Investorideas.com
Search  Follow Investorideas on Twitter  Investorideas is on Facebook  Investorideas is on Google Plus  Investorideas is on Youtube  Investorideas is on Pinterest  Investorideas is on tumblr  Investorideas is on LinkedIn  Investorideas RSS 


Investorideas podcasts on iTunes, Google Play Music and iHeart.com


One of Gold Major's Nevada Mines Has 'A Great Future'

Source: Streetwise Reports

 

September 29, 2017 (Investorideas.com Newswire) An analyst with BMO Capital Markets relayed his impressions following a visit to one of this gold producer's mines and a presentation from senior management.


In a Sept. 25 research report, Andrew Kaip, an analyst with BMO Capital Markets, provided an update on some of Newmont Mining Corp.'s (NEM:NYSE) Nevada operations.

For Long Canyon, production of 77 Koz as of mid-2017 was at the mid-range of guidance (130–170 Koz), Kaip noted. "All-in sustaining costs of $351/ounce are tracking well below guidance ($405–455/oz)" and "benefitting from faster leach rates, lower consumables and mining costs."

Regarding the overall operation, Kaip wrote, "We were impressed by Long Canyon, a high-quality mine with a great future ahead of it, in our view."

Work currently underway for phase 2 at Long Canyon includes permitting, a three-year process according to Newmont, and a scoping study. Phase 2 "will include deepening of the phase 1 open pit and the addition of an underground and oxide mill (3–5 Ktpd)," reported Kaip. "Open pit grades in phase 2 are expected to be higher grade but offset by higher waste stripping versus phase 1."

As for the Carlin complex of mines, Newmont has successfully implemented a number of "full potential initiatives," the analyst indicated, "including the $20M annual savings by reducing contract mining and improving owner productivity." At the Leeville mine, for instance, the company "designed longer life bolts that will lower underground rehabilitation costs over the long term."

Additionally, Newmont transformed the Leeville underground mine to "semi-autonomous mining," which should result in "productivity, cost and safety gains," Kaip explained. Such a switch, however, requires time, capital and careful planning and design.

With two working semiautonomous loaders in place at Leeville and two more slated for delivery this year, "the plan is to reach fully autonomous loading by Q3/18," he wrote. The company also is preparing to institute autonomous stope drilling there, "which will be rolled out in stages through 2018."

Newmont has designed its Exodus mine to be semiautonomous as well and plans to commission it early next year.

BMO Capital Markets has an Outperform rating and $40 per share target price on Newmont, whose stock is currently trading at around $37.89 per share.

Disclosure:

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.


Gold Mining Stocks - Gold Mining Stocks Directory, Gold Stocks News, Research and Resources

Gold-MiningStocks.com - investing ideas in gold and mining stocks

Like Gold Stocks? View our Gold / Mining Stocks Directory

Get News on Mining Stocks


More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders

Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp

Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.


Questrade Democratic Pricing - 1 cent per share, $4.95 min / $9.95 max



Join Investor Ideas Members to access the Renewable Energy stocks directory, water stocks, biotech stocks, defense stocks directories and the Insiders Corner