Newmont (NEM) 20 Jul 232023 Q2 Earnings call transcript

Good morning, and welcome to Newmont's Second 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.

Thank you, operator. Good morning, everyone, and thank you for joining Newmont's second quarter earnings call. end my Atkinson, team, available and your at by Operating our to joined questions Rob call. Officer, we'll the I'm executive including leadership Chief answer Today, the of all be also Ovelmen. Karyn to Financial our appointed recently I'd Chief like Officer, introduce Board highly and in is CFO a has both and financial experienced Karyn the who resource professional held roles seats sectors. energy has breadth we are that she and of very team. experience, joined global a Newmont brings She the pleased

refer strategy, to note be a please I is business and long-term mining which website. Guided cautionary Before to on sustainable SEC our can value. our statement found by begin, filings, a our running our on and generate clear safe consistent focus

the size scale prudent decisions is our while quarter beyond. deliver long-term for we make underpinned strategy. And position the and on very a I that second that business results not ultimate strong sheet performance and of financial made by our with second protect with workforce, decisions happy and the our in with half the I'm balance the this to during value Our portfolio to safeguard deliver year quarter, strong a comfortable Newmont am and global to

important of quarter, in cash zinc, copper, from our During X.X the that more operations. There ounces million made $XXX decisions billion X and we second than nearly quarter. gold Newmont and in equivalent million $X silver, second gold ounces generating during XXX,XXX and produced from lead adjusted the were EBITDA continuing

the portfolio our action in our is through the a made employees supported and focus strongest agreement. paid of than resolution union the that the appropriate profit-sharing more sustainable union with strike for dispute decided that in we agreed to have to within Peñasquito representing are associated of balance double global only sits on Peñasquito amount the months operations, suspend in this by strict workforce with with finding dispute a labor. At agreement May, The a we Newmont, year, accordance XX industry's operations ago. profit-sharing sheet. now an taken XXXX This calculated leadership portfolio their with we to And balanced the bonus First, at the leadership Mexico. demanding withdrawal current and strong, is union

important this will During the remain in the long-term decisions Peñasquito, of to protect continue strike time resolve to our firm Napoleon for operation our up We employees, and our we host and cease that to our communities, union contracting this benefit all partners, value of Gomez our the encourage our customers action strongly including and return stakeholders. and their and Senator leadership to members make work.

mine the the from made protecting The and placing the on second summer unprecedented our care quarter in we and this Canada, decision workforce associated evacuating wildfires operation during the with maintenance. at experienced being was Éléonore

in mining we lower-grade safely ensuring Third, plan, for weeks teams our Negro, position the next complete this made planned that decision to a quarter the amount the finally, we control over protect working originally as we and made few optimize and in safety environment stockpiles appropriate the at had underground we pit the decision process of in complete mine the health the Cerro remote current order to months. gen the that to to we mine for important place ore of maximum are fourth were to Akyem, extract at X the layback in to at the and ensure pause there. And inspections mining that safety

comes liquidity first of deliver range, and ongoing and at sheet, from on to tons and wave and we grades return Subika financial dividend grades Negro commitment processed and as of at quarter. expansion tons current build is shareholders. expect Newcrest both ago Goldcorp processed mined the we will higher we to guidance. We online in by Consistent the complete grade through our third year plans. higher Ahafo. Underground dividend a mined ventures, gold remain ended fourth production pit in open $X.XX declared continue our confidence investment-grade learned Cerro at successful highest with balance a from planned, out we and quarter. district Higher Gold per quarter Viejo, in strength billion the that business. We the when As of returns to integration the full our our year track production in from leveraging tons preserving the lessons second combined we XXXX the our as close demonstrating maintained track flexibility be years for long-term period driven meaningful half mine we we are on the non-managed and remain stable to in return on as and quarter $X.X our with second reinvestment an expected a of layback. year, of on mined in the of fourth ore the our higher X payout And our our of Pueblo shareholder both total dividend share, the we integration the and the where in joint acquisition run-of-mine the quarter will Mines our the with Higher grade and Tanami, and Akyem as X Nevada Higher

