Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company)
announced its improved 2018 outlook1, increasing attributable gold
production guidance to between 4.9 and 5.4 million ounces and
improving AISC2 to between $965 and $1,025 per ounce, compared to
previous 2018 guidance.
Highlights
- Gold costs applicable to sales
(CAS): CAS guidance for 2018 is improved to between $700 and
$750 per ounce, compared to previous 2018 guidance of between $700
and $800 per ounce; CAS is expected to be between $620 and $720 per
ounce for 2019 and between $650 and $750 per ounce longer term
through 2022.
- Gold all-in sustaining costs
(AISC): AISC guidance for 2018 is improved to between $965 and
$1,025 per ounce compared to previous 2018 guidance of between $950
and $1,050 per ounce; AISC is expected to be between $870 and $970
per ounce in 2019 and longer-term through 2022.
- Attributable gold production3:
Production guidance for 2018 is improved to between 4.9 and 5.4
million ounces compared to previous 2018 guidance of between 4.7
and 5.2 million ounces; production is expected to remain between
4.9 and 5.4 million ounces in 2019 and longer term production is
expected to remain stable at between 4.6 and 5.1 million ounces per
year through 2022.
- Capital: Total capital guidance
for 2018 remains unchanged between $900 and $1,000 million; capital
is expected to be between $730 and $830 million in 2019 and between
$580 and $680 million longer term through 2022. Sustaining capital
guidance for 2018 remains unchanged between $600 and $700 million;
sustaining capital is expected to be between $600 and $700 million
for 2019 and between $550 and $650 million longer term through
2022. The primary capital projects include Northwest Exodus, Subika
Underground and Twin Underground which will reach commercial
production in 2018; and the Ahafo Mill Expansion and Quecher Main
which will reach commercial production in 2019.
“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 percent in
2018,”4 said Gary J. Goldberg, President and Chief Executive
Officer. “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.”
____________________
1
Outlook projections used in this release
are considered “forward-looking statements” and represent
management’s good faith estimates or expectations of future
production results as of the date hereof; refer to the cautionary
statement at the end of this release.
2
AISC as used in the Company’s outlook is a
non-GAAP metric - see the end of this release for further
information and reconciliation to CAS outlook. For a reconciliation
of the Company’s historical AISC to CAS, please refer to the
Company’s most recent Form 10-Q and other SEC filings.
3
Production outlook does not include equity
production from stakes in TMAC (28.8%) or La Zanja (46.94%).
4
Management’s expectations or projections
of future dividends are “forward-looking statements” and are not
guarantees of future payments; 2018 dividends have not yet been
declared by the Board of Directors and remain subject to approval;
refer to cautionary statement at the end of this release.
Outlook
Newmont’s outlook reflects stable gold production and ongoing
investment in its operating assets and most promising growth
prospects. Newmont does not include development projects that have
not yet been funded or reached execution stage in its outlook which
represents upside to guidance.
Attributable gold production is expected to improve to
between 4.9 and 5.4 million ounces in 2018, compared to previous
2018 guidance mainly driven by Full Potential mine plan, throughput
and recovery improvements. Production is expected to be between 4.9
and 5.4 million ounces in 2019 and longer term production is
expected to remain stable at between 4.6 and 5.1 million ounces per
year through 2022 excluding development projects which have yet to
be approved.
- North America production is expected to
be between 2.0 and 2.2 million ounces in 2018 with production from
Northwest Exodus, Twin Underground and the Silverstar pit
offsetting higher stripping at Carlin and Twin Creeks and lower
grade ore at CC&V. Production declines slightly in 2019 to
between 1.8 and 2.0 million ounces due to planned stripping at
Carlin and then increases to between 1.9 and 2.1 million ounces in
2020 due to higher grades at Twin Creeks, CC&V and Long Canyon.
The Company continues to pursue profitable growth opportunities at
Carlin and Long Canyon.
