Newmont Goldcorp 2019 Gold Production Expected To Be $6.3 Million Ounces

 

DENVER-, CO - Newmont Goldcorp Corporation reported that attributable gold production increased 28 percent to 1.64 million ounces for the quarter. “The Company generated $1,079 million in adjusted EBITDA and $365 million in free cash flow for the third quarter, building momentum for an even stronger fourth quarter,” said Tom Palmer, President and Chief Executive Officer. “We expect to deliver $240 million in annual run-rate improvements by the end of 2019 and exceed our initial synergy targets from the Goldcorp acquisition. We also continued to strengthen our portfolio and advance profitable growth by bringing on Borden in Canada, the Ahafo Mill Expansion in Africa, and Quecher Main in Peru, on time and within budget.” In July, Newmont Goldcorp and Barrick Gold Corporation consummated the transaction establishing Nevada Gold Mines LLC (NGM). The formation of NGM diversifies the Company’s footprint in Nevada and allows Newmont Goldcorp to benefit from additional efficiencies through integrated mine planning and processing. 

Newmont Goldcorp’s revenue increased 57 percent to $2,713 million for the quarter primarily. Attributable gold equivalent ounce production from other metals increased to 236 thousand ounces primarily due to new silver, lead and zinc production from Penasquito, partially offset by the classification of copper as a by-product following the formation of Nevada Gold Mines and lower copper grades at Boddington in Australia.  

Gold production is expected to be 6.3 million ounces in 2019. North America production is expected to be 1.1 million ounces in 2019; South America production is expected to be 1.3 million ounces in 2019; Australia production is expected to be 1.4 million ounces in 2019; Africa production is expected to be 1.1 million ounces in 2019; & Nevada production is expected to be 1.5 million ounces in 2019.

Newmont Goldcorp’s capital-efficient project pipeline supports stable production with improving margins and mine life. Near-term development capital projects and recently completed projects are presented below. Funding for Musselwhite Materials Handling in Canada, has been approved and the project is in execution. Additional projects not listed below 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 Quecher Main adds oxide production at Yanacocha, leverages existing infrastructure and enables potential future growth at Yanacocha. Quecher Main extends the life of the Yanacocha operation to 2027 with average annual gold production of approximately 200,000 ounces per year between 2020 and 2025 (100 percent basis). Ahafo Mill Expansion  is designed to maximize resource value by improving production margins and accelerating stockpile processing. The project also supports profitable development of Ahafo’s highly prospective underground resources. The expansion is expected to increase average annual gold production by between 75,000 and 100,000 ounces per year for the first five years beginning in 2020. The Borden is a new underground mine expected to extend profitable production at the Porcupine complex. Commercial production was declared on October 1, 2019. Musselwhite Materials Handling improves material movement from Musselwhite’s two main zones below Lake Opapimiskan. An underground shaft will hoist ore from the underground crushers, reducing haulage distances and ventilation costs. The Company expects the project to be fully operational in mid-2020 after development progress was impacted by the conveyor fire at Musselwhite.

The company’s address is 6363 South Fiddler’s Green Circle, Suite 800, Greenwood Village, CO 80111, (303) 863-7414, www.newmontgoldcorp.com.