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Researched by Industrial Info Resources (Sugar Land, Texas)--Lower prices for gold and copper weighed down profits and revenues for Newmont Mining Corporation (NYSE:NEM) (Denver, Colorado) in full-year 2014, as did heavy costs from divestments. Still, the company reported stronger production at major mines in Africa, Asia and Nevada. Net income was reported to be $508 million, compared with a net loss of $2.53 billion in 2013, although the latter number is skewed by more than $4 billion in writedowns.
Industrial Info is tracking $11.33 billion in active projects involving Newmont, including the $100 million construction of the Sandman gold mine in Winnemucca, Nevada. The project involves developing four open pit mining deposits, and either building a heap-leach mill, or transporting ores 50 miles to Newmont's Twin Creek processing plant, to produce 143,000 ounces of gold resources. The mine is in its early planning stages.
Total sales stood at $7.29 billion, a 13.33% decrease from 2013. The average realized gold price stood at $1,258 per ounce for the year, down from $1,393 in 2013, while the average realized copper price per pound was $2.65 for the year, down from $2.98. Other major factors that affected the bottom line were a loss from discontinued operations and Newmont's sale of its stake in the Penmont joint venture in Mexico, which was completed in October 7.
Gold production was down slightly, due to the impact of divested properties; minus that, it was on par with 2013, with stronger results at the Akyem mine in Ghana, which saw its first full year of production, and the Batu Hijau mine in Indonesia, which saw stronger grades and ore recoveries. Copper production increased due to improved production at the Bottington mine in Australia and the first full year of production at the Phoenix Copper Leach mine in Nevada. Reduced capital expenditures (capex) and a strong operational performance kept all-in sustaining costs for gold and copper below 2013 levels.
"During 2014, we lowered our all-in sustaining costs by more than $500 million, or more than $100 per ounce, and met our plans to produce more than 4.8 million ounces of gold," said Gary Goldberg, the president and chief executive officer of Newmont, in a conference call. "We also kept our all-in sustaining costs at less than $1,000 an ounce for the second quarter in a row [in the fourth quarter."
Capital expenditures were reported to be $1.1 billion for the year and $344 million for the fourth quarter. Of these totals, $810 million and $233 million, respectively, were cited as sustaining capital expenditures, which are necessary to maintain current gold production and execute the current mine plan. Development capital primarily went to build the Turf Vent Shaft in Nevada and Merian in Suriname.
Sustaining capital expenditures are expected to range between $850 million and $950 million annually through 2017. Among the company's major non-sustaining projects, the Turf Vent Shaft at the Leeville mine in Nevada is expected to cost between $350 million and $450 million, including between $70 million and $80 million in 2015. It is expected to begin production late this year, increasing production and decreasing costs over the 11-year mine life.
Attributable gold production is expected to increase from 4.85 million ounces in 2014 to between 4.7 million and 5.1 million ounces by 2017, driven in part by a major expected start-up at the Merian mine in Suriname, stronger grades in Nevada and Indonesia, and the expected completion of the Turf Vent Shaft. Lower grades are expected to reduce gold production in Africa.
Attributable copper production is expected to increase from 86,500 tonnes in 2014 to between 115,000 and 135,000 tonnes by 2017, due in part to expected higher grades at the Batu Hijau mine.
"In 2015, we expect our gold all-in sustaining cost to come in between $960 and $1,020 per ounce, in line with our 2014 performance," Goldberg said in the conference call. "By 2017, our gold all-in sustaining costs are expected to range from $925 and $1,025 per ounce. Our overarching goal is to keep all-in sustaining costs below $1,000 per ounce in each of our operations, through ongoing cost and efficiency improvements."
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 $11.33 billion in active projects involving Newmont, including the $100 million construction of the Sandman gold mine in Winnemucca, Nevada. The project involves developing four open pit mining deposits, and either building a heap-leach mill, or transporting ores 50 miles to Newmont's Twin Creek processing plant, to produce 143,000 ounces of gold resources. The mine is in its early planning stages.
Total sales stood at $7.29 billion, a 13.33% decrease from 2013. The average realized gold price stood at $1,258 per ounce for the year, down from $1,393 in 2013, while the average realized copper price per pound was $2.65 for the year, down from $2.98. Other major factors that affected the bottom line were a loss from discontinued operations and Newmont's sale of its stake in the Penmont joint venture in Mexico, which was completed in October 7.
Gold production was down slightly, due to the impact of divested properties; minus that, it was on par with 2013, with stronger results at the Akyem mine in Ghana, which saw its first full year of production, and the Batu Hijau mine in Indonesia, which saw stronger grades and ore recoveries. Copper production increased due to improved production at the Bottington mine in Australia and the first full year of production at the Phoenix Copper Leach mine in Nevada. Reduced capital expenditures (capex) and a strong operational performance kept all-in sustaining costs for gold and copper below 2013 levels.
"During 2014, we lowered our all-in sustaining costs by more than $500 million, or more than $100 per ounce, and met our plans to produce more than 4.8 million ounces of gold," said Gary Goldberg, the president and chief executive officer of Newmont, in a conference call. "We also kept our all-in sustaining costs at less than $1,000 an ounce for the second quarter in a row [in the fourth quarter."
Capital expenditures were reported to be $1.1 billion for the year and $344 million for the fourth quarter. Of these totals, $810 million and $233 million, respectively, were cited as sustaining capital expenditures, which are necessary to maintain current gold production and execute the current mine plan. Development capital primarily went to build the Turf Vent Shaft in Nevada and Merian in Suriname.
Sustaining capital expenditures are expected to range between $850 million and $950 million annually through 2017. Among the company's major non-sustaining projects, the Turf Vent Shaft at the Leeville mine in Nevada is expected to cost between $350 million and $450 million, including between $70 million and $80 million in 2015. It is expected to begin production late this year, increasing production and decreasing costs over the 11-year mine life.
Attributable gold production is expected to increase from 4.85 million ounces in 2014 to between 4.7 million and 5.1 million ounces by 2017, driven in part by a major expected start-up at the Merian mine in Suriname, stronger grades in Nevada and Indonesia, and the expected completion of the Turf Vent Shaft. Lower grades are expected to reduce gold production in Africa.
Attributable copper production is expected to increase from 86,500 tonnes in 2014 to between 115,000 and 135,000 tonnes by 2017, due in part to expected higher grades at the Batu Hijau mine.
"In 2015, we expect our gold all-in sustaining cost to come in between $960 and $1,020 per ounce, in line with our 2014 performance," Goldberg said in the conference call. "By 2017, our gold all-in sustaining costs are expected to range from $925 and $1,025 per ounce. Our overarching goal is to keep all-in sustaining costs below $1,000 per ounce in each of our operations, through ongoing cost and efficiency improvements."
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.