opportunities work the first to in project. We with an have we partners, of the project value also this fundamental and Sulfides and will It through of sustainability defer that backing commenced to portfolio Yanacocha to combined over Newmont, is the communities commitments indicator culture not in couple reliable of the next and a years. At portfolio June well-run our rationalize only recognize strong, delivering stakeholders. the and the to of our resequence decision business. is to employees, a transaction, significant on host company safety contracted portfolio optimization, This step continue capital all delivering important associated evaluate the is optimization we

to this increase safely history, enter XXX-year safety leadership and our we June, for further responsible to gold to focus XX leader in directly position Suzy promoted next Suzy Newcrest our the integrate to Newmont's than of in quarter made reporting chapter and role we in commitment and driving an Safety second we important decision an with strengthen As on me. Officer, more experience Sustainability Retallack decisions. years industry Chief sustainability. In is the of value-based and ourselves

in create Rob Karyn turn Rob. and in of and with security Senior performance. then a of Over apply Health, years, also performance each as role, Newmont's delivery have projects, a me to an as to safety industry now through the the my Suzy take In our free to you, company our our and we the highlights. along Safety assault, of and President, Suzy do that this social will lessons significant will Suzy improve areas last as from to instrumental us our learned In further step risk leadership management. the it area Over fatality been change and a operations team has support the to discrimination. I'll harassment, safety to quarterly bullying and improvement of to X over environment in in new in Security, and from the are particular, need leading of in our we health, financial workplaces review work Vice responsibility. and

Tom, everyone. and good you, Thank morning,

the quarter, from in Boddington both copper and grades next Australia. slide, another second delivered performance let's mill the strong begin increasing to and gold throughput. sustained Turning improved in production

at pits. the we As of X and to increased our deliver investment fleet we gold This and remain haulage are more Boddington part production additional of will guidance, X life cornerstone gold North production increased as asset. next ounces South with we support multi-decade to for We our have the trucks in from many for well the positioned stable movement come. on layback clearly Boddington, than XXXX planned million strategy asset both our the into autonomous copper this target equivalent hit and waste years to

the ranges Tanami, highest and to the weather following on quarter. well quarter quarter. our extensive in has land extremely in to fourth firmly site the year's guidance and gold full will the production in flooding and our experienced second Moving Territory grades the doubled Northern record mine remain the We within year during quarterly first the recovered track wet

our continue in of project the furnishing of Tier with nearly kilometer second XX% the lining to X.X to and progress operation continue cost Tanami team lining ounce of our the we improvements on concrete deliver the expansion as The shaft to X addition, the our at deep to path In Tanami. significant be and shaft installed. critical works

prioritize safety, we work Akyem, Moving maximize visited months. Ghana. Akyem team as coming as the and both the plan up as Tom the mine in the North through Africa. extracted I in the I current decision In as Ahafo Ahafo the project close we time to with spent ore earlier well the covered South At our out and to optimize June, layback

relocation third As in a and in South, deliver preparing conveyor second to is third mining track consequence new see year And the finally, site second to place, positioning land and within we from Ahafo from and will was pre-stripping with the North are of higher on the on as plan. surface ahead the Subika to to grade well. access production underground project. higher team great delivered Fined Underground to mill airports with third in progress significantly it the in in work, also to higher project draw The of mining the the commence XXXX the year. we we expect continue fleet the to it quarter, process the access target Ahafo pit, quarter, grades for half. our progress improve ranges. At the by level we open production very to half the of XX% hit making Ahafo this and half a additional the during highway replacement second remains both of commission the in in grades the bulk guidance is year. And guidance Ahafo the points the higher on firsthand

Moving North across to America.

wildfires, been impacted approach employees evacuate Canada our fire the workforce to the contractors. Tom as As property, quarter. our described, to place particularly swift protect decision we and proactive during and the And made and week by maintenance second front Quebec, in of second June, on impacted with unprecedented care the has Éléonore the and

Quebec local closely as communities. was to and on fire threat provincial to production our continues the agencies this ramping a now abate. situation and to continue time, the air During activities We're will the with work the basis. progress government assess safely fire workforce we and up very safety our And forest daily and monitor as will well-being first of we in always priority quality be

in pit in another half in by production and year delivered Borden improved We Porcupine. QX. grades deliver to from positioned the quarter the to Hollinger driven the well steady performance the remain QX second Moving second and of from in Underground higher