- South America production is expected to
be between 615,000 and 675,000 ounces in 2018 as Merian delivers
mine and mill productivity improvements that partially offset
Yanacocha’s lower production resulting from lower grades and
recoveries from deep transitional ore. Production is expected to be
between 590,000 and 690,000 ounces in 2019 with the addition of
Quecher Main and between 475,000 and 575,000 ounces per year in
2020 as Yanacocha laybacks are mined out and Merian transitions
from saprolite to hard rock. The Company continues to advance
near-mine growth opportunities at Merian and both oxide and sulfide
potential at Yanacocha.
- Australia production is expected to be
between 1.5 and 1.7 million ounces in 2018 due to higher grade,
recovery and throughput improvements at Tanami and KCGM which
offset increased stripping at Boddington. Production is expected to
be between 1.4 and 1.6 million ounces in 2019 and 2020. In 2020,
Boddington completes stripping and accesses higher grade ore which
offsets the impact of processing lower grade stockpiles at KCGM.
The Company continues to advance studies for a second expansion at
Tanami.
- Africa production is expected to be
between 815,000 and 875,000 ounces in 2018 as Full Potential mining
improvements at the Subika open pit and a full year of Subika
underground production offset the effects of harder, lower grade
ore at Akyem. Production is expected to be between 1.1 and 1.2
million ounces in 2019 as the Ahafo Mill expansion reaches
commercial production and between 880,000 and 980,000 ounces in
2020 as both Ahafo and Akyem reach lower open pit grade. The
company continues to advance the Ahafo North project and other
prospective surface and underground opportunities.
Gold cost outlook – CAS is expected to improve to
between $700 and $750 per ounce for 2018 compared to previous 2018
guidance following production increases in North America and Africa
and Full Potential cost and efficiency improvements across the
portfolio. CAS is expected to be between $620 and $720 per ounce
for 2019 and between $650 and $750 per ounce longer term through
2022. AISC is expected to improve to between $965 and $1,025 per
ounce in 2018 compared to previous 2018 guidance as improved CAS
offsets increases in exploration and advanced projects spend. AISC
is expected to be between $870 and $970 per ounce in 2019 and
longer-term through 2022. Further Full Potential savings and
profitable ounces from projects that are not yet approved represent
additional upside not currently captured in guidance.
- North America CAS is expected to
improve to between $760 and $810 per ounce compared to previous
2018 guidance with Full Potential efficiency and cost improvements.
CAS is expected to be between $680 and $780 per ounce in 2019 and
between $655 and $755 per ounce in 2020 on higher production at
Twin Creeks, CC&V and Long Canyon. AISC is expected to improve
to between $945 and $1,020 per ounce in 2018 on improved unit CAS.
AISC is expected to be between $870 and $970 per ounce in 2019 and
between $825 and $925 in 2020.
- South America CAS is expected to rise
to between $705 and $765 per ounce compared to previous 2018
guidance due to lower production and increased costs from
processing deeper transitional ore at Yanacocha. CAS is expected to
improve to between $560 and $660 per ounce in 2019 as Quecher Main
reaches commercial production and be between $690 and $790 per
ounce in 2020. AISC is expected to rise to between $945 and $1,045
per ounce in 2018 on higher unit CAS and increased sustaining
capital for additional haul trucks at Merian. AISC is expected to
improve to between $810 and $910 per ounce in 2019 on improved unit
CAS and be between $970 and $1,070 per ounce in 2020.
- Australia CAS is expected to improve
slightly to between $675 and $725 per ounce compared to previous
2018 guidance with Full Potential mine plan, throughput and
recovery improvements. CAS is expected to be between $670 and $770
per ounce in 2019 and 2020. AISC is expected to improve to between
$830 and $890 per ounce in 2018 on improved unit CAS. AISC is
expected to be between $840 and $940 per ounce in 2019 and 2020.
The Company expects to reach a decision on the Tanami Power project
by the end of 2017 which could deliver additional cost savings not
currently included in guidance.
