Newmont Goldcorp Corp. reduced its full-year production forecast because of problems at assets the world’s largest gold miner acquired in its merger this year with Goldcorp Inc.

Gold production is expected to be 6.3 million ounces in 2019, Newmont said Tuesday in its third-quarter earnings statement. The miner had said last month it expects output of 6.5 million ounces.

Key Insights

• The production outlook was affected by blockades at the Penasquito mine in Mexico, a conveyor fire at Musselwhite in Canada, installation of additional safety controls at Red Lake, and lower grades in the third quarter at Éléonore, also in Canada, the company said. All four are former Goldcorp assets.

• The company cut its full-year forecast for all-in sustaining costs to US$965 an ounce, from US$975 in July, on improvements in operations in Nevada and Australia.

• “We expect to deliver (US)$240 million in annual run-rate improvements by the end of 2019 and exceed our initial synergy targets from the Goldcorp acquisition,” Chief Executive Officer Tom Palmer said in the statement. Palmer took over as CEO Oct. 1.

• Spot gold prices averaged about US$1,474 an ounce in the third quarter, 22 per cent more than a year earlier. The price rose 2.8 per cent in October.

Market Reaction

• Newmont released the earnings statement before the start of regular trading on Tuesday in New York, where the shares fell 1.7 per cent at 8:15 a.m. The stock rose 12 per cent this year through the close on Monday.

--With assistance from Vinicy Chan.