Pamour full We for and to decision preparing year. progress continue project later the are this a funds investment

planned which in fourth will commissioning water of ore delivered pre-stripping weeks, progress stope lift of and half double treatment expected stope. year, pit will in We we during complete Pamour gold the in plant to the development will the access as XXXX. At dewatering accelerate allow a Musselwhite, the us new activities first to commence with of that quarter another consistent second we production the increase including coming availability

our hit XX% now finally, a from expect increase due a delivered Victor grade to fourth increase pit by guidance. to than the South quarter to a site quarter. And of stripping as the grade is our from higher benefits XX% mined the and pit on and America. & down by Maraba and next to consequence, strong Yanacocha we layback second At and leaching third facilities. And results supporting realize injection third year the continued Creek quarter, target we Merian around deliver heap to As XX%, on strong in begin Merian, to grades in Merian the we applying solid moving the to planned delivered putting strong higher tonnes from recoveries leach the track Cripple technology. more full

safety year the referred to by quarter, XX% increase In expected as expected to increase as that the access is productivity to, San production we exciting the up higher-grade Moving with from in up throughout expansion associated the Marcos, district the late to Negro. stopes third nearly underground the to mined to tons is San first pause XXXX. Negro. to commercial at Cerro ramp full is ramps X and reach the of begin grade will to underground continue XX% Marcos and Tom expected new following Cerro deposits

leadership. Finally, the as operations we decision dispute suspend on to as a made June the resolution Tom union Peñasquito we at discussed, with X to focus the finding on

agreement equitable fully importantly, is and and the fair abide to that union. only have year was continue with will by the a We that ago and currently to in place agreed

leaders communicate appropriate with to continue this dispute. officials to very the our and engage employees sustainable and disappointing will fair, union government directly resolution to with and a find We

provide focus with mining to You reached, at can update agreement our market the and expect up that I'll look forward a once to we returning we our X will ventures. an has the safe slide now fulsome Peñasquito. And to joint next and wrap sustainable non-managed been on

delivering Our over Mines Gold cover interest XXX,XXX pass Pueblo to gold to the share and second Nevada expected in their that, contributed of Karyn second look on with strong both Viejo quarter, in financial attributable we in production it joint ventures and ounces results. half. And our forward I'll to

and forward results everyone. to answering happy questions good our and joining morning, you and quarter have. Rob, might I'm any second call to be financial you, presenting look the Thank today

I Newmont. I I project was and due global portfolio diligence safety to clear to pipeline what for my I wanted talk started, about me of success. deep leading excited the long-term to When strategy, Before and company's Newmont, on Newmont sustainability, diverse briefly position its about get approach doing to assets and to consistent learn brought was

the Joining team. my time expectations. to strength Newmont's finance can already have in our I've pleasure meet my talented surpassed the of spend and the capabilities far very I and that say leaders senior had May, and people And Board initial with

our the our financial months, performance a on foundation throughout allocation balance Over to have improve and driving the I commodity with with my partnering will upon we focused coming support initiatives the capital sheet our overall business and disciplined strong be today, building can that strategy, that the team strategic cycle.

Turning to the next slide.

$XXX near-term $XXX operations ounce, a a the working quarter, expect partially would to million changes quarter, a revenue payments million. reverse and capital in cash which on spend look million, million million merchants $X.X $XXX payments tax In leverage more growth, per gold cash future started third adjusted progress net the of the position and $XXX the nearly were of get over for Cash quarter tax adjusted on for draw total, of projects which to the continue changes. at net generated the our flow an EBITDA. highlights. future The $X,XXX Included of price in decrease we X.Xx second to and realized fourth both billion ratio EBITDA We we a $XXX of previous profitable most have second strong with in at of by unfavorable working they in quarter, delivered from portfolio years. In ounces capital in and years. in billion draw with financial Let's as in attractive in million offset of maintained is includes to free receivables $X.X capital as We Newmont than in $XX debt to quarters. position of receivables.

and driven by second in the We higher also steady quarter, realized costs. solid margins direct maintained gold prices

