Newmont Goldcorp’s Quecher Main Project in Peru Achieves Commercial Production
Four profitable projects delivered on four continents in 2019
DENVER--(BUSINESS WIRE)-- Newmont Goldcorp Corporation (NYSE: NEM, TSX: NGT) (Newmont Goldcorp or the Company) today announced that the Quecher Main project at Yanacocha in Peru achieved commercial production safely, ahead of schedule and under budget. The full project, including future leach pad expansions, is expected to be completed for approximately $275 million of development capital which is below the Company’s initial estimate (on a 100 percent basis).i
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Newmont Goldcorp: Quecher Main's leach pad and associated facilities. (Photo: Business Wire)
Quecher Main extends the life of the Yanacocha operation to 2027, contributing average annual gold production of approximately 200,000 ounces from 2020 through 2024 at all-in sustaining costsii between $900 and $1,000. The project is expected to generate an internal rate of return of approximately 15 percent at a $1,200 gold price.
“Quecher Main is the fourth profitable project we’ve brought into operation on four different continents this year, on schedule and within budget,” said Tom Palmer, President and Chief Executive Officer. “The project takes advantage of Yanacocha’s existing infrastructure to add profitable production from remaining oxide ores while also serving as a bridge to future growth opportunities, including Yanacocha’s extensive sulfide deposits.”
The project included development of the Quecher Main pit, two smaller oxide deposits and a heap leach pad.
Yanacocha began commercial production in 1993 and has since produced more than 38 million ounces of gold from open pit oxide and transitional ores processed at Yanacocha’s gold mill and leach pad. The operation is a joint venture between Newmont Goldcorp (51.35%), Minas Buenaventura (43.65%) and Sumitomo Corporation (5%).
Newmont Goldcorp has the strongest and most sustainable portfolio of operations, projects and exploration prospects in the gold sector. These assets allow the Company to sequence profitable projects in its unmatched pipeline to sustain six to seven million ounces of steady gold production over a decades-long time horizon.
About Newmont Goldcorp
Newmont Goldcorp is the world’s leading gold company and a producer of copper, silver, zinc and lead. The Company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in North America, South America, Australia and Africa. Newmont Goldcorp is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social and governance practices. The Company is an industry leader in value creation, supported by robust safety standards, superior execution and technical proficiency. Newmont Goldcorp 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, estimates and expectations of future average annual production, long-term production estimates, all-in sustaining costs and cost applicable to sales estimates and improvements, internal rate of return, extension of mine life, efficiency improvements, future growth opportunities and other statements relating to future performance and operations. 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, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by the “forward-looking statements.” Risks relating to forward looking statements in regard to the Company’s business and future performance may include, but are not limited to, gold price volatility, currency fluctuations, increased production costs, variances in ore grade or recovery rates from those assumed in mining plans and other operational risks, geotechnical, metallurgical and hydrological risks, political and community relations risk, and changes in governmental regulation and requirements. For a more detailed discussion of risks and other factors that might impact future looking statements, see Newmont Goldcorp’s Annual Report on Form 10-K for the year ended December 31, 2018 as well as Newmont Goldcorp’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 under the heading “Risk Factors” available on the SEC website or www.newmontgoldcorp.com. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” including, without limitation, outlook 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.
i The Quecher Main project has incurred development capital costs of approximately $185 million through October 31, 2019, and will complete Phase 3 and 4 of the leach pad expansion over the next 3 years with a remaining capital investment of approximately $90 million.
ii All-in sustaining costs or AISC is a non-GAAP metric defined as the sum of costs applicable to sales (CAS) (including all direct and indirect costs related to current gold production incurred to execute on the current mine plan), remediation 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. During the same period, incremental CAS is expected to be between $750 and $850 per ounce. Expected CAS and AISC are forward-looking statements, see the cautionary statement above. While a reconciliation to the most directly comparable GAAP measure has been provided for 2019 AISC Outlook on a consolidated basis and is available in the Company’s most recent earnings release available at https://www.newmontgoldcorp.com/newsroom/, a reconciliation has not been provided on an individual project basis in reliance on Item 10(e)(1)(i)(B) of Regulation S-K.
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Source: Newmont Goldcorp Corporation