Engineering & Mining Journal

MAY 2019

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GOLD MINERS ROUNDUP MAY 2019 • E&MJ 27 www.e-mj.com ing the numbers from those mines, pro- duction increased by 70,000 oz yoy. AISC fell 7% yoy to $976/oz, which was 5% below the 5-year average for the company. Price received per oz rose less than 1%, and was the highest it had been since 2014. The difference between the two was $285. The miner mined and treated 7% and 6% less ore yoy, respectively. Production numbers were boosted by more metric tons treated and improved grade at sites in Central Africa. Higher grade improved production numbers at projects in the Democratic Republic of Congo, Ghana, Tanzania (at Geita, which produced 564,000 oz), and in Australia. Lower grades impacted the numbers from proj- ects in Guinea, Mali and Argentina. De- lays impacted production in Brazil. When the sold and closed mines are excluded, production in South Africa rose 2% yoy. Minor legal action and mine sales and closures were among the leading devel- opments for the company in 2018. The company worked out a wage agreement with "all its trade unions in South Africa" in July. That month, it had its case with the government of Ghana, over a military intervention to resolve an illegal occupa- tion of a mine, dropped. The company logged $721 million in capital expenditures last year, down 24% yoy due in part to South African mine sales. A big chunk of the capex went to growth pro- jects at Central and South African sites, the brownfields expansion project in Guin- ea, and a new ball mill in Australia. For 2019, the miner plans on "bringing Obuasi (Ghana) into production," with the first gold pour set for the end of the year. A new plant at Siguiri (Guinea) is calendared for commissioning in Q1. Substation de- velopment at Mponeng (South Africa) is slated for H2. Feasibility study work will run into Q2 at Quebradona (Colombia), with engineering work to follow in H2. The miner reported it could spend as much as roughly $1 billion in capex next year. The miner plans to produce between 3.2 million and 3.5 million oz in 2019 at an AISC of between $935 and $995/oz. AngloGold Ashanti reported proven and probable gold reserves of 44.09 mil- lion oz as of the end of 2018. No. 4 Kinross Gold (2.5M oz) Kinross Gold reported revenues of $3.2 billion and a net loss of $23.6 million for 2018. Total gold output fell roughly 8% to the lowest level since 2010. AISC fell 1% yoy, to $965/oz, which was down roughly 3% from the aver- age for the company for the preceding half-decade. The average price received per oz for 2018 was $8 more than it was for 2017, making it the highest it has been since 2013. It was also roughly the average for the company for the preced- ing half-decade, and roughly $20 above the average for the 2007-2017 time- frame. The difference between price re- ceived and AISC was $303. Kinross Gold mined roughly 15% more ore yoy, hitting the average for the company for the preceding five years of about 130 million mt. In 2018, the company reported re- cord annual production at a couple of its mines, including Paracatu (Brazil), which produced roughly 523,000 oz. Kupal (Russia) produced roughly 490,000 oz. The miner logged roughly $1 billion in capital expenditures for the year, up yoy due to increased spending at Round Mountain (Nevada), Bald Mountain (Ne- vada) and Tasiast (Mauritania). In 2019, Kinross plans to commission a processing circuit at Bald Mountain, commence stripping at the Fort Knox Gilmore project (Alaska, USA), complete a feasibility study for the La Coipa Re- start project (Chile), and further evaluate the Tasiast Phase Two expansion project. The company reports it expects to spend roughly $1 billion on capex next year. Kinross reported it expects to produce 2.5 million oz gold in 2019 at an AISC of $995/oz. Mineral reserve estimates at the end of 2018 were 25.5 million oz. No. 5 Polyus (2.44M oz) Russia's Polyus reported an adjusted net profit of $1.3 billion, up more than $300 million yoy. It reported total revenue rose 7% yoy to $2.9 billion. Net debt was roughly the same yoy at $3 billion. Total gold output increased 13% yoy to the highest level yet for the mine. This was in part due to a 12% yoy increase in output from Olimpiada. Almost 50% more ore was mined and about 7% more One of the largest gold mines, Newmont's Boddington mine in Australia, produces 726 million oz last year.

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