Top Gold Miner Newmont Plans Job Cuts in Sweeping Cost Drive
(Bloomberg) – Newmont Corp., the world’s largest gold mining, plans to reduce costs that can lead to deep business deductions following the acquisition of 15 billion dollars of NewCrest Mining Ltd in 2023.
After increasing the mine portfolio of the purchase to approximately 20, the costs of the company splashed and expanded to copper mining. Newmont’s continuing costs per ounce-key for gold miners have previously reached the highest level of all time in a Metrik-2025 and eroded the earnings produced by record bullion prices.
Newmont, who hired the Boston Consulting Group to work on plans, told managers that he wanted to comply with the lowest cost peers for people who know the subject. This means that costs are reduced up to $ 300 or about 20%per ounce, saying that people want not to be defined as plans. Newmont’s shares fell 0.4% at 11:55 in New York.
Although the company did not specify the number of jobs it plans to cut, it may require that the target may require Newmont to reduce its discount by thousands of people. At the end of December, the company employed approximately 22,000 people, a figure that does not include contractor.
Newmont said he started to inform some of the staff about layoffs. During the last few weeks, calls were made between managers and department managers, including business cuts and potentially long -term incentives, including other cost -reducing facilities.
The company is still concluding the cost reduction plan, and some people say that there is nothing exactly about how to implement it.
Newmont spokesman said the company announced a cost and productivity improvement program in February. The person added that the movements reshaping the structure are one of the few steps taken by the company to reduce the cost base this year. The Boston Consulting Group spokesman refused to comment.
The largest gold miners earned money from record ingot prices. In April, the metal reached an ounce of about $ 3,500 in April, and since then it has been traded over $ 3,300 mostly. This is seen as a rally rally, where Newmont increased by 95% this year.
Newmont’s costs to maintain everything has increased by more than 50% due to higher energy, labor and material prices in the last five years. In the second quarter, it was almost 25% higher than Agnico Eagle Mines LTD, an opponent who founded him as one of the lowest cost manufacturers.
Newmont said last month that costs were in the guidance range this year, but expects them to increase in the second half of the year. The Executive Officer Chairman Tom Palmer told investors that he wanted to make more improvements in the cost structure of the company.
The familiar, the worst of Newmont’s cost problems, said it was due to the acquisition of NewCrest two years ago. Papua in Australia faced the ongoing cost problems in the new Guinea and Cadia mine.
“The greater challenge for Newmont was that all NewCrest assets were in a difficult part of the life cycle, B said Bloomberg Intelligence Analyst Grant Sporir. “They were still producing inadequate against their employee bases, and NewCrest needs too much sustainable Capex to grow up for a long time when inadequate investment was made.”
(In the third paragraph, he adds information about hiring Boston Consulting Group.)
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