Newmont has offset a production downturn with higher grade ore milled at four of its global assets, including the Boddington gold mine in Western Australia.
Newmont recorded higher ore grade milled at Boddington, the Peñasquito mine in Mexico, the Musselwhite mine in Canada, and the Akyem mine in Ghana.
The company produced 1.46 million ounces of gold in the March 2021 quarter, down from 1.63 million ounces in the December 2020 quarter.
However, the company enjoyed higher gold production at its Australian assets, including the Tanami gold mine in the Northern Territory.
Newmont produced 269,000 ounces of gold in Australia during the March 2021 quarter, 4 per cent higher than the 258,000 produced in the previous corresponding period.
Newmont’s gold production outlook from its Australian assets remains at 1.3 million ounces for 2021.
In April, Newmont delivered first production from its autonomous haul truck fleet at Boddington in an effort to extend the site’s mine life.
The company’s sale of the Red Lake mine in Canada, lower leach pad production, and lower mill throughput and ore grades at its global assets led to the decrease in overall gold production.
Newmont president and chief executive officer Tom Palmer said the company remains on track to achieve its full-year guidance of 6.5 million ounces of gold.
“In the first quarter we delivered a solid financial performance with $US1.5 billion ($1.9 billion) in adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) and $US442 million in free cash flow, putting Newmont on track to achieve our full-year guidance with improving production expected in the second half of the year,” Palmer said.
“We remain focused on proactively eliminating risks that could lead to a fatality and continue to lead the industry with our safety and sustainability practices.
“We believe that strong ESG (environmental, social and governance) performance is a key indicator of a well-managed business and we continue to hold ourselves accountable to create value and improve lives through sustainable and responsible mining.”
Newmont is also undertaking an expansion at the Tanami mine to extend its mine life beyond 2040 and deliver 3.5 tonnes per year of gold production.
The company stated the expansion will increase annual gold production by 150,000 to 200,000 ounces per year for the first five years.
Newmont is expecting to produce between 6.5 million to 7 million ounces of gold in 2024.