Analyst Note| Kristoffer Inton |
Newmont was forced to place Penasquito, Cerro Negro, Yanacocha, Eleonore, and Musselwhite under care and maintenance earlier this year due to the COVID-19 impact. Together, these mines accounted for 16% of production in 2019. However, all five mines have since resumed production. The mine closures led to the May revision of 2020 guidance to 6 million ounces of attributable production at all-in sustaining costs (AISC) of $1,015 per ounce. Pre-pandemic guidance called for 6.4 million ounces at AISC of $975 per ounce. Beyond 2020, the company expects no impact and continues to expect attributable production to reach 6.2 million to 6.7 million ounces at AISC of $850 to $950 per ounce in 2021, with costs falling in 2023 and beyond.