2023 Leadership Reflections - Karyn Ovelmen

Newmont Corporation

18 Apr 202403:44

Summary

TLDRKaren Oan, CFO at Newmont, discusses her company's commitment to sustainable and responsible mining, emphasizing its role beyond gold production to supply essential metals for a low-carbon future. Newmont's 2023 sustainability report, themed 'More than Gold,' highlights the company's industry leadership in cost-effective operations, environmental responsibility, and social good. The company integrates sustainability practices to enhance stakeholder value, prioritizing safety, integrity, and inclusion while capital allocation supports both organizational values and shareholder returns.

Takeaways

🌟 Karen Oan is the Chief Financial Officer at Newmont, responsible for all financial aspects of the company.
🏆 Newmont has a strong reputation in the sustainability space and is recognized for its actions, not just words, in the mining industry.
💡 The theme of Newmont's 2023 sustainability report is 'More than Gold,' emphasizing that the company is more than a gold mining company; it produces essential metals for a low-carbon future.
🚀 Newmont is committed to creating sustainable value that extends beyond mining to benefit all stakeholders.
💼 The company's values of safety, sustainability, integrity, responsibility, and inclusion guide its operations and capital allocation towards sustainability efforts.
💹 Newmont's capital allocation strategy aligns sustainability commitments with shareholder return on investment.
📊 Quantifying the financial benefits of sustainability practices involves complex metrics, industry benchmarks, internal data analysis, cost savings, risk mitigation, market access, and reputation.
🌐 A strong sustainable performance can open new markets and enhance reputation, which is valuable for shareholders who prioritize sustainability.
🛑 Newmont faces challenges such as rising costs, financing, and geopolitical risks, alongside opportunities in demand for critical minerals and technological advancements.
🌐 The company is focused on attracting investors and accessing new markets while maintaining a clear and consistent strategy for long-term value creation and contributing to a sustainable future.

Q & A

Who is Karen Oan and what is her role at Newmont?
-Karen Oan is the Chief Financial Officer at Newmont, responsible for all financial aspects of the company.
What is Newmont's commitment in the mining industry?
-Newmont is committed to its purpose to create value and improve lives through sustainable and responsible mining in everything it does.
What does the theme 'More than Gold' in Newmont's 2023 sustainability report signify?
-The theme 'More than Gold' signifies that Newmont is not just an industry-leading gold mining company but also a leading producer of essential metals critical for a low carbon future and a business recognized for creating sustainable value beyond mining for all stakeholders.
How does Newmont demonstrate its commitment to sustainability?
-Newmont demonstrates its commitment to sustainability by integrating practices that focus on developing and delivering low-cost operations, environmental responsibility, and social good, aiming to be an industry leader in these areas.
What values underpin the way Newmont operates?
-Newmont's operations are underpinned by values of safety, sustainability, integrity, responsibility, and inclusion.
How does Newmont's capital allocation strategy support its sustainability commitments?
-Newmont's capital allocation strategy prioritizes sustainability commitments, supporting the company's values and also the return on investment for shareholders.
What metrics does Newmont use to quantify the financial benefits of sustainability practices?
-Newmont uses metrics such as industry benchmarks, internal data analysis, cost savings, risk mitigation, market access, and reputation to quantify the financial benefits of sustainability practices.
How does a strong sustainable performance impact Newmont's market access and reputation?
-A strong sustainable performance can open doors to new markets and enhance Newmont's reputation, especially for shareholders who value sustainability.
What challenges and opportunities does Newmont face in its pursuit of sustainability?
-Newmont faces challenges such as rising costs, financing, and geopolitical risks, as well as opportunities like demand for critical minerals, technological advancements, and focusing on sustainability while attracting investors and accessing new markets.
What is Newmont's approach to creating long-term value and contributing to a sustainable future?
-Newmont is focused on creating long-term value by delivering on a clear and consistent strategy that emphasizes sustainability, responsible mining practices, and contributing to a sustainable future.
How does Karen Oan view her first full year at Newmont and the company's approach to sustainability?
-Karen Oan, coming up on her first full year at Newmont, views the company's approach to sustainability as integral to its operations and values, and she is interested in the challenge of the new industry and the company's positive reputation in the mining sector for doing the right thing.

Outlines

00:00

🏆 Introduction to Karen Oan and Newmont's Commitment

Karen Oan, Chief Financial Officer at Newmont, introduces herself and her role, which encompasses all financial aspects of the company. She reflects on her first year and previous experience in CFO roles at complex, capital-intensive companies in the resource and energy sectors. Oan emphasizes Newmont's strong reputation in sustainability and its commitment to responsible mining, which aligns with her interest in new industry challenges. She highlights the company's purpose to create value and improve lives through sustainable practices and its industry-leading position in gold mining, as well as its production of essential metals for a low-carbon future.

Mindmap

Keywords

💡Chief Financial Officer (CFO)

A Chief Financial Officer is the executive responsible for overseeing the financial operations of a company, including financial planning, management of financial risks, record-keeping, and financial reporting. In the video's context, Karen Oan, as the CFO of Newmont, is emphasizing her role in managing the company's finances and contributing to its sustainability goals. The script mentions her position to establish her authority and perspective on the company's financial and sustainability strategies.

