Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Newmont Completes Tanami Mine Power Project In Australia

Published 03/18/2019, 08:26 AM
Updated 07/09/2023, 06:31 AM

Newmont Mining Corporation (NYSE:NEM) announced the completion of the Tanami Power Project in Australia as per schedule.

The project involved the installation of two power stations, a natural gas pipeline of 275 mile and a 66kV interconnected power line. The construction of the power stations was completed by Zenith Energy, the operator of the power stations. The pipeline was built and will be maintained by Australian Gas Infrastructure Group. The company expects capital costs at roughly $245 million with annual cash lease payments over a period of 10-year term starting 2019.

The project is expected to provide a safe and reliable energy source to the Tanami gold mine. Also, it will lower power costs and carbon emission by 20%. The company expects the project to generate net cash savings per ounce of $34 from 2019 to 2023, delivering an IRR of more than 50%. Moreover, the company believes that the Tanami Power Project will extend the life of the operation.

Newmont acknowledged that the project’s completion coincided with Tanami yielding 10 million ounces of gold supported by record production of 500,000 ounces last year.

Notably, Tanami is Australia’s second largest underground gold mine. Also, it is one of the most cost competitive gold producing mines globally. The company’s consistent exploration success at Tanami created the potential to extend mine life beyond 2028. Newmont is also expected to make a full funding decision regarding a possible second expansion project in the second half of 2019.

In 2018, the company converted more than 800,000 ounces of gold resources into reserves from the Tanami’s Auron ore body. Over the last 6 years, it successfully built 11 new mines, expansions and projects on four continents. Also, these projects were all completed ahead of schedule and at or below budget. Some of these projects are Akyem, Subika Underground, Merian and Long Canyon. In 2015, the company also completed a value-accretive acquisition of Cripple Creek and Victor. In 2016, the company also delivered a profitable expansion at the mine.

Newmont’s shares have lost 11.6% in the past year, against the industry’s 4.5% rise.



Zacks Rank & Key Picks

Newmont currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the basic materials space are Kirkland Lake Gold Ltd. (TO:KL) , Ingevity Corporation (NYSE:NGVT) and Materion Corporation (NYSE:MTRN) , all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kirkland has an expected earnings growth rate of 8.8% for 2019. The company’s shares have surged 123.4% in the past year.

Ingevity has an expected earnings growth rate of 17.9% for the current year. The company’s shares have rallied 33.1% in a year’s time.

Materion has an expected earnings growth rate of 12.6% for 2019. Its shares have gained 6.1% in a year’s time.

Is Your Investment Advisor Fumbling Your Financial Future?

See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”

Click to get it free >>



Ingevity Corporation (NGVT): Free Stock Analysis Report

Newmont Mining Corporation (NEM): Free Stock Analysis Report

Materion Corporation (MTRN): Free Stock Analysis Report

Kirkland Lake Gold Ltd. (KL): Free Stock Analysis Report

Original post

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.