- Africa CAS is expected to improve to
between $680 and $730 per ounce compared to previous 2018 guidance
with Full Potential mine plan, throughput and recovery
improvements. CAS is expected to be between $520 and $620 per ounce
in 2019 and between $610 and $710 per ounce in 2020. AISC is
expected to improve to between $865 and $925 per ounce in 2018 as
Subika Underground reaches commercial production. AISC is expected
to be between $700 and $800 per ounce in 2019 as the Ahafo Mill
expansion reaches commercial production and between $775 and $875
per ounce in 2020.
Copper – Attributable production is expected to remain
between 40,000 and 60,000 tonnes in 2018 and 2019, increasing to
between 45,000 and 65,000 tonnes longer term through 2022 as
Phoenix moves into higher copper zones. CAS is expected to rise to
between $1.65 and $1.85 per pound in 2018 compared to previous 2018
guidance due to lower grades at Boddington and increasing costs at
Phoenix as the mine plan focuses on gold producing zones. CAS is
expected to be between $1.80 and $2.20 per pound in 2019 before
falling to between $1.40 and $1.80 per pound longer term as Phoenix
moves into higher copper zones. AISC is expected to rise to between
$2.00 and $2.20 per pound in 2018 on increased unit CAS. AISC is
expected to be between $2.25 and $2.55 per pound in 2019 and
between $1.80 and $2.10 per pound longer term.
Capital – Total capital is expected to remain at between
$900 and $1,000 million for 2018 and increase in 2019 to between
$730 and $830 million compared to previous guidance with the
addition of Quecher Main offset by sustaining capital savings
across the portfolio. Primary development capital includes
expenditure on the Ahafo Mill and Subika Underground expansions in
Africa, Twin Underground in North America and Quecher Main in South
America. Sustaining capital is expected to be between $600 and $700
million in 2018, between $600 and $700 million for 2019 and between
$550 and $650 million per year longer term to cover infrastructure,
equipment and ongoing mine development.
Consolidated expense outlook – Interest expense
for 2018 is expected to decrease to between $175 and $215 million
due to lower debt balances while investment in exploration and
advanced projects is expected to increase to between $350 and $400
million. 2018 outlook for general & administrative costs
remains unchanged at between $215 and $240 million and guidance for
depreciation and amortization remains unchanged at between $1,225
and $1,325 million.
Assumptions and sensitivities – Newmont’s outlook assumes
$1,200 per ounce gold price, $2.50 per pound copper price, $0.75
USD/AUD exchange rate and $55 per barrel WTI oil price. A $100 per
ounce increase in gold price would deliver an expected $335 million
improvement in attributable free cash flow. Similarly, a $10 per
barrel reduction in the price of oil and a $0.05 favorable change
in the Australian dollar would deliver an expected $25 million and
$45 million improvement in attributable free cash flow,
respectively. These estimates exclude current hedge programs;
please refer to Newmont’s Form 10-Q which was filed with the SEC on
October 26, 2017 for further information on hedging positions.
Projects update
- Subika
Underground (Africa) leverages existing infrastructure and
an optimized approach to develop Ahafo’s most promising underground
resource. First production was achieved in June 2017 with
commercial production expected in the second half of 2018. The
project is expected to increase average annual gold production by
between 150,000 and 200,000 ounces per year for the first five
years beginning in 2019 with an initial mine life of approximately
11 years. Capital costs for the project are estimated at between
$160 and $200 million with expenditure of between $80 and $90
million in 2018. The project has an IRR of more than 20 percent at
a $1,200 gold price.
- Ahafo Mill
Expansion (Africa) is designed to maximize resource value by
improving production margins and accelerating stockpile processing.
