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Newmont Corp NEM

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Newmont Slightly Misses 2020 Guidance; Lofty Gold Prices Overshadow Promising Long-Term Outlook

Analyst Note

| Kristoffer Inton |

Newmont’s fourth quarter led it to miss full-year guidance, but by just slightly. For 2020, the company produced 5.9 million attributable gold ounces at all-in sustaining costs of $1,045 per ounce for the year, compared with guidance for 6 million ounces at AISC of $1,015 per ounce. 2021 should see better results, as projects should drive production to 6.5 million attributable ounces at AISC of $970 per ounce. In December, Newmont also provided longer-term guidance. Production should remain around 6.2 to 6.7 million ounces through 2023 as AISC falls to $825 to $925 per ounce. In 2024 and 2025, it expects production to rise to 6.5 to 7 million ounces at even lower AISC of $800 to $900 per ounce.

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Company Profile

Business Description

Newmont is the world's largest gold producer. In 2020, the company produced 5.9 million attributable ounces of gold and over 1 million attributable gold equivalent ounces from the sale of byproducts. On a long-term basis, the company expects to produce 6.5 to 7 million ounces of annual gold production while driving all-in sustaining costs down to $800 per $900 per ounce. In comparison, 2020 AISC was $1,045 per ounce.

Contact
6900 E Layton Avenue, Suite 700
Denver, CO, 80237
T +1 303 863-7414
Sector Basic Materials
Industry Gold
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type Hard Assets
Employees 14,300

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