Newmont Sees Higher Gold Production This Year -- Commodity Comment
By Micah Maidenberg
Newmont Corp. issued a forecast Thursday that includes the
expectation that it will produce 6.5 million ounces of gold tihs
year. Production at that level would represent an increase compared
with last year and 2019.
Meanwhile, the miner said gold-ounces sold fell 10% in the
fourth quarter but prices rose 25%. Here's what else Newmont had to
say about its operations and end markets:
On overall production trends last year:
"Attributable gold production1 for the year decreased 6 percent
to [5.9 million] ounces from the prior year primarily due to
Yanacocha and Cerro Negro being placed into care and maintenance in
response to the Covid pandemic, lower ore grade mined at Ahafo and
the sale of Red Lake and Kalgoorlie, partially offset by a full
year of operations from assets acquired in April 2019."
On gold pricing in 2020:
"Average realized price for gold increased $376 per ounce to
$1,775 per ounce for the full year and $374 per ounce to $1,852 per
ounce for the quarter, compared to the prior year."
On capital spending:
"Capital expenditures decreased 11 percent to [$1.3 billion] for
the full year and decreased 7 percent to $398 million for the
quarter, compared to prior year, primarily due to the sale of Red
Lake and Kalgoorlie and reduced spending from the completion of
Borden Underground, Ahafo Mill Expansion, and other sustaining
projects in 2019. Development capital expenditures in 2020
primarily include advancing Tanami Expansion 2, Yanacocha Sulfides,
Ahafo North, the Subika mining method change, Musselwhite Materials
Handling System, Éléonore Lower Mine Material Handling System,
Quecher Main, and projects associated with the Company's ownership
interest in Nevada Gold Mines."
On some of the company's project pipeline:
"Funding for the current development capital project Tanami
Expansion 2 has been approved and the project is in execution
stage. The company has included the Ahafo North and Yanacocha
Sulfides projects in its long-term outlook as the projects are
scheduled to be approved for full funding in 2021."
On gold production in 2021 and beyond:
The company sees production of "6.5 million ounces for 2021, and
between 6.2 and 6.7 million ounces through 2023 and between 6.5 and
7.0 million ounces longer-term through 2025."
Write to Micah Maidenberg at email@example.com
(END) Dow Jones Newswires
February 18, 2021 08:32 ET (13:32 GMT)
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