Newmont provides 2020 update, ramps up operations at four sites
Newmont Corp announced that while it continues to ramp up production at its Peñasquito, Cerro Negro, Éléonore and Yanacocha operations it also expects costs to rise in 2020 as some of its operations were placed in temporary care and maintenance. The company also cut its spending budget due to COVID-19-led reduction in non-essential activities.
In a release posted on its website, Newmont said it now expects 2020 consolidated gold all-in sustaining costs to be $1,015 per ounce compared with its earlier expectations of $975 per ounce.
Newmont expects total 2020 capital expenditure at about $1.3 billion.
“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,” said Tom Palmer, President and Chief Executive Officer. “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.”
The mining industry has been bracing for a prolonged drop in commodity prices and has been worried that the COVID-19 outbreak could fuel a rare simultaneous drop in both supply and demand for metals.
Newmont said the revised 2020 outlook includes production and cost impacts, as five of its operations were halted for an average 45 days each.
The company had withdrawn its 2020 outlook in March, citing some production could be deferred to 2021 due to the ongoing coronavirus outbreak.
The miner reiterated it 2020 output estimates of about 6 million ounces of attributable gold production.
Photo: Workers at Newmont’s Éléonore Mine. Courtesy of Newmont Corp.