The project also supports profitable development of Ahafo’s highly
prospective underground resource. First production is expected in
the first half of 2019 with commercial production expected in the
second half of 2019. The expansion is expected to increase average
annual gold production by between 75,000 and 100,000 ounces per
year for the first five years beginning in 2020. Capital costs for
the project are estimated at between $140 and $180 million with
expenditure of approximately $75 to $85 million in 2018. The
project has an IRR of more than 20 percent at a $1,200 gold
price.Together the Ahafo expansion projects (Ahafo Mill Expansion
and Subika Underground) improve Ahafo’s production to between
550,000 and 650,000 ounces per year for the first five full years
of production (2020–2024). During this period Ahafo’s CAS is
expected to be between $650 and $750 per ounce and All-in
sustaining cost is expected to be between $800 and $900 per ounce.
This represents average production improvement of between 200,000
and 300,000 ounces at CAS improvement of between $150 and $250 per
ounce and AISC improvement of $250 to $350 per ounce, compared to
2016 actuals.
- Twin
Underground (North America) is a portal mine beneath Twin
Creek’s Vista surface mine with similar mineralization. First
production was achieved in August 2017 with commercial production
expected mid-2018. The expansion is expected to average between
30,000 and 40,000 ounces per year for the first five years (2018 to
2022). During this period CAS is expected to be between $525 and
$625 per ounce and AISC between $650 and $750 per ounce. Capital
costs are expected to be between $45 and $55 million with
expenditure of $15 to $25 million in 2018. The project IRR is
expected to be about 20 percent at a $1,200 gold price.
- Quecher
Main (South America) will add oxide production at Yanacocha,
leverage existing infrastructure and enable potential future growth
at Yanacocha. First production is expected in early 2019 with
commercial production in the fourth quarter of 2019. Quecher Main
extends the life of the Yanacocha operation to 2027 with average
annual gold production of approximately 200,000 ounces per year
between 2020 and 2025 (100 percent basis). During the same period
incremental CAS is expected to be between $750 and $850 per ounce
and AISC between $900 and $1,000 per ounce. Capital costs for the
project are expected to be between $250 and $300 million with
expenditure of $80 to $90 million in 2018. The project IRR is
expected to be greater than 10 percent at a $1,200 gold price.
2018 Outlooka
Consolidated All-in
Consolidated Consolidated Attributable
Consolidated Sustaining Total Capital
Production Production CAS Costsb
Expenditures (Koz, Kt)
(Koz, Kt)
($/oz, $/lb) ($/oz, $/lb)
($M) North America Carlin 950 – 1,015
950 – 1,015 775 – 825 980 – 1,040 155 – 190 Phoenixc 210 – 230 210
– 230 810 – 860 990 – 1,050 20 – 30 Twin Creeksd 340 – 370 340 –
370 675 – 725 835 – 885 55 – 65 CC&V 345 – 395 345 – 395 875 –
935 965 – 1,025 20 – 30 Long Canyon 130 – 170 130 – 170 510 – 560
605 – 655 10 – 20 Other North America
10 – 20
Total
2,010 – 2,170 2,010 –
2,170 760 – 810 945 –
1,020 270 – 350 South
America Yanacochae 470 – 545 240 – 280 975 – 1,025 1,205 –
1,275 110 – 140 Meriane 485 – 540 365 – 405 455 – 495 580 – 630 55
– 95 Other South America
Total 970
– 1,070 615 – 675 705
– 765 945 – 1,045 170
– 230 Australia Boddington 665 – 715
665 – 715 820 – 870 950 – 1,000 60 – 75 Tanami 440 – 515 440 – 515
535 – 605 705 – 775 95 – 120 Kalgoorlief 390 – 440 390 – 440 580 –
630 695 – 745 20 – 30 Other Australia
5 – 15
Total 1,530
– 1,670 1,530 – 1,670 675
– 725 830 – 890 185
– 230 Africa Ahafo 435 – 465 435 – 465
710 – 765 875 – 955 195 – 240 Akyem 380 – 410 380 – 410 640 – 680
765 – 815 30 – 40 Other Africa
Total
815 – 875 815 – 875
680 – 730 865 – 925
225 – 275 Corporate/Other
10 –
15 Total Goldg
5,300
– 5,800 4,900 –
5,400 700 – 750
965 – 1,025
900 – 1,000 Phoenix 10 – 20 10 –
