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Newmont Completes Tanami Mine Power Project

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Newmont Mining Corp.’s (NYSE: NEM) Tanami power project in Australia has been completed on schedule, the company reports. This included the installation of two power stations, an interconnected power line and a 275-mile natural gas pipeline. Newmont says the project is expected to provide the Tanami mine with a reliable energy source while lowering power costs and carbon emissions by 20%. The project is expected to generate net cash savings of $34 per ounce from 2019 to 2023, the company adds. “In addition to lowering costs and carbon emissions, the completed Tanami power project will pave the way to further extend the life of the operation,” says Gary Goldberg, chief executive officer. He points out that completion coincides with Tanami pouring its 10 millionth ounce of gold on the back of record production of 500,000 ounces last year. Tanami is Australia’s second-largest underground gold mine. Newmont says its exploration program has created potential to extend mine life beyond 2028, with additional upside through a possible second expansion project. The company says a funding decision is expected in the second half of 2019.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Dundee Reports First Gold Production At Krumovgrad Mine

Friday March 15, 2019 08:55

Dundee Precious Metals Inc. (TSX: DPM) reports the first gold concentrate production from its Krumovgrad open-pit mine in Bulgaria. “With commercial production expected in the second quarter of this year, this is the beginning of a new chapter for DPM, which will deliver significant growth in gold production and free cash flow,” says Rick Howes, president and chief executive officer. The company will be focused on ramp-up and optimization of the processing plant in the coming weeks. Dundee projects the capital cost remains at $164 million to $166 million, less than the original estimate of $178 million. As at Feb. 28, construction of the project was 97% completed with $147 million spent.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Mandalay Reports 4Q Loss, Says Challenges ‘Behind Us’

Friday March 15, 2019 08:55

Mandalay Resources Corp. (TSX: MND) reports a net loss for the fourth quarter and full-year 2018, citing write-downs and “operational” challenges that its chief executive officer says are now “firmly behind us.” The company lists a fourth-quarter net loss of $31.3 million, or 7 cents per share, of which $21.2 million was due to non-cash write-downs of several non-core assets. The adjusted loss was $11.5 million, or 3 cents a share, compared to a profit of $839,000, or zero cents, in the year-ago period. Gold-equivalent output fell to 19,173 ounces from 34,395 in the same period of 2017. The full-year net loss was $63.7 million, or 14 cents, with $39.7 million attributed to write-downs. “Mandalay’s financial performance for 2018 was heavily impacted by the operational challenges we had to work through at our producing mines during the second and third quarter of the year, in which production, sales, and costs were adversely impacted by underground trucking issues at Björkdal and the delayed startup of Brunswick on-vein development at Costerfield,” says Dominic Duffy, president and CEO. “Both of these issues resulted in the company processing lower grades than expected. Even though performance in the fourth quarter of 2018 was disappointing, we have seen a continual improvement in production as the quarter progressed. Although 2018 was a challenging year for the company, we believe that these disruptions are firmly behind us and we expect to see our production and operating costs improve through 2019.” The CEO said the company looks for improvement from 81,568 gold-equivalent ounces in 2018 to between 91,000 and 107,000 ounces in 2019.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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