Newmont (NEM) risk factors, FY2024 10-K

Other

1. 01in millions, except per share, per ounce and per pound amounts)

Risks Related to Our Operations and Business

1. 02A substantial or extended decline in gold, copper, silver, lead or zinc prices would have a material adverse effect on us
2. 03We may be unable to replace gold, copper, silver, lead or zinc reserves as they become depleted
3. 04Estimates of proven and probable reserves and measured, indicated and inferred resources are uncertain and the volume and grade of ore actually recovered may vary from our estimates
4. 05Estimates relating to projects and mine plans of existing operations are uncertain and we may incur higher costs and lower economic returns than estimated
5. 06anticipated or may not be profitable at all, any of which could have a material adverse effect on our results of operations and financial position
6. 07Increased operating and capital costs could affect our profitability
7. 08Mine closure, reclamation and remediation costs for environmental liabilities may exceed the provisions we have made
8. 09We are dependent upon information technology and operational technology systems, which are subject to disruption, damage, failure or cybersecurity attacks and risks associated with implementation, upgrade, operation and integration
9. 10Additionally, the increased interconnectivity of automated and cloud-based systems and increase of our remote workforce expands our cyber-attack surface, requiring heightened vigilance and advanced security measures. These risks are further compounded for our operations in countries with higher geopolitical risk
10. 11To the extent we hold or acquire interests in any joint ventures or enter into any joint ventures, our interest in these properties is subject to the risks normally associated with the conduct of joint ventures
11. 12Our operations and business have in the past been affected by the COVID-19 pandemic, and may be materially and adversely impacted in the future by pandemics, epidemics and other health emergencies

Financial Risk

1. 13Increased exposure to foreign exchange fluctuations and capital controls may adversely affect Newmont’s costs, earnings and the value of some of our assets
2. 14Future funding requirements may affect our business, our ability to pursue new business opportunities, invest in existing and new projects, pay cash dividends or engage in share repurchase transactions
3. 15Our long-lived assets and goodwill could become impaired, which could have a material non-cash adverse effect on our results of operations
4. 16Our ability to recognize the benefits of deferred tax assets is dependent on future cash flows and taxable income
5. 17Any downgrade in the credit ratings assigned to our debt securities could increase our future borrowing costs and adversely affect the availability of new financing
6. 18Returns for investments in pension plans are uncertain

Risks Related to Our Industry

1. 19We may experience increased costs or losses resulting from the hazards and uncertainties associated with mining
2. 20Mining operations involve a high degree of risk, including hazards related to the use of explosives and hazardous chemicals and critical equipment failure
3. 21We rely on our supply chain operations to procure goods and services to support our operations and projects, and competition with other natural resource companies, and shortage of critical parts, services and equipment may adversely affect our operations and development projects
4. 22We may be unable to obtain or retain necessary permits and land or mining tenure, which could adversely affect our operations and projects
5. 23development of a project; increased costs of development or production and litigation or regulatory action, any of which could materially adversely affect our business, results of operations or financial condition
6. 24Mining companies are increasingly required to consider and provide benefits to the communities and countries in which they operate in order to maintain operations
7. 25Illegal mining and artisanal mining occur on or adjacent to certain of our properties exposing such sites to security risks
8. 26Civil disturbances and criminal activities can disrupt business and expose the Company to liability
9. 27Our operations and projects face substantial regulation of health and safety
10. 28Our operations and projects are subject to extensive environmental laws and regulations
11. 29Waste Rock and Tailings Management
12. 30Tailings Storage Facilities and Dust Emissions at Cadia
13. 31The independent air quality audit report published by Cadia Holdings in August 2022 indicated that dust emitted from two ventilation exhaust rises which vent emissions from underground processing operations exceeded levels permitted by applicable law
14. 32While no specific relief has been sought by the NSW EPA in its proceeding against Cadia Holdings before the NSW Land and Environment Court, the court can impose penalties
15. 33Environmental Sampling in the Cadia Area
16. 34Our operations and projects are subject to a range of risks related to transitioning the business to meet regulatory, societal and investor expectations for operating in a low-carbon economy
17. 35Our operations and projects are subject to a range of transitional and physical risks related to climate change
18. 36Our Company and the mining industry are facing continued geotechnical, geothermal, and hydrogeological challenges, which could adversely impact our production and profitability
19. 37Our operations and projects may be adversely affected by rising energy prices or energy shortages
20. 38Our operations and projects are dependent on the availability of sufficient water supplies and subject to water-related risks
21. 39Our operations and projects are subject to risks related to our relationships and/or agreements with local communities, including Indigenous Peoples, and laws for the protection of cultural heritage

Risks Related to the Jurisdictions in Which We Operate

1. 40Our operations and projects are subject to risks of doing business in multiple jurisdictions
2. 41New or changing legislation and tax risks in certain operating jurisdictions could negatively affect us
3. 42Changes in mining or investment policies or shifts in political and social attitudes in the jurisdictions in which we operate may adversely affect our operations or profitability
4. 43Our operations at Yanacocha and projects in Peru are subject to political and social unrest risks
5. 44Our Merian operation in Suriname is subject to political, security and economic risks
6. 45Our operations at Ahafo and Akyem in Ghana are subject to political, economic and other risks
7. 46Our operations in Argentina are susceptible to risk as a result of economic and political instability in Argentina and labor unrest
8. 47Our operations at Lihir and project at Wafi-Golpu in PNG are subject to political and regulatory risks and other uncertainties
9. 48Our operations and projects in Canada are subject to legal and regulatory risks and other uncertainties in connection with claims and challenges by Indigenous groups

Risks Related to Our Workforce

1. 49Our business depends on good relations with our employees
2. 50Our Peñasquito operation in Mexico is subject to social, political, regulatory, and economic risks
3. 51We may not be able to operate successfully if we are unable to recruit, hire, retain and develop key personnel and a qualified and diverse workforce. In addition, we are dependent upon our employees being able to perform their jobs in a safe and respectful work environment
4. 52We rely on contractors to conduct a significant portion of our operations and construction projects
5. 53A failure of contractors to align employment practices with Newmont standards can also result in reactions from our employees and our workforce as they express solidarity with their counterparts in the field

Legal Risks

1. 54Title to some of our properties may be insufficient, defective, or challenged

Risks Related to Our Common Stock

1. 55The price of our common stock may be volatile, which may make it difficult for you to sell the common stock at the price you paid or at prices you find attractive
2. 56Holders of our common stock, CDIs and PDIs may not receive dividends
3. 57Compliance with exchange listing rules as a foreign exempt listing may differ from investor expectations

Risks Related to Assets Held for Sale and Divestitures

1. 58Assets held for sale may not ultimately be divested and we may not receive any or all deferred consideration
2. 59The Company’s asset divestitures place demands on the Company’s management and resources, the sale of divested assets may not occur as planned or at all, and the Company may not realize the anticipated benefits of such divestitures
3. 60transitioning contracts, licenses, software, and other physical assets, and assisting the purchasers in setting up system to be in a position to run the assets