$X.XX and quarter been not the quarter equity million mark-to-market number $XXX it income per at pending to tax we associated due the $X.XX was note strike down net items. Taking related while related to diluted depreciation wildfires. into operations or proactively of site operating and And net $X.XX from investments, Éléonore, diluted second in share. since losses adjusted is adjustments included has important account, these also that $XX the other shut reported share. the with million adjusted commenced per this of to costs at income to Peñasquito unrealized on for and related and costs acquisition GAAP $X.XX $X.XX Newcrest Adjustments Second our was to continuing transaction

to achieve well performance of remains year strong second the half positioned Newmont a deliver full noted, Rob and year and guidance. our in Tom the As

consistent quarter, dividend share. X or Second within XXXX per we per $X.XX our $X.XX of the declared to calibrated per share a range of dividend basis, on share $X.XX annualized quarters last $X.XX an and with payout

for update dividend and time it yield a close continues per the the in to be now through consecutive Newcrest. the our X% sector. With the have XX of to acquisition gold of on turn for share that, Tom from to dividend today We an line maintained over highest above I'll this quarters,

Thanks, Karyn.

since shareholders, of agreement with Over my rationale announced including to communities I the binding and we were also were and government questions and the of well stakeholders, to have engaged many last local X our listening understood. conversations Newmont's These that important benefits acquire the strategic team months the at transaction Newcrest, employees, and answering leaders. ensuring aimed whilst

and various Australia And to received the Over advise of closing Guinea. primarily already continue I'm New of next the approvals clearance months, ahead Canadian to the couple we've in Papua the will progress we Minister Guinea transaction, Pala. Russo pleased officials government. Earlier Prime meeting Minister for Papua Sir Deputy the Marape, government Mining I this with John and from Ano visited New James Prime various time, month, Minister second including regulatory

engagement, to this continue for the we world-class project. As boom operate develop and gold remain the Waihi Lihir, we opportunity excited

a scheme working and shareholder operations November begin transaction expected expect diligently our the and the then close proxy this to integrate for to XXXX with along statement combined and to XXXX towards teams February position our Newcrest next We quarter into votes fourth are and questions. launching a the be I'll turn for operator safely for October. it to in filing of important in the the line We booklet in to quarter Then your and guidance with portfolio. work that, results. With year, over time company thank the you open today a provide in

today [Operator Securities. Greg of Instructions] goes And Barnes TD to the question first

ex 'XX a gold you're will wanted just them to volume per any how the basis. ounce obviously inflationary which into help evolving you and see 'XX Tom, half get, ask pressures I going of on to and second about improvements

is we our cost Certainly stable we're up consistent seeing some evenly we about stable remain what labor and this through pretty step through just bit next. largely States. Contracted settling made guided as largely About is into year in and services labor, of have detail. Australia, direct that rest the is I Thanks, Employees expected seeing largely between stabilized. Yes. contractors. XX% little down United this also our that in expect employees to in more year, cost Canada, with Greg. and and base half What a

into little So come cost at important volatility of the but this with maybe we that's a that year through seeing largely but inflation still easing out saw year, higher coming and consumables. pretty at and second stabilized, a certainly of that, half the bit last of a XX%, the driver. XX% materials that's

it's what So with We're cyanide, is then we're to particularly reagents, those explosive, and the various media like. off, we gas through for prices both seeing steel and prices that expected. Natural grinding flowing seeing for explosives. cyanide come consistent have the largely which the

is that place. And commodity big assumptions second that driven and the and what that. second So a one expect would with expect a year. continue fuel expecting then ] bit those through think to as that see oil own And of see of half pretty by little put this tension carry as a we'll assumed. much to of still the certainly to relative more prices we may of little see but look our relief and consumables flow natural its be or conservative around we've about this to a stable but energy, some bit the to the to remove gas that And year, may we be would which for on holding improvement in and we certainly We'll relief half volatile category an through supply and tighten seen XX%, that's grinding [ prices, of we've median diesel. tailwinds a bit those the at next bit, on

and a what consistent XXXX. we tailwinds, So some few Greg, with expected for stability

That's helpful, to talked how Newcrest going I'm around just And in in that's expect the presentation, in the for Great. In going to wondering you detailed and be the company provide very to just into Tom. guidance fold February 'XX? about how a follow-on. expectations your you do you're February.