20 1.50 – 1.70 1.85 – 2.05 Boddington 30 – 40
30 – 40 1.75 – 1.95
2.05 – 2.25
Total Copper 40 –
60 40 – 60
1.65 – 1.85
2.00 – 2.20
2018 Consolidated Expense Outlookh General &
Administrative $ 215 – $
240 Interest Expense $ 175 – $ 215 Depreciation and Amortization $
1,225 – $ 1,325 Advanced Projects & Exploration $ 350 – $ 400
Sustaining Capital $ 600 – $ 700 Tax Rate
28% – 34%
a
2018 Outlook in the table above are
considered “forward-looking statements” and are based upon certain
assumptions, including, but not limited to, metal prices, oil
prices, certain exchange rates and other assumptions. For example,
2018 Outlook assumes $1,200/oz Au, $2.50/lb Cu, $0.75 USD/AUD
exchange rate and $55/barrel WTI; AISC and CAS estimates do not
include inflation, for the remainder of the year. Production, CAS,
AISC and capital estimates exclude projects that have not yet been
approved. The potential impact on inventory valuation as a result
of lower prices, input costs, and project decisions are not
included as part of this Outlook. Such assumptions may prove to be
incorrect and actual results may differ materially from those
anticipated. See cautionary note at the end of the release.
b
All-in sustaining costs or AISC as used in
the Company’s Outlook is a non-GAAP metric defined as the sum of
costs applicable to sales (including all direct and indirect costs
related to current production incurred to execute on the current
mine plan), reclamation costs (including operating accretion and
amortization of asset retirement costs), G&A, exploration
expense, advanced projects and R&D, treatment and refining
costs, other expense, net of one-time adjustments and sustaining
capital. See reconciliation at the end of this release.
c
Includes Lone Tree operations.
d
Includes TRJV operations.
e
Consolidated production for Yanacocha and
Merian is presented on a total production basis for the mine site;
attributable production represents a 51.35% interest for Yanacocha
and a 75% interest for Merian.
f
Both consolidated and attributable
production are shown on a pro-rata basis with a 50% ownership for
Kalgoorlie.
g
Production outlook does not include equity
production from stakes in TMAC (28.8%) or La Zanja (46.94%).
h
Consolidated expense outlook is adjusted
to exclude extraordinary items. For example, the tax rate outlook
above is a consolidated adjusted rate, which assumes the exclusion
of certain tax valuation allowance adjustments.
Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional
information only and do not have any standard meaning prescribed by
U.S. generally accepted accounting principles (“GAAP”). These
measures should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with GAAP.
Unless otherwise noted, we present the Non-GAAP financial measures
of our continuing operations in the tables below.
Costs applicable to sales per
ounce/pound
Costs applicable to sales per ounce/pound are non-GAAP financial
measures. These measures are calculated by dividing the costs
applicable to sales of gold and copper by gold ounces or copper
pounds sold, respectively. These measures are calculated for the
periods presented on a consolidated basis. Costs applicable to
sales per ounce/pound statistics are intended to provide additional
information only and do not have any standardized meaning
prescribed by GAAP and should not be considered in isolation or as
a substitute for measures of performance prepared in accordance
with GAAP. The measures are not necessarily indicative of operating
profit or cash flow from operations as determined under GAAP. Other
companies may calculate these measures differently.
All-In Sustaining Costs
Newmont has worked to develop a metric that expands on GAAP
measures, such as cost of goods sold, and non-GAAP measures, such
as Costs applicable to sales per ounce, to provide visibility into
the economics of our mining operations related to expenditures,
operating performance and the ability to generate cash flow from
our continuing operations.
