By Dave Sebastian
Newmont Corp. said it expects its full-year results to include continued effects from Covid-19 and other challenges.
On gold production:
"Newmont's updated 2021 outlook includes approximately 6.0 million ounces of attributable gold production and approximately 1.3 million gold equivalent ounces from copper, silver, lead and zinc," the company said.
"The revised outlook for attributable gold production includes adjustments for operational challenges at Boddington and Nevada Gold Mines, as well as the continued impact from the global pandemic, primarily in Canada and Australia."
On the Boddington mine:
"Boddington experienced challenges from severe weather, shovel reliability, operational delays associated with managing bench hygiene and the continued ramp-up of AHS to full productivity. As a result, Boddington delivered lower ex-pit tons than expected, with full-year 2021 gold production anticipated to be approximately 140 thousand ounces below original guidance estimates."
On Nevada Gold Mines:
"Nevada Gold Mines is also experiencing challenges. Carlin and Cortez are expected to be at the low end of their annual guidance ranges, and Turquoise Ridge is expected to be below its annual guidance range."
On the Tanami mine:
"Tanami was placed under care and maintenance in late-June and July as a result of Covid restrictions, reducing the site's full-year production by approximately 40 thousand ounces."
On the labor market in Canada:
"Newmont continues to experience lower productivity as a result of Covid-related absenteeism and a tightening of the labor market in Canada. We expect these sites to be at the low end or below their annual production guidance ranges."
On the costs applicable to sales outlook:
"Updated 2021 Costs applicable to sales (CAS) outlook are expected to be $790 per ounce and All-in sustaining costs (AISC) are expected to be $1,050 per ounce. The revised outlook includes the impact from lower production volumes and higher royalties and production taxes at higher gold prices."
On the capital-expenditures outlook:
"Updated 2021 attributable development capital expenditures are expected to be approximately $700 million. The revised outlook includes a decrease of $150 million largely due to deferred spending associated with advancing Tanami Expansion 2."
Write to Dave Sebastian at firstname.lastname@example.org
(END) Dow Jones Newswires