Newmont’s Q321 results were closely in line with our prior forecasts (see Exhibits 1 and 2), albeit with relative outperformance from its Australian operations largely offsetting underperformance from its North American ones, where output continued to be adversely affected by lingering coronavirus disruptions. In conjunction with its Q3 results, Newmont updated its guidance for FY21 to gold production of 6.0Moz (cf 6.2–6.8Moz previously) at a cost applicable to sales of US$790/oz (cf US$750/oz previously). However, this was always likely after its announcement of 5 October outlining some of the challenges faced in commissioning the autonomous haulage system at Boddington, including severe weather and heavy rainfall. Nevertheless, performance in Q421 is still expected to show a material improvement over the first three quarters of the year, as the rains abate in Western Australia and Africa, and North America returns to a more normal operating environment. As a result, adjustments to our forecasts for Q421 and FY21 in the wake of Q3 results have been negligible (see Exhibit 4).
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