Newmont Mining Corporation (NYSE:NEM) Q3 2019 Earnings Conference Call - Final Transcript

Nov 05, 2019 • 11:00 am ET


Newmont Mining Corporation (NYSE:NEM) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Newmont Goldcorp Third Quarter 2019 Earnings Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Jessica Largent, Vice President of Investor Relations. Please go ahead.

Jessica Largent

Thank you, and good morning, everyone. Welcome to Newmont Goldcorp's Third Quarter 2019 Earnings Conference Call. Joining us on the call today are Tom Palmer, President and Chief Executive Officer; Rob Atkinson, Chief Operating Officer; and Nancy Buese, Chief Financial Officer. They will be available to answer questions at the end of the call along with other members of our executive team.

Turning to Slide 2. Please take a moment to review the cautionary statements shown here and refer to our SEC filings, which can be found on our website at

And now I'll turn it over to Tom on Slide 3.

Tom Palmer

Thanks, Jess, and thank you all for joining our call. It has been just over a month since I moved into the CEO role, and I'm very honored to be only the tenth CEO in Newmont Goldcorp's almost 100-year history. And I am very excited about the strength of our portfolio, the capability of our people and the opportunities we have in front of us to safely deliver superior value for all our stakeholders.

Turning to the third quarter. We delivered solid performance and have made excellent progress in delivering on the value we promised to establish Newmont Goldcorp as the world's leading gold business. Recent highlights include completing three profitable projects on schedule and within budget; exceeding our commitments of value delivery from the Goldcorp acquisition through an acceleration of synergies and full potential improvements; closing the Nevada Gold Mines joint venture and contributing our Newmont Nevada assets in good order, and continuing to improve our safety performance in advancing our reputation for sustainability.

Turning to the details on Slide 4. In the third quarter, we produced 1.6 million ounces of gold and all-in sustaining cost of $987 per ounce, generating $1.1 billion in adjusted EBITDA and $365 million in free cash flow. We completed site visits to support the sales process for our Red Lake operation. We commissioned three projects in Borden, the 0.5 million expansion in Quecher Main, and we approved the Tanami Expansion 2 project.

I'm pleased to report that we are exceeding our synergy targets from the Goldcorp acquisition with run rate improvements expected to reach $240 million by the end of this year including $60 million in quick wins from Penasquito and Cerro Negro alone. We also continue to lead the gold sector in stewardship. We declared a quarterly dividend of $0.14 per share, putting us on course to return approximately $900 million to shareholders this year. We maintain a strong balance sheet with over $5 billion of liquidity, and we were recognized as the top gold miner by the Dow Jones Sustainability Index for our leading ESG performance. Leading mining companies have at their core an unwavering commitment to