Newmont Continues Ramp-up, Updates Guidance

Newmont Corp. will continue to ramp up operations at Peñasquito, Cerro Negro, Éléonore and Yanacocha. Among Newmont’s 12 operating mines and two joint ventures, 13 sites will be fully operational in the coming weeks, the company said. “We are pleased to be ramping up operations at our four sites previously placed in care and maintenance and we remain committed to protecting our workforce and neighboring communities,” President and CEO Tom Palmer said. “We continue to respond to this pandemic from a position of strength and Newmont’s diverse portfolio in top-tier jurisdictions provides a long-term, stable production profile with the potential to generate significant free cash flow over time.”

Newmont also provided a revised 2020 outlook with nearly all mines operating and mining deemed an essential activity in every jurisdiction where the company operates. The revised 2020 outlook assumes that operations will continue throughout the remainder of the year without major interruptions. Newmont’s long-term guidance remains unchanged with stable production of more than 6 million ounces (oz) and improving costs from 2021 through 2024.

This outlook is near the lower end of the company’s previous outlook. Costs applicable to sales (CAS) is expected to be $775 per oz and all-in sustaining costs is expected to be $1,015 per oz, which were toward the upper range of the company’s previous cost outlook. The revised 2020 outlook includes the production and cost impacts from the five operations temporarily placed into care and maintenance for an average of 45 days. The second quarter is expected to be the lowest production and highest cost quarter of 2020 as the sites ramp up from care and maintenance.

As featured in Womp 2020 Vol 06 -