(Kitco News) - Newmont (NYSE: NEM, TSX: NGT) announced today it will delay the full-funds investment decision for the Yanacocha Sulfides project in Peru to the second half of 2024.
According to the company's statement, it has completed an extensive review of the Yanacocha Sulfides project scope and schedule and revised the project timeline.
Newmont said that as part of its review, it considered the unprecedented and evolving market conditions, including the continued war in Ukraine, record inflation rates, the rising prices for commodities and raw materials, prolonged supply chain disruptions and competitive labor markets.
Newmont also announced the appointment of Dean Gehring as Chief Development Officer – Peru to lead the company's Yanacocha operations and the Sulfides project.
Most recently, Dean Gehring served as Newmont's Executive Vice President and Chief Technology Officer, integrating teams and systems across the global enterprise during a pivotal period following the acquisition of Goldcorp and throughout the COVID-19 pandemic, it added.
"Newmont will continue to manage the Yanacocha operations responsibly while also finding opportunities to enhance operations, including the construction of two water treatment plants, with an anticipated initial spend of around $350 million over the next two years," the company said in its press-release. "Newmont will continue advanced engineering and long-lead procurement activities to de-risk the project seeking a profitable and predictable path forward."
Importantly, Newmont noted that following the investment decision anticipated in the second half of 2024, the project is expected to be developed over a three-year period, adding average annual production of approximately 525,000 gold equivalent ounces per year for the first five years of operation.
Newmont is the world's leading gold company and a producer of copper, silver, zinc and lead. Newmont is the only gold producer listed in the S&P 500 Index. Newmont was founded in 1921 and has been publicly traded since 1925.
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