Newmont reports its largest gold mineral reserves in its history

    February 18, 2020

    Newmont Corporation reported gold mineral reserves of 100.2 million attributable ounces for 2019 compared to 65.4 million ounces at the end of 2018, an increase of 53 percent after successfully completing two historic transactions and through ongoing exploration success.

    “Newmont has the largest gold reserve base in the industry underpinned by our world-class ore bodies in top tier jurisdictions. In 2019, we added almost 50 million ounces of gold reserves through the acquisition of Goldcorp, formation of the Nevada Gold Mines joint venture and the continuation of our leading exploration program,” said Tom Palmer, President and Chief Executive Officer. “Our reserve and resource base will support stable production of more than 6 million ounces per annum for decades to come.”

    Newmont reported that the mineral reserves of 100.2 million ounces is the largest reserve in the industry and 88 percent of its reserves are located in top-tier jurisdictions of the Americas and Australia.

    The reported figures include Red Lake and the company’s 50 percent interest in Kalgoorlie Consolidated Gold Mines (KCGM). Newmont successfully completed the sale of KCGM in January and expects to close the divestment of Red Lake in the first quarter of 2020.

    Combined, these sites represent approximately 4.5 million ounces of gold reserves and 2.6 million ounces of measured and indicated resources, bringing Newmont’s adjusted 2019 reserves to 95.7 million ounces and measured and indicated resources to 74.1 million ounces.

    The company also reported that it had increased its exposure to other metals through its transaction with an estimated 63 million gold equivalent ounces from copper, silver, zinc, lead and molybdenum.

    The company added 42.2 million net ounces of gold reserves through its acquisition of Goldcorp and formation of the Nevada Gold Mines (NGM) joint venture, after adjusting for revisions at select Goldcorp operating sites, which were assessed using Newmont’s rigorous technical standards.
    Newmont’s base metal reserves increased significantly with the addition of the Goldcorp assets. Copper reserves increased to 6.8 Mt from 1.3 Mt in 2018, primarily due to the additions at the NuevaUnión and Norte Abierto projects.

    Silver reserves also increased significantly to 652 million ounces from 86 million ounces, primarily due to additions at Peñasquito, but also supported by NuevaUnión, Norte Abierto, Cerro Negro and Pueblo Viejo. Silver resources increased to 481 million ounces of Measured & Indicated and 217 million ounces of Inferred from 128 million ounces of Measured & Indicated and 21 million ounces of Inferred.

    Newmont’s total attributable exploration expenditure is expected to be approximately $230 million in 2020, a decrease of 13 percent from the prior year as the company captures $25 million of exploration synergies from the Goldcorp acquisition and approximately $10 million from the divestiture of KCGM and Red Lake. Around 80 percent of total exploration investment will be dedicated to near-mine expansion programs and the remaining 20 percent will be allocated to the advancement of greenfield projects and innovation programs. Geographically, the company expects to invest approximately 30 percent in North America, 25 percent in South America, 20 percent in Australia and the remainder in Africa and other locations.

    Source : me.smenet.org