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(Kitco News) - Newmont (NYSE: NEM) (TSX: NGT) today announced it will defer the full-funds investment decision for the Yanacocha Sulfides project in Peru for at least two years to advance its portfolio optimization strategy designed to maximize returns for shareholders and create long-term value for other stakeholders.
"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," Newmont said.
According to a company statement, 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 2024.
"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 President and CEO Tom Palmer. "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," he added.
The Yanacocha Sulfides project aims to develop the first phase of sulfide deposits at Yanacocha through an integrated processing circuit, including an autoclave to produce 45 percent gold, 45 percent copper and 10 percent silver.
The first phase focuses on developing the Yanacocha Verde and Chaquicocha deposits to extend Yanacocha's operations beyond 2040, with second and third phases having the potential to extend the operation's life for multiple decades.
Newmont is the world's leading gold company and a producer of copper, silver, zinc and lead. Newmont is the only gold producer listed in the S&P 500 Index. The company was founded in 1921 and has been publicly traded since 1925.
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