Newmont Lowers Gold Production Forecast for 2023, Provides Project Updates

Researched by Industrial Info Resources (Sugar Land, Texas)--Newmont Corporation (NYSE:NEM) (Greenwood Village, Colorado) has substantially lowered its gold production forecast for 2023 due to the just-ended strike at its Peñasquito mine in Mexico and other issues.

The new forecast is for 5.3 million ounces of gold production this year, compared with its earlier forecast of 5.7-million to 6.3 million ounces.

In the just-ended quarter, attributable gold production dropped 13% to 1.29 million ounces from the same quarter in 2022, primarily due to lower production from the Peñasquito mine as well as from Newmont's Akem and Ahafo operations in Ghana, the company said on Thursday in its third-quarter earnings report. The company also reported lower production from its joint ventures.

Production at the Peñasquito mine was suspended for more than four months due to the strike, which was resolved on October 13. Production at the mine has since resumed and it is expected to regain full operating capacity by the end of the fourth quarter, according to the company. For more information, see October 24, 2023, article - Newmont Restarting Operations at Mexico Gold Mine After 4-Month Strike.

Capital expenditures during the third-quarter increased 14% from the prior-year quarter to US$604 million, while net income for the just-ended quarter totaled US$163 million, compared with US$220 million in third-quarter 2022.

During its third-quarter earnings conference call, Newmont executives gave updates on key projects.

Chief Executive Officer Tom Palmer said the project to restart and redevelop its Pamour Porcupine gold mine in Ontario has received full funding approval and is on track to deliver first ore in 2024. Operations at the above-ground mine ceased in 2009. The project will extend the mine's life for another 12 years and is expected to extract 133,000 ounces per year. For more information, subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a detailed project report.

The project to expand and extend the life of the company's Tanami gold mining operations in Australia's Northern Territory is on track, Palmer said. The project reached a milestone when the concrete lining of the upper production shaft was completed, he added. The Expansion 2 project will extend the mine's life beyond 2040 through the addition of a 1,460-meter hoisting shaft and supporting infrastructure to process 3.3 million metric tons per year. The expansion is expected to increase average annual gold production by 150,000 to 200,000 ounces per year for the first five years and reduce operating costs by approximately 10%. Click here for more information on this project.

Newmont's Cerro Negro District Expansion 1 project in Argentina also reached a milestone during the third quarter when Newmont declared commercial production for San Marcos, the first of six ore bodies associated with the project. The expansion of the gold-silver operation includes the simultaneous development of the Marianas and Eastern districts to extend the mine life of Cerro Negro beyond 2030. For related information, click here.

Work also continues on Newmont's Ahafo North project, which will expand the company's existing footprint in Ghana with four open pit mines and a stand-alone mill located 30 kilometers (19 miles) from its Ahafo South operations. The project is expected to add between 275,000 and 325,000 ounces of gold production per year. Click here for related information.

Industrial Info is tracking 31 active projects from Newmont, worth US$10.36 billion. Subscribers can click here for a list of detailed project reports.

Meanwhile, Newmont expects to close its US$19 billion acquisition of Newcrest Mining Limited (Melbourne, Australia) on November 6. The acquisition will result in a company with 10 Tier 1 mining operations and doubles Newmont's exposure to copper. The deal also is expected to result in about US$500 million worth of annual synergies, Palmer said. For more information, see May 18, 2023, article - Acquisition Makes Big Gold Mining Company Even Bigger.

Subscribers to Industrial Info's GMI Database can click here for a list of all project reports mentioned in this article and click here for the related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).