Newmont's cost-cutting, production plans: 'We've only just begun'
Barrick Gold's output fell to 5.5m ounces last year and the Toronto-based gold miner wil record another decline this year. Mined ounces could fall below 5m ounces next year. That's down from a peak of 7.7m ounces in 2010 and 2011.
While Barrick has been getting rid of mines to tackle its debt load, world number two gold producer Newmont Mining is on an expansion drive coming close to topping 5m ounces for the first time in 2016.
Not included in Newmont's outlook are seven greenfields projects located in the Yukon, Ethiopia, Colombia, Australia and elsewhere
This week Denver-based Newmont upped estimates for next year to between 4.9m and 5.4m ounces which could well result in the company overtaking Barrick Gold in terms of output of 2018. Barrick has not updated its 2018 guidance since February but it's not expected to differ substantially from the 4.8m to 5.3m it forecast at the time.
In the last five years, the company has sold $2.8 billion in non-core assets, bought the Cripple Creek & Victor mine in Colorado, built three new mines and executed nine expansions, Newmont chief executive Gary Goldberg told investors on Wednesday:
"Taken together, we’ve added more than two million ounces of gold production at all in sustaining costs of about $750 per ounce.”
Not included in Newmont's current outlook are seven greenfields projects located in the Yukon, Ethiopia, Colombia, Australia and elsewhere and projects that could come to fruition within three years at its Ahafo mine in Ghana and Tanami operations in Australia.
By 2024, Newmont’s global share of mined production will be 5%, Goldberg said, compared with 4.4% in 2015. Asked if the company has room for more production throughput and lower costs at its mines, Goldberg said: “We’ve only just begun.”