Newmont recalls 2020 production guidance

Newmont has withdrawn its 2020 full year guidance as some production could be deferred into 2021.

The decision takes operations into account that may be on care and maintenance for an extended period, none of which are in Australia.

Newmont limited its site personnel in Canada to comply with the Quebec Government’s restriction on non-essential travel to prevent spreading the coronavirus into communities.

The company also plans to limit site personnel at the Cerro Negro mine due to the halt of domestic flights and mass transportation in Argentina until the end of the month.

At the Yanacocha mine, Newmont continued to safely ramp down mining operations due to government travel restrictions in-country.

Newmont intends to continue Yanacocha’s gold production from leach pads and its critical safety and environmental management activities.

“We currently have no confirmed COVID-19 cases among our workforce and are taking significant, proactive measures including social distancing at all our sites; removing substantial numbers of non-critical workers from our operations; closing offices with employees working remotely; and stopping all non-essential business travel to ensure we don’t become a pathway for transmission to others,” Newmont chief executive Tom Palmer said.

Newmont now expects to produce around 1.4 million attributable gold ounces and 325,000 co-product gold equivalent ounces in the first quarter of this year.

The company has not experienced significant delays in the production and shipping of concentrate and ore during the first quarter.

However the potential enforcement of border restrictions and shutdowns could affect Newmont’s production estimations.

As a response to the pandemic, the company established remote working plans for employees, along with screening for fly in, fly out employees.

“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,” Palmer said.

Mines represent approximately 80 per cent of Newmont’s production outlook for 2020.

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