Newmont rises above Tanami constraints


The Tanami gold operation. Image: Newmont.

Newmont has boosted production across its global gold portfolio, with an increase in grades and throughput at the Boddington mine in Western Australia contributing to the result.

The company produced 1.45 million ounces of gold in the June quarter, which was 15 per cent higher than the previous corresponding period.

Boddington and Tanami produced 189,000 ounces and 109,000 ounces respectively in the June quarter.

The company signalled that production offset by a build-up of in-circuit inventory at Tanami after it was placed under care and maintenance which was lifted in July.

Newmont has also continued to deploy COVID-19 vaccinations to its workforce globally.

According to Newmont president and chief executive officer Tom Palmer, the company had secured $US1.6 billion ($2.1 billion) in earnings in the June quarter.

“Capitalising on the strength of our assets and integrated operating model, Newmont delivered a solid second quarter performance with $US1.6 billion in adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) and $US578 million in free cash flow,” Palmer said.

“Our performance and disciplined approach to capital allocation allowed Newmont to declare a second quarter dividend of $US0.55 per share, whilst we continue to reinvest in our business through our most profitable projects.

“As we move into our next 100 years of mining, we remain focused on delivering value to all of our stakeholders from our world-class portfolio of long-life, responsibly managed assets located in top- tier jurisdictions.”

Newmont will continue to focus on boosting gold production and investment into its operating aspects as part of its outlook.

The company has progressed its Tanami Expansion 2 project which will boost the site’s mine life beyond 2040 through a 1460-metre hosting shaft that will result in a 150,000 to 200,000-ounce increase to annual gold production.

The project’s capital cost is estimated to be between $US850 million and $US950 million with production from the expansion due in the first half of 2024.

Newmont’s annual gold production outlook is 6.5 million tonnes for the 2021 calendar year.

The company stated that its target is on track and will be bolstered by the second half of the year.

Newmont will aim to produce seven million ounces of gold per year from 2024.

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