for where we include the being the We're our a our view combined X which you folded being towards Newcrest into view can certainly a in portfolio, position give of working operations. would assets XXXX of

apply So approvals, to plan in if go hope, the so car gives and and mine and of the plans, regulatory mine us the planning We'll votes combined that being XXXX the integration February those I plans to in things and towards shareholder through continue the for close, the Newmont position certainly on to receive we speak busily make those portfolio the would frame. working of in in time the for early time a done. terms keys some work being to to assumptions lens provide November, assumptions input guidance to key

guidance that what beyond the to X-year X- about wait? And that, will

We'll that as include time then share how -- certainly in and certainly try some will of look We see think a come time information we logical maybe frame site for provide to for looking on be Capital to time monitor information portfolio more And that. February that. Day as and XXXX numbers those with the much even frame Markets together. sort in for appropriate, XXXX to the visit a look and some combined and

XXXX still So certainly, work timeframe. But February progress, that's for in our side is that in Greg.

Soni question CIBC Markets. to Instructions] next goes [Operator And Anita of our

independent conclusion did the for to independent question first me, yet? reach you or tell Newcrest the could expert transaction, with adviser regards My the that

for you thank in. Anita, dialing

might a that think I vacation little for you. period be

hear time. They're hopefully, that still get some working So to of back and years off can and good voice, you process. better to your call this through

that's -- not it's finished working yet. working So their through, train but in

schedule to So the in that when had able it's be proceed on order to -- of terms in time deck. the for in but line we information we need it's

-- I'll then terms in of let's went trying of that quickly so get Musselwhite. Rob into go some grades with Okay. And the queue. the second just to back I'm start the and then question, through

well by I QX, XX% tons above then grades mined they do think QX? said I guide. that If and that QX Is get improvement or I in your XX%. in a

give QX volume. consistent both a some see grade starting in then with and which We're improvement QX, we've Musselwhite, opening some for on, the double pretty up a material certainly QX as a step-up on in got high-grade And going QX us in is of and across both the stopes some stope first also to Anita. coming nice lift and coming half. to result grade and in We're work

second grade, the consistent volume through Rob, pretty step-up up quarter. the half certainly fourth coming a will and So seeing in That third and over ramp out.

mill So the pretty fourth highest through consistent. volume the the in rate quarter

of Ahafo Okay. -- And Is XX% that QX. maybe in you then correct? just where I think grades terms was it at in in were talking -- Akyem, or uptick

That's right, Anita.

and out So back want pit got we're the rolling the next -- the -- of as we catch of maximize is out swung layback, in in and narrow benches the to long to of ore and stepped it's the we And stock Akyem, have you mean, quarter. I who shape. Akyem, of make stockpiles, layback into made into wanting sure that last like where that we're the bring would the pit, fourth getting so now pit in, ore. And the from the down stockpiles current in we good if the those and We that sure we bottom the been stepped also. the a know

the bottom coming got pit high-grade right basically ore through. of we so the of And from mine

now. the the It's through that quarter, third. up a grades through -- of in third through highest fourth most see quarter You'll of the that the good now build building the portion you see and fourth through the

correctly. I just to I at make want Negro. lastly, then Cerro And heard Okay. sure you

XX% said weighted? and QX? tons increase increase in does which was. that start think I grade. it So in mined Or don't XX% Is quarter is in Rob But QX that it --

Negro We got fourth ability see you'll and as step-up as Cerro quarter see extract pretty then access in step-up ore mined from for the San grade start the see a to Marcos at particularly more to in you tons ore Cerro And we through actually first we've third time. the Negro. consistent at -- quite

lining material in coming We've the grades mill and across pit second draw the So the of of through -- open. more stars than spot now quarters. Anita, pretty of level third got as on open other well consistent the pretty really QX Ahafo. points probably the and we've consistent sweet got real open Subika X as the in terms Subika through up QX XX having in half underground those looking one terms the

So coming out and we've both high the tons pit at of underground and Ahafo. of got combination open grades

thinking think up another important about comes through one sequences. that's you it's Ahafo as a both through year. to with that third as half the lining certainly quarter quarter with strong of weighted pit underground So the be is the stars mine about second at one the fourth fourth or But building in open and

