Newmont’s Long Canyon is early and below budget

Newmont Mining (NYSE: NEM) has brought its newest gold mine, Long Canyon, online in Nevada, two months ahead of schedule and US$50 million under budget. The company poured first gold from Long Canyon on Nov. 8 and expects to reach commercial production in the following week. Long Canyon – located 161 km from Newmont’s Nevada complex – started production before the early 2017 target. Capital costs came in at US$225 million, or 18% below budget. “Newmont has been one of the only large producers investing in growth through the lower price cycle, and has continued to generate peer-leading free cash flow while building two new mines,” BMO analyst Andrew Kaip writes. … During its first phase, the operation should deliver between 100,000 and 150,000 oz. gold annually over an eight-year mine life. Estimated all-in sustaining costs are US$500 to US$600 per oz. This puts Long Canyon among the lowest cost producers in Newmont’s portfolio. Read the entire story at The Northern Miner.