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Newmont Goldcorp Corp. [NGT-TSX, NEM-NYSE] began the process of integrating Goldcorp's legacy badets, with synergies and efficiencies expected to be realized at the US $ 365 million full-performance rate, the company announced.
The holding activities resulting from the recent US $ 10 billion takeover by the US $ 10 billion Goldcorp mining giant Newmont Goldcorp now ranks first among gold producers in the world, with badets located in the United States , in Africa and Australia.
By combining their operations, the duo is seeking profitable gold production and is aiming for stable gold production between 6.0 and 7.0 million ounces over several decades.
The combined entity will also hold the largest reserves and gold resources in the gold sector.
On July 25, 2019, the company announced a lower than expected profit for the second quarter of $ 1 million, or $ 0.00 per share for a business turnover of $ 2.26 billion. Gold production for the second quarter was 1.59 million ounces.
Earnings decreased by $ 273 million year-over-year due to various factors, including integration costs related to Goldcorp and Nevada joint ventures, costs incurred while Penasquito and Musselwhite were not in operation, higher interest expense and a prior year. gains from the sale of the Company's royalty portfolio in June 2018.
Newmont Goldcorp said it is on track to produce 6.5 million ounces of gold this year, at a total maintenance cost of $ 975 per ounce (these figures exclude the Nevada joint venture with Barrick Gold Corp. [ABX-TSX; GOLD-NYSE]). The forecast badumes annual production of 1.41 million ounces from Goldcorp's former operations.
Newmont Goldcorp is expected to lose up to $ 1.5 billion in badets over the next two years, which will allow it to operate with a more reasonable size and a more stable level of production. It will seek to realize up to $ 100 million in annual synergies before taxes.
In a teleconference with badysts, Newmont Goldcorp's new CEO, Tom Palmer, said he was "very confident" that Goldcorp's badets are on target as Newmont Goldcorp has applied its "rigor" and discipline these forecasts.
While indicating that several operations are still under consideration, including the former Goldcorp underground mines, Newmont has released specific updates on two former Goldcorp badets, including the Coffee gold project in the Yukon and the Musselwhite mine in Ontario. .
Newmont Goldcorp said the Coffee Project had been moved from the pre-feasibility stage to feasibility. The mining giant indicated that it had taken this step as it needed to continue exploration work, confirm resources, advance licensing activities and improve its knowledge of mining and quarrying. ;active.
In Musselwhite, the company said its work was focused on the rehabilitation of the conveyor, currently 70% complete. A secondary exit has been set up. Newmont Goldcorp has therefore resumed its development activities and work on the material handling system project earlier this month.
For the rest of the year, the focus will be on the replacement of the conveyor system and the use of this period to advance development work. Newmont Goldcorp expects the system to be fully operational by 2020.
Newmont Goldcorp recently stated that it was intensifying the operations of its Penasquito mine in Mexico following the lifting of an illegal blockade and the establishment of a dialogue process sponsored by the national government.
The Penasquito polymetallic mine is a key badet in Newmont Goldcorp's portfolio. It is the fifth largest silver mine in the world and the second largest in Mexico. It is located in the northeast corner of the state of Zacatecas and is 100% owned by Newmont Goldcorp.
The mine produced 272,000 ounces of gold in 2018 and directly employs more than 6,000 people, while creating another 20,000 indirect jobs in the region.
On Friday, Newmont Goldcorp shares fell 3.3% or $ 1.67 to $ 48.69. The shares are trading in a 52-week interval of $ 40.01 and $ 53.
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