Engineering & Mining Journal

MAY 2019

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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Page 26 of 83

GOLD MINERS ROUNDUP MAY 2019 • E&MJ 25 (Peru), three of the biggest mines in the world. The declines were primarily attrib- utable to "lower grade at various sites and lower leach tons placed at Carlin, Phoenix (British Columbia, Canada), Cripple Creek and Victor (Colorado, USA), and Yanacocha, partially offset by higher grade and recovery at Tanami (Australia) and Ahafo (Ghana)," the company reported. Production also fell at Long Canyon (Nevada), Twin Creeks (Ne- vada), Kalgoorlie (Australia), and Akyem (Ghana), the company reported. According to the company's Q4 results, gold production for the year increased at only four of the company's 12 mines. In 2018, the company logged rough- ly $1 billion of capital expenditures, up yoy. Roughly 40% of that went to devel- opment projects, which included "Twin Creeks Underground in North America; the Merian crusher and Quecher Main in South America; the Tanami Expansion 2 project in Australia; and Subika Under- ground, Ahafo Mill Expansion, and Ahafo North in Africa," the company reported. In July, the miner reported it entered agreements to acquire a 50% interest in Ga- lore Creek from NOVAGOLD Resources, and to join with Teck Resources, who owns the remaining stake. "Galore Creek, located in British Columbia, is one of the largest unde- veloped copper-gold projects with resources previously reported by Teck of 8 million oz of gold and 9 billion pounds of copper," the company reported. "Galore Creek holds the potential to support decades of profitable copper and gold production." Separately, in July, the miner reported it had completed its Northwest Exodus project, "extending mine life from the Ex- odus underground operation in the Carlin North area for 10 years." The project was to add "higher-grade, lower-cost gold pro- duction in Nevada" and was "complet- ed safely, ahead of schedule and within budget." Also, that month, Newmont de- clared it achieved commercial production at its Twin Creeks Underground expansion project, "adding higher-grade, lower-cost gold production." The project was com- pleted on schedule and below guidance, the company reported. Against that backdrop, with the new year, the company announced one of the biggest merger's in gold mining history. In January, Newmont entered into a defini- tive agreement to "acquire all outstand- ing common shares of Goldcorp Inc. in a primarily stock transaction." The deal was reportedly worth $10 billion. The move was soon followed by me- dia reports about a possible merger with Barrick, which inspired sensational head- lines, but quickly simmered down to a proposed joint venture involving mine sites in Nevada and Colorado. The terms of the partnership would give Barrick 61.5% ownership and operational control. The assets involved include Cortez (Nevada), Goldrush (Nevada), Goldstrike (Nevada), Turquoise Ridge (Nevada), Carlin, Long Canyon, Phoenix, Twin Creeks and "all associated processing facilities and other infrastructure," Newmont reported. Details on how the partnership, between the world's two biggest gold miners, would change rou- tine operations at the biggest gold mines in the world remain scarce. Newmont reported the goal is to synergize under a "proven and scalable operating model." For 2019, production is expected to ramp up at Ahafo, where first commercial production was achieved in Q4 2018. The mill expansion project there should bump up numbers in H2, the company reported. Quecher Main project pro- duction should bump up oxide produc- tion numbers at Yanacocha in H2. And cost-savings linked to the completion of the Tanami Power project should show up in 2019, Newmont reported. Total gold production for 2019 is pro- jected to be 5.2 million oz, the company reported, at an AISC of $935/oz. Newmont reported "attributable prov- en and probable gold reserves of 65.4 million oz at December 31, 2018." No. 2 Barrick Gold (4.5M oz) While Barrick Gold reported in its 2018 re- cap webcast a net loss of more than $1.5 billion, it logged adjusted net earnings of $409 million. The company reported re-

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