Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Newmont Corp has started building up operations at its Peñasquito silver-zinc-lead mine in Mexico, the company announced Tuesday.


The company indicated it was also ramping up operations at its Cerro Negro, Argentina, Éléonore, Canada, and Yanacocha, Peru mines. Activity at Peñasquito resumed early this week, while Cerro Negro is expected to restart on Wednesday, almost two months after it was put under care and maintenance by Argentina’s government to contain COVID-19.


Milling at Yanacocha began last week, while surface mining is slated to resume at the end of the month, the gold miner, which also produces copper, silver, zinc, and lead, noted in its outlook. 


As the five mines, which were placed under care and maintenance for over 45 days, ramp up operations, Newmont expects its lowest quarterly output, and to incur its highest expenditure, in Q2.


The company now estimates its consolidated co-products (copper, silver, zinc, and lead) treatment and refining costs will be approximately $200mn, and that its sales costs in the will be around $600mn for the rest of the year.

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