Newmont Goldcorp Corporation (NYSE: NEM, TSX: NGT): World’s Leading Gold Company; Interview April 24, 2019 with Omar Jabara, Group Executive, Corporate Communications
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By Dr. Allen Alper, PhD Economic Geology and Petrology, Columbia University, NYC, USA
on 4/28/2019
Newmont Goldcorp Corporation (NYSE: NEM, TSX: NGT) is the world’s leading gold company and a producer of copper, silver, zinc and lead. The Company’s unmatched portfolio of world-class assets, prospects and talent is anchored in favorable mining jurisdictions in North America, South America, Australia and Africa. Newmont Goldcorp is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social and governance practices. We learned from Omar Jabara, who is in charge of communications for Newmont Goldcorp, that the Company is targeting stable and profitable production of 6-7 million ounces, over at least the next two decades. It will also be offering shareholders the highest dividend amongst senior gold producers. We learned from Mr. Jabara that since the closing of the transaction between Newmont and Goldcorp, the combined Company is in full swing working on a safe and effective integration of the two businesses, which is expected to be substantially completed in the fourth quarter of 2019. Newmont Goldcorp has the largest gold reserves and resources in the gold sector and not just overall but also on a per share basis.
Newmont Goldcorp Corporation
Dr. Allen Alper: This is Dr. Allen Alper, Editor-in-Chief of Metals News, interviewing Omar Jabara, who is in charge of communications for Newmont Goldcorp. Omar, could you update our readers/investors on what's happening, what the position of the Company is and why it went from a great company to the greatest gold company in the world?
Omar Jabara: Thank you Dr. Alper. It's always a pleasure to connect and speak with you. I very much appreciate the work you do to keep readers, across the world, informed about what's going on in the mining industry and how the mining industry continues to contribute to wealth generation and creating value and improving lives around the world.
Thursday, April 18th, Newmont and Goldcorp completed the transaction successfully to combine our two companies to create, as you mentioned, the world's leading gold business. What makes Newmont Goldcorp now the world's leading gold business, is our unmatched portfolio of world class operations, projects, reserves and resources, exploration opportunities, and talent. And with the new company, we are located in the world's most favorable mining jurisdictions in the America's, Australia, and Ghana.
We're targeting stable and profitable production of 6-7 million ounces over at least the next two decades and we will also be offering shareholders the highest dividend amongst senior gold producers.
We're also going to continue maintaining industry leadership in environmental, social, and governance performance, which has been a hallmark of Newmont and Goldcorp. We believe that strong performance in those areas is also an indication of a well-run business that is able to create value and improve lives for all of our stake holders including our shareholders, employees, host communities, and host governments and countries.
Dr. Allen Alper: That sounds excellent. It's nice to have a company that not only is creating wealth for their employees and their shareholders, but also is interested in helping the communities they serve and keeping the environment and the communities in mind, as they explore and mine.
Omar Jabara: Absolutely.
Dr. Allen Alper: For 2019, what would you say are the primary objectives for the Company?
Omar Jabara: We have a number of objectives, but now that the transaction is closed, we are in full swing working on a safe and effective integration of our two businesses. We expect the integration process to last through the end of this year and be substantially completed in the fourth quarter of 2019. As part of that process, of course, we will be integrating everything from systems, policies, standards and procedures; integrating our talent management processes and technical operations; and ensuring that our leading standards are applied across all of our assets and operations to ensure that we're living up to our values as well as the expectations of our shareholders and Board of Directors.
Dr. Allen Alper: That sounds excellent! Could you summarize for our readers/investors the primary reasons they should consider investing in Newmont Goldcorp.
Omar Jabara: Certainly, there are a number of reasons. Obviously among them being that Newmont Goldcorp now is the go-to gold company, globally. The reason for that is we are targeting stable and profitable production of 6-7 million ounces over a decades-long time horizon. We'll have the largest gold reserves and resources in the gold sector, not just overall, but also on a per share basis.
We'll be located in the most favorable mining jurisdictions and most prolific gold districts around the world. We also have a deep bench of accomplished business leaders known for building high performing teams, superior operational execution and consistent project delivery.
The transaction, upon completion, was immediately accretive to Newmont’s net asset value per share by 27% and to the combined company’s 2020 cash flow per share by 34%. As we work through the integration, we will implement Newmont's proven full potential continuous improvement program at Goldcorp’s sites and assets. Through this process we expect to deliver 365 million dollars in expected annual pre-tax synergies, supply chain efficiencies and the full potential improvements I mentioned that will represent $4.4 billion in net present value, pre-tax, over the next 20 years.
Dr. Allen Alper: That's fantastic! Those are very strong reasons for our readers/investors to consider investing in Newmont Goldcorp.
Omar Jabara: Absolutely! Another key reason is the stable production profile. As you know, gold mining, unlike base metal mining, depletes faster and discoveries are harder to come by, but with this expansive reserve and resource base, we will be able to sequence projects in such a way that we will advance only the most profitable projects, and that will allow us to have a stable and steady production profile over the next 20 years.
That allows us to maintain a robust cash flow profile that will help fund capital priorities, including returning capital to shareholders through an industry leading dividend and also investing in exploration to identify new gold discoveries.
Dr. Allen Alper: That's excellent. It's great to have such a strong Management/Technical Team and also such great deposits and excellent locations. Is there anything else you'd like to add, Omar?
Omar Jabara: We take a holistic approach to looking at our business and what we offer shareholders, and also employees so they'll want to come work for us, and host communities and governments so they'll want us operating in their jurisdiction and being their neighbor. Our goal is to create value over the long term and not just the short term. We feel that's how we can best create value and improve lives for all of our stakeholders, by focusing on the long-term position of the business and keeping it stable. That allows us to have people in good careers for longer. It allows us to pay taxes and royalties to governments on a steady basis for longer. And it allows us to return capital to our shareholders for longer and at a good sustainable rate.
Dr. Allen Alper: That's excellent. That's a great goal and great objective for everyone. We’ll publish your press releases as they come out so our readers/investors can follow your progress.
https://www.newmont.com/
Omar Jabara
303.837.5114
omar.jabara@newmont.com
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