throughout the price cycle as we continue to invest in our most profitable growth projects and return cash to our shareholders.

Through our established dividend framework, we declared a first quarter dividend of $0.40 per share, demonstrating both our ongoing commitment to shareholder returns and the confidence that we have in our business.

During the first quarter, we further rationalized Newmont's portfolio with the sale of our interest in Triple Flag, generating $179 million in cash proceeds. And we remain on track to deliver an incremental $440 million of full potential cost of productivity improvements this year. A key part of Newmont's continued efforts to deliver stable production and strong margins from the industry's best portfolio of world-class assets.