Gold Production Will Rise in 2021 on Post-Virus Chaos Demand

#gold #virus #demand #chaos

$NEM $XAU $GLD

Newmont Corp (NYSE:NEM) has forecast higher production of the precious Yellow metal next year at lower costs, expecting to build on a spike in demand experienced during the COVID epidemic chaos.

The attraction of gold as a safe-haven asset drove prices up about 23% this year as global economies suffered under lockdowns designed to curb the spread of the coronavirus outbreak.

The company forecast Y 2021 gold output of 6.5-M oz, compared with the 6-M oz it expects to report this year.

While output was hit in some regions this year due to infections and governmental restrictions, Newmont said its forecast assumes operations will continue without major virus-related interruptions next year and beyond.

Output through Y 2023 is expected to be between 6.2 and 6.7-M oz and rise to as much as 7-M oz through Y 2025.

The company’s AISC (all-in sustaining cost), a closely watched industry benchmark, is expected to be around 970oz of gold mined next year, below this year’s forecast of 1015oz. The cost is expected to further decrease through Y 2025.

Wednesday, NEM closed in NY at 59.88, -1.53 within its 52 wk trading range at 33.00 – 72.22, the consensus price target is 81.31. We are Neutral the stock in here.

Newmont Corporation engages in the production and exploration of gold, copper, silver, zinc, and lead.

The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana.

As of 31 December 2019, it had proven and probable gold reserves of 100.2-M oz and land position of 68,300 sqk.

The company has a strategic alliance agreement with Kirkland Lake Gold Ltd. to assess regional exploration opportunities around the company’s Timmins properties and Kirkland’s Holt Complex in Ontario, Canada.

Newmont Corporation was founded in Y 1916 and is HQ’d in Greenwood Village, Colorado.

Have a healthy day, Keep the Faith!

#chaos#demand#GLD#Gold#NEM#Newmont#production#reserves#virus#xau