Project completed on schedule and on budget, creating a platform for
next stage of growth
DENVER--(BUSINESS WIRE)--
Newmont
Mining Corporation (NYSE: NEM) (Newmont or the Company) reached
commercial production at the Tanami Expansion Project, which will
increase profitable gold production and support ongoing exploration and
development of Tanami’s prospective underground resource. The expansion
included building a second decline in the underground mine and
incremental capacity in the processing plant.
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Mill at Newmont’s Tanami gold mine in Australia. (Photo: Business Wire)
The project achieved commercial production safely and on schedule for
the approved $120 million development capital investment. The expansion
is expected to increase Tanami’s annual gold production by 80,000 ounces
per year to between 425,000 and 475,000 ounces of gold per year, lower
all-in sustaining costs1 to between $700 and $750 per ounce,
and extend mine life by three years. This expansion also creates a
platform for further growth and studies to develop a second expansion
are underway.
“Tanami’s team has more than doubled gold production while cutting costs
by about two-thirds and significantly improving resource confidence
since 2012. The expansion project continues this trajectory, offering
robust returns of 35 percent at a $1,200 gold price,” said Gary
Goldberg, President and Chief Executive Officer. “The team also
delivered this project safely and on schedule despite a one-month delay
caused by record rainfall in the first quarter.”
The second decline was completed in mid-2016, enabling a step change in
mining rates – which ramp up to 2.6 million tonnes per year – and
opening new avenues for exploration drilling. Since that time, Tanami’s
team has improved mine ventilation to support further growth, and
increased mine development rates through drilling efficiency gains.
The processing plant expansion included adding a ball mill, thickener
and gravity circuit to improve recoveries and expanding mill capacity
from 2.3 to 2.6 million tonnes per year. The mill reached commercial
production by achieving sustained throughput, mill availability and
grind size results in late August.
Newmont has a strong track record for profitable project development.
Over the past three years, the Company has built new mines at Merian and
Long Canyon and delivered profitable expansions at Tanami and Cripple
Creek & Victor. The Company will complete an expansion at Northwest
Exodus next year, and in 2017, announced three more expansion projects
to improve profitability and extend mine life at Ahafo and Twin Creeks.
About Newmont
Newmont is a leading gold and copper producer. The Company’s operations
are primarily in the United States, Australia, Ghana, Peru and Suriname.
Newmont is the only gold producer listed in the S&P 500 Index and was
named the mining industry leader by the Dow Jones Sustainability World
Index in 2015 and 2016. The Company is an industry leader in value
creation, supported by its leading technical, environmental, social and
safety performance. Newmont 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: (i) estimates of future production and expected increases in
production; (ii) estimates of future all-in sustaining costs and
expected cost improvements; (iii) expectations regarding future growth,
drilling, exploration, mining rates and returns; (iv) estimates of
future cost reductions and efficiencies; (v) expectations regarding
future processing plan performance, including recoveries and capacities;
and (vi) expectations regarding the timing and completion of the
Northwest Exodus, Ahafo and Twin Creeks expansion projects. 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, estimates or
expectations of future events or results are based upon certain
assumptions, which may prove to be incorrect. Such assumptions include,
but are not limited to: (i) there being no significant change to current
geotechnical, metallurgical, hydrological and other physical conditions;
(ii) permitting, development, operations and expansion of the Company’s
operations and projects being consistent with current expectations and
mine plans; (iii) political developments in any jurisdiction in which
the Company operates being consistent with its current expectations;
(iv) certain exchange rate assumptions; (v) certain price assumptions
for gold, copper and oil; (vi) prices for key supplies being
approximately consistent with current levels; (vii) the accuracy of our
current mineral reserve and mineralized material estimates; and (viii)
other assumptions noted herein. For example, both the AISC range and the
estimated return noted in this release assume $1,200/oz Au, $0.75
USD/AUD exchange rate, $55/barrel WTI and do not include inflation. Such
assumptions and related forward looking statements are subject to risks,
uncertainties and other factors, which could cause actual results to
differ materially. Other risks relating to forward looking statements in
regard to the Company’s business and future performance may include, but
are not limited to, gold and other metals price volatility, currency
fluctuations, increased production costs and variances in ore grade or
recovery rates from those assumed in mining plans, political and
operational risks, community relations, conflict resolution and outcome
of projects or oppositions and governmental regulation and judicial
outcomes. For a more detailed discussion of such risks and other
factors, see the Company’s 2016 Annual Report on Form 10-K, filed on
February 21, 2017, with the Securities and Exchange Commission (SEC),
and as well as the Company’s other SEC filings. The Company does not
undertake any obligation to release publicly revisions to any
“forward-looking statement” 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.
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All-in sustaining costs or AISC as used in this press release are
forward-looking non-GAAP metrics 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), reclamation 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. A reconciliation has not been provided in
reliance on Item 10(e)(1)(i)(B) of Regulation S-K because such
reconciliation is not available without unreasonable efforts. For
illustrative purposes, a reconciliation of historical AISC and
2017 AISC gold outlook on a consolidated basis can be found on
pages 14-20 of the Company’s Q2 2017 Earnings Release available at www.newmont.com.
See also the Cautionary Statement at the end of this news release
for additional information regarding forward looking statements.
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View source version on businesswire.com: http://www.businesswire.com/news/home/20170831006273/en/
Source: Newmont Mining Corporation