DENVER--(BUSINESS WIRE)--Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) announced its 2021 outlook¹ with attributable gold production guidance of 6.5 million ounces and AISC² of $970 per ounce. Attributable gold production³ is expected to be between 6.2 and 6.7 million ounces per year in 2022 and 2023, increasing to between 6.5 to 7.0 million ounces in 2024 and 2025 while improving costs.

HIGHLIGHTS

Attributable gold production: Production guidance is 6.5 million ounces for 2021 and is expected to be between 6.2 and 6.7 million ounces through 2023 and between 6.5 and 7.0 million ounces longer-term through 2025.
Attributable gold equivalent ounce (GEO) production from other metals⁴: Co-product GEO production guidance is 1.3 million ounces for 2021, between 1.2 to 1.4 million ounces in 2022 and 1.4 to 1.6 million ounces through 2025.
Gold costs applicable to sales (CAS): CAS guidance is $750 per ounce for 2021, between $650 and $750 per ounce for 2022 and $625 and $725 per ounce for 2023; CAS is expected to further improve to between $600 and $700 per ounce for 2024 through 2025.
Gold all-in sustaining costs (AISC): AISC guidance is $970 per ounce for 2021, between $850 and $950 per ounce for 2022 and $825 and $925 per ounce for 2023; AISC is expected to improve to between $800 and $900 per ounce for 2024 through 2025.
Capital: Attributable sustaining capital guidance is $950 million for 2021 and is expected to be between $900 to $1,100 million longer-term through 2025. Attributable development capital guidance is $850 million for 2021 and expected to average between $600 to $800 million per year through 2025, which includes development capital expenditures for Tanami Expansion 2, Ahafo North and Yanacocha Sulfides.
Returns: Industry-leading dividend and dividend framework⁵ including an annualized $1.00 per share sustainable base dividend with additional returns at higher gold prices. Completed the remaining $200 million of the 2020 share-repurchase program in the fourth quarter for an average cost of $45 per share for the total $1.0 billion program. Newmont is on track to return more than $2.7 billion to shareholders since January 2019.
ESG Commitment: Directing $500 million to climate change initiatives through 2025 targeted to support the reduction of greenhouse gas emissions 30 percent by 2030 and goal of net zero carbon by 2050.

“Newmont’s outlook remains strong and stable as we apply the rigor and discipline of our proven operating model across our world-class portfolio. Our five-year outlook reflects improving production and costs as we continue to deliver value from superior operational and project execution,” said Tom Palmer, President and Chief Executive Officer. “Our strong financial position allows us to continue investing in profitable, organic growth while simultaneously returning cash to shareholders through our industry leading dividend framework.”
Tom Palmer, President and Chief Executive Officer

¹ Outlook guidance used in this release are considered “forward-looking statements” and users are cautioned that actual results may vary; refer to the cautionary statement at the end of this release.
² AISC as used in the Company’s outlook is a non-GAAP metric - see end of this release for further information and reconciliation to CAS outlook.
³ Attributable gold production outlook includes the Company’s equity investment (40%) in Pueblo Viejo but does not include other equity investments.
⁴ Gold equivalent ounces (GEO) is calculated as pounds or ounces produced multiplied by the ratio of the other metal’s price to the gold price, using Gold ($1,200/oz.), Copper ($2.75/lb.), Silver ($22/oz.), Lead ($0.90/lb.), and Zinc ($1.05/lb.) pricing.
⁵ Investors are cautioned that the Company’s dividend framework and the annualized dividend level are non-binding, refer to cautionary statement.

OUTLOOK

Newmont’s outlook reflects increasing gold production and ongoing investment in its operating assets and most promising growth prospects. The Company has included Ahafo North and Yanacocha Sulfides in its outlook for the first time as the development projects are expected to reach execution stage in 2021. Additional development projects that have not reached execution stage represent upside to guidance. All production, cost and capital figures assume a $1,200/oz gold price.

Newmont’s 2021 and longer-term outlook assumes operations continue without major Covid-related interruptions. Newmont continues to maintain wide-ranging protective measures for its workforce and neighboring communities, including screening, physical distancing, deep cleaning and avoiding exposure for at-risk individuals. If at any point the Company determines that continuing operations poses an increased risk to our workforce or host communities, it will reduce operational activities up to, and including, care and maintenance and management of critical environmental systems. Please see cautionary statement in the end notes for additional information.