💡Sustainability

Sustainability refers to the ability to maintain processes or conditions so that they can continue over the long term without depleting resources or causing significant harm to the environment. In the video, Newmont's commitment to sustainability is a central theme, with the company aiming to create value and improve lives through responsible mining practices. The script highlights the company's efforts to reduce environmental impact and improve social responsibility as part of its sustainability initiatives.

💡Resource and Energy Sectors

The resource and energy sectors encompass industries that deal with the extraction, production, and supply of natural resources and energy. Karen Oan's background includes CFO roles in these sectors, which are characterized by high complexity and capital intensity. The script uses this to establish her expertise and to underscore Newmont's positioning within these sectors, particularly in terms of sustainability and responsible mining practices.

💡Stakeholders

Stakeholders are individuals or groups that have an interest or a stake in a business or project. In the script, Newmont's commitment to creating sustainable value extends beyond the mine to benefit all of its stakeholders, which includes not only shareholders but also the environment and local communities. This reflects the company's broader social responsibility and the importance of considering the interests of all parties involved.

💡Sustainable and Responsible Mining

Sustainable and responsible mining refers to the practice of mining in a way that minimizes environmental impact, ensures the health and safety of workers, and contributes positively to the local community and economy. The script emphasizes Newmont's dedication to this approach, highlighting the company's industry-leading position and its commitment to doing 'the right thing' in all its operations.

💡Capital Allocation Strategy

A capital allocation strategy is a plan that companies use to determine how to best distribute their financial resources to various projects or investments. In the video, Newmont's capital allocation strategy is linked to its sustainability commitments, showing that the company prioritizes investments that support its values and contribute to long-term value creation. This strategy is crucial for balancing financial returns with social and environmental responsibilities.

💡Environmental Responsibility

Environmental responsibility involves a company's commitment to reducing its impact on the environment through sustainable practices. The script mentions Newmont's focus on environmental responsibility as part of its sustainability efforts, which includes reducing environmental impact and ensuring long-term resource access. This is a key aspect of the company's commitment to sustainability and its social license to operate.

💡Social License to Operate

The social license to operate is the perceived legitimacy granted by the public, local communities, and other stakeholders to an organization to undertake its activities. In the script, Newmont aims to preserve this social license by prioritizing sustainability, which helps to reduce risk and ensure long-term access to resources. This concept is central to the company's approach to gaining and maintaining public trust and support for its mining operations.

💡Low-Cost Operations

Low-cost operations refer to the efficiency of a company's processes, which allows it to produce goods or services at a lower cost than competitors. The script mentions Newmont's commitment to developing low-cost operations as part of its industry leadership in sustainability. This not only benefits the company's financial performance but also aligns with its environmental and social goals.

💡Quantifying Financial Benefits

Quantifying financial benefits involves measuring the economic value that a company derives from its practices or investments. In the video, Newmont uses various metrics to assess the financial benefits of integrating sustainability practices into its operations, including industry benchmarks, internal data analysis, cost savings, and risk mitigation. While some benefits, such as market access and reputation, are not directly quantifiable, they are still important for the company's financial performance and stakeholder value.

💡Critical Minerals

Critical minerals are elements that are essential for various industrial and technological applications, particularly those that are vital for the transition to a low-carbon economy. The script positions Newmont as a leading producer of these essential metals, which are critical for helping the world transition to a more sustainable future. This underscores the company's role in supplying materials that are necessary for the development of clean energy technologies and other sustainable practices.

Highlights

Karen Oan is the Chief Financial Officer at Newmont, responsible for all financial matters.

Karen has held various CFO roles in highly complex and capital-intensive companies in the resource and energy sectors.

Newmont has a great reputation in sustainability, which attracted Karen to join the company.

Newmont is committed to creating value and improving lives through sustainable and responsible mining.

The theme of Newmont's 2023 sustainability report is 'More Than Gold,' emphasizing their role beyond gold mining.

Newmont is a leading producer of essential metals critical for the transition to a low-carbon future.

Newmont is recognized for creating sustainable value that benefits all stakeholders.

Newmont prioritizes environmental responsibility and social good, demonstrating that companies can do more for stakeholders.

Newmont's values of safety, sustainability, integrity, responsibility, and inclusion guide their operations.

Prioritizing sustainability and allocating capital towards these efforts helps Newmont preserve their social license to operate.

Newmont's capital allocation strategy supports both sustainability commitments and return on investment for shareholders.

Newmont quantifies the financial benefits of sustainability practices using metrics such as industry benchmarks, internal data analysis, cost savings, and risk mitigation.

Sustainability performance can open doors to new markets and enhance Newmont's reputation with shareholders who value sustainability.

Newmont faces challenges such as rising costs, financing, and geopolitical risks, but also opportunities in demand for critical minerals and technological advancements.

Newmont is focused on creating long-term value and delivering on a clear and consistent strategy while contributing to a sustainable future.