Newmont Corporation

Good morning and welcome to Newmont's first quarter 2022 earnings. Please signal a conference specialist by pressing the star key following today's presentation. There will be an opportunity to ask questions. 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.

Good morning, and thank you for joining UMOD's first quarter 2022 earnings call. Today I'm joined by Rob Atkinson and Nancy Beazey, along with other members of our executive team, and we'll be available to answer questions at the end of the call. Before I begin, please note our cautionary statement and refer to our FSC filings, which can be found on our website. UMOD delivered on a challenging first quarter, as our operations and the mining industry as a whole safely managed through the Omicron surge over the first three months of this year. As we emerge on the other side of this wave, UMont remains well positioned to deliver solid performance in 2022, leveraging our scale and proven operating model to deliver long-term value from the world's best mining jurisdictions. The strength of our people and stability of our global portfolio not only allows us to endure short-term disruptions, It is the foundation of Newmont's clear and consistent strategy to create value and improve lives through sustainable and responsible mining. Turning to our quarterly results, let's take a look at the highlights. During the first quarter, Newmont produced 1.3 million ounces of gold and 350,000 gold equivalent ounces from copper, silver, lead and zinc. And despite challenges from the Omicron surge, and the knock-on impacts from this global pandemic, we remain on track to achieve our four-year guidance ranges as we build momentum for a strong second half. I recently visited a household in Cheeman, Ghana, as well as our body to mind in Australia, where I saw firsthand the significant efforts our teams are taking to protect the health and safety of our workforce while continuing to move critical projects forward. With $7.3 billion in total liquidity, we have a net debt to EBITDA ratio of 0.3 times, preserving Newmont's financial strength and flexibility to sustain and grow the business. We also continue to invest in and develop our most profitable near-term projects, including Harpo North, the second expansion at Tanabai, and Yanacocha Sulfides. Just last week, We announced the acquisition of Semitomo's interest in Anacocha, which will bring Newmont's ownership in this operation and the exciting salt ice project to 100%. And yesterday, we declared a first quarter dividend of 55 cents per share, set within our established dividend framework and consistent with our last five quarters. Newmont's core values of safety, sustainability, integrity, inclusion and responsibility are essential to creating long-term value for our investors, host governments, communities and employees. Last week, Newmont launched its 18th Annual Sustainability Report, providing a transparent look at our ESG performance and the issues and metrics that matter most to our stakeholders. And in March, we committed $5 million to provide relief and medical supplies to the millions of people affected by the war in Ukraine. We take pride in being a values-given organisation and our core values are fundamental to how we run our business and where we choose to operate. In light of the recent geopolitical events and the Omicron surge that have impacted so many around the world, Our commitment to sustainable and responsible mining is more relevant today than ever before. During our fourth quarter earnings call in late February, we provided an update on how the Omicron surge and the lingering effects of the pandemic were affecting our operations and the impacts that our stakeholders could expect in the first quarter. As you can see here on the slide, over the first three months of this year, We saw the largest spike in positive COVID cases at Yerbot since the start of pandemic. And this graph only shows positive cases and does not include absenteeism from adhering to post-contact isolation protocols. As a rule of thumb, every positive case identified at site, approximately two co-workers were sent home to isolate for a minimum of seven days. In addition, many of our team also needed to take time off to care for sick children and family members as COVID cases spiked in surrounding communities. Fortunately, due to our 35 vaccination status, the severity of any positive cases has remained low. As of today, eight of our 12 batting operations have a fully vaccinated workforce of employees and contractors. positioning us to emerge strongly on the other side of this wave and others that may come. However, as a consequence of managing through the Omicron surge, our operations have been impacted during the first quarter by lower productivity from close contact isolation protocols, by capacity constraints and various other safety measures. We've also experienced pandemic-related supply chain disruptions, and the impacts from various state and national border restrictions. This has affected both labour availability and the delivery of equipment and critical spares.

As we described in our guidance webcast last December,