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Newmont Announces Second Quarter Results | Mining

DENVER – Newmont Mining Corp. announced a profit, the completion of two key Nevada projects, and the acquisition of 50% of a new project in its second quarter financial results, released late July.

$ 279 million, or $ 0.51 per diluted share, an increase of $ 84 million from the previous quarter

Adjusted net income is $ 144 million or $ 0. $ 26 per diluted share, down 43% from the same quarter last year. For the third consecutive quarter, the company announced a dividend of $ 0.14.

Revenues decreased 11% to $ 1.7 billion mainly due to lower production. The decrease was partially offset by the rise in average gold prices.

In the second quarter, production amounted to 1.2 million ounces of gold. Production is expected to increase in the second half of the year as it reaches higher levels at some sites and increases treatment in Carlin.

In the second quarter, Newmont completed two mining projects in Nevada and is pursuing studies related to a second phase. "We continued to add production at a lower cost by completing our Twin Underground and Northwest Exodus projects safely, on budget and ahead of schedule," said Gary Goldberg, President and Chief Executive Officer. direction of Newmont

. The underground Creeks project started on July 1st. The project was completed on schedule and below schedule for $ 42 million. The extension adds higher grade and lower cost production, allows the processing of stored ore, and extends process life to 2030, said Newmont in its July 26 earnings call. . The internal rate of return should be 20%

Northwest Exodus in Carlin was completed ahead of schedule and budget. The expected internal rate or return is greater than 40%. The project allows for lower-cost production at Carlin and provides a platform for future growth and technology, the company said in its revenue appeal.

Newmont began shipping concentrate from its Cripple Creek & Victor operation in Colorado to Carlin. quarter. Tom Palmer, chief operating officer, said that the volume shipped is expected to increase over the next few months, "which will improve recovery at both sites"

The company also announced plans to expand its operations. acquire 50% of NOVAGOLD Resources Inc. for the Galore Creek project in British Columbia for $ 275 million. The agreement provides for a partnership with Teck Resources Ltd., which holds the remaining 50%, to conduct feasibility studies over the next few years. The project is described as a large undeveloped copper-gold project.

"Galore Creek can support decades of profitable production of copper and gold in a favorable mining jurisdiction, consistent with our strategy of creating long-term value for our" The company has announced liquidity for $ 6 billion to maintain its capital priorities, "said Nancy Buese, Chief Financial Officer. The senior gold producer also informed investors of its other operations in North America, South America, Africa and Australia. Seventy per cent of its operations and reserves are in North America and Australia.

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