Newmont Goldcorp’s Quecher Main Project in Peru Achieves Commercial Production
October 31 2019 - 1:44PM
Business Wire
Four profitable projects delivered on four continents in
2019
Newmont Goldcorp Corporation (NYSE: NEM, TSX: NGT) (Newmont
Goldcorp or the Company) today announced that the Quecher Main
project at Yanacocha in Peru achieved commercial production safely,
ahead of schedule and under budget. The full project, including
future leach pad expansions, is expected to be completed for
approximately $275 million of development capital which is below
the Company’s initial estimate (on a 100 percent basis).i
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Newmont Goldcorp: Quecher Main's leach
pad and associated facilities. (Photo: Business Wire)
Quecher Main extends the life of the Yanacocha operation to
2027, contributing average annual gold production of approximately
200,000 ounces from 2020 through 2024 at all-in sustaining costsii
between $900 and $1,000. The project is expected to generate an
internal rate of return of approximately 15 percent at a $1,200
gold price.
“Quecher Main is the fourth profitable project we’ve brought
into operation on four different continents this year, on schedule
and within budget,” said Tom Palmer, President and Chief Executive
Officer. “The project takes advantage of Yanacocha’s existing
infrastructure to add profitable production from remaining oxide
ores while also serving as a bridge to future growth opportunities,
including Yanacocha’s extensive sulfide deposits.”
The project included development of the Quecher Main pit, two
smaller oxide deposits and a heap leach pad.
Yanacocha began commercial production in 1993 and has since
produced more than 38 million ounces of gold from open pit oxide
and transitional ores processed at Yanacocha’s gold mill and leach
pad. The operation is a joint venture between Newmont Goldcorp
(51.35%), Minas Buenaventura (43.65%) and Sumitomo Corporation
(5%).
Newmont Goldcorp has the strongest and most sustainable
portfolio of operations, projects and exploration prospects in the
gold sector. These assets allow the Company to sequence profitable
projects in its unmatched pipeline to sustain six to seven million
ounces of steady gold production over a decades-long time
horizon.
About Newmont Goldcorp
Newmont Goldcorp is the world’s leading gold company and a
producer of copper, silver, zinc and lead. The Company’s
world-class portfolio of assets, prospects and talent is anchored
in favorable mining jurisdictions in North America, South America,
Australia and Africa. Newmont Goldcorp is the only gold producer
listed in the S&P 500 Index and is widely recognized for its
principled environmental, social and governance practices. The
Company is an industry leader in value creation, supported by
robust safety standards, superior execution and technical
proficiency. Newmont Goldcorp was founded in 1921 and has been
publicly traded since 1925.
Cautionary Statement Regarding Forward-Looking
Statements
This release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
which are intended to be covered by the safe harbor created by such
sections and other applicable laws. Such forward-looking statements
may include, without limitation, estimates and expectations of
future average annual production, long-term production estimates,
all-in sustaining costs and cost applicable to sales estimates and
improvements, internal rate of return, extension of mine life,
efficiency improvements, future growth opportunities and other
statements relating to future performance and operations. Where the
Company expresses or implies an expectation or belief as to future
events or results, such expectation or belief is expressed in good
faith and believed to have a reasonable basis. However, such
statements are subject to risks, uncertainties and other factors,
which could cause actual results to differ materially from future
results expressed or implied by the “forward-looking statements.”
Risks relating to forward looking statements in regard to the
Company’s business and future performance may include, but are not
limited to, gold price volatility, currency fluctuations, increased
production costs, variances in ore grade or recovery rates from
those assumed in mining plans and other operational risks,
geotechnical, metallurgical and hydrological risks, political and
community relations risk, and changes in governmental regulation
and requirements. For a more detailed discussion of risks and other
factors that might impact future looking statements, see Newmont
Goldcorp’s Annual Report on Form 10-K for the year ended December
31, 2018 as well as Newmont Goldcorp’s Quarterly Report on Form
10-Q for the quarter ended June 30, 2019 under the heading “Risk
Factors” available on the SEC website or www.newmontgoldcorp.com.
The Company does not undertake any obligation to release publicly
revisions to any “forward-looking statement,” including, without
limitation, outlook to reflect events or circumstances after the
date of this news release, or to reflect the occurrence of
unanticipated events, except as may be required under applicable
securities laws. Investors should not assume that any lack of
update to a previously issued “forward-looking statement”
constitutes a reaffirmation of that statement. Continued reliance
on “forward-looking statements” is at investors' own risk.
i The Quecher Main project has incurred development capital
costs of approximately $185 million through October 31, 2019, and
will complete Phase 3 and 4 of the leach pad expansion over the
next 3 years with a remaining capital investment of approximately
$90 million.
ii All-in sustaining costs or AISC is a non-GAAP metric defined
as the sum of costs applicable to sales (CAS) (including all direct
and indirect costs related to current gold production incurred to
execute on the current mine plan), remediation costs (including
operating accretion and amortization of asset retirement costs),
G&A, exploration expense, advanced projects and R&D,
treatment and refining costs, other expense, net of one-time
adjustments and sustaining capital. During the same period,
incremental CAS is expected to be between $750 and $850 per ounce.
Expected CAS and AISC are forward-looking statements, see the
cautionary statement above. While a reconciliation to the most
directly comparable GAAP measure has been provided for 2019 AISC
Outlook on a consolidated basis and is available in the Company’s
most recent earnings release available at
https://www.newmontgoldcorp.com/newsroom/, a reconciliation has not
been provided on an individual project basis in reliance on Item
10(e)(1)(i)(B) of Regulation S-K.
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version on businesswire.com: https://www.businesswire.com/news/home/20191031005810/en/
Media Contact Omar Jabara,
303.837.5114, omar.jabara@newmont.com
Investor Contact Jessica Largent,
303.837.5484, jessica.largent@newmont.com
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