Newmont Mining raises gold production target for next year

12 December 2017 (Last Updated December 12th, 2017 12:20)

US-based exploration company Newmont Mining has increased its gold production guidance for next year on the basis of ongoing investment in its operating assets.

US-based exploration company Newmont Mining has increased its gold production guidance for next year on the basis of ongoing investment in its operating assets.

The company revised its gold production guidance to between 4.9 million and 5.4 million ounces from the previous guidance of between 4.7 million and 5.2 million ounces, while it expects all-in sustaining costs (ASIC) of between $965 and $1,025 per ounce.

For the period between 2020-22, the company anticipates production to remain stable at between 4.6 million and 5.1 million ounces per year.

Newmont Mining president and CEO Gary Goldberg said: “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.

“We expect to deliver steady gold production at competitive costs over the next five years, and to continue investing in margin and reserve growth.

“We expect to deliver steady gold production at competitive costs over the next five years, and to continue investing in margin and reserve growth.”

“This commitment is backed by our proven strategy and track record and our differentiated technical and operating talent, project pipeline and global footprint.”

Meanwhile, the company’s outlook did not include any revisions in relation to total capital guidance for next year, which remains unchanged between $900m and $1bn.

For 2019, capital is expected to be between $730m and $830m, while the guidance outlined the capital for the longer term through 2022 to be between $580m and $680m.

The company’s Northwest Exodus, Subika underground and Twin underground will reach commercial production next year, while the Ahafo Mill expansion and Quecher Main are scheduled to reach commercial production in 2019.

Earlier this month, Newmont signed an agreement to further explore the prospective Esperance gold discovery in French Guiana, with a right to earn up to a 70% interest in the property through multi-year investments.