Newmont Increases Long Term Production With Development Of Projects
DENVER, CO - Newmont Corporation reported that it continued succeeding in striving for the full-year guidance of 6.0 million ounces of attributable gold production as well as 1.3 million gold equivalent ounce production from copper, silver, lead and zinc, in 2022. 2023 guidance is expected to exceed prior years with long term focus and strategy. Newmont produced 1.49 million attributable ounces of gold and 299 thousand attributable gold equivalent ounces (GEO) from co-products; due to timing of shipments at Peñasquito, 38 thousand attributable gold ounces and 20 thousand GEOs of third quarter production. The attributable gold production increased 3 percent to 1,487 thousand ounces from the prior year quarter primarily due to higher ore grade milled at Ahafo, Akyem and Boddington. A benefit is complete ownership of Yanacocha compared to the prior year. Increases were partially offset by lower production volumes from Nevada Gold Mines. The gold sales versus production was impacted by the timing of concentrate shipments at Peñasquito, partially due to inclement weather and earthquakes which impacted shipping logistics. Tom Palmer, President and Chief Executive Officer, said, “"Newmont delivered solid production of 1.5 million gold ounces in the third quarter and continued the momentum for strong production. Supported by our clear long-term strategy, we continue to focus on safely delivering production through our responsibly managed portfolio of world-class assets, while investing in our future. We remain well-positioned to respond to the challenging market environment that our industry faces.” Last November, the Company’s Porcupine mine announced the state-of-the-art water treatment plant. Throughout 2021 and 2022, Newmont made a $160 million investment into the new plant, which will benefit the entire ecosystem and surrounding watershed through the collection, treatment and return of impacted water. Provincially, this plant will have among the lowest effluent discharge limits within the mining sector. The investment demonstrates how industrial and environmental interests can be aligned, and is a strong example of Newmont’s commitment to sustainable and responsible mining. During operation the plant will return up to 13 million cubic meters of treated clean water to the Mattagami, Frederickhouse and Upper Kapuskasing watersheds. After more than a century of mining in Timmins, the next phase of operations at Porcupine is an opportunity to support regreening the region, significantly improve site water management and support the local watersheds while maintaining employment and economic benefits for Northern Ontario communities, local First Nations and the government. Newmont’s project pipeline supports stable production with improving margins and mine life. Newmont's 2022 and longer-term outlook included current development capital costs and production related to Tanami Expansion 2, Ahafo North, Yanacocha Sulfides, Pamour and Cerro Negro District Expansion 1. The Tanami Expansion 2, located in Northern Territory, Australia, secures Tanami’s future as a long-life, low-cost producer to extend mine life beyond 2040 through the addition of a 1,460 meter hoisting shaft and supporting infrastructure to process 3.3 million tonnes per year and provide a platform for future growth. The expansion is expected to increase average annual gold production by approximately 150,000 to 200,000 ounces per year for the first five years and reduce operating costs by approximately 10 percent. Commercial production for the project is expected to be in early 2025. Ahafo North, located northwest of Accra, Ghana, expands the Company’s existing footprint in Ghana with four open pit mines and a stand-alone mill located approximately 30 kilometers from the Ahafo South operations. The project is expected to add between 275,000 and 325,000 ounces per year for the first five full years of production. Ahafo North is the best unmined gold deposit in West Africa with approximately 3.5 million ounces of Reserves and more than 1 million ounces of Measured, Indicated and Inferred Resources and significant upside potential to extend beyond Ahafo North’s current 13-year mine life. Commercial production for the project is expected to be in mid-2025. The Yanacocha Sulfides 11, northeast of Lima, Peru, will develop the first phase of sulfide deposits and an integrated processing circuit, including an autoclave to produce 45% gold, 45% copper and 10% silver. The project economics, timing and optionality are currently being evaluated by management, and remain subject to an investment decision. The first phase focuses on developing the Yanacocha Verde and Chaquicocha deposits to extend Yanacocha’s operations beyond 2040 with second and third phases having the potential to extend life for multiple decades. Pamour, in Timmins, Ontario, extends the life of Porcupine and maintains production beginning in 2024. The project will optimize mill capacity, adding volume and supporting high grade ore from Borden and Hoyle Pond, while supporting further exploration in a highly prospective and proven mining district. Cerro Negro District Expansion 1, located in Argentina, includes the simultaneous development of the Marianas and Eastern districts to extend the mine life of Cerro Negro beyond 2030. The project is expected to improve production to above 350,000 ounces beginning in 2024. For the 15th year in a row, Newmont Corporation joins the Dow Jones Sustainability™ World Index (DJSI World), representing the top 10% of the largest 2,500 companies in the S&P Global Broad Market Index. DJSI World membership is based on long-term economic factors, as well as leading environmental, social and governance (ESG) performance evaluated through the 2022 S&P Global Corporate Sustainability Assessment (CSA). In addition to being ranked number one in the Metals and Mining Industry, Newmont received the top score for the Governance and Environment dimensions and earned top decile performance in 23 of the 25 CSA performance categories. The ranking is based upon Newmont’s performance in calendar year 2022. As of December 9, 2022, the company achieved the highest score out of 147 metals and mining companies assessed in the CSA. “At Newmont, our unwavering commitment to leading ESG practices is woven into the fabric of our company and fundamental to the way in which we operate,” said Palmer. “We are honored to be the metals and mining leader on the DJSI World Index and remain focused on our purpose to create value and improve lives through sustainable and responsible mining.” Newmont 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. The Company is an industry leader in value creation, supported by robust safety standards, superior execution and technical expertise. Newmont was founded in 1921 and has been publicly traded since 1925. The company’s address is 6900 E Layton Avenue, Suite 700, Denver, CO 80237, (303) 863-7414, fax: (303) 837-5837, email: [email protected], website: www.newmont.com.