By Robb M. Stewart

 

Newmont Corp. is targeting a rise in gold production next year to 6.2 million ounces, growing to as much as 6.8 million ounces annually over a five-year period even as costs are set to fall.

 

On guidance:

The mining company Thursday forecast production of between six million and 6.6 million ounces in 2023, and between 6.2 million and 6.8 million ounces in each of the following three years. Production of other metals is expected to be 1.3 million gold-equivalent ounces in 2022, it said.

Newmont, which produced 1.45 million ounces of gold in the third quarter, in late October said it expected output for 2021 of six million ounces and affirmed guidance for 1.3 million gold-equivalent ounces of copper, silver, lead and zinc for 2021.

The rise in gold production expected next year reflects growth at the company's Boddington mine in Australia and Ahafo mine in Ghana, while the lift in 2024 through 2026 will mark the inclusion of profitable production from the Ahafo North operation and Tanami Expansion 2 in Australia, as well as reaching higher gold grade at Penasquito in Mexico, it said.

Newmont said costs are expected to improve throughout over a five-year period, in part thanks to investments in profitable projects. Gold cost applicable to sales is expected to be $820 an ounce next year, improving to between $740 and $840 an ounce for 2023 and $700 and $800 an ounce in 2024 through 2026, it said. Gold all-in sustaining costs is expected to be $1,050 an ounce next year, improving to between $980 and $1,080 an ounce in 2023 and $920 to $1,020 an ounce longer-term, it said.

The outlook assumes operations continue without major Covid-19-related interruption, and assumes a revenue gold price of $1,800 an ounce for costs in 2022, Newmont said.

 

Write to Robb M. Stewart at robb.stewart@wsj.com

 

(END) Dow Jones Newswires

December 02, 2021 08:23 ET (13:23 GMT)

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