Newmont Production and Cost Outlook:

	2021	2022	2023	2024	2025
Attributable Production (Koz)	6,500	6,200 - 6,700	6,200 - 6,700	6,500 - 7,000	6,500 -7,000
CAS ($/oz)	750	650 - 750	625 - 725	600 - 700	600 - 700
All-in Sustaining Costs ($/oz)	970	850 - 950	825 - 925	800 - 900	800 - 900

Attributable gold production is expected to be stable at 6.2 to 7.0 million ounces across the five-year period. The 2021 outlook of 6.5 million ounces increases from 2020 with a full year of production at the five operations that were placed into care and maintenance in 2020 due to Covid-related precautions. Production is expected to remain between 6.2 and 6.7 million ounces per year in 2022 and 2023, respectively. This is supported by a steady base from Boddington, Tanami, Ahafo, Peñasquito and the Company’s equity ownership interest in the Nevada Gold Mines joint venture. Production is further enhanced by the Company’s eight other operating mines and its equity ownership in Pueblo Viejo. Production is expected to increase to between 6.5 and 7.0 million ounces due to the inclusion of profitable production from Ahafo North and Yanacocha Sulfides and reaching higher grade in North America.

Costs are expected to improve throughout the five-year period with continuing Full Potential improvements and ongoing investment in profitable projects. 2021 CAS is expected to be $750 per ounce with a full year of production at the five operations that were placed into care and maintenance as noted above. CAS is expected to be between $650 and $750 per ounce for 2022 and $625 to $725 per ounce for 2023, improving to between $600 and $700 per ounce in 2024 and 2025. AISC is expected to be $970 per ounce in 2021 driven by CAS. AISC is expected to improve to be between $850 and $950 per ounce in 2022 and $825 to $925 per ounce for 2023. Longer-term through 2025, AISC is expected to improve to between $800 and $900 per ounce.

Newmont Co-Product Production and Cost Outlook:

	2021	2022	2023	2024	2025
Attributable Co-product GEOs (K)	1,300	1,200 - 1,400	1,400 - 1,600	1,400 - 1,600	1,400 - 1,600
CAS ($/GEO)	600	600 - 700	550 - 650	550 - 650	450 - 550
All-in Sustaining Costs ($/GEO)	880	900 - 1,000	800 - 900	800 - 900	700 - 800

2021: Peñasquito benefits from a full year of production and Boddington reaches higher copper grade, which improves production and unit costs.

2022: Boddington increases production with higher copper grade and Peñasquito begins stripping from mining in the Chile Colorado pit.

2023-2025: Steady co-product production from Peñasquito after completing the stripping campaign of the Chile Colorado pit and slight decreases from Boddington due to mine sequencing are offset by first copper production from Yanacocha Sulfides in 2025.

Regional Production and Cost Outlook:

Australia

	2021	2022	2023
Attributable Production (Koz)	1,330	1,400 - 1,500	1,400 - 1,500
CAS ($/oz)	650	550 - 650	500 - 600
All-in Sustaining Costs ($/oz)	860	650 - 750	650 - 750

2021: Production benefits from Full Potential improvements at Boddington that sustain mill throughput at greater than 40 million tonnes per annum while the site also benefits from higher grade in the South Pit. Tanami continues to deliver solid performance with 500,000 ounces of production while advancing the Tanami Expansion 2 project.

CAS benefits from higher grade at Boddington and stable costs at Tanami.

AISC includes sustaining capital spend at Boddington to advance Autonomous Haulage, which is expected to reach commercial production in 2021.

2022-2023: Production at Boddington benefits from higher grade and improved efficiency from Autonomous Haulage beginning in 2022 before transitioning to stripping the next layback in 2023. Tanami will partially offset Boddington’s lower production in 2023 as Tanami Expansion 2 begins to ramp up.

Unit costs improve with higher grade and efficiency at Boddington and improved underground efficiencies at Tanami as the second expansion comes online.

Africa

	2021	2022	2023
Attributable Production (Koz)	915	1,000 - 1,100	1,100 - 1,200
CAS ($/oz)	715	700 - 800	600 - 700
All-in Sustaining Costs ($/oz)	900	900 - 1,000	800 - 900

2021: Production in Africa improves with Subika Underground delivering higher tonnes at Ahafo while Akyem benefits from higher grade.

CAS per ounce remains steady with higher grade at Akyem, offset by slightly higher costs at Ahafo due to stockpile processing and stripping from the Subika open pit.