The Mike question Parkin to goes next National Bank. of

go-forward kind on more give at on basis? just in a any background cost and terms have it you you've Does on impact of what Can that asset of the in going does decided Cerro color material of a bit pausing investigated structure Negro mining? the And it with forward? have

in absolutely we significant had standard the the experience that time, we Mike, my remote happy be expect that loader involved we'd environment basically, incident. had underground no mine. time control certainly, a to mine weren't managing that was It's structure you'll going impact cost from an piece in forward. it the event as we involved and potential around to of in event, was equipment -- get on a an Rob's a and certainly, a It and experience

the that wanted and underground As underground equipment we of that across X were expect, understood. to make and through you clear part mine went the a know, remote were that did ensure in standards sure And is the we there crews we the Argentina appropriate that we're Cerro very to Patagonia. Negro inspections that well conditions and and

underground You're location. a working in obviously remote

which also So and we understood. We're understood step-up and half, second can are conditions grade into it's are is that expectations briefly a well the both that the entering well satisfied be underground in important a tons.

So a more working to to be into step asking we're going where moving we're and the period fronts. up of be team time

nothing There's were ensure were took the terms the that conditions understanding ensuring at that to their we second So all and about cost are in leaders expect a base. standards mining clear strong levels more It's time set. be that can and forward of confidently at the additional just will and we mining move what with we half teams that Negro. expectations Cerro

Okay. Great.

to it's ensuring of much site. operational practices up, pretty Newmont best So that of being more at kind executed sum

Mike. right, That's

my just will time maintain with that a do from from when time always and everyone's and you part of move recognizing got there game, when to and be mind events is what's must in to on chronic may time, with We that need their pause safety, time maintaining are times the performance will there confidence. you expected come then and solid to forward needs experience safety understand ensure

that's we of so Cerro ensure that do those certainly we're in the we about Certainly, new expect couple to that X new we terms Negro weeks a place crystal November through think we standards work of as about might coming having how the That's the operations. Newmont do we in for integration cited this into and in debates down. I'd Day December. there needed at of we one of expect are do operations portfolio, from our Newcrest And time do that think our planning time. and something X

time So certainly done both careers Rob have and from it's expectations. in need time when a we our reset I something that see to to

to? there producing? you're free and that the of silver when And stream, Or not deliver question Peñasquito. one you tied just Excellent. With you're not delivery is are minimum down respect to on any Okay. silver shut to fully

the let get that's correct. that my That's our but it's to That's Mike, you that, And to different we'll understanding, from ground. just know, understanding. team we'll run

goes to of Scotiabank. next The Jakusconek question Tanya

I that in reading? union was strike, that's statement Do the union Because a being being the gone if Has correct workers. was out. paid aren't paying we the gone workers the to to trying know pay some clarification just my the with understanding of just the want workers? on to just that I news keep that Peñasquito, from ask I union sure came just so articles I some the that coming to to articles X, I'm of out. June understand about get some being many on from make to has papers the understood wanted

that's And being that negotiating are are of at The table, union paying our members paid by the Tanya, back on members, position strike we're not they're members not part correct. the the as union pay. of. who

Okay.

union the not not paying. and is paying So you're

X. paid they been haven't June So since

That's right.

X,XXX being some paid. aren't of workforce So people

bigger You've aren't contractor workforce got that paid. being much a

an taxpayer to and got year see in extended those that community. a getting being people the are not benefits. paid. our to of royalties contributions taxes. some XX,XXX We're There's taxes the some are biggest the upon rely You've They're not wages currently They're both government paid. Mexican close $X not being Zacatecas. And to through billion state

wages their to we our paying start strongly message have to so get the can we paid union back accordance We is So fair to that, them encourage with members a and we again. leadership agreement. that and equitable in work

should think, that one, we clarify on we how was money maintenance? care and Okay. an take be out that. And number just you should other? Yes, costs? cost number and I coming through cost it's of you would sort -- just there of and would maintenance coffers two, the how about should being monthly I I taking was be on their what just leader saying about And that into it incurring union article, union and that's basis, the the think to -- a on put operating Or go under from as the wanted Tom, thinking care the that the workers. July, paying

