DENVER – Newmont Goldcorp Corp. is predicting more than 1 million ounces of gold production in 2020 from its share of Nevada Gold Mines operations and company-wide gold production of 6.7 million ounces in the coming year.
The company expects 1.4 million ounces of gold from its 38.5 percent of the Nevada Gold Mines joint venture in 2020, 1.3 million to 1.4 million ounces in 2021 and 1.3 million to 1.4 million gold ounces in 2022, according to the outlook issued Dec. 2.
Barrick Gold Corp. owns the other 61. 5 percent of the joint venture and is the operator.
In the outlook, Newmont Goldcorp also stated it expects long-term gold production company-wide to be between 6.5 million and 7 million ounces longer-term through 2024.
“As Newmont enters our centenary year of 2020, our people, mines, projects and balance sheet are all very well positioned to deliver stable and sustainable industry leading performance,” said President and Chief Executive Officer Tom Palmer.
“Our outlook also highlights our steadily improving cost profile, which includes more than a half billion dollars per year in sustainable operating, cost and supply chain improvements by 2021,” he said.
The company expects all-in sustaining costs of $975 per ounce next year and between $850 and $950 per ounce for 2021 and 2022. The following two years are predicted to be better at $800 to $900 per ounce.
Costs applicable to sales are predicted at $750 per ounce in 2020 and between $650 and $750 per ounce in 2021 and 2022, with an improvement to $600 to $700 per ounce in 2023 and 2024.
The predictions also include 1.1 million gold equivalent ounces of copper, silver, lead and zinc in 2020, between 1 million and 2 million ounces in 2021, 1.1 million to 1.3 million ounces in 2022, and 1.3 million to 1.5 million ounces in the following two years.
Newmont Goldcorp stated that attributable development capital guidance is $575 million next year, $500 million to $600 million in 2021, $300 million to $400 million in 2022, $100 million to $200 million the following year and between zero and $100 million in 2024.
This development capital will go toward expansion at Tanami in Australia, the Subika Underground in Ghana, Cerro Negro in Argentina, Musselwhite in Canada, expenditures related to its share of Nevada Gold Mines, and toward studies for future projects, according to the company.
Newmont Goldcorp also announced Dec. 2 that its board unanimously approved the authorization of a stock repurchase program for up to $1 billion of common equity over the next 12 months. The shares will be retired, resulting in an immediate accretion to shareholders by reducing total shares outstanding and improving per share performance, according to Newmont.
“Our share repurchase program reflects the confidence we have in our people, our operations and our balance sheet to deliver substantial value upside and returns for our shareholders,” Palmer said.
In yet another announcement, Newmont Goldcorp reported it has entered into a contractual arrangement to support Zijin Mining Group’s bid to acquire Continental Gold Inc. by selling its 19.9 percent equity stake and its convertible bond for $260 million.
Continental Gold is developing the Buritica project in Colombia that is expected to go into production next year.
With the earlier announced sale of Red Lake, Newmont stated it expects to realize $635 million in cash proceeds when the transactions close in the first quarter of the new year.
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