Newmont plans $3 billion in capex in 2012; copper output expected to fall
Newmont Mining (NYSE:NEM), the world's fourth-largest gold miner, says it plans to spend $3.0 to $3.3 billion on capital expenditures in 2012.
The Colorado-based company released its 2012 outlook on Tuesday.
Newmont plans to spend 60% of its capex on growth project initiatives, such as the Akyem project in Ghana and the troubled Conga project in Peru. In November 2011 Newmont announced it would be suspending construction activities at the Conga project due to local protests.
The remaining 40% of Newmont's capital expenditures will be spent on sustaining and maintenance capital.
The company also released its production outlook showing flat gold production and slowing copper production. Costs applicable to sales or CAS is headed up for both metals.
"The Company announced that it anticipates 2012 attributable gold and copper production of approximately 5.0 to 5.2 million ounces and 150 to 170 million pounds, respectively, at CAS of approximately $625 to $675 per ounce and $1.80 to $2.20 per pound, respectively," said the company in a news release.
In 2011 the company produced 5.2 million ounces of gold at $592 per ounce and 206 million pounds of copper at $1.26 per pound.
No reason was given for the production decline.
Newmont Mining's stock slipped 3.33% on Tuesday morning to $61.30 a share.