Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company)
announced its 2019 outlook1 with attributable gold production
guidance of 5.2 million ounces at AISC2 of $935 per ounce.
Highlights
- Gold costs applicable to sales
(CAS): CAS guidance is $710 per ounce for 2019 and $750 per
ounce for 2020; CAS is expected to be between $690 and $740 per
ounce longer-term through 2023.
- Gold all-in sustaining costs
(AISC): AISC guidance is $935 per ounce for 2019 and $975 per
ounce for 2020; AISC is expected to be between $875 and $975
longer-term through 2023.
- Attributable gold
production3: Production guidance is 5.2 million ounces
for 2019 and 4.9 million ounces in 2020; longer-term production is
expected to remain stable at between 4.4 and 4.9 million ounces per
year through 2023.
- Capital: Total consolidated
capital guidance for 2019 is $1,070 million and $730 million in
2020; capital is expected to be between $500 and $600 million
longer-term through 2023. Development capital includes the Ahafo
Mill Expansion in Africa, Tanami Power4 in Australia and Quecher
Main in South America as well as expenditures to advance studies
for future projects. Sustaining capital guidance is $680 million
for 2019 and $660 million for 2020; longer-term sustaining capital
is expected to be between $450 and $550 million through 2023.
“Our proven strategy will deliver stable gold production at
competitive costs over at least the next five years as we continue
to deliver value-accretive projects across our four regions,” said
Gary J. Goldberg, Chief Executive Officer. “Our investment grade
balance sheet and ample liquidity means we are well positioned to
invest in profitable growth and simultaneously return cash to
shareholders through our industry leading dividend5. Newmont
remains focused on leading the gold sector in profitability and
responsibility through the next generation of mines, technology and
leaders.”
__________________________
1
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 at
the end of this release.
2
AISC as used in the Company’s outlook is a
non-GAAP metric – see below for further information and
reconciliation to CAS outlook. 2019 AISC outlook presented has been
revised to reflect a differentiation of exploration and advanced
project expenses as sustaining versus non-sustaining.
3
Production outlook does not include equity
production from stakes in TMAC (28.68%) or La Zanja (46.94%).
4
Includes $225-$275M for capital leases
related to the Tanami Power Project paid over a 10 year term
beginning in 2019.
5
2019 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 steady 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 be 5.2
million ounces in 2019, primarily driven by a full year of higher
grade production from the recently completed Subika Underground
project in Africa. Production is expected to be 4.9 million ounces
in 2020 and longer-term production is expected to remain stable at
between 4.4 and 4.9 million ounces per year through 2023 excluding
development projects which have yet to be approved.
- North America production is expected to
be 1.9 million ounces in 2019 as higher grade production from
Northwest Exodus and Twin Underground are offset by the depletion
of Silverstar ore at Carlin and lower gold production at Phoenix as
mining shifts to higher copper grade ore from the Bonanza pit.
Production remains at 1.9 million ounces in 2020 and 2021 as higher
grades at Long Canyon following the stripping campaign help offset
lower grades at Cripple Creek & Victor (CC&V). North
American production may be impacted by the Gold Quarry wall slip
and mine plan optimization work is ongoing. The Company continues
to pursue profitable growth opportunities at Carlin, Long Canyon,
CC&V and Galore Creek.
- South America production is expected to
be 650,000 ounces in 2019 as productivity improvements at Merian
offset the transition to harder ore. Production is expected to
decrease to 560,000 ounces in 2020 and 450,000 ounces in 2021 as
the Tapado Oeste pit and 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
1.5 million ounces in 2019 with higher grades and throughput and
productivity gains at Tanami, offset by lower mining rates at KCGM
following the wall slips and the continuation of stripping at
Boddington. Production is expected to be 1.5 million ounces in 2020
and 1.6 million ounces in 2021 as Boddington accesses higher grade
ore. KCGM’s near-term production has been lowered due to the wall
slips, but optimization work continues to recover the impacted
ounces as part of the broader Golden Mile Growth Study. The Company
continues to advance studies for a second expansion at Tanami and
expects to reach a full-funds decision in the second half of
2019.
