Newmont Defers Investment Decision for Yanacocha Sulfides Project to Advance Portfolio Optimization Strategy

About this update from Newmont Corporation

[{"type":"text","content":"DENVER / Jun 20, 2023 / Business Wire / Newmont Corporation (NYSE: NEM, TSX: NGT) today announced it will defer the full-funds investment decision for the Yanacocha Sulfides project in Peru (the Project) for at least two years to advance its portfolio optimization strategy designed to maximize returns for shareholders and create long-term value for other stakeholders1. The decision positions Newmont to prioritize other value-accretive opportunities and support its disciplined capital allocation strategy, which balances steady reinvestment in the business, maintaining financial strength and flexibility and providing leading returns to shareholders. “Once complete, our proposed acquisition of Newcrest will create an industry-leading portfolio of Tier 1 operations and deepen our unmatched pipeline of value-accretive projects,” said Tom Palmer, President and CEO of Newmont. “In connection with this transaction and our strategy to create lasting value, we are targeting at least $2 billion in near-term cash flow improvements through portfolio optimization within the first two years. The deferral of the Yanacocha Sulfides project represents the first step in delivering on this target, as we evaluate further opportunities to resequence project capital and rationalize the combined portfolio to build a more profitable and resilient future for the business.” The deferral of the full-funds investment decision results in a reduction of development capital expenditures, including an estimated $300 million included in Newmont’s outlook for 20242. The decision to defer the Project is based on a robust analysis led by Dean Gehring, Chief Development Officer – Peru, over the last nine months to further maximize the Project’s economics in a period of high global inflation and market volatility. This analysis and investment to date will be integral to preparing for a full-funds decision, and will continue to support the Project when construction resumes. Mr. Palmer continued, “Newmont has a long history of operating in Peru, and Yanacocha is core to Newmont’s portfolio and long-term strategy. With the potential to operate as a Tier 13 gold and copper mine for several decades, we remain committed to managing Yanacocha’s operations and closure activities safely and responsibly. We will continue to work closely with government stakeholders, business p...

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