Current GAAP-measures used in the mining industry, such as cost
of goods sold, do not capture all of the expenditures incurred to
discover, develop and sustain production. Therefore, we believe
that all-in sustaining costs is a non-GAAP measure that provides
additional information to management, investors and analysts that
aid in the understanding of the economics of our operations and
performance compared to other producers and in the investor’s
visibility by better defining the total costs associated with
production.
All-in sustaining cost (“AISC”) amounts are intended to provide
additional information only and do not have any standardized
meaning prescribed by GAAP and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with GAAP. The measures are not necessarily
indicative of operating profit or cash flow from operations as
determined under GAAP. Other companies may calculate these measures
differently as a result of differences in the underlying accounting
principles, policies applied and in accounting frameworks such as
in International Financial Reporting Standards (“IFRS”), or by
reflecting the benefit from selling non-gold metals as a reduction
to AISC. Differences may also arise related to definitional
differences of sustaining versus development capital activities
based upon each company’s internal policies.
The following disclosure provides information regarding the
adjustments made in determining the all-in sustaining costs
measure:
Costs applicable to sales. Includes all direct and indirect
costs related to current production incurred to execute the current
mine plan. We exclude certain exceptional or unusual amounts
from Costs applicable to sales (“CAS”), such as significant
revisions to recovery amounts. CAS includes by-product credits from
certain metals obtained during the process of extracting and
processing the primary ore-body. CAS is accounted for on an accrual
basis and excludes Depreciation and
amortization and Reclamation and remediation, which is
consistent with our presentation of CAS on the Condensed
Consolidated Statements of Operations. In determining AISC, only
the CAS associated with producing and selling an ounce of gold is
included in the measure. Therefore, the amount of gold CAS included
in AISC is derived from the CAS presented in the Company’s
Condensed Consolidated Statements of Operations less the amount of
CAS attributable to the production of copper at our Phoenix and
Boddington mines. The copper CAS at those mine sites is disclosed
in Note 4 to the Condensed Consolidated Financial Statements. The
allocation of CAS between gold and copper at the Phoenix and
Boddington mines is based upon the relative sales value of gold and
copper produced during the period.
Reclamation costs. Includes accretion expense related to Asset
Retirement Obligation (“ARO”) and the amortization of the related
Asset Retirement Cost (“ARC”) for the Company’s operating
properties. Accretion related to the ARO and the amortization of
the ARC assets for reclamation does not reflect annual cash
outflows but are calculated in accordance with GAAP. The accretion
and amortization reflect the periodic costs of reclamation
associated with current production and are therefore included in
the measure. The allocation of these costs to gold and copper is
determined using the same allocation used in the allocation of CAS
between gold and copper at the Phoenix and Boddington mines.
Advanced projects, research and development and exploration.
Includes incurred expenses related to projects that are designed to
increase or enhance current production and exploration. We note
that as current resources are depleted, exploration and advanced
projects are necessary for us to replace the depleting reserves or
enhance the recovery and processing of the current reserves. As
this relates to sustaining our production, and is considered a
continuing cost of a mining company, these costs are included in
the AISC measure. These costs are derived from the Advanced
projects, research and
development and Exploration amounts presented in the
Condensed Consolidated Statements of Operations less the amount
attributable to the production of copper at our Phoenix and
Boddington mines. The allocation of these costs to gold and copper
is determined using the same allocation used in the allocation of
CAS between gold and copper at the Phoenix and Boddington
mines.
General and administrative. Includes costs related to
administrative tasks not directly related to current production,
but rather related to support our corporate structure and fulfill
our obligations to operate as a public company. Including these
expenses in the AISC metric provides visibility of the impact that
general and administrative activities have on current operations
and profitability on a per ounce basis.
Other expense, net. We exclude certain exceptional or unusual
expenses from Other expense, net, such as restructuring, as
these are not indicative to sustaining our current operations.
Furthermore, this adjustment to Other expense, net is
also consistent with the nature of the adjustments made to Net
income (loss) attributable to Newmont stockholders as disclosed in
the Company’s non-GAAP financial measure Adjusted net income
(loss). The allocation of these costs to gold and copper is
determined using the same allocation used in the allocation of CAS
between gold and copper at the Phoenix and Boddington mines.
