Delivering long-term value from an unmatched portfolio of world-class, long-life operations and a robust organic project pipeline
DENVER--(BUSINESS WIRE)-- Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) announced its 2022 outlook* with attributable gold production guidance of 6.2 million ounces and AISC** of $1,050 per ounce at an $1,800 gold price assumption. Total gold production combined with other metals is expected to be 7.5 million gold equivalent ounces in 2022 and improve longer-term, with declining costs through investments in new, lower-cost production and benefits from Full Potential improvements.
Attributable gold production***: Production guidance is 6.2 million ounces for 2022 and is expected to improve to between 6.2 and 6.8 million ounces longer-term.
Attributable gold equivalent ounce (GEO) production from other metals****: Co-product GEO production guidance is 1.3 million ounces for 2022 and is expected to improve to between 1.4 to 1.6 million ounces longer-term. Total GEO production expected is 7.5 million ounces for 2022, improving to between 7.7 and 8.3 million ounces longer-term.
Costs applicable to sales (CAS)**: Gold CAS guidance is $820 per ounce for 2022, improving to between $700 and $800 per ounce longer-term. Total GEO CAS guidance is $800 per GEO for 2022 and is expected to improve to between $640 and $740 per GEO longer-term.
All-in sustaining costs (AISC)**: Gold AISC guidance is $1,050 per ounce for 2022, improving to between $920 and $1,020 per ounce longer-term. Total GEO AISC guidance is $1,030 per GEO for 2022 and is expected to improve to between $880 and $980 per GEO longer-term.
Capital: Attributable sustaining capital guidance is $925 million for 2022 and is expected to be between $825 and $1,025 million longer-term. Attributable development capital guidance is $1.2 billion for 2022 and between $1.1 and 1.3 billion for 2023. Over the next five years development capital is expected to average approximately $800 million per year. Development capital expenditures include spend for Tanami Expansion 2, Ahafo North, Yanacocha Sulfides, Pamour at Porcupine and Cerro Negro District Expansion 1.
Attributable Free Cash Flow: Substantial leverage to gold price as we generate $400 million per year of incremental free cash flow for every $100 per ounce increase in gold price above $1,200 per ounce.
Returns: Industry-leading dividend framework includes an annualized $1.00 per share sustainable base dividend with an annualized dividend of $2.20 per share at current metal prices. Completed more than $400 million of share repurchases in 2021 from the $1 billion buyback program. Newmont is on track to return more than $2 billion to shareholders in 2021.*****
Caterpillar Strategic Alliance: Announced a strategic alliance with Caterpillar to deliver a fully connected, automated, zero carbon emitting, end-to-end mining system; includes an initial commitment of $100 million to deliver an autonomous electric haulage fleet of 16 vehicles at CC&V and 10 battery electric underground haul trucks at Tanami.
“Newmont’s outlook remains strong as we steadily increase production and improve costs over time from our global portfolio of world-class assets located in top-tier jurisdictions. In 2022 we expect to deliver approximately 7.5 million gold equivalent ounces, demonstrating the strength of our operations and proven operating model. We are entering a period of significant investment in our organic project pipeline, an important component in growing production, improving margins and extending mine life, and we remain focused on delivering long-term value to all of our stakeholders through our ongoing commitment to sustainable and responsible mining.”
- Tom Palmer, Newmont President and Chief Executive Officer
* Outlook guidance used in this release are considered “forward-looking statements” and users are cautioned that actual results may vary; refer to the cautionary statement.
** Non-GAAP metrics; see end of this release for reconciliations. Non-GAAP cost metrics are presented at an $1,800 per ounce revenue gold price assumption.
*** Attributable production outlook includes the Company’s equity investment (40%) in Pueblo Viejo but does not include other equity investments.
**** Gold equivalent ounces (GEO) is calculated as pounds or ounces produced multiplied by the ratio of the other metal’s price to the gold price, using Gold ($1,200/oz.), Copper ($3.25/lb.), Silver ($23.00/oz.), Lead ($0.95/lb.), and Zinc ($1.15/lb.) pricing.
***** Investors are reminded that the dividend framework is non-binding, and an annualized dividend has not been declared by the Board. See cautionary statement and endnotes at the end of this release.
Newmont’s outlook reflects increasing gold production and ongoing investment in its operating assets and most promising growth prospects. Outlook includes current development capital costs and production related to Tanami Expansion 2, Ahafo North, Yanacocha Sulfides, Pamour at Porcupine and Cerro Negro District Expansion 1.
Newmont’s 2022 outlook assumes an $1,800 per ounce revenue gold price for CAS and AISC to reflect higher costs from inflation, royalties and production taxes. In 2022, an additional 5% of cost escalation is incorporated into our direct operating costs related to labor, energy, and material and supplies. 2022 and longer-term outlook assumes a $30 per ounce impact from production taxes and royalties attributable to higher gold prices. Outlook assumes operations continue without major Covid-related interruptions. Newmont continues to maintain wide-ranging protective measures for its workforce and neighboring communities, including screening, physical distancing, deep cleaning and avoiding exposure for at-risk individuals, which are expected to impact AISC per gold equivalent ounce by approximately $10 per ounce. If at any point the Company determines that continuing operations poses an increased risk to our workforce or host communities, it will reduce operational activities up to, and including, care and maintenance and management of critical environmental systems.
Please see the cautionary statement and footnotes for additional information.
Newmont Production and Cost Outlook:
Guidance Metric (+/- 5%) 2022 2023 2024 2025 2026
Attributable Gold Production (Koz) 6,200 6,000 - 6,600 6,200 - 6,800 6,200 - 6,800 6,200 - 6,800
Gold CAS ($/oz) 820 740 - 840 700 - 800 700 - 800 700 - 800
Gold AISC ($/oz) 1,050 980 - 1,080 920 - 1,020 920 - 1,020 920 - 1,020
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