Newmont Mining has reached full mining potential at the Boddington gold mine in Western Australia, helping the company to record third quarter results.
At Boddington, Newmont has improved mining rates and increased its grades for the remainder of the 2020 calendar year as a three-year stripping campaign nears completion in the South Pit.
The company produced a total of 1.5 million attributable ounces of gold and sold 305,000 ounces from its Australian operations during the quarter.
This included 175,000 ounces from Boddington and 130,000 from the Tanami mine in the Northern Territory.
Newmont president and chief executive officer Tom Palmer described the period as “the best quarterly financial performance in Newmont’s history”, with the company generating $1.6 billion in cash from continuing operations and $1.3 billion of free cash flow.
This result sets Newmont up with momentum to finish the 2020 calendar year, with its attributable gold production outlook for the year unchanged at six million ounces.
As the end of 2020 draws near, Newmont is also progressing the expansion of the Tanami gold mine. Funding for the Tanami expansion two project has been approved and is in execution, which will extend the mine’s life to year 2040.
Newmont is building a 1460 metre hoisting shaft and supporting infrastructure at the site to achieve 3.5 million tonnes per year of production.
Tanami expansion two is expected to increase Newmont’s annual gold production by approximately 150,000 to 200,000 ounces per year for the first five years, beginning in 2023.
“Capitalising on the strength of our portfolio and higher gold prices, we delivered record third quarter adjusted earnings before income tax, depreciation and amortisation (EBITDA) of $1.7 billion and free cash flow of $1.3 billion,” Palmer said.
“I am confident that our world-class portfolio is best positioned to generate industry-leading value and returns for our shareholders.”