Yes.

you but up the with I'll release. catch we've -- something -- So see we in our call, you'll and Daniel earnings to after get got

those incurred operating $XX the suspension to costs, of month If we due another in million you think June, the million of $XX at Peñasquito, operations. through of costs depreciation about

of for June. down That's... most it's So

out other Is items? costs of into it operating

No, don't to do plan that, Tanya. we

described you it. So best what how is to model

QX to higher going you're QX when the how it? Is profile Okay. stronger then half And some that any just think there Cerro evenly Mussel numbers, to about go get Negro if to at have the of with I other than that could Ahafo QX. the I second because mines that Anita's on operation at being I think I looking production would question distributed higher just a be a and of should going are significantly QX. Is performance back look

strong quarter. building Tanya. right, We're a fourth That's towards

world quarter. which the You've got have wet you the -- third across to in we the a of of weather bit you'll more in tend parts some operate, get

pretty the grade have have of that with move half, fourth Viejo the fourth the half. home So in part XX% got of an important we guiding you but see mill bring typically Tanami, ramping us in important in second drier tons into stopes locations Pueblo part That's the Mines Gold through consistent an really those up it second our quarter. our Pueblo Viejo. HX, highest strong That's a to of quarter. we Nevada HX.

the consistent and that's So QX we certainly a Merian of pretty And I the covered an got stronger story. across probably QX. -- think most important second

I from. So higher versus of the covered sort and the of HX fourth would where we've HX come key think the drivers quarter

fourth bit just profile, I depending excluding at to is there, looking order No, your at a in appreciate one quite that you when production Peñasquito carry weight going happens Okay. quarter what get look -- of that. on it the It's the guidance. to for is your is the

right, Tanya. That's

could I one do just question. If final

Sorry?

Tanya. ahead, Go

Okay.

Sorry, I to else. you cut something say

level another these Just cyanide that restock seeing lower not of have. same fair coming to on there. exactly that the because some your companies out that pricing confirm are just also release thing. inflationary seeing down I are to are relative what just you in on you wanted inventories on your I the kind to say Greg's to Would you questions are seeing. follow-up wonder And agreement be prices

those renegotiate through wondering when how we when you X to -- contracts come just months. these so in are we lower I'm can levels, X expecting go Some structure. cost would your for see at months, up some

our have calculations. -- chain strategic we upon we of to rise supply commodities those Tanya, particularly is So strategy, based portfolio, are into built in our our key with term long full and the size that contracts

takes become through or we'll that of for price in flowed we relief some through. then we we a we have then about at So little -- price and the and inventories terms decreases. the it competitive while And with go flow to a and see but have prices a have then And increases taker price. at price much up pretty the sites, -- then down, volatility you as

we soda on back and seeing -- seeing explosive cost coming improvement are the prices we in ammonia gas cyanide off, natural are prices So also caustic down, of we prices both are costs. are down where and

through a price, contracts. through contracts, our inventories. that then commodity flow in So takes wash and we to, we flowing our to X through or that back have normally or will inventories, month it's is our that continue to those prices key X the It and and linked just click to take agreed flowing contracts, it's and through as those through

Okay.

see them in you QX? QX those into so And and in, could coming

QX, that Yes, some see we'll yes, of in absolutely. benefit QX and

of The MacArthur question James. Brian goes to next Raymond

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

in to sales being the quarter. left the nothing there's and all recognized so put Brian, second

site And everything stockpile neck hasn't the the put safe on good is chain in very care recognized. of that small into concentrate not then secure Sites much. supply the amount site have nothing been there's and but sold smelters onsite. So in we mine a to from and maintenance and and been

can So experience prevails to the ramp lot workforce back the quickly we've a up ramp with of in from expectation got up able a days. and very that being common We sense pandemic at work.

So we get back and to how mine and running up know very producing concentrate quickly. big that

pretty sit of with the it's in terms concentrates. clean So where we

a have question CIBC of We follow-up Soni from Markets. Anita

a more terms and for go details. could over tons terms what the So QX? Tanami, in of questions the just grades At in few QX, of in you're you looking

QX... The Tanya. problems, No

Anita.

