Newmont Mining Sets 2019 Capital Guidance at $1.07 Billion

Researched by Industrial Info Resources (Sugar Land, Texas)--Global gold mining firm Newmont Mining Corporation (NYSE:NEM) (Denver, Colorado) is planning $1.07 billion in capital expenditures for 2019, down by as much as $230 million from expenditures in 2018, the company said in a guidance presentation on December 6. Attributable gold production is expected to be 5.2 million ounces next year, compared with this year's estimate of 4.9 million to 5.2 million ounces.

Industrial is tracking $6.58 billion in project activity in various stages of development by Newmont, including nearly $534 million in the U.S. Newmont operates in the Americas, Africa and Australia.

Click on the image at right for a graph showing Newmont Mining project activity.

The company made note of major projects that are well underway, including:

• The Ahafo Mill Expansion in Ghana; see project report
• The million Quecher Main expansion in Cajamarca, Peru; see project report
• The 52-megawatt natural gas-fired power plant addition at the Callie Underground Gold Mine in Tanami, Australia; see project report.

Newmont said it expects capital expenditures to be $730 million for 2020, and $600 million per year through 2023.

In July, Newmont announced commercial production had begun at its Twin Creeks Underground expansion project in Golconda, Nevada. The expansion adds between 30,000 and 40,000 ounces of higher-grade, lower-cost gold production per year. For more information, see Industrial Info's project report and July 5, 2018, article - All That Glitters: Industrial Info Tracks Multitude of Gold Mine Projects Nearing Completion in North America.

In early 2018, Newmont and Barrick Gold Corporation (NYSE:ABX) (Toronto, Ontario) approved the Turquoise Ridge Mine Optimization joint venture project in Golconda, Nevada. The project includes sinking a production shaft to access the richest part of the deposit. The new shaft is expected to lower unit costs by more than 20%, while increasing ore production rates to at least 1.1 million tons per year when it comes online in 2022. For more information, see Industrial Info's project report.

One U.S. project that is in the prefeasibility/feasibility study phase is the Long Canyon Above-Ground Gold Mine expansion and mill addition, Phase II, in Wells, Nevada. The project would include expanding the open-pit mine operation and building a 10,000-ton-per-year flotation mill to process higher grade ores, expanding production to 300,000 ounces per year. For more information, see Industrial Info's project report.

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