Newmont Expects Fiscal Year Results to Include Continued Effects From Covid-19, Other Challenges -- Commodity Comment
October 28 2021 - 9:04AM
Dow Jones News
By Dave Sebastian
Newmont Corp. said it expects its full-year results to include
continued effects from Covid-19 and other challenges.
On gold production:
"Newmont's updated 2021 outlook includes approximately 6.0
million ounces of attributable gold production and approximately
1.3 million gold equivalent ounces from copper, silver, lead and
zinc," the company said.
"The revised outlook for attributable gold production includes
adjustments for operational challenges at Boddington and Nevada
Gold Mines, as well as the continued impact from the global
pandemic, primarily in Canada and Australia."
On the Boddington mine:
"Boddington experienced challenges from severe weather, shovel
reliability, operational delays associated with managing bench
hygiene and the continued ramp-up of AHS to full productivity. As a
result, Boddington delivered lower ex-pit tons than expected, with
full-year 2021 gold production anticipated to be approximately 140
thousand ounces below original guidance estimates."
On Nevada Gold Mines:
"Nevada Gold Mines is also experiencing challenges. Carlin and
Cortez are expected to be at the low end of their annual guidance
ranges, and Turquoise Ridge is expected to be below its annual
guidance range."
On the Tanami mine:
"Tanami was placed under care and maintenance in late-June and
July as a result of Covid restrictions, reducing the site's
full-year production by approximately 40 thousand ounces."
On the labor market in Canada:
"Newmont continues to experience lower productivity as a result
of Covid-related absenteeism and a tightening of the labor market
in Canada. We expect these sites to be at the low end or below
their annual production guidance ranges."
On the costs applicable to sales outlook:
"Updated 2021 Costs applicable to sales (CAS) outlook are
expected to be $790 per ounce and All-in sustaining costs (AISC)
are expected to be $1,050 per ounce. The revised outlook includes
the impact from lower production volumes and higher royalties and
production taxes at higher gold prices."
On the capital-expenditures outlook:
"Updated 2021 attributable development capital expenditures are
expected to be approximately $700 million. The revised outlook
includes a decrease of $150 million largely due to deferred
spending associated with advancing Tanami Expansion 2."
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
October 28, 2021 08:49 ET (12:49 GMT)
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