What the world’s largest producer says about the price of gold

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World’s Largest Gold Producer Believes Precious Metal Price Remains ‘High’ As Governments Continue To Spend On Pandemic Revival, But Don’t Expect This To Change Newmont Corp’s Focus . on fiscal “discipline” so soon.

Gold has skyrocketed to highs above $ 2,000 an ounce in August, helping to boost miner cash flow, stock prices and possibly the hopes of shareholders who expect higher returns. Spot gold has fallen a bit since then, but the safe haven metal is still trading in record territory above $ 1,900.

“There are a lot of signs that gold is staying at these high levels – with, I think, a lot of volatility around it – for quite some time to come,” Tom Palmer, CEO of Newmont, said by phone.

Despite the high prices and cash flow these generate for miners, Palmer plans to stay focused on things like improving margins, investing in existing projects that make money at great prices. lower levels and good balance sheet performance.

“At Newmont, when we talk about discipline, it’s about continuing to run our business profitably at the bottom of the price cycle, at $ 1,200,” said Palmer. Investors want the gold industry to stay disciplined and to “really realize the margins that we” see right now. “

Palmer said he believes issues relating to capital allocation as well as the environment, social and governance will be the two hot topics of discussion at the Denver Gold Group’s annual conference of the Americas, which begins on Sunday. .

At the same time, he said the Greenwood Village, Colorado-based company is discussing new returns for shareholders.

“We increased our dividend by 79% earlier this year, and we have the industry’s first dividend at $ 1 a share,” on an annual basis, Palmer said.

“As we now examine the strength of our balance sheet, the discipline we have in running our business and our sustainable portfolio,” he said, “we are actively discussing and evaluating the opportunities for additional returns for shareholders.

There has been speculation that Palmer, 53, could be a candidate to lead the Rio Tinto group after CEO Jean-Sébastien Jacques was kicked out last week for destroying ancient indigenous heritage sites. Palmer spent nearly two decades in Rio, including a stint as chief operating officer of the company’s iron ore business.

Is Palmer interested in the job?

“I am already very privileged to lead one of the great mining companies in the world,” he said. “I have an exceptional team and look forward to working with this team to deliver meaningful value to all of our stakeholders, and this is my focus. “

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