Newmont Mining Completes Northwest Exodus in Nevada Ahead of Schedule and within Budget
DENVER--(BUSINESS WIRE)--Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company) has completed its Northwest Exodus project, extending mine life from the Exodus underground operation in the Carlin North area for 10 years. Northwest Exodus marks Newmont’s second profitable expansion in the last month adding higher-grade, lower-cost gold production in Nevada. The project was completed safely, ahead of schedule and within budget for $69 million.
Featuring fit-for-purpose technologies to enhance safety, productivity and efficiency, Northwest Exodus will add between 50,000 and 75,000 ounces of gold production per year and lower Carlin’s all-in sustaining costs by approximately $25 per ounce in the first five years of operation1. Northwest Exodus’s underground infrastructure also provides exploration platforms to support future growth in a highly prospective gold district.
“Northwest Exodus leverages fit-for-purpose technologies, existing infrastructure and higher-grade ore to lower costs, extend mine life and deliver an internal rate of return of more than 40 percent,” said Tom Palmer, Executive Vice President and Chief Operating Officer. “As our newest expansion, Northwest Exodus demonstrates Newmont’s commitment to investing prudently in viable technologies that enhance safety and generate long-term value for our stakeholders.”
The project was designed to support autonomous operations and is currently running two autonomous mobile loaders and pilot-testing autonomous drills to access and recover ore. The operation is also fitted with reliable, high-bandwidth underground WiFi to connect people, systems and equipment.
Over the last five years, Newmont has built eight new mines and expansions on four continents, including Akyem and the Phoenix Copper Leach in 2013, Merian and Long Canyon in 2016, Tanami in 2017, and Twin Underground in 2018. The Company also completed a value-accretive acquisition of Cripple Creek and Victor in 2015 and delivered a profitable expansion at the mine in 2016.
Newmont is a leading gold and copper producer. The Company’s operations are primarily in the United States, Australia, Ghana, Peru and Suriname. Newmont is the only gold producer listed in the S&P 500 Index and was named the mining industry leader by the Dow Jones Sustainability World Index in 2015, 2016 and 2017. The Company is an industry leader in value creation, supported by its leading technical, environmental, social and safety performance. Newmont was founded in 1921 and has been publicly traded since 1925.
Cautionary Statement Regarding Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Such forward-looking statements may include, without limitation: (i) estimates of future production, including additions to production at Northwest Exodus; (ii) estimates of future improvements to costs applicable to sales and all-in sustaining cost at Carlin; (iii) expectations regarding future higher-grade ore to lower costs, (iv) expectations regarding mine life; and (v) expectations regarding future operating and financial results and rates of return. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s operations and projects being consistent with current expectations and mine plans; (iii) certain price assumptions for gold, copper and oil; (iv) prices for key supplies being approximately consistent with current expectations; (v) the accuracy of our current mineral reserve and mineralized material estimates; and (vi) other assumptions. Such assumptions and related forward looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially. Other risks relating to forward looking statements in regard to the Company’s business and future performance may include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, operational risks, community relations risks, governmental regulation and political and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s 2017 Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC), and available at www.newmont.com, as well as the Company’s other SEC filings. The Company does not undertake any obligation to publicly release revisions to any “forward-looking statement” to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors' own risk.
1 All-in sustaining cost improvement as used in this press release is a forward-looking non-GAAP metrics. All-in sustaining cost is defined as the sum of costs applicable to sales (including all direct and indirect costs related to current gold production incurred to execute on the current mine plan), reclamation costs (including operating accretion and amortization of asset retirement costs), G&A, exploration expense, advanced projects and R&D, treatment and refining costs, other expense, net of one-time adjustments and sustaining capital. Improvement to Carlin’s costs applicable to sales is expected to be $20 per ounce for the same period. A reconciliation has not been provided in reliance on Item 10(e)(1)(i)(B) of Regulation S-K because such reconciliation is not available without unreasonable efforts. For illustrative purposes, a reconciliation of historical AISC and 2018 AISC gold outlook on a consolidated basis can be found on pages 15 to 19 of the Company’s Q1 2018 Earnings Release available at www.newmont.com. See also the Cautionary Statement for additional information regarding forward looking statements.