Newmont Nevada Operations Account For A Third Of Worldwide Gold Production

 

DENVER, CO - Newmont Mining Corporation owns or controls approximately 2.6 million acres in Nevada. The Nevada operations account for approximately one-third of Newmont's worldwide gold production. About 125,000 acres of private and public land in Nevada is reserved for mining use. Portions of that acreage have already been reclaimed, are undergoing reclamation, or remain undisturbed. Newmont has been pouring gold in Nevada for over 50 years along a 100-mile corridor in the northern part of the state. Our Nevada properties operate as an integrated unit and, together, they boast the widest variety of processing methods of any gold mining complex in the world. This allows us to maximize economic recovery of gold from a wide range of ore types and grades. In addition to gold, our operations produce silver and copper. Operations include 11 surface mines, eight underground mines and 13 processing facilities.

The company produced 1.21 million ounces of gold, with no change to the company’s full year guidance 2018 results in the first quarter. The company delivered solid operating and financial results in the first quarter. Costs and production remained in line with guidance, and our next generation of profitable mines.  The net income from continuing operations of $170 million, an increase of $100 million from the prior year quarter primarily due to higher average realized gold prices. The adjusted net income was $185 million, compared to $136 million in the prior year quarter. Revenue rose eight percent to $1.8 billion for the quarter from higher realized gold price.

Newmont’s capital-efficient project pipeline supports stable production with improving margins and mine life. Near-term development capital projects. Funding for Subika Underground, Ahafo Mill Expansion, Twin Underground, Quecher Main and Tanami Power projects has been approved and these projects are in execution. Additional projects represent incremental improvements to production and cost guidance. Internal rates of return (IRR) on these projects are calculated at a $1,200 gold price.

The company’s outlook reflects stable gold production and ongoing investment in its operating assets and most promising growth prospects. Newmont does not include development projects that have not yet been funded or reached execution stage in its outlook, which represents upside to production and cost guidance. North America production remains unchanged at between 2.0 and 2.2 million ounces in 2018. Production declines slightly in 2019 to between 1.8 and 2.0 million ounces due to planned stripping at and then increases to between 1.9 and 2.1 million ounces in 2020 due to higher grades at Twin Creeks, Cripple Creek & Victor and Long Canyon. The Company continues to pursue profitable growth opportunities at Carlin and Long Canyon. South America production remains unchanged at between 615,000 and 675,000 ounces in 2018. Production is expected to be between 590,000 and 690,000 ounces in 2019 with the addition of Quecher Main and between 475,000 and 575,000 ounces per year in 2020 as Yanacocha laybacks are mined out and Merian transitions from saprolite to hard rock. The Company continues to advance near-mine growth opportunities at Merian and both oxide and sulfide potential at Yanacocha. Production in Australia remains unchanged at between 1.5 and 1.7 million ounces in 2018. Production is expected to be between 1.4 and 1.6 million ounces in 2019 and 2020. In 2020, Boddington completes stripping and accesses higher grade ore which offsets the impact of processing lower grade stockpiles at KCGM. The Company continues to advance studies for a second expansion at Tanami. In Africa, production remains unchanged at between 815,000 and 875,000 ounces in 2018. Production is expected to be between 1.1 and 1.2 million ounces in 2019 as the Ahafo Mill expansion reaches commercial production and between 880,000 and 980,000 ounces in 2020 as both Ahafo and Akyem reach lower open pit grade. The company continues to advance the Ahafo North project and other prospective surface and underground opportunities.