Treatment and refining costs. Includes costs paid to smelters
for treatment and refining of our concentrates to produce the
salable metal. These costs are presented net as a reduction
of Sales on our Condensed Consolidated Statements of
Operations.
Sustaining capital. We determined sustaining capital as those
capital expenditures that are necessary to maintain current
production and execute the current mine plan. Capital expenditures
to develop new operations, or related to projects at existing
operations where these projects will enhance production or
reserves, are generally considered development. We determined the
classification of sustaining and development capital projects based
on a systematic review of our project portfolio in light of the
nature of each project. Sustaining capital costs are relevant to
the AISC metric as these are needed to maintain the Company’s
current operations and provide improved transparency related to our
ability to finance these expenditures from current operations. The
allocation of these costs to gold and copper is determined using
the same allocation used in the allocation of CAS between gold and
copper at the Phoenix and Boddington mines.
AISC outlook is also a non-GAAP financial measure. A
reconciliation of the 2018 Gold AISC outlook range to the 2018 CAS
outlook range is provided below. The estimates in the table below
are considered “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, which are
intended to be covered by the safe harbor created by such sections
and other applicable laws.
2018 Outlook - Gold Outlook
range Low High Costs
Applicable to Sales 1,2 $ 3,700 $ 4,250 Reclamation Costs 3 130 150
Advance Projects and Exploration 350 400 General and Administrative
215 240 Other Expense 5 30 Treatment and Refining Costs 20 40
Sustaining Capital 4 600
700 All-in Sustaining Costs $ 5,100 $ 5,800 Ounces (000) Sold
5,300 5,800 All-in
Sustaining Costs per Oz $ 965 $ 1,025
(1)
Excludes Depreciation and amortization and
Reclamation and remediation.
(2)
Includes stockpile and leach pad inventory adjustments.
(3)
Reclamation costs include operating accretion and amortization of
asset retirement costs.
(4)
Excludes development capital expenditures, capitalized interest and
change in accrued capital.
(5)
The reconciliation above is provided for illustrative purposes in
order to better describe management’s estimates of the components
of the calculation. Ranges for each component of the
forward-looking All-in sustaining costs per ounce are independently
calculated and, as a result, the total All-in sustaining costs and
the All-in sustaining costs per ounce may not sum to the component
ranges. While a reconciliation to the most directly comparable GAAP
measure has been provided for 2018 AISC Gold Outlook on a
consolidated basis, a reconciliation has not been provided on an
individual site-by-site basis or for longer-term outlook in
reliance on Item 10(e)(1)(i)(B) of Regulation S-K because such
reconciliation is not available without unreasonable efforts. See
the Cautionary Statement at the end of this news release for
additional information.
Investor Day Call and Webcast Details
Newmont will host an investor day on Wednesday, December 6, 2017
to discuss its corporate strategy and outlook. A live webcast of
the investor day and presentation materials will be accessible on
Newmont's website, www.newmont.com.
The live webcast begins at 8:30 a.m. Eastern Time, Wednesday,
December 6, 2017.