- Africa production is expected to be 1.1
million ounces in 2019 with a full year of production from Subika
Underground, higher grades from the Subika open pit and improved
mill throughput in the second half of the year with the mill
expansion. Production is expected to be 930,000 ounces in 2020 with
lower grades at Akyem and Subika open pit which are partially
offset by higher underground grades at Ahafo and a full year of
production from the Ahafo Mill Expansion. In 2021, production is
expected to be 1 million ounces as Akyem reaches higher grades near
the bottom of the pit. The company continues to advance the Ahafo
North project and other prospective surface and underground
opportunities.
Gold cost outlook – CAS is expected to be $710 per
ounce for 2019 following higher production at Ahafo, lower mining
costs at Yanacocha and lower operational costs at Tanami with the
completion of the Tanami Power Project. The Company continues to
implement Full Potential cost and efficiency improvements and
advance technology initiatives to offset inflation and input cost
pressures. CAS is expected to be $750 per ounce for 2020 and
between $690 and $740 per ounce longer-term through 2023. AISC is
expected to be $935 per ounce in 2019 on improved CAS in Africa and
South America partially offset by higher sustaining capital. AISC
is expected to be $975 per ounce in 2020 and between $875 and $975
longer-term through 2023. Future 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 be
$785 per ounce in 2019 as lower leach grades drive inventory cost
increases at CC&V which are partially offset by cost
improvements across the other North American operations. CAS is
expected to be $760 per ounce in 2020 and $790 per ounce in 2021
with higher production at Twin Creeks as the Turquoise Ridge Joint
Venture (TRJV) optimization project ramps up. AISC is expected to
be $975 per ounce in 2019 on improved unit CAS. AISC is expected to
be $925 per ounce in 2020 and 2021. North American CAS and AISC
guidance may be impacted by the Gold Quarry wall slip and mine plan
optimization work is ongoing.
- South America CAS is expected to be
$640 per ounce in 2019 driven by a lower stripping ratio at
Yanacocha partially offset by higher labor and mill maintenance
costs at Merian. CAS is expected to increase to $825 per ounce in
2020 with higher inventory costs and strip ratio at Yanacocha. CAS
is expected to be $830 per ounce in 2021 as Merian fully
transitions into harder rock which is partially offset by lower
operating costs at Yanacocha as the oxide mill shuts down. AISC is
expected to be $800 per ounce in 2019 due to lower CAS and
sustaining capital. AISC is expected to be $995 per ounce in 2020
and $1,000 per ounce in 2021 on higher CAS and increases in
sustaining capital.
- Australia CAS is expected to be $775
per ounce in 2019 driven by increased stripping at Boddington and
the drawdown of lower grade stockpiles at KCGM, partially offset by
higher production and lower power costs at Tanami from switching to
natural gas. CAS is expected to be $750 per ounce in 2020 and $645
per ounce in 2021 as Boddington reaches higher grades. AISC is
expected to be $945 per ounce in 2019 on increased CAS. AISC is
expected to be $925 per ounce in 2020 and $800 per ounce in
2021.
- Africa CAS is expected to be $570 per
ounce in 2019 due to higher grades from Subika Underground and
Subika open pit and the Ahafo Mill Expansion coming online. CAS is
expected to be $660 per ounce in 2020 and $625 per ounce in 2021
with mine sequencing at the Ahafo and Akyem pits driving production
changes. AISC is expected to be $735 per ounce in 2019 on improved
unit CAS, partly offset by higher sustaining capital for the Ahafo
tailing storage facility expansion. AISC is expected to be $830 per
ounce in 2020 and $780 per ounce in 2021.
