Newmont Withdraws 2020 Guidance and Warns Production Could Be Deferred

Newmont withdraws its 2020 guidance, warning production could deferred to 2021 due to the coronavirus pandemic.
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Mining company Newmont  (NEM) - Get Report withdrew its 2020 guidance Monday, saying some production could be pushed to 2021 due to the ongoing coronavirus pandemic.

Shares of the Greenwood Village, Colorado-based company were rising 4.5% to $42.39. 

For the first quarter, Newmont said it now expects to produce about 1.4 million attributable gold ounces and about 325,000 co-product gold equivalent ounces. Year to date through Feb. 29, the company said it produced roughly 981,000 attributable gold ounces and about 227,000 co-product gold equivalent ounces.

Newmont said that mines representing about 80% of the company’s production outlook for 2020 continue operating in line with production targets for the year and have implemented heightened levels of health screening, along with support services being conducted remotely.

"Newmont continues to work pro-actively with logistics partners and refiners to transport and refine product in a challenging environment," the company said in a statement. "We are not currently experiencing significant delays in the shipping of concentrate or transportation and refining of dore, but they may occur in the coming days and weeks if certain government-required shutdowns and border restrictions occur."

Newmont said that its long-term value proposition remains unchanged, despite the disruptions, since the company has the industry’s largest gold mineral reserves of 95.7 million ounces.

"We currently have no confirmed Covid-19 cases among our workforce and are taking significant, proactive measures including social distancing at all our sites; removing substantial numbers of non-critical workers from our operations; closing offices with employees working remotely; and stopping all non-essential business travel to ensure we don’t become a pathway for transmission to others," Tom Palmer, president and CEO, said in a statement.