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Newmont expects to produce 6.5 million ounces in 2021, sees stable output through 2025

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(Kitco News) - The world's largest gold producer said it expects to see stable gold production between 6 million and 7 million ounces over the next five years.

Monday, in its 2021 outlook Newmont Corp. said that it expects to produce 6.5 million ounces of gold in 2021. Looking beyond next year, the company forecasts its production will grow between 6.2 and 6.7 million ounces per year in 2022 and 2023 and increasing between 6.5 to 7.0 million ounces in 2024 and 2025.

The company also said that along with rising production, it expects to see stable costs. For 2021, Newmont said that it sees gold all-in sustaining costs (AISC) of around $970 per ounce. Looking further out, the company said it sees AISC between $850 and $950 per ounce for 2022 and $825 and $925 per ounce for 2023; AISC is expected to improve to between $800 and $900 per ounce for 2024 through 2025, it added.

“Newmont’s outlook remains strong and stable as we apply the rigor and discipline of our proven operating model across our world-class portfolio. Our five-year outlook reflects improving production and costs as we continue to deliver value from superior operational and project execution,” said Tom Palmer, President and Chief Executive Officer, in a statement. “Our strong financial position allows us to continue investing in profitable, organic growth while simultaneously returning cash to shareholders through our industry leading dividend framework.”

As to what the company will do with its cash coming from rising production and falling costs, Newmont said that it is allocating $850 million for development costs in 2021. Development costs are expected to average between $600 to $800 million per year through 2025, including development capital expenditures for Tanami Expansion 2, Ahafo North and Yanacocha Sulfides, the company added.

Newmont also reiterated its commitment to developing its environmental and social governance (ESG) policies. The company said that it is budgeting $500 million for climate change initiatives through 2025, which are targeted to support the reduction of greenhouse gas emissions by 30% by 2030 and be net-zero carbon by 2050.

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