Copper – Attributable production is expected to be 45,000
tonnes in 2019 and 2020 as Phoenix reaches higher copper in Bonanza
ore which is offset by lower production at Boddington. Copper
production increases to between 45,000 and 65,000 tonnes
longer-term through 2023 driven primarily from higher grades at
Boddington following completion of the next stripping campaign. CAS
is expected to rise to $2.05 per pound in 2019 and $2.10 per pound
in 2020 due to higher stripping at Boddington. CAS is expected to
improve to $1.55 to $1.75 per pound longer-term through 2023 as
production at Boddington increases offsetting lower copper grades
at Phoenix. AISC is expected to rise to $2.45 per pound in 2019 on
increased CAS. AISC is expected to be $2.55 per pound in 2020 and
$1.80 to $2.10 per pound longer-term.
Capital – Total consolidated capital is expected to be
$1,070 million for 2019 and $730 million for 2020. Development
capital of $390 million in 2019 includes investments in the Tanami
Power Project in Australia, Ahafo Mill Expansion in Africa, Quecher
Main in South America, and the TRJV third shaft in North America
and expenditures to advance studies for future projects.
Development capital is expected to be $70 million in 2020 and
approximately $50 million longer-term until additional projects are
approved. Sustaining capital is expected to be $680 million for
2019, $660 million for 2020 and between $450 and $550 million per
year longer-term to cover infrastructure, equipment and ongoing
mine development.
Consolidated expense outlook – Interest expense increases
to $215 million for 2019 from leases related to the Tanami Power
Project and lower capitalized interest. Investment in exploration
and advanced projects is expected to be $430 million in 2019 with
increased near-mine and greenfield exploration spend across all
regions and higher advanced project spend in North America. 2019
outlook for general & administrative costs is stable at $245
million and guidance for depreciation and amortization is expected
to be $1,370 million as Subika Underground and the Tanami Power
Project come into service.
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 $65 per barrel WTI oil price. Assuming a
35% portfolio tax rate, $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 25, 2018 for further information
on hedging positions.
Projects update
- 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 resources. First production is expected in
the second half of 2019 with commercial production also 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 between $140 and $180 million with
expenditure of approximately $35 to $45 million in 2019. The
project has an IRR of more than 20 percent.The Ahafo Mill
Expansion, together with the Company’s recently completed Subika
Underground project, will improve Ahafo’s production to between
550,000 and 650,000 ounces per year for the first five full years
of production (2020 to 2024). During this period Ahafo’s CAS is
expected to be between $650 and $750 per ounce and AISC 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.
- 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 late 2018 with
commercial production expected in the second half 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 $95 to $105 million in 2019. The project IRR is
expected to be greater than 10 percent.
- Tanami
Power (Australia) will lower Tanami power costs by
approximately 20 percent beginning in the first quarter of 2019,
mitigate fuel supply risk and reduce carbon emissions by 20
percent. The project includes a 450 kilometer natural gas pipeline
that is under construction to connect the Tanami site to the
Amadeus Gas Pipeline, and construction and operation of two on-site
power stations. The gas supply, gas transmission and power purchase
agreements are for a 10 year term with options to extend. The
project is expected to result in net cash savings of approximately
$34 per ounce beginning in 2019. Capital costs are estimated
between $225 and $275 million with annual cash lease payments over
a 10 year term beginning in 2019. The project IRR is expected to be
greater than 50 percent at $0.75 AUD.
