Proactive Investors - Newmont Corporation (NYSE:NEM, TSX:NGT, ASX:NEM, ETR:NMM) reported higher gold mineral reserves of 135.9 million attributable ounces for 2023 compared to its 96.1 million ounces at the end of 2022. Newmont has significant upside to other metals, including more than 30 billion pounds of copper reserves and nearly 600 million ounces of silver reserves.
"Newmont has strengthened its position as the responsible gold leader with the industry's highest concentration of quality operations, reserves and resources," Newmont president and chief executive officer Tom Palmer said.
"In 2023, we added more than 47 million ounces of gold reserves and 14 billion pounds of copper reserves through the acquisition of Newcrest and the continuation of our industry-leading exploration program. With the largest gold and copper reserve base in the industry, Newmont is well-positioned to deliver stable production and meaningful value to stakeholders today and in the future."
The report comes as the company prepares to sell six mines and two projects in a set of divestitures aimed at generating $US2 billion ($3.05 billion) in cash.
The company will divest three Canadian gold mines including Éléonore, Musselwhite and Porcupine. It will also part with Cripple Creek and Victor in the US, Akyem in Ghana and Australia’s Telfer mine.
Havieron which it acquired when it purchased Newcrest Mining will also be sold.
It closed the acquisition of Newcrest in November 2023, to become the world’s largest gold producer.
Newmont expects to produce about 6.9 million gold ounces in 2024 .
Palmer said the mines being divested did not meet the company’s criteria of “Tier 1” assets.
“We have a number of Tier 2 assets that are very good assets, run by very good people, but that don’t make our Tier 1 category,” Palmer said.
Transformational year ahead
“(The year) 2023 was a transformational year for Newmont, and for all of our stakeholders,” Palmer said.
“With the acquisition of Newcrest now complete, our principal focus for 2024 is to integrate and transform our leading portfolio of Tier-1 assets into a unique collection of the world’s best gold and copper operations and projects.”
Newmont is managing a debt of US$8 billion and aims to reduce this by US$1 billion by the end of 2024. Furthermore, the company has pinpointed opportunities for cost savings and productivity enhancements totaling an additional US$500 million.
Palmer stated: "With stable production and structured reinvestment throughout the year, we are strongly positioned to deliver on our commitments in 2024 and set the stage for meaningful growth in 2025 and beyond.”
2023 reserves and resources highlights
- Robust gold reserves of 135.9 million ounces
- Newcrest acquisition accounted for net addition of 44 million ounces of gold reserves in 2023 (net of revisions)
- Nearly all gold and copper reserves and resources are attributable to the Newmont Tier 1 Portfolio
- Underpinned by a strong base of operating sites with gold reserve life of 10 years or more, including Boddington, Lihir, Cadia, Tanami, Ahafo, Merian, Pueblo Viejo and Nevada Gold Mines (NGM), and further enhanced by Newmont's broader portfolio and organic project pipeline
- Measured and indicated gold mineral resources of 104.8 million ounces and inferred resources of 69.1 million ounces
- Significant exposure to copper with 30.1 billion pounds in reserves, 33.1 billion pounds in measured and indicated resources and 24.0 billion pounds in inferred resources; nearly all copper reserves and resources are attributable to the Newmont Tier 1 Portfolio
- Additional exposure to other metals including silver, lead, zinc, and molybdenum.