AISC is slightly higher from sustaining capital for underground development at Ahafo and for the tailings storage facility at Akyem.

2022-2023: Subika Underground continues to deliver higher tonnes and Subika open pit reaches higher grade, partially offset by mine sequencing at Akyem.

CAS improves from higher production at Ahafo with increased ore tonnes from Subika Underground and the end of stripping in the Subika open pit.

AISC increases in 2022 with sustaining capital spend for the tailings storage facility at Ahafo. Ahafo North begins to ramp up in 2023, contributing to the higher production and improving unit costs.

North America

	2021	2022	2023
Attributable Production (Koz)	1,760	1,450 - 1,550	1,300 - 1,400
CAS ($/oz)	730	700 - 800	750 - 850
All-in Sustaining Costs ($/oz)	915	900 - 1,000	1,000 - 1,100

2021: A full year of operations at Peñasquito, Éléonore and Musselwhite increases production. Peñasquito reaches slightly higher grade and sustains Full Potential improvements in the mill. Porcupine benefits from higher underground and open pit tonnes mined, partially offset by lower leach pad production at Cripple Creek and Victor (CC&V).

Unit costs improve with higher production from a full year of operations at Peñasquito, Éléonore and Musselwhite.

2022-2023: Éléonore, Musselwhite and CC&V deliver steady production while Porcupine benefits from higher grades in the Borden underground and the Hollinger open pit mines in 2022 before Hollinger begins to ramp down in 2023. Peñasquito is mining lower grade, harder ore from the Chile Colorado pit while stripping the next phases of the Peñasco pit from 2022 to 2024.

Unit costs impacted by mine sequencing at Peñasquito, Éléonore, CC&V and Porcupine which are partially offset by improved productivity and efficiencies at Musselwhite with the completion of the new conveyor system and lower mine material handling system.

South America

	2021	2022	2023
Attributable Production (Koz)*	1,075	1,050 - 1,150	1,000 - 1,100
CAS ($/oz)	850	700 - 800	700 - 800
All-in Sustaining Costs ($/oz)	1,035	900 - 1,000	950 - 1,050

*Includes Pueblo Viejo interest with ~325Koz in 2021, ~335Koz in 2022 and ~375Koz in 2023

2021: A full year of production from Cerro Negro is partially offset by Merian transitioning to harder rock and Yanacocha transitioning to a primarily leach operation in 2021 while developing the first phase of the sulfide resources.

Unit costs remain steady with higher production and improved productivity at Cerro Negro, offset by lower production at Yanacocha.

2022-2023: Production improving with higher ore tonnes mined from Full Potential productivity improvements and mining from five to six ore sources at Cerro Negro. Yanacocha and Merian impacted by slightly lower production due to mine sequencing.

Unit costs remain stable with slight impacts from mine sequencing at Yanacocha and Merian.

Nevada Gold Mines (NGM)

	2021	2022	2023
Attributable Production (Koz)	1,370	1,200 - 1,300	1,300 - 1,400
CAS ($/oz)	760	700 - 800	700 - 800
All-in Sustaining Costs ($/oz)	960	900 - 1,000	850 - 950

Production, CAS and AISC for the Company’s 38.5 percent ownership interest in NGM as provided by Barrick Gold Corporation. 2021 and 2022 are years of investment in the future of NGM.

Newmont Capital Outlook

($M)	2021	2022	2023	2024	2025
Total Consolidated Capital	1,900	2,300 - 2,500	2,200 - 2,400	1,400 - 1,600	1,100 - 1,300
Consolidated Sustaining Capital	1,000	900 - 1,100	900 - 1,100	900 - 1,100	900 - 1,100
Consolidated Development Capital	900	1,300 - 1,500	1,200 - 1,400	400 - 600	100 - 300
Total Attributable Capital	1,800	2,000 - 2,200	1,900 - 2,100	1,200 - 1,400	1,100 - 1,300
Attributable Sustaining Capital	950	900 - 1,100	900 - 1,100	900 - 1,100	900 - 1,100
Attributable Development Capital	850	1,000 - 1,200	900 - 1,100	200 - 400	100 - 300

Sustaining capital remains steady, covering infrastructure, equipment and ongoing mine development.

Development capital includes spend for Tanami Expansion 2 in Australia, Subika Underground and Ahafo North in Ghana, Cerro Negro in Argentina, Yanacocha Sulfides in Peru, and expenditures to progress studies for future projects as well as development capital related to the Company’s ownership interest in Nevada Gold Mines including Goldrush Declines and Turquoise Ridge Shaft. Yearly decreases reflect the Company’s approach to only including development projects that have reached execution stage or are expected to reach execution in the next 12 months.