2019 Outlooka
2019 Outlook +/- 5%
ConsolidatedProduction
AttributableProduction
ConsolidatedCAS
ConsolidatedAll-in
SustainingCostsb
ConsolidatedSustaining
CapitalExpenditures
ConsolidatedDevelopment
CapitalExpenditures
(Koz, Kt) (Koz,
Kt) ($/oz, $/lb) ($/oz,
$/lb) ($M) ($M)
North America 1,935 1,935 785 975 280 15
South
America 1,030 650 640 800 75 175
Australia 1,470 1,470
775 945 205
70
f
Africa 1,140 1,140
570 735 115 130
Total Goldh
5,600
5,200 710 935
680 390
Total
Copper 45 45
2.05 2.45
2019 Consolidated Expense
Outlooki ($M) +/-5% General & Administrative
245 Interest Expense 215 Depreciation
and Amortization 1,370 Advanced Projects & Exploration 430
Adjusted Tax Expensej 210
2019 Site Outlooka as of December 6, 2018
ConsolidatedProduction
AttributableProduction
ConsolidatedCAS
ConsolidatedAll-in
SustainingCostsb
ConsolidatedSustaining
CapitalExpenditures
ConsolidatedDevelopment
CapitalExpenditures
(Koz, Kt) (Koz,
Kt) ($/oz, $/lb) ($/oz,
$/lb) ($M) ($M)
Carlin 895 895 850 1,050 150 Phoenixc 190 190 795 945 20 Twin
Creeksd 325 325 670 850 40 15 CC&V 360 360 880 1,030 35 Long
Canyon 165 165 430 505 10 Other North America
25 Yanacochae 510
265 720 900 25 175 Meriane 520 390 565 685 50 Other South America
Boddington 680 680 960 1,090 75 Tanami 495 495 495 690 80
70
f
Kalgoorlieg 290 290 810 940 35 Other Australia
15 Ahafo 720 720
560 720 85 60 Akyem 420 420 580 730 25 Ahafo North 70 Other Africa
Corporate/Other
10
Phoenix - Copper 20 20 1.80 2.15
Boddington - Copper 25 25
2.25 2.65
a
2019 Outlook in the above table are
considered “forward-looking statements” and are based upon certain
assumptions. For example, 2019 Outlook assumes $1,200/oz Au,
$2.50/lb Cu, $0.75 USD/AUD exchange rate and $65/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
from those anticipated, including variation beyond a +/- 5% range.
Amounts may not recalculate to totals due to rounding. See
cautionary note at the end of this release.
b
All-in sustaining costs or AISC as used in
the Company’s Outlook is a non-GAAP metric; see below for further
information and reconciliation to consolidated 2019 CAS
outlook.
c
Includes Lone Tree operations.
d
Includes TRJV operations shown on a
pro-rata basis with a 25% ownership interest.
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
Includes $225-$275M for capital leases
related to the Tanami Power Project paid over a 10 year term
beginning in 2019.
g
Both consolidated and attributable
production are shown on a pro-rata basis with a 50% ownership for
Kalgoorlie.
h
Production outlook does not include equity
production from stakes in TMAC (28.68%) or La Zanja (46.94%) as of
September 30, 2018.
i
Consolidated expense outlook is adjusted
to exclude extraordinary items, such as certain tax valuation
allowance adjustments.
j
Consists of $75 of mining taxes and $135
of income taxes and is based on a $1,200/oz. gold price and
$2.50/lb. copper price. Income taxes and mining taxes are
particularly sensitive to pricing and actual expense will vary if
realized prices differ significantly from these amounts.
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 developed 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 provides investors
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 Company recently revised its calculation of
AISC to exclude development expenditures related to
developing new or major projects at existing operations where these
projects will materially benefit the operation included
in Advanced projects, research and
development and Exploration amounts presented in the
Consolidated Statements of Operations.
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 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 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 3 to the
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
Reclamation liabilities and the amortization of the related Asset
Retirement Cost (ARC) for the Company’s operating properties.
Accretion related to the Reclamation liabilities 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
sustain 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 to sustain
production at existing operations. As these costs relate to
sustaining our production and are 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
Consolidated Statements of Operations less incurred expenses
related to the development of new operations, or related to major
projects at existing operations where these projects will
materially benefit the operation. 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 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 major projects at existing
operations where these projects will materially benefit the
operation, are generally considered non-sustaining or development
capital. 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.
A reconciliation of the 2019 Gold AISC outlook to the 2019 Gold
CAS outlook 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.
