Newmont Mining may cut production in Indonesia, Goldberg says

|About: Newmont Mining Corporation ... (NEM)|By:, SA News Editor

Newmont Mining (NEM +2.2%) may be forced to cut production in Indonesia, CEO Gary Goldberg says in this morning's earnings call, but adds that he is cautiously optimistic that NEM would get permission to export in the coming weeks and that the country's proposed export tax will be clarified.

The CEO says gold all-in sustaining costs fell 8% Y/Y in Q1 to $1,034/oz., which keeps NEM on a path to reduce costs by $600M-$700M over the next three years; reductions achieved so far more than offset higher costs in South America related to the planned stripping in H1 and in Indonesia related to export constraints.

Q1 capex fell 54% Y/Y to $235M, but NEM raises gold production guidance to 790K-870K oz., up from 785K-850K; Q1 results.

On the possibility of a merger with Barrick Gold (ABX), Goldberg says the company is "open to opportunities."