Sorry.

my in I yes. and are apologies, me I needed my need the notes, in flow. writing That Daniel listening, still Anita, Sorry. if quarter. Obviously, the sorry. Tanya, a grades apologies. lives high The was fourth holiday, you're

see a see a in we actually the are what get in then quarter some into the third we in stopes up able second You'll fourth quarter. and bit from high-grade little -- step to the of nice

as fourth in weather first some So from step-up the and quarter disruption the free mill pretty consistent clear third the and they're through a and in the half. of of the

Nothing in but the quarter. So you grades seen the fourth step-up through the see within outrageous. mill volumes we've flow a in well real that Certainly historically. the grades

seems really it's like where like these build maybe a only terms different expansion Tanami in the Okay. see of got the was then percentage of about about and a noticing the North, we I like really But XX% Ahafo are the the same to time of I've spend to start-up the I -- spend. just in -- sort standpoint. has Tanami it Tanami's have at out projects, spend amount looks spend we And process lost don't going time it's from I -- is that and at of the not to project, take or projects. of I And the the -- mean don't track

spending just So color the give Ahafo on us Tanami could a frame and you little the and both at of time North? cadence

Sure. a really start off build just up. Ahafo Anita has on to want or the I'll and this. But work might getting of Rob North a half fronts quarter first opened been

of So in. a equipment of bringing lot clearing land,

process and And work get into pre-strip so doing the to will other the civil constructing infrastructure. then works and really the stuck gearing up plant ourselves with start then positioning

concrete through -- that and and to those in various serious a then pit of the terms bringing of doing in able shaft, wall. the to stepping facilities is an a that plant. up up where in line open mine then it's probably concrete with doing of Tanami, we're in that -- get attached So accelerate be process process processing the gearing

now that's in steady get item. that for path state So starting a to critical pretty

is done. that's thing of other largely most largely The terms infrastructure work the surface in

surface on the at building crushers appropriate the equipment construction time process install underground that out and completely you're whole we've winding it's the all So bunch start in and the done. underground not those supporting there's done, at got Tanami, crews to but conveyors of to for excavation, mobilizing clearly, all and now the But really infrastructure a that.

front up gearing going that ahead. to really get work So

infrastructure in and projects the then terms different you an of quite open and pit add that? mine underground, infrastructure. Rob, anything building shaft on So lining associated

we're Anita, what just working emphasize Tanami larger Tom Ahafo I is at a actively that number North. fronts than of far would on said,

is It's spend, whether that's steel getting tranches, that works will the well. of And part significant worked getting So progressing the on. the month cranes, or cetera, the just tailings is a dams. contractors said, the of seeing very, so in. very the coming every in months, et Tom civil it Ahafo project hiring and And North coming it it's ago, see when It's the the be construction we digging erected. of it's as of

And increases. start see next working passes, spend on the months of we'll Ahafo fronts well. that few at we such, as that increase North number So in the significantly as as

work then the or that I committed year, And much been how work, early of terms in and of back on -- cost of this the in much do year you next a how like, have next sort that visibility guess, half level? has of the in

In Anita... terms of,

started guidance guts -- haven't how that to I guess understand you into that good? CapEx of is haven't I'm was it, you just getting certain trying are you the still if what if range trying really to I understand the is

see, key that is the think both enormously. us just certainly have of well. done the a on The that as significant that engineering procurement things we've for level thing, The projects basically at both is secured also Anita, protects And supplies which all about the I we projects. on side I'd that

very building. biggest We've But we'll moment, of we're on got well. very of of much overbreak, patches thing the at confidence. The So we've down with a And which that We because large procurement, track. always the deal progressed is the shaft is degree moment, got at we're the still aligning with. there. engineering,

like the to the Palmer for turn back question-and-answer I remarks. concludes Tom to would over This closing session. conference

operator. Thanks,

Just question. a quick Mike one Parkin's for

payment call the silver of quarter, minimum the Thanks, no time confirm please there's the stream, everyone. listing you and rest for the on and this for day, time. thank Just your call. Thank still on making your Mike, you enjoy all for the you're if

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

disconnect now lines. your may You