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Newmont outlines improved FY'18, long-term production, cost guidance

NYSE-listed Newmont Mining Corp. on Dec. 6 announced improved gold production and all-in sustaining cost guidance for 2018 to 2020.

For 2018, the company expects attributable gold production to increase to between 4.9 million and 5.4 million ounces and all-in sustaining costs of between US$965/oz and US$1,025/oz as improved gold costs applicable to sales offset increases in exploration and advanced projects spend.

The higher production will be driven mainly by full potential mine plan, throughput and recovery improvements.

This compares to previous guidance of between 4.7 million and 5.2 million ounces and all-in sustaining costs of between US$950/oz and US$1,050/oz.

Production is expected to remain between 4.9 million and 5.4 million ounces in 2019, and stabilize at between 4.6 million and 5.1 million ounces per year through 2022, excluding development projects which have yet to be approved.

All-in sustaining cost is expected to range between US$870/oz and US$970/oz in 2019 and through 2022.

Total CapEx guidance for 2018 is unchanged at between US$900 million and US$1 billion, while CapEx for 2019 will range between US$730 million and US$830 million and between US$580 million and US$680 million in the longer term through 2022.

Newmont's attributable copper production will range between 40,000 and 60,000 tonnes in 2018 and 2019, increasing to between 45,000 and 65,000 tonnes longer term through 2022 as the Phoenix mine in Nevada moves into higher copper zones.

Copper all-in sustaining cost is expected to rise to between US$2.00/lb and $2.20/lb in 2018 on increased unit costs applicable to sales. All-in sustaining costs for 2019 will range between US$2.25/lb and US$2.55/lb and between US$1.80/lb and US$2.10/lb in the longer term.

"Our five-year guidance reflects steady performance, portfolio and balance sheet improvements, and gives us the means and confidence to target a dividend increase of at least 50% in 2018," Newmont President and CEO Gary Goldberg said.

Newmont hiked its dividend by 50% on a yearly basis to 7.5 U.S. cents per share after swinging year over year to a third-quarter net profit of US$206 million, from a loss of US$358 million.