Business Maverick: Newmont’s Gold Output Stagnates as It Chases Big Takeover

The Denver-based company expects to produce 5.7 million to 6.3 million ounces of gold this year, Newmont said Thursday while reporting fourth-quarter earnings that beat analysts’ expectations. That compares to last year’s production of 6 million ounces, and comes as the company seeks to add mines through a proposed $17 billion takeover of Australian rival Newcrest Mining Ltd.

The world’s biggest gold miners have struggled to boost production while facing higher input costs and harder-to-mine deposits, even with prices for the precious metal up about 37% in the last five years. Newmont itself faced mining woes that undercut production and delayed projects, including a stalled expansion of its Yanacocha mine in Peru.Newmont had cut its full-year guidance to 6 million ounces from 6.

Production in 2022 beat the average estimate of 5.9 million ounces by analysts surveyed by Bloomberg. The company has seen its output stagnate since acquiring Canada’s Goldcorp in 2019. Its highest annual output was in 2004, when it produced 6.73 million ounces following its 2003 takeover of Australia’s Normandy Mining Ltd.

Newmont didn’t provide any update to its takeover plans for Newcrest in Thursday’s earnings statement. Newcrest rejected the initial $17 billion proposal on Feb. 15, with its interim CEO saying the Australian company was “worth a lot more.”Newmont said its adjusted earnings in the fourth quarter were 44 cents a share, topping the 42 cent average estimate from analysts surveyed by Bloomberg.

The company’s 2023 capital expenditure guidance of $2.2 billion to $2.6 billion is also “a bit higher” than expected, Vital Knowledge founder Adam Crisafulli said in a note.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Business Maverick: Coinbase Risks Losing Revenue Sources as Regulators CircleA deeper look beyond the anticipated fourth-quarter results of Coinbase Global Inc. helps to explain the recent ratcheting up of tensions between Chief Executive Officer Brian Armstrong and US regulators.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Lagarde Defends Data-Led Path Beyond ECB’s Next Half-Point HikeEuropean Central Bank President Christine Lagarde affirmed plans to lift interest rates by another half-point next month, saying officials remain determined to return inflation to the 2% goal. She's funny. Weird-funny. Tragicomically-funny. Affirming yourself is nice work if you can get it.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Putin Halts Nuke Pact With US, Vows to Push War in UkrainePresident Vladimir Putin said Russia will suspend its observation of the New START treaty with the US, dealing a blow to the last accord limiting their nuclear arsenals, as he vowed to press on with his faltering invasion of Ukraine. Is there an eraser for this terrorist? You know, like you take an eraser and clean unnecessary pencil drawings 🤔
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Solar industry facing whiplash from volatile equipment pricesEven as solar power grows into one of the world’s largest sources of new energy, the industry behind it is facing unprecedented volatility as a battle for profits intensifies.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Harnessing waste heat could save €67-billion for EuropeIndustries and transportation systems in Europe waste so much heat that capturing the excess and reusing it could save consumers more than €67-billion, a Danish engineering company said.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Asia stocks track Wall Street lower on Fed outlook: markets wrapAsian equities fell on Wednesday after the S&P 500 tumbled by the most in two months and Treasury yields rose sharply as investors priced in higher interest rates.
Source: dailymaverick - 🏆 3. / 84 Read more »