Newmont forecasts flat 2025 production, sees costs at similar levels
By Sourasis Bose
Oct 24 (Reuters) -Newmont NEM.N expects 2025 production from its core assets to largely remain relatively flat compared to this year, due to lower-than-expected output from two newly acquired mines, the top gold miner announced on Thursday.
"We expect gold production from our tier one portfolio to remain largely consistent with this year, driven by the lower than previously expected production from two of our new operations in Lihir and Brucejack," CEO Tom Palmer said in a call with analysts.
The company had forecast 2024 production from its core assets to be 5.6 million gold ounces in February.
Shares of the Denver, Colorado-based company were down about 13% on Thursday after missing third-quarter profit expectations on higher costs, mainly from increased contractual labor expenses and elevated operational costs in three projects.
Palmer added that the company expects costs to stay the same next year.
Newmont, the only gold producer listed in the S&P 500 Index,acquired the Lihir mine in Papua New Guinea and Brucejack in Canada through its $17 billion acquisition of Australia's Newcrest in 2023.
The gold miner expects to process lower-grade stockpiles - which yield less of the precious metal - at Lihir in 2025, the company said, adding it would work to improve efficiencies in the longer term.
Production at Brucejack, situated 950 kilometers from Vancouver, would decline in the second half of 2025 as the mine has transitioned into an open-pit property, the company said.
Newmont also raised its share buyback program by $2 billion as it continues to reduce debt through its divestment program.
Reporting by Sourasis Bose in Bengaluru; Editing by Tasim Zahid
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