Newmont Brings Merian into Commercial Production On Time and Below Budget
Merian offers strong returns and a foothold in a prospective new gold district
Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company) has completed construction of the Merian gold mine in Suriname
on time and more than $150 million or nearly 20 percent below its initial development capital budget. First gold was poured and
Newmont declared commercial production on October 1, having achieved sustained average mill throughput of 80 percent and gold
recovery of more than 90 percent over the last 30 days. Stockpiled ore represents nearly 160,000 contained ounces of gold.
Merian contains gold reserves of 5.1 million ounces1 and annual production is expected to average between 400,000 and
500,000 ounces of gold at competitive costs in the first five full years of production (100 percent basis). Costs are expected to
be among the lowest in the portfolio, averaging between $575 and $675 per ounce in costs applicable to sales and between $650 and
$750 per ounce in all-in sustaining costs in the first five years.2 Exploration has extended mine life from 11 to 13
years, and continues to identify further upside potential within Newmont’s 500,000 hectare Area of Interest, including a new
discovery at Sabajo.
“We took an optimized approach to project development and benefitted from being one of the only gold producers investing in
growth during the lower price cycle,” said Gary Goldberg, President and Chief Executive Officer. “Our team built Merian safely, on
schedule and significantly below budget – and delivered our strategy to strengthen the portfolio by adding more than a decade of
profitable production and creating a foothold in a prospective new gold district. This accomplishment is also the result of strong
partnerships with the government and people of Suriname, and the extensive experience G-Mining brought to project development.”
The government of Suriname exercised its option to participate in a fully-funded 25 percent equity ownership stake in Merian in
November 2013. Suriname manages its participation through Staatsolie, a Surinamese corporation that is wholly owned by the
government.
Merian will operate under the banner of Newmont Suriname and be managed as part of Newmont’s South America region in accordance
with leading safety, technical, social and environmental standards. Its current workforce includes just over 1,100 employees, 20
percent of whom are indigenous Pamakkans, and 200 contractors. The team has taken a proactive approach to minimizing its
environmental impact and engaged experts to inform its biodiversity offset programs. Newmont also signed an agreement with the
Pamakkan community that establishes local hiring and procurement targets, as well as a community development fund.
Merian is one of Newmont’s five self-funded growth projects – along with Long Canyon, expansions at Tanami and Carlin, and the
recently completed expansion at Cripple Creek & Victor. Taken together, these projects are expected to add one million ounces
of lower cost gold production over the next two years.
About Newmont
Newmont is a leading gold and copper producer with operations in the United States, Australia, Ghana, Peru, Indonesia and
Suriname. Newmont is the only gold producer listed in the S&P 500 Index and was named the mining industry leader by the Dow
Jones Sustainability World Index in 2015 and 2016. The Company is also an industry leader in value creation, supported by its
leading technical, environmental, social and safety performance. Newmont was founded in 1921 and has been publicly traded since
1925.
Legal Cautionary Statement Regarding Forward-Looking Information
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: (i) estimates of future
production and sales; (ii) estimates of future costs applicable to sales and all-in sustaining costs; (iii) estimates of future
capital expenditures; (iv) expectations regarding the development, growth and exploration upside potential and future production
potential of Newmont Mining Corporation’s (the Company) operations and projects, including, without limitation, relating to Merian
(including at Sabajo), Long Canyon, expansions at Tanami, Carlin and Cripple Creek & Victor; (v) expectations regarding mine
life; and (vi) expectations regarding project funding and returns. 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 and other physical conditions; (ii) permitting,
development, operations and expansion of the Company’s projects being consistent with current expectations and mine plans,
including without limitation receipt of export approvals; (iii) political developments in any jurisdiction in which the Company
operates being consistent with its current expectations; (iv) certain exchange rate assumptions; (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
projects or oppositions and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other
factors, see the Company’s 2015 Annual Report on Form 10-K, filed with the SEC on or about February 17, 2016, 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.
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1 Investors are reminded that the 5.1 Moz (134Mt @ 1.2 g/t Au) gold reserve noted above is an estimate prepared in
accordance with Industry Guide 7 published by the U.S. Securities Exchange Commission (SEC), and such estimate is as of December
31, 2015. For more information regarding Newmont Mining Corporation’s (Newmont or the Company) reserves, see the Company’s Annual
Report on Form 10-K, filed with the SEC on February 17, 2016, which is available at www.sec.gov or on the Company’s website, www.newmont.com.
2 All-in sustaining costs (or AISC) as used above is a forward-looking non-GAAP metric defined as the sum of cost
applicable to sales (including all direct and indirect costs related to current gold production incurred to execute on the current
mine plan), remediation costs (including operating accretion and amortization of asset retirement costs), G&A, exploration
expense, advanced projects and R&D, treatment and refining costs, other expense, net of one-time adjustments and sustaining
capital. Please refer to pages 13-19 of the Company’s most recent earnings release for the quarter ended June 30, 2016, filed with
the SEC, on Form 8-K on July 20, 2016, which is also available on www.newmont.com or www.sec.gov,, for additional information regarding AISC and reconciliation to the nearest GAAP metric for
historical results.
Newmont Mining Corporation
Investor Contact
Meredith Bandy, 303-837-5143
meredith.bandy@newmont.com
or
Media Contact
Omar Jabara, 303-837-5114
omar.jabara@newmont.com
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