Newmont Mining (NEM) Issues Prelim. Q4, FY12 Production Results; Guides FY13
Newmont Mining Corp. (NYSE: NEM) issued the following fourth-quarter and fiscal 2012 preliminary numbers:
The Company also announced its outlook for 2013 production, costs and capital expenditures.
Attributable 2013 gold and copper production are expected to be approximately 4.8 to 5.1 million ounces and 150 to 170 million pounds, respectively, at costs applicable to sales of approximately $675 to $750 per ounce and $2.25 to $2.50 per pound, respectively. The Company also announced that it anticipates 2013 all-in sustaining costs to be between $1,100 and $1,200 per gold ounce of production (as defined on page 3).
The Company currently expects to invest approximately $2.1 to $2.3 billion in attributable capital expenditures in 2013, of which approximately 40% is allocated to development capital, including at the Akyem project (~$250 million), Ahafo Mill Expansion (~$150 million) the Conga project (~$150 million), and other expansion projects in Nevada (~$260 million) and at La Herradura (~$40 million), with the remaining 60% expected to be spent on sustaining capital.
Newmont's investment priorities include completing construction of Akyem in 2013, finishing the Phase 6 stripping campaign at Batu Hijau during 2013 and 2014, and identifying the best paths forward for Conga in Peru and Tanami in Australia. The Company expects capital expenditures to decrease from 2012 to 2013 by approximately 20%, as declining capital commitments for Conga, Akyem, and Tanami are partially offset by increasing development capital for the Ahafo Mill Expansion in Ghana as well as the Phoenix Copper Leach and Turf/Leeville Vent Shaft development in Nevada. Additional capital investment is also possible at the Merian project in Suriname in 2013 pending the outcome of further dialogue with the government and additional project evaluation.
- Attributable gold and copper production of 5.0 million ounces and 143 million pounds, and 1.3 million ounces and 35 million pounds for 2012 and the fourth quarter, respectively;
- Attributable gold and copper sales of 4.9 million ounces and 145 million pounds, and 1.2 million ounces and 42 million pounds for 2012 and the fourth quarter, respectively;
- Average realized gold and copper price of approximately $1,661 per ounce and $3.43 per pound, and $1,700 per ounce and $3.22 per pound for 2012 and the fourth quarter, respectively;
- Consolidated costs applicable to sales ("CAS") for gold and copper of between $670 and $680 per ounce and $2.30 and $2.40 per pound, and of $700 and $715 per ounce and $2.60 and $2.70 per pound, for 2012 and the fourth quarter, respectively;
- First quarter gold price-linked dividend payable of $0.425 per share, subject to Board approval, a 21% increase over the prior year quarter;
- Approximately $100 million in Other Expense for the fourth quarter, including $15 million in Hope Bay care and maintenance expense and;
- G&A, Interest and Exploration expense were also within guidance, while Advanced Projects spending was approximately $100 million lower than original guidance.
The Company also announced its outlook for 2013 production, costs and capital expenditures.
Attributable 2013 gold and copper production are expected to be approximately 4.8 to 5.1 million ounces and 150 to 170 million pounds, respectively, at costs applicable to sales of approximately $675 to $750 per ounce and $2.25 to $2.50 per pound, respectively. The Company also announced that it anticipates 2013 all-in sustaining costs to be between $1,100 and $1,200 per gold ounce of production (as defined on page 3).
The Company currently expects to invest approximately $2.1 to $2.3 billion in attributable capital expenditures in 2013, of which approximately 40% is allocated to development capital, including at the Akyem project (~$250 million), Ahafo Mill Expansion (~$150 million) the Conga project (~$150 million), and other expansion projects in Nevada (~$260 million) and at La Herradura (~$40 million), with the remaining 60% expected to be spent on sustaining capital.
Newmont's investment priorities include completing construction of Akyem in 2013, finishing the Phase 6 stripping campaign at Batu Hijau during 2013 and 2014, and identifying the best paths forward for Conga in Peru and Tanami in Australia. The Company expects capital expenditures to decrease from 2012 to 2013 by approximately 20%, as declining capital commitments for Conga, Akyem, and Tanami are partially offset by increasing development capital for the Ahafo Mill Expansion in Ghana as well as the Phoenix Copper Leach and Turf/Leeville Vent Shaft development in Nevada. Additional capital investment is also possible at the Merian project in Suriname in 2013 pending the outcome of further dialogue with the government and additional project evaluation.