Project on track to achieve commercial production in fourth
quarter
Newmont Goldcorp Corporation (NYSE: NEM, TSX: NGT) (Newmont
Goldcorp or the Company) today announced that the Ahafo Mill
Expansion (AME) project in Ghana successfully processed its first
ore and is on track to achieve commercial production in the fourth
quarter of 2019.
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the full release here:
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Newmont Goldcorp's Ahafo Mill Expansion
in Ghana (Photo: Business Wire)
The mill expansion will increase average annual gold production
at the Ahafo mine by between 75,000 and 100,000 ounces for the
first five years, beginning in 2020, with mill capacity expanding
by more than 50 percent through the addition of a crusher, grinding
mill and leach tanks. The project is expected to deliver an
internal rate of return of more than 20 percent and, together with
other projects at Ahafo, will extend profitable production through
at least 2029.
“Combined with Subika Underground, which was successfully
completed in November 2018, the mill expansion will increase
Ahafo’s production to between 550,000 and 650,000 ounces per year
through 2024, while lowering life-of-mine processing costs,” said
Tom Palmer, President. “The project also accelerates the efficient
processing of stockpiled ore and supports profitable development of
Ahafo’s highly prospective underground resources, which continue to
demonstrate considerable upside.”
In 2019, Ahafo is expected to achieve record production – with
improved costs – driven by higher grades from the Subika open pit,
a full year of mining from the Subika Underground and the
completion of the Ahafo Mill Expansion. Capital costs for the AME
are estimated at between $140 million and $180 million and have
been funded through free cash flow and available cash balances.
Commercial production began at Ahafo in 2006, and in 2018 the
operation sold 436,000 ounces of gold at all-in sustaining costs of
$864 per ounce.i
Over the last six years, Newmont has successfully built 11 new
mines, expansions and projects on four continents – on or ahead of
schedule and at or below budget. These projects include Akyem and
the Phoenix Copper Leach in 2013, the Turf Vent Shaft in 2015,
Merian and Long Canyon in 2016, the Tanami Expansion in 2017, and
Twin Underground, Northwest Exodus and Subika Underground in 2018,
and the Tanami power project in 2019. 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.
Upon completion of the Newmont Goldcorp transaction earlier this
year, the Company now holds the largest Reserves and Resources in
the gold sector, with 90 percent located in the Americas and
Australia. 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 production, average all-in sustaining costs, mill
capacity and improvements, and other statements relating to future
performance. 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
and Newmont Goldcorp’s most recent annual information form as well
as Newmont Goldcorp’s other filings made with Canadian securities
regulatory authorities and available on SEDAR 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 All-in sustaining costs or AISC is a non-GAAP metric 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), 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. See the Company’s Form 10-K for
the year ended December 31, 2018, under the heading Non-GAAP
Financial Measures beginning on page 80 thereof for a
reconciliation of historical 2018 all-in sustaining costs to costs
applicable to sales.
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version on businesswire.com: https://www.businesswire.com/news/home/20190903005303/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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