2019 Outlook - Gold5
+/-5%
Outlook Estimate (in millions, except ounces and
per ounce) Cost Applicable to Sales 1,2 $ 4,000 Reclamation
Costs 3 130 Advance Project and Exploration 170
General and Administrative
245 Other Expense 30 Treatment and Refining Costs 20 Sustaining
Capital 4 680 All-in Sustaining Costs $ 5,200 Ounces (000)
Sold 5,600 All-in Sustaining Costs per Oz $ 935
(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. Estimates 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 2019 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.
Investors are encouraged to refer to Newmont’s 2019 Guidance
Webcast materials, which will be available on the “Investor
Relations” section of the Company’s website, www.newmont.com, for
more information regarding the Company’s historical AISC
calculations.
Conference Call Information
A conference call will be held on Thursday, December 6, 2018
at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time); it
will also be carried on the Company’s website.
Conference Call
Details
Dial-In Number 855.209.8210 Intl Dial-In Number
412.317.5213 Conference Name Newmont Mining Replay Number
877.344.7529 Intl Replay Number 412.317.0088 Replay Access Code
10125821
Webcast DetailsTitle: Newmont
Mining 2019 Guidance WebcastURL:
https://event.on24.com/wcc/r/1866555/162D2D8E4B41E510B328C705854F8FD9
The webcast materials will be available before the market opens
on Thursday, December 6, 2018 on the “Investor Relations” section
of the Company’s website, www.newmont.com. Additionally, the
conference call will be archived for a limited time on the
Company’s website.
About Newmont
Newmont is a leading gold and copper producer. The Company’s
operations are primarily in the United States, Australia, Ghana,
Peru and Suriname. Newmont is the only gold producer listed in the
S&P 500 Index and was named the mining industry leader by the
Dow Jones Sustainability World Index in 2015, 2016, 2017 and 2018.
The Company is an industry leader in value creation, supported by
its leading technical, environmental, social and safety
performance. Newmont was founded in 1921 and has been publicly
traded since 1925.
Cautionary Statement Regarding Forward-Looking Statements,
Including Outlook:
This news 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, which are intended to be covered by the safe harbor
created by such sections and other applicable laws. Where the
Company expresses or implies 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. Forward-looking statements often address our expected
future business and financial performance and financial condition,
and often contain words such as "anticipate," "intend," "plan,"
""will," "would," “estimate,” or “expect.” Forward-looking
statements in this news release may include, without limitation:
(i) estimates of future production and sales; (ii) estimates of
future costs applicable to sales and all-in sustaining costs; (iii)
estimates of future capital expenditures; (iv) estimates of future
cost reductions and efficiencies; (v) expectations regarding the
development, growth and potential of the Company’s operations,
projects and investment, including, without limitation, returns,
IRR, schedule, decision dates, mine life, commercial start, first
production, capital average production, average costs and upside
potential; (vi) expectations regarding future investments; and vii)
expectations of future dividends and returns to shareholders.
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 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, including without limitation receipt of export approvals;
(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; and (viii) other assumptions. Risks relating to forward
looking statements in regard to the Company’s business and future
performance may include, but are not limited to, gold and other
metals price volatility, currency fluctuations, operational risks,
increased production costs and variances in ore grade or recovery
rates from those assumed in mining plans, political risk, community
relations, conflict resolution governmental regulation and judicial
outcomes and other risks. For a more detailed discussion of such
risks and other factors, see the Company’s 2017 Annual Report on
Form 10-K, filed with the Securities and Exchange Commission (SEC)
as well as the Company’s other SEC filings, available on the SEC
website or www.newmont.com. 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 news 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
2019 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181206005179/en/
Newmont Mining CorporationInvestor
ContactJessica Largent,
303-837-5484jessica.largent@newmont.comMedia
ContactOmar Jabara, 303-837-5114omar.jabara@newmont.com
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