Newmont cuts gold output forecast on COVID-19, operations hit

The company's Boddington mine in Australia was hit by severe weather and operational delays

  

The world's top gold producer Newmont Corp cut its annual production forecast due to the impact of COVID-19 and some operational issues, and posted a 28% decline in third-quarter adjusted profit on Thursday.

The company's Boddington mine in Australia was hit by severe weather and operational delays, while production at its Nevada gold mines is also expected to be at the lower end of the company's annual forecast ranges.

Newmont said it now expects attributable gold production of about 6 million ounces, compared with 6.5 million forecast earlier.

The company also said its Tanami mine in Australia was placed under care and maintenance in late-June and July as a result of Covid-19 restrictions, reducing the site’s full-year production by about 40,000 ounces.

Newmont also said it expects its Canadian sites to produce at the low end or below annual production forecast due to Covid-related absenteeism and a tightening of the labor market in Canada.

Adjusted profit fell to $483 million, or 60 cents per share, in the quarter ended Sept. 30, from $670 million, or 83 cents per share, in the previous quarter.

(Reporting by Arathy S Nair in Bengaluru; Editing by Vinay Dwivedi) ((arathys.nair@thomsonreuters.com; +1 646 223 8780 (Extn 2726); Twitter: https://twitter.com/ArathySom;))


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