---
title: "Newmont’s Gold Output Stagnates as It Chases Big Takeover"
description: "Newmont Corp. is expecting more of the same for gold output during the next year as the world’s top bullion producer pursues its biggest acquisition ever to secure future growth."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2023-02-23-newmonts-gold-output-stagnates-as-it-chases-big-takeover/"
published: "2023-02-23T17:35:29"
lang: "en-ZA"
word_count: 372
---

# Newmont’s Gold Output Stagnates as It Chases Big Takeover

> Newmont Corp. is expecting more of the same for gold output during the next year as the world’s top bullion producer pursues its biggest acquisition ever to secure future growth.

By Bloomberg · Published 23 February 2023, 19:35 SAST

## Key points
- Newmont, the world’s biggest gold miner, reported fourth quarter earnings that beat analysts’ expectations and expects to produce 5.7 million to 6.3 million ounces of gold this year. This comes as the company seeks to add mines through a proposed $17 billion takeover of Australian rival Newcrest Mining Ltd., which has rejected the offer. Inflationary pressures have pushed their all-in sustaining costs higher than expected and they have a 2023 capital expenditure guidance of $2.2 billion to $2.6 billion. Shares rose 0.6% in response to the news and CEO Tom Palmer said production in 2023 is expected to increase about 5%. Despite struggles with mining woes, Newmont is still pushing ahead with its plans for growth in 2021 and beyond.
- Denver-based Newmont reports fourth-quarter earnings that beat analyst expectations.
- Gold production expected to be between 5.7 and 6.3 million ounces in 2022, compared to 6 million ounces in 2021.
- All-in sustaining costs for 2021 were $1,211 an ounce, higher than expected.
- 2023 capital expenditure guidance of $2.2 billion to $2.6 billion is higher than anticipated.

## Content

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.

Shares rose 0.6% to $44.49 at 9:47 a.m. in New York.

Newmont had cut its full-year guidance to 6 million ounces from 6.5 million ounces in October, citing difficulties at its mines in Boddington, Western Australia, and Nevada, as well as the continued impact from the pandemic in Canada and Australia. Chief Executive Officer Tom Palmer said in an earnings call at the time that production in 2023 is expected to increase about 5%, with costs likely in line with 2021 levels.

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.”

- Read more: [Newcrest CEO Says Ball Is in Newmont’s Camp in Takeover Talks](https://www.bloomberg.com/news/articles/2023-02-16/newcrest-ceo-says-ball-is-in-newmont-s-camp-in-takeover-talks)

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 gold producer said inflationary pressures pushed its all-in sustaining costs to $1,211 an ounce for the year, worse than what analysts expected.

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.