Newmont CEO expects gold price to remain at “elevated levels” amid volatility

Tom Palmer, CEO, Newmont Mining

NEWMONT Mining CEO, Tom Palmer, expected the dollar gold price to remain “elevated” as government-backed stimulus efforts continued.

Palmer told Bloomberg News: “There are a lot of signals that point to gold staying at these elevated levels – with I think a lot of volatility around it – for some time to come”.

He added that despite the boost to revenue, the company would remain locked on cost control and capital allocation priorities focused on shareholder returns.

“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, Palmer said.

Investors want the gold industry to remain disciplined and “actually achieve the margins that we’re seeing at the moment,” he told the newswire.

He said the company was “actively debating and assessing opportunities for further shareholder returns”.

Palmer had previously worked at Rio Tinto where he’d once led the group’s iron ore portfolio. Despite this background, he appeared to discount himself as a possible replacement for Jean-Sebastien Jacques, the Anglo-Australian firm’s CEO who was forced out last week following the destruction of precious aboriginal settlements.

“I’m already very privileged to be leading one of the world’s great mining companies,” he said. “I have an exceptional team and look very much forward to working with that team to deliver significant value to all of our stakeholders, and that’s my focus.”