Newmont Mining (NYSE: NEM) reported Q4 EPS of $0.17, $0.05 better than the analyst estimate of $0.12. Revenue for the quarter came in at $2.02 billion versus the consensus estimate of $1.79 billion.

2015 – 2017 OUTLOOK

Attributable gold production is expected to increase steadily from between 4.6 and 4.9 million ounces in 2015 to between 4.7 and 5.1 million ounces by 2017. New production at Merian and higher grades in Nevada and Indonesia are expected to offset lower grades at Yanacocha and Ahafo. The remainder of the portfolio is expected to deliver steady and profitable production.

• North America production is expected to increase from between 1.5 and 1.6 million ounces in 2015 to between 1.6 and 1.7 million ounces in 2016 and 2017, benefitting from Turf Vent Shaft completion, and lower stripping at Carlin. Potential development of Long Canyon Phase 1 represents additional upside.
• South America production is expected to decline from between 510,000 and 560,000 ounces in 2015 to between 450,000 and 550,000 ounces in 2016, before rising to between 650,000 and 750,000 ounces in 2017 as the first full year of production at Merian offsets the impact of maturing operations at Yanacocha.
• Asia Pacific production is expected to remain stable at between 1.8 and 2.0 million ounces from 2015 through 2017. Productivity improvements at Tanami and higher grades at Batu Hijau offset production declines at Waihi as the mine nears the end of its current reserve life. Potential development of the Tanami Expansion project represents additional upside.
• Africa production, excluding the impact of potential development of the Ahafo Mill Expansion, is expected to decline from between 740,000 and 800,000 ounces in 2015 and 2016 to between 625,000 and 675,000 ounces in 2017, due primarily to lower grades at Ahafo.

Attributable copper production is expected to be between 130,000 and 160,000 tonnes in 2015 and level out to between 115,000 and 135,000 tonnes in 2016 and 2017. The Company expects to mine higher grade Phase 6 ore at Batu Hijau throughout the period; however, in late 2016, lower grade stockpiled ore is expected to be processed for several months during a pit dewatering sequence at Batu Hijau. Production at Phoenix Copper Leach and Boddington is expected to remain stable for the period.

Gold cost outlook – AISC is expected to improve from between $960 and $1,020 per ounce in 2015 to between $925 and $1,025 per ounce by 2017. CAS is expected to remain stable at between $660 and $710 per ounce in 2015 and between $650 and $750 per ounce in 2016 and 2017.7 Costs will benefit from higher grades at Batu Hijau, the Carlin underground mines, Tanami and KCGM; and lower cost production from Merian. Ongoing cost and efficiency improvements are expected to offset lower grade and throughput at Ahafo and maturing operations at Yanacocha.

• North American AISC is expected to improve from between $990 and $1,060 per ounce in 2015 to between $850 and $950 per ounce by 2017. CAS is expected to improve from between $750 and $800 per ounce in 2015 to between $600 and $700 per ounce by 2017. Nevada operating costs are expected to benefit from lower stripping at Carlin, completion of the Turf Vent Shaft, and lower marginal production at Twin Creeks.
• South America AISC is expected to increase from between $950 and $1,020 per ounce in 2015, to between $1,050 and $1,150 per ounce in 2016, before decreasing to between $950 and $1,050 per ounce in 2017. Similarly, CAS is expected to increase from between $550 and $590 per ounce in 2015 to between $700 and $800 per ounce in 2016, before decreasing to between $650 and $750 per ounce in 2017. The primary driver is the addition of lower cost production from Merian.
• Asia Pacific AISC is expected to be between $840 and $900 per ounce in 2015 and between $800 and $900 per ounce for 2016 and 2017. CAS is also expected to remain stable at between $670 and $720 per ounce in 2015 and between $650 and $750 per ounce in 2016 and 2017. Primary drivers include higher grades at Batu Hijau and higher grades and production at Tanami and KCGM.
• Africa AISC is expected to rise from between $820 and $880 per ounce in 2015, to between $1,175 and $1,275 per ounce by 2017. Gold CAS is expected to increase more slowly than previously indicated – from between $620 and $670 per ounce in 2015 to between $950 and $1,050 per ounce in 2017 – as planned cost and efficiency improvements partially offset increased stripping and lower grades and Ahafo and lower grades at Akyem in 2017.

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