Gold News

Newmont Mining decreases 2009 gold production outlook

Newmont Mining revealed today (July 24th) that it has lowered its total gold output forecast for 2009.

The company has experienced problems with the unveiling of its massive Boddington project in Australia, with wet weather and declines in its contract workforce representing the major factors.

As a result, the world's second-largest gold producer has confirmed that it is altering its annual output prediction from a range of 5.2 million to 5.5 million ounces to between 5.2 million and 5.4 million ounces.

The news will interest anyone with a Gold Investment as incidents that impact production can lead to a deficit in supplies, which subsequently pushes Gold Prices higher.

Meanwhile, Canadian miner Gammon Gold has also lowered its 2009 production estimate from between 185,000 oz and 205,000 oz to between 150,000 oz and 170,000 oz.

The firm made the change after accruing a significant shortfall following a major seven-week labour dispute at its El Gubo gold mine in the first six months of the year.

"As a result of the lower consolidated production levels achieved in the quarter, consolidated cash costs are expected to be between $445 and $465 per gold equivalent ounce," chief executive Rene Marion said in a statement quoted by Reuters.

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