Newmont Corporation (NYSE:NEM) Q2 2023 Earnings Call Transcript

Tanya Jakusconek: Okay. And so those you could see them coming in, in Q3 and into Q4?

Tom Palmer: Yes, yes, we’ll see some of that benefit in Q3 and Q4, absolutely.

Tanya Jakusconek: Okay. Great. Thank you. I will get back in the queue. Thank you.

Tom Palmer: Thanks Tanya.

Operator: Thank you. The next question goes to Brian MacArthur of Raymond James. Brian, please go ahead, your line is open.

Brian MacArthur: Good morning. Can I just follow up on Peñasquito. Tanya covered the ongoing cost, but where is the concentrate situation? Is there concentrate in transit that’s off-site that’s provisionally priced and you’re going to have some sales in Q3 if nothing happens, or I was looking at your sales versus your production, and I know it varies quarter-by-quarter and lead versus zinc, where are we on that? Is there actually a cash inflow to you from concentrator? Is it all stuck at side, or where is that situation at the moment?

Tom Palmer: Hey, good morning Brian. So, there’s nothing left to put in all the sales being recognized in the second quarter. So, there’s nothing in the supply chain from the mine site to the smelters that hasn’t been sold and recognized. And then we have a small amount of concentrate stockpile on site, but not much. Sites been put into care and maintenance in very good neck and everything is safe and secure onsite. So, the expectation that common sense prevails and we’ve got a workforce back at work. We can ramp up very quickly with a lot of experience in being able to ramp up from the pandemic days. So, we know how to get that big mine back up and running and producing concentrate very quickly. So, it’s pretty clean in terms of where we sit with the concentrates.

Brian MacArthur: Great. Thanks very much, Tom.

Tom Palmer: Thanks Brian.

Operator: Thank you. We have a follow-up question from Anita Soni of CIBC Markets. Anita, please go ahead. Your line is open.

Anita Soni: Sure. Thanks for taking my follow-up. So a few more questions in terms of the details. At Tanami, could you just go over what you’re looking for in terms of grades and tonnes in the Q4, Q3?

Tom Palmer: No problems, Tanya. The Q3…

Anita Soni: Anita.

Tom Palmer: Sorry, sorry. I live in the flow.

Anita Soni: And you called Tanya, Anita.

Tom Palmer: Daniel was writing me notes, Tanya, if you’re still listening, my apologies, and I needed my apologies. Obviously, I need a holiday, sorry, how embarrassed. The high grades are in the fourth quarter. You’ll actually see a little bit of a step up in the third quarter from what we were able to see in the second, and then we get into some nice high-grade stopes in the fourth quarter. So pretty consistent through the mill and a step-up in the in third and fourth quarter as they’re free and clear of some of the disruption from the weather in the first half. So you see a step-up in volumes through the mill but the real grades flow in the fourth quarter. Nothing outrageous. Certainly, well within the grades that we’ve seen historically.

Anita Soni: Okay. And then in terms of the project, I was noticing the spend at the different projects. And Tanami looks — I mean, I don’t really — we don’t really have sort of like the — or maybe I’ve lost track of the amount of time that it’s going to take to build out these projects, we are in the process like a percentage just from a time standpoint. But Ahafo North, it seems like the spend is not — it’s got the same start-up at Tanami expansion and I only see about 30% of the — 3% of the spend and where Tanami’s that has to spend. So could you just give us a little color on the time frame and the cadence of spending at both Tanami and Ahafo North?