And this is just a process of the time at which that metal present. None of those issues have any impact in terms of the reserves that we have, and it’s just the timing at which they can be converted into metal and sold.
Daniel Morgan: That’s probably a good segue, Tom, into my next question, which is the market can sometimes get fixated on short-term issues and forget that the gold is still there. So if the market does do that in the share price underperforms as it has year-to-date, is it an opportune time at some point soon to look to a buyback to maybe communicate to the market that there is long-term value in the share price and the market may not be pricing in?
Thomas Palmer: Thanks, Daniel. That’s certainly say for anyone looking at Newmont’s stock today, there’s some tremendous buying out there in terms of the transaction we’re about to close and the portfolio that we’ll be in less than 2 weeks’ time. Daniel, the process we’ll work through. We’ll diligently work through our business planning for what I was mentioning in the answer to the previous question, we’ve got 5 new assets to develop Newmont base mine plans to and work through a process of determining our 2024 budget and continuing in parallel work on the longer-term plans. That will then inform our capital allocation process, which for us is ensuring we’re maintaining a strong balance sheet, ensuring that we’re directing appropriate levels of cash towards reinvestment back in the business to extend life and the growth and ensure we’ve got returns available to our shareholders.
Our capital allocation strategy as returns first and foremost been through our dividend framework. So we’ll work through our business planning process, particularly for 2024 year and look to how we calibrate our dividend framework when you think about assumptions about gold price, the cash flow we generated and some of the other macroeconomic events that will be impacting our business in our world at that time. That will be the primary debate and discussion we’ll have. But as we have that debate and we present those numbers to our Board and we look at the cash we’re generating, we look at our share price, it is an area that we will continue to debate as a second order capital allocation element returns to shareholders and whether there would be some benefit in terms of how we’re seeing the business and whether there will be any benefit in seeking permission from the Board to establish a buyback program.
So it’ll be part of the debate. But our first order returns to our shareholders is through the dividend framework.
Operator: Our next question comes from the line of Tanya Jakusconek with Scotiabank.
Tanya Jakusconek: Just have a couple that I just need some clarity on. Tom, can we just go back to the Newcrest merger that is pending. Can we just talk about Newcrest’s reserves and resources? When you report your guidance in February of 2024 for the year and your reserves and resources, will you be adjusting those reserves and resources based on your inputs just like you did with Goldcorp when you took over, you’ve made adjustments from the reserve to the resource category? And if so, can you review with us some of the mines that we may see some shift. That’s my first question.
Thomas Palmer: Thanks, Tanya. Yes, you can expect something very similar to what took place when we acquired Goldcorp. So we’ll have a team — a technical team on the ground across those 5 operations through November and December assessing the reserves and resource at each of those operations and assessing those against our Newmont definition. So we obviously report under SEC rules and Newcrest report under So there will be some differences in terms of what is classified as a reserve and resource and then we also have a very high standard at Newmont, right? A Newmont reserve is a higher standard in the industry. So you will see some back and forth. The various announcements we’ve made since we announced the binding agreement, you’ll see us talk about a couple of instances about reserves and resources, and you’ll see us report them separately for the 2 companies because there are 2 different definitions for those.
So we are working towards with our February time frame to update reserves and resources for the combined portfolio. And in terms of any sort of signaling, we haven’t — and I think it’s important that everybody is we had access to a data room for 4 weeks back in April and May to assess and to submit a binding offer and to determine our synergy values and to make some judgments about portfolio optimization. Since that time, both companies are required to run as independent companies. And so we have had an integration team working on planning for integration, but we have not had any access to any additional Newcrest information since that time. We get the keys to the car on Monday, the 6th of November. That’s the first time we get access to reserves and resources, mine plans and the can start that work.
So it’s in front of us, Tanya, in a couple of weeks’ time.
Tanya Jakusconek: Okay. So there isn’t anything that you can think of, for example, the Lihir where some of those reserves, I think, is about 3 million ounces or thereabouts in the reserve category that need the additional layback from the, I think, the dam wall to be included, whether something like that could shift from reserves to resources given Newmont’s stricter definition. Have you — I’m just giving that as an example. I’m just wondering if there’s anything between the 2 accountings, the 2 IFRS and U.S. GAAP on the reserves just is glaring to you at this point.
Thomas Palmer: Nothing is that level of granularity, Tanya, but our expectation is similar to the Goldcorp experience. You will see — without going into specifics, you will Newcrest reported reserves in some instances move into Newmont reported resources. You’ve also seen — I think many people fully understand as we move from interest reporting to accounting to U.S. GAAP accounting, our definitions for the stockpiles and for sustaining capital and other things can change. Our coproduct, byproduct accounting will which change. There’ll be some moving parts around all of that as well. But we don’t have that granularity yet, Tanya.
Tanya Jakusconek: Okay. So — and then just on the long-term guidance, I think I heard that, that will be provided after the Board strategy meetings in June. So should we be thinking midyear for a 5-year guidance outlook?
Thomas Palmer: That’s what we’re planning to do, Tanya. And what do we want to get through that good working session with our Board and then really look to set up the Capital Markets Day where we can come together and work through that longer-term view, certainly the 5-year, and certainly with the portfolio on where will be looking to show the 5- to 10-year view of the strength of this portfolio. But we certainly want to work with those mine plans over the first few months of next year in order to really have a wrap-up story to share with the market.
Tanya Jakusconek: Okay. And then just maybe on any more severance and/or restructuring costs that we are going to be incurring in Q4? Or have these all been taken in Q3?
Thomas Palmer: The severance costs in Q3 largely unrelated to this transaction that was associated with the reset work happening down at Yanacocha as we’re ramping down there, and we’ve got folks taking some voluntary redundancies. So we will start to see the transaction-related severances flow in the fourth quarter, and then they’ll flow into the third quarter of next year where you’ll see that probably the larger numbers will be in the first quarter of next year than the fourth quarter of this year.
Tanya Jakusconek: Okay. So more cost in Q4 and Q1 to come. And then my last question is I just kind of would like…
Thomas Palmer: [indiscernible]
