Newmont Goldcorp’s Borden Mine Achieves Commercial Production
DENVER--(BUSINESS WIRE)--Newmont Goldcorp Corporation (NYSE: NEM, TSX: NGT) (Newmont Goldcorp or the Company) today announced that the Borden mine near Chapleau, Ontario has achieved commercial production safely, on schedule and within budget. Last week, government and First Nation dignitaries helped inaugurate the mine during a ribbon cutting ceremony.
The mine features state-of-the-art health and safety controls, digital mining technologies and processes, and low-carbon energy vehicles.
“Consistent project delivery and disciplined operational execution remain cornerstones of our business and are central to creating long-term shareholder value,” said Tom Palmer, President and Chief Executive Officer. “Borden joins the next generation of Newmont Goldcorp mines and leverages our leading land position to anchor this new gold district in Ontario.”
At 1,000 square kilometers, Borden’s land package represents additional exploration upside as the deposit remains open at depth in a favorable mining jurisdiction. Ore from Borden is processed at the existing mill at Porcupine in Timmins, profitably extending operations at the gold mining complex.
In recognition of Borden’s contribution to the future of safe and sustainable mining, the Canadian and Ontario governments each granted CAD$5 million towards electrification of the mine.
Over the last six years, Newmont has successfully built 12 new mines, expansions and projects on four continents – on or ahead of schedule and at or below budget. These projects, with rates of return greater than 20 percent, include Akyem and the Phoenix Copper Leach in 2013, the Turf Vent Shaft in 2015, Merian and Long Canyon in 2016, the Tanami Expansion in 2017, and Twin Underground, Northwest Exodus and Subika Underground in 2018, and the Tanami power project and Borden in 2019. The Company also completed a value-accretive acquisition of Cripple Creek and Victor in 2015 and delivered a profitable expansion at the mine in 2016.
Newmont Goldcorp has the strongest and most sustainable portfolio of operations, projects and exploration prospects in the gold sector. This includes the largest Reserves and Resources, with 90 percent of Reserves located in the Americas and Australia.i 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 press 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. Where a forward-looking statement 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 events or results to differ materially from future events or results expressed, projected or implied by the forward-looking statements. Forward-looking statements often address our expected future business, financial performance and financial condition and may include, without limitation, (i) statements regarding the timing and achievement of commercial production at Borden, (ii) expectations regarding future operations, cost reductions and profitability, (iii) expectations regarding portfolio sequencing and optimization and (iv) expectations regarding future production, including long-term production targets. Forward-looking statements are based upon certain assumptions, which may prove to be incorrect. Such assumptions include, without limitation: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of operations and projects being consistent with current expectations and mine plans, including, without limitation, receipt of export approvals; (iii) political developments in any jurisdiction in which Newmont Goldcorp operates being consistent with its current expectations; (iv) certain exchange rate assumptions; (v) certain price assumptions for gold, copper, silver, zinc, lead and oil; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of current mineral reserve and mineralized material estimates; and (viii) other planning assumptions. In addition, material risks that could cause actual results to differ from forward-looking statements include, without limitation, (a) the inherent uncertainty associated with financial or other projections, (b) integration risks in connection with the recent business combination by which Newmont acquired Goldcorp Inc. and the ability to achieve the anticipated synergies and value-creation contemplated by the integration, and (c) other risks disclosed by the Company. For a 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. Newmont Goldcorp 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 press 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 Reserve percentages reflect both the closing of the Goldcorp transaction and Nevada Gold Mines joint venture. For information regarding Newmont’s historical reserves prepared in compliance with the SEC’s Industry Guide 7, see the Company’s Annual Report filed with the SEC on February 21, 2019, which is available at www.sec.gov or on the Company’s website. The reserves percentages represent gold reserves only, are based upon Newmont, Goldcorp and Barrick’s previously published reserve figures. Newmont’s reserves were prepared in compliance with Industry Guide 7 published by the United States SEC. Reserve figures for former Goldcorp sites and Barrick sites contributed to the Nevada Gold Mines joint venture by Barrick are sourced from Goldcorp’s and Barrick’s previously disclosed public information. Goldcorp and Barrick’s reserves were prepared in accordance with the Canadian National Instrument 43-101 (“NI 43-101”) pursuant to the requirements of the Canadian securities laws, which differ from the requirements of United States securities laws. The definitions used in NI 43-101 are incorporated by reference from the CIM Definition Standards adopted by CIM Council on May 10, 2014 (the "CIM Definition Standards"). U.S. reporting requirements are governed by the SEC Industry Guide 7, as followed by Newmont. These reporting standards have similar goals in terms of conveying an appropriate level of confidence in the disclosures being reported, but embody different approaches and definitions. For example, the terms "Mineral Reserve", "Proven Mineral Reserve" and "Probable Mineral Reserve" are Canadian mining terms as defined in NI 43-101, and these definitions differ from the definitions in Industry Guide 7. Under Industry Guide 7 standards, a "final" or "bankable" feasibility study is typically required to report reserves or cash flow analysis to designate reserves. Further, under Industry Guide 7, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Newmont has not been involved in the preparation of Goldcorp’s or Barrick’s reserve or resource estimates. Accordingly, Newmont assumes no responsibility for Barrick’s estimates. Investors are reminded that Goldcorp reserve estimates remain subject to review and adjustment in accordance with Newmont and SEC standards. No assurances can be made that all Goldcorp reserves will be recognized as Newmont Goldcorp reserves.
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