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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GOLD MINERS ROUNDUP 30 E&MJ • MAY 2019 Capital expenditures for 2018 were roughly $1 billion. The lion's share of the "development capital" went to the Melia- dine project (Canada), Amaruq (Canada), and Canadian Malarctic. Capital expenditures are expected to be roughly $660 million in 2019. Commercial production at Meliadine should begin in Q2, the company reported. "Development activities at Amaruq are progressing as planned," Agnico Eagle reported. "Open- pit mining has commenced at the Whale Tail pit (Amaruq) and commissioning of the long-haul truck fleet is under way." Agnico Eagle reported it will produce 1.8 million oz in 2019. "We anticipate record gold production in 2019," the company reported. At December 31, 2018, the company's gold reserves were reportedly 22 million oz. No. 10 Harmony Gold (1.4M oz) Harmony reported increasing revenues and a profit of $5 million to close out 2018. The big news for the miner was a big up- tick in gold production, as it outproduced Yamana Gold, Randgold and Sibanye-Still- water for the first time since 2013. Gold production increased 30% yoy. Harmony also processed 31% more ore in 2019. The company attributed the uptick to "inclusion of Moab Khotsong (South Africa) and Hidden Valley (Papau New Guinea)" in its asset portfolio. The former produced 142,042 oz for the six months that ended December 31, 2018. Hidden Valley produced 100,021 oz in the same time period. During that time- frame, total gold output increased at sev- en of 11 other projects. In 2018, AISC rose 4% yoy, to $1,234/oz, roughly the average for the company for the preceding half decade, but also the highest it has been since 2013, when it almost reached $1,500/ oz. The average price received for 2018 rose almost 3% yoy, to $1,338, which was 1% above the average for the compa- ny for the preceding half-decade, and the highest it has been since 2013, when it crested $1,603. Harmony ranked first for highest average received price in 2018. The difference between price received and AISC was, however, a paltry $105/oz. The company reported it expects to pro- duce 1.5 million oz in 2019. It stated in a 12-month report re- leased last summer that its mineral re- serves were 36.9 million oz. Randgold (1.3M oz) According to Barrick, Randgold's "profit" for 2018 was roughly $227 million. It re- ported revenues for the year of more than $1.1 billion. "Randgold had no outstand- ing debt," Barrick reported. The information available for the com- pany for the year was limited to what Bar- rick reported. At the mines for which 2018 data was available, the miner, in general, moved and processed less ore. Total gold output fell more than 2% yoy, but was up roughly 10% over the average for the company for the preceding five years. Average price received per oz was up $8 yoy, according to Barrick, to the high- est point since 2013. It was $9 above the average for the company for the preced- ing half-decade. Barrick bought a couple of world-class mines when it acquired Randgold. Lou- lo-Gounkoto (Mali) produced 660,000 oz in 2018; Tongon (Côte d'Ivoire) pro- duced 230,000 oz; and Kibali produced 363,000 oz. At the end of 2018, Randgold had roughly 12.8 million oz in proven and probable reserves, according to Barrick. Sibanye-Stillwater (1.2M oz) South Africa's Sibanye-Stillwater reported "headline" losses of $1.3 million for 2018. While the company processed 43% more ore, total gold output plummeted 16% yoy, due to various disruptions, the company reported. Among other things, infrastructure repairs, a strike and a pow- er outage jibed with the closing of a mine to tank production numbers in the midst of rising costs and relatively flat prices. AISC rose 16% yoy to $1,309/oz, the highest on record for the company and the highest for the year for the gold min-

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