Newmont Corp. Announces Revised Gold Output Guidance for 2020

SEATTLE (Scrap Monster): Newmont Mining Corp. announced that it has been forced to revise downwards its production guidance for 2020, mainly on account of temporary mine closures due to Covid-19 pandemic.

The company press release noted that it is in the process of ramping up operations at four of its sites previously placed in care and maintenance. Newmont’s diverse portfolio will help in generating significant free cash flow over time, said Tom Palmer, President and CEO. At the same time, it remains committed to protecting its workforce and neighbouring communities, he added.

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Newmont reiterated the long-term output estimates of around 6 million ounces of attributable gold production for 2020, which is near the lower end of its previous outlook. It must be remembered that the company had withdrawn its 2020 outlook in March 2020, following temporary halt in operations at its mines. The all-in sustaining cost is expected to be $1,015 per ounce, higher when compared with earlier estimate of $975 per ounce. Q2 is expected to report lowest production and highest cost during the year. The total capital expenditure for the current year is projected at around $1.3 billion.

The revised guidance is based on the assumption that there are no significant disruptions to operations for the remainder of the year.