Newmont 2019 Gold-Output Guidance At Upper End Of Range For 2018
(Kitco News) - Newmont Mining Corp. (NYSE: NEM) Thursday said that the company expects to produce 5.2 million ounces of gold in 2019 at all-in sustaining costs of $935 an ounce.
The production guidance would be at the upper end of the company’s projection for the current year of 4.9 million to 5.2 million ounces, which was included in Newmont’s third-quarter earnings report. The company previously listed a 2019 guidance range of 4.9 million to 5.4 million ounces, according to news reports.
The company said production next year will be helped by a full year of higher-grade output from the recently completed Subika Underground project in Africa. Production is then expected to dip to 4.9 million ounces in 2020. Longer-term production is expected to remain stable at between 4.4 million and 4.9 million ounces annually through 2023. These figures exclude development projects which have yet to be approved but offer potential upside, Newmont said.
“Our proven strategy will deliver stable gold production at competitive costs over at least the next five years as we continue to deliver value-accretive projects across our four regions,” said Gary J. Goldberg, chief executive officer.
AISC are expected to be $935 per ounce in 2019 on improved cash costs in Africa and South America, partially offset by higher sustaining capital, Newmont said. AISC are expected to be $975 per ounce in 2020 and between $875 and $975 longer term through 2023.
Meanwhile, the company said it looks for copper production of 45,000 tonnes in 2019 and 2020. This is seen increasing to between 45,000 and 65,000 tonnes longer term through 2023, driven primarily from higher grades at Boddington. Copper AISC are expected to rise to $2.45 per pound in 2019, come in at $2.55 in 2020, then dip to $1.80 to $2.10 longer term, Newmont said.
Gold production in North America is expected to be 1.9 million ounces from 2019 to 2021. South America production is forecast at 650,000 ounces next year, but then decrease to 560,000 ounces in 2020 and 450,000 ounces in 2021 as the Tapado Oeste pit and Yanacocha laybacks are mined out and Merian transitions from saprolite to hard rock, Newmont said. Australian gold output is expected to be 1.5 million ounces the next two years and 1.6 million in 2021.
Africa production is projected at 1.1 million ounces next year with a full year of production from Subika Underground, higher grades from the Subika open pit and improved mill throughput in the second half of the year with a mill expansion, Newmont said. However, output on the continent is then expected to drop to 930,000 ounces in 2020 with lower grades at Akyem and Subika open pit, before ticking up again in 2021 to 1 million ounces as Akyem reaches higher grades near the bottom of the pit.