Consolidated Expense Outlook

Interest expense improves to $275 million in 2021 due to the maturity and expected pay off of the 2021 Notes and refinancing of $1 billion Senior Notes in March 2020 at a 2.25% coupon rate. Investment in exploration and advanced projects is expected to be $390 million in 2021 with a full year of production at the five operations that were placed into care and maintenance in 2020 due to Covid-related precautions. The 2021 outlook for general and administrative costs remain flat at $260 million. Depreciation and amortization is expected to be $2,500 million with a full year of production from the five operations that were placed into care and maintenance in 2020 due to Covid-related precautions.

Assumptions and Sensitivities

Newmont’s outlook assumes a $1,200 per ounce gold price, $22 per ounce silver price, $2.75 per pound copper price, $1.05 per pound zinc price, $0.90 per pound lead price, $0.75 USD/AUD exchange rate, $0.77 USD/CAD exchange rate and $50 per barrel WTI oil price.

Assuming a 35% incremental tax rate, a $100 per ounce increase in gold price would deliver an expected $400 million improvement in attributable free cash flow. Included within the attributable free cash flow sensitivity is a royalty impact of approximately $20 million (or $3 per ounce) for every $100 per ounce change in gold price.

Projects Update

Newmont’s capital-efficient project pipeline supports stable production with improving margins and mine life. Funding for the current development capital project Tanami Expansion 2 has been approved and the project is in execution stage. The Company has included the Ahafo North and Yanacocha Sulfides projects in its outlook as the development projects are expected to reach execution stage in 2021, but have not yet been approved for full funding. Additional projects not listed below represent incremental improvements to the Company's outlook.

Tanami Expansion 2 (Australia) secures Tanami’s future as a long-life, low-cost producer with potential to extend mine life beyond 2040 through the addition of a 1,460 meter hoisting shaft and supporting infrastructure to achieve 3.5 million tonnes per year of production and provide a platform for future growth. The expansion is expected to increase average annual gold production by approximately 150,000 to 200,000 ounces per year for the first five years and is expected to reduce operating costs by approximately 10 percent.
Ahafo North (Africa) expands our existing footprint in Ghana with four open pit mines and a stand-alone mill located approximately 30 kilometers from the Company’s Ahafo South operations. An investment decision is expected in the first half of 2021 and the project is expected to add 300,000 ounces per year with all-in sustaining costs between $600 to $700 per ounce for the first five full years of production (2024-2028), with estimated capital costs of between $700 and $800 million. Ahafo North is the best unmined gold deposit in West Africa with approximately 3.5 million ounces of Reserves and more than 1 million ounces of Indicated and Inferred Resource and significant upside potential to extend Ahafo North’s current 13-year mine life.
Yanacocha Sulfides (South America)* will develop the first phase of sulfide deposits and an integrated processing circuit, including an autoclave to process gold, copper and silver feedstock. The project is expected to add 500,000 gold equivalent ounces per year with all-in sustaining costs between $700 to $800 per ounce for the first five full years of production (2026-2030). An investment decision is expected in 2021 with a three year development period and estimated capital costs of approximately $2 billion. The first phase focuses on developing the Yanacocha Verde and Chaquicocha deposits to extend Yanacocha’s operations beyond 2040 with second and third phases having the potential to extend life for multiple decades.

*Consolidated basis

2021 Regional Outlook^a

2021 Outlook (+/-5%)	Consolidated Production (Koz, GEOs Koz)	Attributable Production (Koz, GEOs Koz)		Consolidated CAS ($/oz)	Consolidated All-In Sustaining Costs ^b ($/oz)	Consolidated Sustaining Capital Expenditures ($M)	Consolidated Development Capital Expenditures ($M)	Attributable Sustaining Capital Expenditures ($M)	Attributable Development Capital Expenditures ($M)
North America	1,760	1,760		730	915	300	25	300	25
South America	1,000	1,075		850	1,035	125	200	100	150
Australia	1,330	1,330		650	860	235	400	235	400
Africa	915	915		715	900	115	160	115	160
Nevada Gold Mines^c	1,370	1,370		760	960	210	130	210	130
Total Gold	6,400	6,500	^d	750

Newmont Provides 2021 and Longer-term Outlook