Newmont Mining Corporation
) Akyem project in Ghana and Phoenix Copper Leach project in
Nevada have achieved commercial production safely on schedule and
on budget. The employees and contractors in Ghana and Nevada
worked efficiently to enable the projects work at full capacity.
Akyem is a large, open pit gold mine situated in the Birim North
District in Eastern Ghana. As of Dec 31, 2012, the mine had
proven and probable gold reserves of 7.4 million ounces and its
mine life was estimated at roughly 16 years.
Akyem is a core asset of Newmont and it is expected to produce
average annual gold of 350,000 to 450,000 ounces at costs
applicable to sales of $500 to $650 per ounce in its initial five
years of production. Average all-in sustaining costs for the
initial five years of production are expected to be within $750
to $850 per ounce. Attributable gold production from the Akyem
mine for 2013 is expected to be 50,000 to 100,000 ounces.
The Phoenix Copper Leach project is an extension of the Phoenix
mine situated roughly 16 miles south of Battle Mountain, Nev.
Copper is extracted from materials earlier defined as waste
through a leaching process and then dipped in a solvent
extraction/electrowining (SX/EW) facility. As of Dec 31, 2012,
the mine held proven and probable copper reserves of 740 million
pounds and mine life was estimated at 20 years.
The Phoenix Copper Leach project is expected to produce average
annual copper production of nearly 20 million pounds at costs
applicable to sales of $1.75 to $2.00 per pound in its initial
five years of production. The Phoenix Copper Leach project has a
2013 attributable copper production outlook of 4 to 5 million
Newmont recently lowered its copper production outlook for 2013
and now expects it to be between 135 and 145 million pounds for
the full year, down from 150 and 170 million pounds expected
The reduced copper production view is attributable to
lower-than-expected mill throughput at the Boddington mine in
Australia and lower-than-expected ore grade at the Batu Hijau
mine in Indonesia.
However, Newmont backed its attributable gold production outlook
for the full year in the band of 4.8 to 5.1 million ounces. The
company noted that higher mill throughput in Nevada and the start
of commercial production from the Akyem mine in Ghana in the
fourth quarter will benefit gold production for the full year.
Newmont also reported preliminary attributable gold and copper
production for third-quarter 2013 of 1.283 million ounces and 34
million pounds, respectively. Preliminary attributable gold and
copper sales for the quarter were 1.263 million ounces and 35
million pounds, respectively.
Newmont, which currently retains a Zacks Rank #3 (Hold), will
release its third quarter results after the closing bell
Other companies in the gold mining industry worth considering
Pretium Resources Inc.
Allied Nevada Gold Corp.
). While Pretium Resources and Franco-Nevada carry a Zacks Rank
#1 (Strong Buy), Allied Nevada holds a Zacks Rank #2 (Buy).
ALLIED NEV GOLD (ANV): Free Stock Analysis
FRANCO NV CP (FNV): Free Stock Analysis
NEWMONT MINING (NEM): Free Stock Analysis
PRETIUM RES INC (PVG): Free Stock Analysis
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