NEM
#Thanks, <UNK>, for that question.
I would expect that accounts receivable to come down.
We had unusually high sales compared to production in the first quarter.
We had mentioned at the end of last year we had some Batu shipments that did not make it through to sales and so we had that come through in the first quarter.
We will be expecting to ramp up some of the capital costs in this quarter.
The Yanacocha dividend, we don't factor that into free cash flow.
That was more of a financing activity of moving that through, similarly to Regis.
No.
I do not think we would be doing that on a regular basis.
It is something we want to make sure we leave enough cash at Yanacocha to fund the upcoming activities and what might be happening but we felt that there was enough cash there and we felt it was appropriate to dividend it out to all the partners, including to us at corporate which allows us to use some of that for debt pay down and things like that.
Two things.
One, it is partially through the year but also perhaps the bigger factor is we are spending a little bit less on capital so our capitalized interest goes down.
Our guidance is expense.
We have some that moved to capitalize interest in that number has gone down similar of its days in expense.
That's really part of the deal terms that we will be working through so I think best to hold that question if we're ---+ for another time.
Thank you.
Good question but fits all within the overall elements of the deal terms that we are working through, so nothing more I can share at this stage.
I believe that, that ---+ should be able to find what you need in the (technical difficulty).
Let me get back to you on that.
I'm familiar with the loan balances I'm just not sure where to point you to point that out.
We'll come back to you on that.
I don't think it's specifically disclosed in our Q.
Okay.
I'll take the first part of that and then have <UNK> cover that on the second part in terms of what debt we would target.
If we are successful, the cash proceeds we would see being used both to continue to pay down debt as we work towards our net debt-to-EBITDA ratio of one at a $1,200 gold price and then use proceeds to continue to fund our own organic growth projects that we see ---+ we have the best organic growth pipeline in the industry.
Wouldn't see it accelerating but use the cash to invest in those projects where they make sense, where they're profitable.
In regards what debt we target, I'm going to hand over to <UNK> to cover that.
Thanks, <UNK>, and thanks, <UNK>, for the question.
I think we would definitely continue to target a mix but as we get closer to some of the near-term debt, we might prioritize that a bit more than what you saw in the tender that we just executed.
Our targeted debt reduction payment does not rely on these proceeds.
That's what we believe we can do from our operating performance.
Obviously, if we did get these proceeds and use that to pay down debt, we would exceed that number.
And what we've achieved already here in the first quarter has put us on pace to not only meet but likely exceed that target that we put out there for the next three years.
Thanks, <UNK>.
What we have is the Batu Hijau production is in there in 2016, 2017, also 2018, 2019 and 2020 but then we're processing off of stockpiles.
What we've not included is the phase 7 investment, so that is not in the capital guidance and it is not showing up in the cost.
It is primarily capital and the capital range we would expect is $1.7 billion, $1.8 billion.
That would begin in 2017 if we were to move forward.
But to do that, just as a reminder, we would need have our contract to work changes defined and agreed and we would need to have, as we've done with phase 6, we would need to have third-party financing, non-recourse project financing that would be set up to do it.
And of course, it would have to make economic sense and have the returns to fit in that area.
Those would be the three things.
Back to your key question on guidance, we have not included phase 7 but it does show phase 6 through 2016, 2017, and then the processing of ---+ it is as a would've been back if you go back and take a look at 2014 and the first part of 2015 in terms of production levels.
I did not follow the question.
Say that again, <UNK>.
Those numbers ---+ I can't comment, really, on what's in the press.
I think will we look at the value, there is a value for phase 6 and there is a value for phase 7 out there and beyond.
Those would be the pieces that we would be looking at so when I talk of the development cost for phase 7, that does not include the revenues and the value you get from phase 7 and of course it didn't pick up the value we get for phase 6 in the equation.
No.
The only requirement that we have under our contract to work is a further 7% divestment.
That has been on the table with an agreement to sell and the government hasn't progressed that an almost five years that we've had that agreement.
I don't see ---+ divestment has never been an issue in our discussions with them on the contract to work.
We've divested already 44% of our interest there and that has not been an issue with the government.
Thanks, Elliott.
Thank you very much.
Thank you for joining our call this morning.
Our team continues to deliver strong results as we did here in the first quarter of 2016 by driving safer and more efficient operations, a portfolio of longer-life, lower-cost assets, an experienced and successful exploration team, an exceptional project pipeline and success rate, and a stronger balance sheet and credit rating.
We will continue to build on these foundations as we work to make Newmont the world's most profitable and responsible gold business.
Thank you again and have a safe day.
