Newmont about to steal Barrick’s crown
Newmont Mining Corp.’ s Gary Goldberg has the title of world’s biggest gold producer within his grasp.
The chief executive raised his 2018 production forecast to a range of 4.9 million to 5.4 million ounces. That exceeds Barrick Gold Corp.’ s 2018 guidance of 4.8 million to 5.3 million given in February, which doesn’t include the impact of the sale of 50 per cent of a mine in Argentina.
While Newmont is already ahead of Barrick by market value, the mid- points of the two firms’ 2017 guidance indicate Barrick will keep Newmont at bay this year in terms of output. That’s not the case in the following years.
Growth was a central theme in Newmont’s investor- day presentation in New York on Wednesday, with executives saying the company is better- positioned to expand than peers.
In addition to growing existing operations in the Americas, Africa and Aus- tralia, it’s pursuing greenfield exploration around the world, including in the Yukon, Colombia, Peru, Ethiopia, Australia and the Guiana Shield.
In the last five years, Newmont has sold US$2.8 billion in non- core assets, bought the Cripple Creek & Victor mine in Colorado, built three new mines and executed nine expansions, Goldberg said. “Taken together, we’ve added more than two million ounces of gold production at all- in sustaining costs of about US$750 per ounce.”
The company is moving away from a dividend linked to the price of gold in a move that will result in at least a 50- per- cent increase in payments, chief financial officer Nancy Buese said. Early this year, Goldberg said he would consider a dividend hike to lure investors from ETFs.
Asked if the company has room for more production increases and lower costs, Goldberg said: “We’ve only just begun.”