Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
Negative Points
Q & A Highlights
Q : Can you discuss the recent debt reduction and divestments, and how they impact your gearing and debt targets going forward? A : Karen Sullivan, CFO: Our capital allocation strategy remains unchanged. We aim to maintain a strong balance sheet with around $3 billion in cash and debt below $8 billion. We are steadily funding our cash-generative projects with $1.8 billion in sustaining capital and $1.3 billion in development capital. We also continue to return capital to shareholders through dividends and share repurchases.
Q : What is the status of your growth projects, and when can we expect updates on them? A : Tom Palmer, CEO: Our focus is on delivering the three projects currently in execution with a $1.3 billion spend. We have exciting projects in the pipeline, such as Red Chris and Yanacocha sulfides, which are undergoing feasibility studies and permitting. We aim to bring these projects online once we complete our current commitments.
Q : Can you explain the difference between your reserve price assumption and your cost guidance? A : Tom Palmer, CEO: We set our reserve price based on a rigorous annual process considering the three-year trailing average price and analyst forecasts. Our cost guidance reflects current operational realities, including significant investments in sustaining capital and macroeconomic factors. We aim to reduce costs and improve productivity to align with our Tier 1 asset portfolio.
Q : Why are your G&A costs expected to be high in 2025, and how will they change in the future? A : Tom Palmer, CEO: Our G&A costs are currently elevated due to the integration of Newcrest and ongoing divestments. As we complete these processes and reduce our portfolio to 11 managed operations, we expect G&A costs to decrease significantly, aligning with our streamlined operations.
Q : What is your approach to providing guidance, and will you return to longer-term forecasts? A : Tom Palmer, CEO: After a year of transformation, our focus is on stabilizing the business and delivering high-confidence guidance for 2025. We are working to understand the full potential of our portfolio and will provide more detailed guidance for 2026 and beyond once we have a clearer picture.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
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