Newmont Mining Makes Progress on Expansion Projects

Researched by Industrial Info Resources (Sugar Land, Texas)--Newmont Mining Corporation (NYSE:NEM) (Greenwood Village, Colorado) says it is making progress on gold mine projects on four continents. The company says it produced 1.3 million ounces of gold in third-quarter 2017, up 7% from the prior-year quarter. Industrial Info is tracking nearly $8 billion in project activity by Newmont.

Newmont operates in the Americas as well as Africa and Australia. Lower-cost production from Newmont's two newest mines -- Merian in Suriname and Long Canyon in Nevada -- offset lower production at more mature operations, the company reported last week in its third-quarter earnings results.

Newmont reported $198 million in net income for third-quarter 2017, compared with a $313 million loss for third-quarter 2016. Sales for the just-ended quarter were nearly $1.9 billion, up from nearly $1.8 billion in the prior-year quarter.

Chief Executive Officer Gary Goldberg said in the company's earnings presentation that the third-quarter performance helps to give the company the means to fund a project to extend the life of its Yanacocha mine operations in Peru to 2027. The Quecher Main project is designed to maintain Yanacocha's gold production at about 200,000 ounces per year, he said.

Capital expenditures for the just-ended quarter fell 28% from the prior-year quarter to $194 million, as growth projects moved into commercial production, the company said last week in its earnings report .

During the quarter, Newmont declared commercial production at the $92 million Tanami Expansion Project in Australia. The project increases the Granites Processing Plant processing capacity from 2.3 million tons per year to 3.5 million tons per year. For more information, see Industrial Info's project report..

Production guidance for 2017 remains unchanged at between 5.0 million ounces and 5.4 million ounces, the company said. Capital expenditure guidance remains unchanged at between $890 million and $990 million. Sustaining capital outlook is unchanged between $575 million and $675 million.

Turning to longer-term growth options in North America, Goldberg said Newmont is advancing a potential Long Canyon above-ground gold mine expansion and mill addition, phase II. Newmont was performing a site study on the project.

For related information, see August 23, 2017, article - Mining Industry Prepares for Growth in 2018 and July 26, 2017, article - Newmont Mining Continues Global Expansion in Face of Stronger Earnings, Increased Production.

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