Newmont has increased gold production during the June quarter thanks in part to higher grades and throughput at the Boddington mine in Western Australia.
The gold giant reported that production was hampered by a build-up of in-circuit inventory at the Tanami gold mine in the Northern Territory after it was placed under care and maintenance due to a COVID-19 outbreak at the site in late June.
However, Newmont recorded a 15 per cent increase in its gold production across its global portfolio for the June quarter with 1.45 million ounces.
Newmont sold 189,000 ounces from Boddington and 109,000 ounces from Tanami during the three months.
The company’s all-in-sustaining-cost (AISC) improved by 6 per cent to $US1035 ($1401) per ounce compared with the previous corresponding period.
According to Newmont, the increase was due to care and maintenance costs from 2020 that hampered the previous AISC.
Newmont president and chief executive officer said it had secured $US1.6 billion in earnings in the June quarter.
“Capitalising on the strength of our assets and integrated operating model, Newmont delivered a solid second quarter performance with $US1.6 billion in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) and $US578 million in free cash flow,”
The company’s revenue for the June quarter was $US3.06 billion due to higher gold sales volumes and prices.
Newmont has also progressed its Tanami Expansion 2 project, which will boost the site’s mine life beyond 2040 through a 1460-metre hosting shaft that will deliver a 150,000 to 200,000-ounce increase to annual gold production.
The project’s capital cost is estimated to be between $US850 million and $US950 million with production from the expansion due in the first half of 2024.
Newmont’s annual gold production outlook is 6.5 million tonnes for the 2021 calendar year. The company stated that guidance is on track and will be bolstered by the second half of the year.
From 2024, Newmont will aim to produce 7 million ounces of gold per year.