Newmont Sees Gold output Down Till '08

By Reuters Posted 21 July 2006 @ 06:14 pm EET     Print     Reprint     E-Mail     Comments

ACCRA (Reuters) - Major gold miner Newmont's output will be slightly down in 2006 and 2007 before it begins to rise in 2008, Chief Executive Wayne Murdy said, adding that he expected gold prices to remain strong for years.

"Generally, our production is down slightly this year from last year. It will be slightly down-to-flat next year and then we start to get into growth production mode," Murdy told Reuters in a telephone interview late on Thursday.

"We feel the factors that support the gold price continue to be in place, we expect the gold price to continue to be strong for a number of years," he said.

In February, Newmont forecast consolidated gold sales of 7.98 million ounces in 2006 at a cash cost of $283 an ounce, down from sales of 8.6 million ounces at a cost of $236 per ounce in 2005.

Spot gold was bid at $628.90/$629.40 per ounce at 1210 GMT on Friday after trimming an overnight drop or nearly 2 percent. The average realised gold price in the 2005 quarter was $472 per ounce, up from $436 a year earlier.