Newmont Mining to invest up to $1B in Suriname gold mine


Newmont Mining (NYSE:NEM) announces plans to develop the Merian gold mine in Suriname with a total capital investment of $900M-$1B.

NEM says Merian contains gold reserves of 4.2M oz. and should produce an average of 300K-400K oz./year of gold over a mine life of 11 years; higher grade ore and throughput in the early phases will boost production to 400K-500K oz./year in the first five years.

NEM projects all-in sustaining costs of $750-$850/oz. in the first five years.

Production is expected to begin in late 2016, pending government approval.

From other sites
Comments (2)
  • Drumstar
    , contributor
    Comments (27) | Send Message
     
    Newmont chose Merian over Conga. I believe they know exactly what they are doing. Overall AISC dropped by 17%. Despite the erratic country/mine specifics, every total metric is headed in the right direction. Each decision seems to be calculated for maximum company and investor advantage.

     

    It may still take a few years for the stock to catch up; but, when all is said and done, I wonder how many people will say, Goldberg put the ship on the right course; and, August, 2014 was the time to get back into the name.......I will give them the time to prove they are in a strong turnaround mode.
    29 Jul 2014, 07:37 PM Reply Like
  • Kingzkid
    , contributor
    Comments (116) | Send Message
     
    I wonder if they will consider selling their Indonesian assets to Freeport and roll the proceeds into developing Merian. Just a thought.
    29 Jul 2014, 08:49 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs