randall oliphant · 2020. 8. 4. · randall oliphant president and chief executive officer morgan...
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Randall OliphantPresident and Chief Executive Officer
Morgan Stanley Dean WitterGlobal Metals and Building Conference
March 22, 2001 - London
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US$ 1.1 billionnon-cash provision
•1994-1996 assets– financed with shares– $400 gold– right time– management driven
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– cash flows– reserves– production– employees
•No impact on:
US$ 1.1 billionnon-cash provision
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2000 Review2000 Review
Record ProductionRecord Production
Lowest costsLowest costs
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2000 Review2000 Review
Operating earnings: $334 mOperating earnings: $334 m
Operating cash flow: $705 mOperating cash flow: $705 m
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2000 Review2000 Review
Premium Gold Sales ProgramPremium Gold Sales Program
Additional revenue: $300 mAdditional revenue: $300 m
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2000 Review2000 Review
Free cash flow: $530 mFree cash flow: $530 m
Cash margin: $215 per oz.Cash margin: $215 per oz.
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Building valueBuilding value
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PangeaAcquisition
PangeaAcquisition
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2000 Review2000 Review
Production: 3.7 million oz.Production: 3.7 million oz.
Cash costs: $145 per oz.Cash costs: $145 per oz.
Reserves: 58.5 million oz.Reserves: 58.5 million oz.
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2000 Review2000 Review
BulyanhuluBulyanhulu
GoldstrikeGoldstrike
PierinaPierina
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Committed to:-gold businessCommitted to:-gold business
-hedging-hedging
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Pascua decision
Non-cashprovision
Pascua decision
Non-cashprovision
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FlexibilityGrowth
Discipline
FlexibilityGrowth
Discipline
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“A” rated balance sheet“A” rated balance sheet
High-quality assetsHigh-quality assets
Largest cash positionLargest cash position
Growing free cash flowGrowing free cash flow
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FlexibilityFlexibility
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Bulyanhulu FinancingBulyanhulu Financing$200 m development loan$200 m development loan
Partner with 6 global banksPartner with 6 global banks
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Plan for thefuture
Plan for thefuture
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Premium GoldSales ProgramPremium GoldSales ProgramLock in minimum pricesLock in minimum prices
Paid a premiumPaid a premium
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Premium GoldSales ProgramPremium GoldSales ProgramLowered our realized pricefor 2001 to $340Lowered our realized pricefor 2001 to $340
Spreads the value outfor a longer periodSpreads the value outfor a longer period
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Built to last…Built to last…and built to growand built to grow
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CompetitiveAdvantageCompetitiveAdvantagePredictable, reliable cash flowPredictable, reliable cash flow
High marginsHigh margins
Premium Gold Sales ProgramPremium Gold Sales Program
Growth in any environmentGrowth in any environment
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CompetitiveAdvantageCompetitiveAdvantageHigher gold prices Higher gold prices
Lower gold pricesLower gold prices
= accelerate Pascua= accelerate Pascua
= acquisition opportunities= acquisition opportunities
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Look at BarrickLook at Barrick
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Stickingwith goldSticking
with gold
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Positionedto benefitPositionedto benefit
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Game planfor the future
Game planfor the future
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Game PlanGame Plan
Increase earnings and cash flowIncrease earnings and cash flow
Improve return on equityImprove return on equity
Maintain our strong balancesheetMaintain our strong balancesheet
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Game PlanGame Plan
April 2001 Bulyanhulu start-upApril 2001 Bulyanhulu start-up
Underground potentialat GoldstrikeUnderground potentialat Goldstrike
Potential Pascua/VeladerosynergiesPotential Pascua/Veladerosynergies
District development programsDistrict development programs
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Disciplineand FocusDisciplineand Focus
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A companyin control
A companyin control
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Free cash flowFree cash flow
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Organic growthOrganic growth
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Strategicacquisitions
Strategicacquisitions
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