Covid-19: Newmont recalls 2020 guidance after halting four mines

24 March 2020 (Last Updated March 24th, 2020 11:54)

Newmont Corporation has withdrawn its full-year 2020 guidance after placing four of its operations into temporary care and maintenance as part of global efforts to limit the spread of Covid-19 outbreak.

Covid-19: Newmont recalls 2020 guidance after halting four mines
Newmont’s Quecher project at Yanacocha located in Peru. Credit: Business Wire.

Newmont Corporation has withdrawn its full-year 2020 guidance after placing four of its operations into temporary care and maintenance as part of global efforts to limit the spread of Covid-19 outbreak.

Newmont also implemented additional controls at its global operations and offices to further protect the health and safety of its workforce while taking necessary steps to preserve its long-term business value.

The company now expects to produce about 1.4 attributable million ounces (Moz) of gold and roughly 325,000 co-product gold equivalent ounces in the first quarter of this year.

According to the company, mines representing 80% of its production outlook for 2020 are currently operating in line with the output targets for the year.

Newmont Corporation president and CEO Tom Palmer said: “Our business continuity plans and rapid response teams have been fully mobilised in response to the Covid-19 global pandemic.

“We are working closely with host communities, First Nations and other indigenous peoples, regional and national governments and health experts to protect our workforce and nearby communities. This includes putting some operations temporarily into care and maintenance while others continue to operate at targeted production levels.

“We are also making sure that these short-term disruptions do not impact long-term business value while ensuring we are well-positioned to safely and efficiently ramp-up operations in a timely manner once the worst of this global pandemic passes.”

Furthermore, the company plans to continue Yanacocha’s gold production from leach pads and its critical safety and environmental management activities.

Last week, Newmont Corporation announced plans to scale down operations at its Yanacocha gold mine in Peru due to coronavirus-related restrictions in the country.

Meanwhile, global deaths from the virus have reached 15,340 while the confirmed cases stand at 351,377. About 100,524 are reported to have recovered from the virus.