Bullion major Newmont on Thursday lowered its full-year gold production guidance, citing the impact of Covid and other challenges experienced in the year, and updated its costs outlook to reflect the lower production volumes.

The US-based miner said it expected to produce six-million ounces of attributable gold and about 1.3-million gold-equivalent ounces from copper, silver, lead and zinc this year.

The previous forecast was for gold output of 6.5-million ounces this year.

Newmont explained that it had experienced operational challenges at Boddington, in Australia, from severe weather, shovel reliability and operational delays associated with managing bench hygiene. Nevada Gold Mines (NGM), in the US, also experienced challenges, with the Carlin and Cortez mines’ output forecast to be at the lower end of their guidance ranges and Turquoise Ridge expected to miss its target.

Further, Tanami, in Australia, was placed under care and maintenance in late June and July, owing to Covid restrictions, reducing the site’s full-year production by about 40 000 oz.

Newmont also reported lower productivity because of Covid-related absenteeism and a tightening of the labour market in Canada.

The group updated its cost applicable to sales outlook to $790/oz and its all-in sustaining cost to $1 050/oz, compared with previous forecasts of $750/oz and $970/oz, respectively.

In the three months ended September, Newmont reported attributable gold production of 1.45-million ounces, down 6% on the corresponding period in 2020. The output decrease was attributed to lower throughput at NGM as a result of a mechanical failure in May which resulted in a partial shutdown of the Goldstrike mill at Carlin until it was fully repaired in September. The miner also reported lower leach production, mill recovery and ore grade milled at CC&V, lower throughput at the now-idled Tanami and lower throughput, grade milled and recovery at Boddington.

Meanwhile, Newmont's third-quarter profit and revenue missed analyst estimates. The group reported a 9% year-on-year revenue decrease to $2.9-billion in the third quarter, as gold prices and sales volumes fell.

Adjusted net income was $483-million, or $0.60 a diluted share, compared with $697-million, or $0.86 a share, in the prior-year quarter.

Analysts providing a forecast for Refinitive anticipated earnings of $0.74 a share and estimated revenue of $3.16-billion.

CEO Tom Palmer conceded that it was a "challenging" quarter, but with $1.3-billion in adjusted earnings before interest, taxes, depreciation and amortisation and $735-million in free cash flow, the group had built momentum for a strong fourth quarter.