* As of December 2017. See cautionary statement.
Newmont Mining Corporation (“Newmont”) is a leading gold and copper producer. The Company was founded in 1921 and has been publicly traded since 1925. Headquartered in Greenwood Village, Colorado, Newmont has approximately 24,700 employees and contractors with operations primarily in five countries on four continents around the world. Newmont is the only gold company listed in the S&P 500 index. In 2007, the Company became the first gold company selected to be part of the Dow Jones Sustainability World Index. Newmont has remained on the prestigious index every year since and has been named the mining industry leader for the past three years.
Newmont’s 100 percent-owned operating assets include the Boddington and Tanami mines in Australia; Ahafo and Akyem operations in Ghana; and the Cripple Creek & Victor (CC&V) mine in Colorado and four operating complexes (Carlin, Long Canyon, Phoenix and Twin Creeks) in Nevada.
Operations where Newmont owns 50 percent or more and/or is the manager or operator include KCGM in Australia (50 percent); Yanacocha in Peru (54.05 percent); and Merian in Suriname (75 percent).
Newmont’s project pipeline is one of the strongest in the gold sector, including five promising growth opportunities in the execution stage.
Our commitment to build a more successful and sustainable business is reflected in our Purpose, Mission, Vision and Values. These articulate the path we will follow into the future and how we will conduct business along the way.
To create value and improve lives through sustainable and responsible mining.
We transform mineral resources into shared value for our stakeholders and lead the industry in shareholder returns, safety, social responsibility and environmental stewardship.
We will be recognized and respected for exceptional economic, social and environmental performance.
Our five core values are the cornerstone of what we believe and what we do:
- Safety – We take care of our safety, health and wellness by recognizing, assessing and managing risk, and choosing safer behaviors at work and home to reach our goal of zero harm.
- Integrity – We behave ethically and respect each other and the customs, cultures and laws wherever we operate.
- Sustainability – We serve as a catalyst for local economic development through transparent and respectful stakeholder engagement and as responsible stewards of the environment.
- Responsibility – We deliver on our commitments, demonstrate leadership and have the courage to speak up and challenge the status quo.
- Inclusion – We create an inclusive environment where employees have the opportunity to contribute, develop and work together to deliver our strategy.
Our business strategy serves as a blueprint for sustainable value creation. In 2017, we shifted our strategic pillars to reflect our performance and focus on a longer-term horizon.
Our operations are safer and more efficient, and we have made continuous improvement a way of life through our Full Potential program. As a result, our first pillar has changed from improving the underlying business to delivering superior operational execution. The second pillar shifts from strengthening the portfolio – which we have done by selling $2.8 billion in non-core assets and reinvesting in profitable growth – to sustaining a global portfolio of long-life assets. We have delivered top quartile total shareholder returns, demonstrating our ability to create value for shareholders, so now we are focused on leading the gold sector in profitability and responsibility.
Five strategic pillars form the basis of our business plan; create alignment across regions, sites and functions; and establish the objectives by which we measure our performance:
- Health and safety – working to eliminate all workplace injuries and illness through a focus on fatality prevention, engagement and leadership
- Operational excellence – delivering sustainable cost and efficiency improvements, portfolio optimization and world-class technical fundamentals
- Growth – improving portfolio value and risk profile by progressing promising exploration, project development and inorganic opportunities
- People – achieving a competitive advantage through our people by engaging employees, developing effective leaders and building a more diverse and inclusive workplace
- Sustainability and external relations – managing risks to maximize opportunities and minimize threats and applying leading social and environmental practices
In 2017, significant changes to the business included:
- Completing and initiating a number of profitable expansion projects:
- Added profitable production and supported ongoing exploration in Australia through the Tanami expansion project, which reached commercial production safely, on time and on budget;
- Increasing plant capacity by more than 50 percent and extending profitable production through two projects at Ahafo in Ghana – the Subika underground mine and the mill expansion;
- Expanding the Twin Creeks resource in Nevada through the underground project, which began mining high-grade ore in 2017 and is expected to reach commercial production in mid-2018; and
- Extending Yanacocha’s mine life to 2027 with the approval of the Quecher Main project in Peru.
- Strengthening our long-term growth pipeline through investments and exploration opportunities:
- Supported near-term development of the high-grade Buriticá gold project in Colombia through a $109 million investment for 19.9 percent ownership of Continental Gold Inc.;
- Reached an agreement that allows us to earn up to 80 percent equity in a prospective gold district – Plateau – in Canada’s Yukon Territory; and
- Announced an agreement to further explore the prospective Esperance gold discovery in French Guiana, owned by Compagnie Minière Esperance (CME).
- Transitioning to new operational leaders in Australia and South America regions;
- Announcing the move of our South America regional headquarters from Lima to Miami to improve how we support the broader region including operations in Suriname and Peru and exploration activities and investments in French Guiana and Colombia; and
- Purchasing the International Finance Corporation’s 5 percent equity stake in Yanacocha for $48 million in December 2017, which increased our ownership in Yanacocha to 54.05 percent (from 51.35 percent).