Denver – Newmont Mining Corp., coping with electricity shortages in Ghana and a tax dispute in Uzbekistan, on Wednesday cut its gold-sales forecast through 2007 while pledging production would increase at newer mines beginning in 2008.
In an interview with The Associated Press, Newmont chief executive Wayne Murdy said the company is in a transition period as older mines mature and new projects in Nevada, Australia and Ghana are not yet at full production.
“It’s important to note that we didn’t have to change our cost guidance for this year. I think we’re getting a handle on that,” Murdy said during a break in activities at the Denver Gold Forum.
Newmont estimated equity gold sales between 5.6 million ounces and 5.8 million ounces in 2006, down from an earlier estimate of 5.9 million ounces to 6.2 million ounces. Newmont forecast equity gold sales between 5.2 million ounces and 5.6 million ounces for 2007.
Costs applicable to sales are expected to be 20 percent to 25 percent higher next year because of costs related to operations at the Yanacocha mine in Peru.
The revised forecast was blamed on a dispute with the Uzbekistan government over its joint venture, lower production at a Ghana mine caused by electricity shortages and the expected sale of a Canadian mine.
Newmont said it expects gold sales to increase in 2008 and 2009 after its operations in Nevada, Ghana and Australia reach full production.
Newmont’s stock closed down 87 cents, or 2 percent, at $43.14 a share on the New York Stock Exchange. In the past year, it has traded between $42.08 a share and $62.72 a share.
Murdy said gold prices, like oil and other commodity prices, have retreated from highs posted at the beginning of the year.
“We’ve got to just put our head down, do what we can control, and our stock price will take care of itself,” he said. “Traditionally, we do much better toward the end of the year than this time of year, so we’ll see if we can duplicate that this year.”
