Source: Streetwise Reports
November 12, 2018 (Investorideas.com Newswire) A BMO Capital Markets report assessed this project following a site visit.
In a Nov. 7, 2018, research note, analyst Andrew Kaip reported that the overall impressions from BMO Capital Markets' site visit to Newmont Mining Corp.'s (NEM:NYSE) Tanami project in Australia's Northern Territory are that it is "a great success that keeps getting better," it is "quickly heading to tier 1 status" and it offers a "treasure trove of exploration opportunities."
Kaip supported those statements with evidence.
As for Tanami already being fruitful, he noted that over time there, gold production and processing rose while costs dropped, he highlighted. Between 2012 and 2018, production increased to 440–515 thousand ounces (450–515 Koz) from 183 Koz. Processing rates went up as well, by 80% to 2.6 million tons per annum, resulting from mine and mill optimizations along with fresh discoveries.
Simultaneously, the all-in sustaining cost decreased to $705–775 per ounce, per 2018 guidance, from more than $2,000 per ounce. "Tanami is able to keep costs in the second quartile given the morphology of ore zones that are amenable to low cost, long hole stoping," Kaip explained.
The growth of reserves has been "impressive," noted Kaip, doubling to 4.4 million ounces at 5.7 grams per ton (5.7 g/t) gold (Au). Further, Tanami hosts another 700 Koz of Measured and Indicated resources at 5 g/t Au and 800 Koz of Inferred resources at 5.4 g/t Au.
Regarding the Northern Territory mine continuing to improve and on the cusp of becoming tier 1, Newmont began shaft development and mill upgrading work for its next phase, an expansion, with the ultimate primary goal of bolstering reserves. When finished, Kaip relayed, "phase 2 is expected to lift annual production to the 600 Koz range with costs declining a further 10%, an outlook that clearly positions Tanami as a tier 1 mine."
Finally, in terms of the exploration upside at Tanami, the main ore shoots are open at depth. Resources at Liberator, a new ore shoot at the project, seemingly with grades better than those of the reserves, have yet to be delineated. A third area with potential is Orac, which "could support further mine expansion," Kaip pointed out.
BMO Capital maintains its Outperform rating and $42 per share price target on Newmont. The stock is trading at around $32.02 per share.
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 billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
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.
Disclosures from BMO Capital Markets, Newmont Mining, Nov. 7, 2018
I, Andrew Kaip, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.
Analysts employed by BMO Nesbitt Burns Inc. and/or BMO Capital Markets Limited are not registered as research analysts with FINRA. These analysts may not be associated persons of BMO Capital Markets Corp. and therefore may not be subject to the FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.
Company Specific Disclosures
Disclosure 5: BMO Capital Markets or an affiliate received compensation for products or services other than investment banking services within the past 12 months from Newmont Mining.
Disclosure 6C: Newmont Mining is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: C) Non-Securities Related Services.
Disclosure 9B: BMO Capital Markets makes a market in Newmont Mining in United States.
Disclosure 16: A research analyst has extensively viewed the material operations of Newmont Mining.
Disclosure 17: Goldcorp has paid or reimbursed some or all of the research analyst's travel expenses.
For Important Disclosures on the stocks discussed in this report, please click here.
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 investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. 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. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com