Newmont’s aggressive expansion plans
Newmont Mining is on an aggressive investment (and divestment) program which could see it catapult the company to the top of gold production stakes.
In a presentation at the Gold Forum in the city, Denver-based Newmont outlined projects that will add around 1 million ounces of gold to its portfolio and do so as soon as the middle of next year.
The company sports one of the stronger balance sheets in the sector having embarked on a debt reduction program earlier than its rivals.
Newmont sold its Indonesian operations for $1.3 billion at the end of June. The company says it’s reinvesting the proceeds in the Merian mine in South America, the Cripple Creek & Victor gold mine in Colorado it bought last year and at Long Canyon, a Nevada oxide deposit it acquired in 2011.
By doing so the company is doubling average mine life and pushing done all-in costs by$100 an ounce.
With the release of its second quarter results Newmont also said unapproved projects “represent upside of between 200,000 and 300,000 ounces of gold production beginning in 2018.”