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Released November 03, 2014 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Newmont Mining Corporation (NYSE:NEM) (Denver, Colorado) endured several setbacks in third-quarter 2014, as production and realized prices for gold and copper tumbled. The company has slightly reduced its outlook for capital spending for the remainder of the year. Net income was reported to be $213 million, a 46.48% decrease from third-quarter 2013.
Industrial Info is tracking more than $9.5 billion in active projects involving Newmont, including two major projects in Nevada: the $500 million construction of a gold mine and mill in Wells, and the $300 million expansion and restart of a gold and silver mine near Round Mountain. The Wells project, which is in the permitting phase, involves building an open pit mine with 3,000- to 8,000-ton-per -day flotation/cyanide heap-leach circuits to produce 150,000 ounces per year of gold, eventually expandable to 300,000 ounces per year. Construction is expected to begin in the second quarter of 2015.
View Project Report - 48000406
The Round Mountain project, which is in the early site study phase, would involve constructing an open pit mine, and restarting and expanding an underground mine and processing plant closed since 1990, to produce 3.2 million ounces of gold and 9 million ounces of silver. As scheduled, no actual construction would begin until 2020.
View Project Report - 48000407
Total sales were reported to be $1.75 billion, a 13.56% decrease from the same period last year. Gold prices were reported to be $1,270 per ounce, a 3.93% decline, while copper prices were $2.71 per pound, a 12.58% decline. Gold production stood at 1.15 million ounces, a 10.16% drop, and copper production was 13,700 tonnes, a 28.65% drop.
Gold production declined in North America, where stripping campaigns at the Carlin and Twin Creeks mines in Nevada are expected to continue into next year, and Australia, where the company sold off its Jundee mine in the second quarter. Copper production declined following a June-to-September shutdown at the Batu Hijau mine in Indonesia. Still, the startup of the Akyem mine in Ghana boosted gold production in Africa.
View Plant Profile - 1024824 1017313 1020738 3004615 3036858 1062094
Capital expenditures in third quarter totaled $277 million, largely directed toward construction projects in Nevada and South America.
"In Africa, gold production increased 48% over the prior-year quarter, with continued, steady production at Akyem, our lowest-cost operation," said Gary Goldberg, the president and chief executive officer of Newmont, in a conference call. "We recently achieved a milestone of 500,000 ounces of gold produced at Akyem since its commissioning last year."
Newmont's capital expenditures outlook has been reduced to between $1.15 billion and $1.22 billion for the year; through 2016, investments in North America, Australia, New Zealand and Africa are expected to gradually decline, while those in South America and Indonesia are expected to see overall increases. The company is on track to track to meet full year production outlook of 4.7 million to 5 million ounces of gold, albeit at a lower price.
"We're building a stronger asset portfolio," Goldberg said. "We received our right of exploitation for Merian [mine in Suriname] in late August, and construction mobilization is under way. I got a first-hand look at the Turf Vent Shaft [project in Nevada] last month, and that project is proceeding safely, on time and on budget. We also announced the sale of our stake in La Herradura [mine in Mexico], bringing our total proceeds from asset sales to $1.3 billion since mid-2013."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Industrial Info is tracking more than $9.5 billion in active projects involving Newmont, including two major projects in Nevada: the $500 million construction of a gold mine and mill in Wells, and the $300 million expansion and restart of a gold and silver mine near Round Mountain. The Wells project, which is in the permitting phase, involves building an open pit mine with 3,000- to 8,000-ton-per -day flotation/cyanide heap-leach circuits to produce 150,000 ounces per year of gold, eventually expandable to 300,000 ounces per year. Construction is expected to begin in the second quarter of 2015.
View Project Report - 48000406
The Round Mountain project, which is in the early site study phase, would involve constructing an open pit mine, and restarting and expanding an underground mine and processing plant closed since 1990, to produce 3.2 million ounces of gold and 9 million ounces of silver. As scheduled, no actual construction would begin until 2020.
View Project Report - 48000407
Total sales were reported to be $1.75 billion, a 13.56% decrease from the same period last year. Gold prices were reported to be $1,270 per ounce, a 3.93% decline, while copper prices were $2.71 per pound, a 12.58% decline. Gold production stood at 1.15 million ounces, a 10.16% drop, and copper production was 13,700 tonnes, a 28.65% drop.
Gold production declined in North America, where stripping campaigns at the Carlin and Twin Creeks mines in Nevada are expected to continue into next year, and Australia, where the company sold off its Jundee mine in the second quarter. Copper production declined following a June-to-September shutdown at the Batu Hijau mine in Indonesia. Still, the startup of the Akyem mine in Ghana boosted gold production in Africa.
View Plant Profile - 1024824 1017313 1020738 3004615 3036858 1062094
Capital expenditures in third quarter totaled $277 million, largely directed toward construction projects in Nevada and South America.
"In Africa, gold production increased 48% over the prior-year quarter, with continued, steady production at Akyem, our lowest-cost operation," said Gary Goldberg, the president and chief executive officer of Newmont, in a conference call. "We recently achieved a milestone of 500,000 ounces of gold produced at Akyem since its commissioning last year."
Newmont's capital expenditures outlook has been reduced to between $1.15 billion and $1.22 billion for the year; through 2016, investments in North America, Australia, New Zealand and Africa are expected to gradually decline, while those in South America and Indonesia are expected to see overall increases. The company is on track to track to meet full year production outlook of 4.7 million to 5 million ounces of gold, albeit at a lower price.
"We're building a stronger asset portfolio," Goldberg said. "We received our right of exploitation for Merian [mine in Suriname] in late August, and construction mobilization is under way. I got a first-hand look at the Turf Vent Shaft [project in Nevada] last month, and that project is proceeding safely, on time and on budget. We also announced the sale of our stake in La Herradura [mine in Mexico], bringing our total proceeds from asset sales to $1.3 billion since mid-2013."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
