Newmont Completes Northwest Exodus in Nevada Ahead of Schedule and within Budget
July 17 2018 - 9:15AM
Business Wire
Operation features autonomous underground mobile equipment and
production drills
Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company)
has completed its Northwest Exodus project, extending mine life
from the Exodus underground operation in the Carlin North area for
10 years. Northwest Exodus marks Newmont’s second profitable
expansion in the last month adding higher-grade, lower-cost gold
production in Nevada. The project was completed safely, ahead of
schedule and within budget for $69 million.
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Autonomous underground mucker at
Newmont's Northwest Exodus operation in Nevada. (Photo: Business
Wire)
Featuring fit-for-purpose technologies to enhance safety,
productivity and efficiency, Northwest Exodus will add between
50,000 and 75,000 ounces of gold production per year and lower
Carlin’s all-in sustaining costs by approximately $25 per ounce in
the first five years of operation1. Northwest Exodus’s underground
infrastructure also provides exploration platforms to support
future growth in a highly prospective gold district.
“Northwest Exodus leverages fit-for-purpose technologies,
existing infrastructure and higher-grade ore to lower costs, extend
mine life and deliver an internal rate of return of more than 40
percent,” said Tom Palmer, Executive Vice President and Chief
Operating Officer. “As our newest expansion, Northwest Exodus
demonstrates Newmont’s commitment to investing prudently in viable
technologies that enhance safety and generate long-term value for
our stakeholders.”
The project was designed to support autonomous operations and is
currently running two autonomous mobile loaders and pilot-testing
autonomous drills to access and recover ore. The operation is also
fitted with reliable, high-bandwidth underground WiFi to connect
people, systems and equipment.
Over the last five years, Newmont has built eight new mines and
expansions on four continents, including Akyem and the Phoenix
Copper Leach in 2013, Merian and Long Canyon in 2016, Tanami in
2017, and Twin Underground in 2018. The Company also completed a
value-accretive acquisition of Cripple Creek and Victor in 2015 and
delivered a profitable expansion at the mine in 2016.
About Newmont
Newmont is a leading gold and copper producer. The Company’s
operations are primarily in the United States, Australia, Ghana,
Peru and Suriname. Newmont is the only gold producer listed in the
S&P 500 Index and was named the mining industry leader by the
Dow Jones Sustainability World Index in 2015, 2016 and 2017. The
Company is an industry leader in value creation, supported by its
leading technical, environmental, social and safety performance.
Newmont 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: (i) estimates of future
production, including additions to production at Northwest Exodus;
(ii) estimates of future improvements to costs applicable to sales
and all-in sustaining cost at Carlin; (iii) expectations regarding
future higher-grade ore to lower costs, (iv) expectations regarding
mine life; and (v) expectations regarding future operating and
financial results and rates of return. 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, estimates or expectations of
future events or results are based upon certain assumptions, which
may prove to be incorrect. Such assumptions include, but are not
limited to: (i) there being no significant change to current
geotechnical, metallurgical, hydrological and other physical
conditions; (ii) permitting, development, operations and expansion
of the Company’s operations and projects being consistent with
current expectations and mine plans; (iii) certain price
assumptions for gold, copper and oil; (iv) prices for key supplies
being approximately consistent with current expectations; (v) the
accuracy of our current mineral reserve and mineralized material
estimates; and (vi) other assumptions. Such assumptions and
related forward looking statements are subject to risks,
uncertainties and other factors, which could cause actual results
to differ materially. Other risks relating to forward looking
statements in regard to the Company’s business and future
performance may include, but are not limited to, gold and other
metals price volatility, currency fluctuations, increased
production costs and variances in ore grade or recovery rates from
those assumed in mining plans, operational risks, community
relations risks, governmental regulation and political and judicial
outcomes. For a more detailed discussion of such risks and other
factors, see the Company’s 2017 Annual Report on Form 10-K filed
with the Securities and Exchange Commission (SEC), and
available at www.newmont.com, as well as the Company’s
other SEC filings. The Company does not undertake any
obligation to publicly release revisions to any “forward-looking
statement” 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.
______________________________
1 All-in sustaining cost improvement as used in this press
release is a forward-looking non-GAAP metrics. All-in sustaining
cost is defined as the sum of costs applicable to sales (including
all direct and indirect costs related to current gold production
incurred to execute on the current mine plan), reclamation 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. Improvement to
Carlin’s costs applicable to sales is expected to be $20 per ounce
for the same period. A reconciliation has not been provided in
reliance on Item 10(e)(1)(i)(B) of Regulation S-K because such
reconciliation is not available without unreasonable efforts. For
illustrative purposes, a reconciliation of historical AISC and 2018
AISC gold outlook on a consolidated basis can be found on pages 15
to 19 of the Company’s Q1 2018 Earnings Release available at
www.newmont.com. See also the Cautionary Statement for additional
information regarding forward looking statements.
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Newmont Mining CorporationMedia
ContactOmar Jabara,
303-837-5114omar.jabara@newmont.comorInvestor
ContactJessica Largent,
303-837-5484jessica.largent@newmont.com
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