Newmont Announces Commercial Production At Akyem; Begins Commercial Production Of Copper In Nevada

Newmont Mining Corporation (NYSE: NEM) (“Newmont” or the “Company”) announced today that its Akyem project in Ghana and its Phoenix Copper Leach project in Nevada have safely achieved commercial production, on schedule and on budget.

"Our employees and contractors in Ghana and Nevada did a great job delivering these projects into full production safely and efficiently,” said Gary Goldberg, President and Chief Executive Officer. “Akyem is a core asset that will deliver profitable gold production at competitive costs and the copper we produce at Phoenix from what was once classified as waste will improve our copper cost position.”

Akyem Highlights
  • Estimated development capital of approximately $950 million, of which $920 million has been incurred through September 30, 2013;
  • First five year average annual gold production of 350,000 to 450,000 ounces at costs applicable to sales of $500 to $650 per ounce;
  • First five year average all-in sustaining costs of $750 to $850 per ounce; and
  • 2013 attributable gold production outlook of 50,000 to 100,000 ounces.

Phoenix Copper Leach Highlights
  • Estimated development capital of approximately $175 million, of which $156 million has been incurred through September 30, 2013;
  • First five year average annual copper production of approximately 20 million pounds at costs applicable to sales of $1.75 to $2.00 per pound; and
  • 2013 attributable copper production outlook of 4 to 5 million pounds.

About Akyem:

Akyem is a large, open pit mine in the Birim North District in the eastern region of Ghana, located about 180 kilometers northwest of the capital city of Accra. At December 31, 2012, the project had proven and probable gold reserves of 7.4 million ounces and an estimated mine life of approximately sixteen years.

About Phoenix Copper Leach:

The Phoenix Copper Leach project is an expansion of the Phoenix mine located approximately 16 miles south of Battle Mountain, Nevada. The project recovers copper from material previously classified as waste through leaching and processing at a solvent extraction/electrowining (SX/EW) facility. At December 31, 2012, the project had proven and probable copper reserves of 740 million pounds and an estimated mine life of approximately 20 years.

Cautionary Statement Regarding Forward Looking Statements:

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Such forward-looking statements may include, without limitation estimates of future production, future costs applicable to sales, future all-in sustaining costs and mine life. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological, meteorological and other physical conditions; (ii) permitting, development, operations and expansion being consistent with current expectations and mine plans; (iii) political developments in any jurisdiction in which the Company operates being consistent with its current expectations; (v) certain price assumptions for gold, copper and oil; (vi) prices for key supplies being approximately consistent with current levels; and (vii) the accuracy of our current mineral reserve and mineral resource estimates. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the “forward-looking statements”. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks, community relations, conflict resolution and outcome of oppositions and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s 2012 Annual Report on Form 10-K, filed on February 22, 2013, with the Securities and Exchange Commission, as well as the Company’s other SEC filings. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” including, without limitation, outlook, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors' own risk.

Copyright Business Wire 2010

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