Newmont Goldcorp lifts output as Tanami grades rise

Tanami mine. Image: Newmont Mining

Newmont Goldcorp has produced 1.64 million ounces of gold during the September quarter, a 28 per cent increase on the same period last year, as gold prices continued at six-year highs.

The company is relishing from the thriving gold industry, with a 70 per cent increase of its earnings before interest, tax, depreciation and amortisation (EBITDA) on the September 2018 quarter.

Newmont Goldcorp president and chief executive officer Tom Palmer said the company was building momentum for an even better fourth quarter with this strong result.

“Newmont Goldcorp generated $US1079 ($1567) million in adjusted EBITDA and $US365 million in free cash flow for the third quarter, building momentum for an even stronger fourth quarter,” Palmer said.

“We expect to deliver $US240 million in annual run-rate improvements by the end of 2019 and exceed our initial synergy targets.

“We also continued to strengthen our portfolio and advance profitable growth by bringing on Borden, the Ahafo Mill expansion and Quecher main on time and within budget.”

The company is also expecting higher fourth quarter grades at the Tanami mine in the Northern Territory, at Éléonore in Quebec and at Cerro Negro in Nicaragua.

It also closed the deal on its Nevada gold mine joint venture with Barrick Gold, with 38.5 per cent ownership.

Looking ahead to the 2019 final result, Newmont expects to produce 1.4 million ounces of gold at its Australian mines, 1.3 million ounces in North America and 1.1 million ounces in South America.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.