Newmont Goldcorp’s Ahafo Mill Expansion in Ghana Achieves Commercial Production
October 15 2019 - 10:27AM
Business Wire
Newmont Goldcorp Corporation (NYSE: NEM, TSX: NGT) (Newmont
Goldcorp or the Company) today announced that the Ahafo Mill
Expansion in Ghana achieved commercial production, on schedule and
within budget for approximately $175 million. Combined with the
Subika Underground, which was successfully completed in November
2018, the mill expansion is expected to increase Ahafo’s average
annual gold production to between 550,000 and 650,000 ounces per
year through 2024, while lowering life-of-mine processing
costs.
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Newmont Goldcorp's Ahafo Mill Expansion
in Ghana (Photo: Business Wire)
“The Ahafo Mill Expansion represents our third profitable
project delivered on schedule and within budget in 2019, along with
the Tanami Power project in Australia and the Borden mine in
Canada,” said Tom Palmer, President and Chief Executive Officer.
“The mill expansion is expected to generate an internal rate of
return of more than 20 percent at a $1,200 gold price, while also
extending profitable production at Ahafo through at least 2029. I
continue to be encouraged by Ahafo’s and Ghana’s mineral
prospectivity and the potential for ongoing, profitable
growth.”
Features and benefits of the mill expansion include:
- Increasing mill capacity at Ahafo by more than 50 percent to
nearly 10 million tonnes per year with the addition of a crusher,
grinding mill and leach tanks to the circuit
- Adding annual gold production of 75,000 to 100,000 ounces per
year for the first five full years beginning in 2020
- Accelerating efficient processing of ore from stockpiles and
the Subika Underground mine, as well as harder, lower-grade ore
from Ahafo’s existing pits
- Supporting profitable development of Ahafo’s highly prospective
underground resources, which continue to demonstrate considerable
upside
Ahafo is expected to deliver record production this year – 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. 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
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 increases in average production at Ahafo, future long-term
gold production of Newmont Goldcorp, reduction of processing costs,
average all-in sustaining costs, internal rate of return, extension
of mine life, increases in mill capacity, processing efficiency
improvements, mineral prospectively, growth potential and other
statements relating to future performance and improvements. 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 87 thereof for a
reconciliation of historical 2018 all-in sustaining costs to costs
applicable to sales.
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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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