Conference Call Details (audio
only)
Toll Free Dial-In
(833) 300-9212 International Dial-In (647) 253-8787
Conference ID 9175509
Webcast Details (Video and
Audio)https://secure.ice/?https://livestream.com/ICENYSE/NewmontMiningWebcast
Cautionary Statement Regarding Forward Looking Statements,
Including Outlook:
This release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and are intended to be covered by the safe harbor provided for
under such sections. Forward-looking statements often address our
expected future business and financial performance and financial
condition, and often contain words such as "expect," "anticipate,"
"intend," "plan," "believe," "seek," "see," "will," "would,"
“estimate,” “future,” “forecast,” “outlook,” “guidance,”
“potential,” “possible”, "target," “preliminary,” or “range.” Such
forward-looking statements may include, without limitation: (i)
estimates of future consolidated and attributable production and
sales; (ii) estimates of future costs applicable to sales and
All-in sustaining costs; (iii) estimates of future capital
expenditures and sustaining capital; (iv) expectations regarding
future reduced costs and efficiency, including without limitation
Full Potential plans, initiatives and expected improvements; (v)
expectations regarding the development, growth and exploration
potential of the Company’s operations and projects; (vi)
expectations regarding expected project IRRs; and (vii)
expectations regarding future financial performance and other
outlook or guidance. Estimates or expectations of future events or
results are based upon certain assumptions, which may prove to be
incorrect. Such assumptions, include, but are not limited to: (i)
there being no significant change to current expectations relating
to geotechnical, metallurgical, hydrological and other physical
conditions; (ii) permitting, development, operations and expansion
of the Company’s operations and projects being consistent with
current expectations and mine plans; (iii) political developments
in any jurisdiction in which the Company operates being consistent
with its current expectations; (iv) certain exchange rate
assumptions for the Australian dollar to the U.S. dollar, as well
as other the exchange rates being approximately consistent with
current levels; (v) certain price assumptions for gold, copper and
oil; (vi) prices for key supplies being approximately consistent
with current levels; (vii) the accuracy of our current mineral
reserve and mineralized material estimates; (viii) there being no
significant acquisitions or divestitures during the outlook period;
and (ix) other assumptions noted herein. Where the Company
expresses an expectation or belief as to future events or results,
such expectation or belief is expressed in good faith and believed
to have a reasonable basis. However, such statements are subject to
risks, uncertainties and other factors, which could cause actual
results to differ materially from future results expressed,
projected or implied by the “forward-looking statements.” Such
risks include, but are not limited to, gold and other metals price
volatility, currency fluctuations, increased production costs and
variances in ore grade or recovery rates from those assumed in
mining plans, political and operational risks, community relations,
conflict resolution and outcome of projects or oppositions and
governmental regulation and judicial outcomes. For a more detailed
discussion of such risks and other factors, see the Company’s 2016
Annual Report on Form 10-K, filed on February 21, 2017, with the
Securities and Exchange Commission (the “SEC”), the Company’s
Quarterly Report on Form 10-Q filed on October 26, 2017, as well as
the Company’s other SEC filings. The Company does not undertake any
obligation to release publicly revisions to any “forward-looking
statement,” including, without limitation, outlook, to reflect
events or circumstances after the date of this release, or to
reflect the occurrence of unanticipated events, except as may be
required under applicable securities laws. Investors should not
assume that any lack of update to a previously issued
“forward-looking statement” constitutes a reaffirmation of that
statement. Continued reliance on “forward-looking statements” is at
investors' own risk.
Cautionary Statement Regarding Future Dividends:
Statements of management’s expectations or projections of future
2018 dividends are “forward-looking statements” within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,
which are intended to be covered by the safe harbor created by such
sections and other applicable laws. Investors are cautioned that
such statements with respect to future dividends are non-binding
and should not be viewed as guarantees of future payments. The
declaration and payment of future dividends remain at the
discretion of the Board of Directors and will be determined based
on Newmont’s financial results, balance sheet strength, cash and
liquidity requirements, future prospects, gold and commodity
prices, and other factors deemed relevant by the Board. The Board
of Directors reserves all powers related to the declaration and
payment of dividends. Consequently, in determining the dividend to
be declared and paid on the common stock of the Company, the Board
of Directors may revise or terminate the payment level at any time
without prior notice. As a result, investors should not place undue
reliance on such statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20171206005121/en/
Newmont Mining CorporationInvestor
ContactsJessica Largent, 303-837-5484Vice President,
Investor Relationsjessica.largent@newmont.comorMedia ContactsOmar Jabara, 303-837-5114Group
Executive, Public Relations and
Communicationsomar.jabara@newmont.com
Newmont (NYSE:NEM)
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