TDG Gold Corp. (TSXV:TDG) (the "Company" or "TDG") is pleased to reiterate high grade gold ("Au") and silver ("Ag") assays from results received from SGS Labs Canada ("SGS"). Internal QAQC review by TDG, working with Moose Mountain Technical Services ("MMTS"), is ongoing and therefore results are still considered preliminary. Drill results reported so far are from 7 of 51 completed diamond drillholes in 2021 at TDG's 100% owned former producing high grade gold-silver Shasta mine located in the historical Toodoggone Production Corridor of north-central B.C. TDG has also reported preliminary results from 3 of 6 historical holes drilled at Shasta in 2007 that were resampled by TDG in 2021
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TDG Gold Corp. Drills 95.5 Metres of 1.35 g/t Gold Equivalent North of Shasta Creek Zone, Shasta Mine, Toodoggone, B.C.
TDG Gold Corp. (TSXV:TDG) (the "Company" or "TDG") is pleased to announce the results of diamond drillhole SH21-006 from its 2021 drill program at TDG's former producing high-grade gold-silver Shasta Mine located in the historical Toodoggone Production Corridor of north-central B.C. Highlights include 95.5 metres ("m") of 0.98 grams per tonne ("g/t") gold ("Au") and 29 g/t silver ("Ag") [1.35 g/t AuEq*] from 27.5-123.0 m depth (see Table 1).
As with TDG's recently published drillholes from the 2021 Shasta drill program (see TDG news releases January 04, 2022 and January 11, 2022), drillhole SH21-006 demonstrates continuity of grade and mineralization along with confirmation of grades of the surrounding historical holes and validation of the expected dimensions of mineralized zone in that section of Shasta (Figure 1). An oblique cross-section is presented in this news release that spans the Creek, JM and Upper Creek Zones (Figure 3).
Drillhole SH21-006 represents the most northerly hole drilled at the Shasta Creek Zone target in the 2021 drill program and spanned the northern portion of the Creek Zone across to the northern portion of JM Zone. The drillhole trace started approximately 150 m north of the Creek Pit and ending approximately 300 m north of the JM Pit (Figure 1). The purpose of SH21-006 was to step out to the north of 2021 drilling and infill between historical drillholes, including SH89-40, SH89-41, SH89-55 and SH89-56 (et al.), highlights from which include 37.0 m of 1.84 g/t Au and 106 g/t Ag [3.16 g/t AuEq*] in SH89-40; and 12.3 m of 1.60 g/t Au and 120 g/t Ag [3.10 g/t AuEq*] in SH89-55 (see Table 2 for historical drillhole highlights).
Table 1. Significant Results from Hole SH21-006.
*Gold equivalent (AuEq) calculated using 80:1 silver to gold ratio.
** Intervals are core-length weighted. True width is estimated between 75 to 95 % of core length.
Drillhole SH21-006 intersected variably silicified, potassic-altered volcaniclastic rocks below the Shasta Fault (at 17.4 m) that carried a mineralized assemblage of dominantly pyrite and acanthite associated with quartz-carbonate veins, composite vein sets and breccias. Sulphide mineralization was identified as disseminated throughout and vein-vein selvage hosted Figure 2 presents the style and grade of typical mineralization encountered.
The northern portions of the Creek, JM and Upper Creek Zones represent areas for potential expansion of the Mineralized Target Zone at Shasta because historical drill holes in the vicinity neglected to sample near surface intervals and instead focused on visually identifying higher grades for assay in concert with typical cut-off grades at the time of mining (~ > 5 g/t Au). With further drilling, this area (Figure 1, and identified in Figure 3) has the opportunity to add minable tonnage to a Shasta resource (if defined) and decrease strip ratio in the vicinity as the closest historical underground workings are over 100 m to the west.
Figure 1. Plan view of the northern Shasta Creek Target Zone/JM Target Zone (Hole SH21-006).
Figure 2. Shasta drillhole SH21-006; mineralization encountered grading 1.46 Au g/t, 69 g/t Ag [2.32 g/t AuEq*] from 43.5 m to 46.5 m depth.
Figure 3. Oblique Cross Section of Shasta Creek/JM/Upper Creek Target Zone(s) (Hole SH21-006, and historical holes adjacent to 2021 drilling).
Table 2. Significant Results from Historical Holes Adjacent to SH21-006.
* "% Assayed" is the assayed portion of the drillhole in the historical database, compared to total drilled length
**Gold equivalent (AuEq) calculated using 80:1 silver to gold ratio.
** Intervals are core-length weighted. True width from historical core is unknown.
All 2021 drill holes are HQ sized drill cores. Particulars for drill holes (location, depth, etc.)are presented in Table 3. Assay results for remaining 2021 drillholes are still pending at this time.
Table 3. Drillhole particulars.
QA/QC
Samples for the Shasta 2021 drill program followed chain of custody between collection, processing and delivery to an SGS laboratory in Burnaby, B.C. The drill cores were delivered to the core shack at TDG's Baker Mine site, and processed by geologists who inserted certified reference materials, blanks and duplicates (pulp and coarse) into the sampling sequence. 2021 Drill core was cut in half (1/2 HQ core) and placed in zip-tied polyurethane bags, then in security-sealed rice bags before being delivered directly from the Baker Mine site, to Bandstra Transportation Systems in Prince George, B.C., and ultimately to SGS laboratory Burnaby, B.C. Core samples were prepared for analysis according to SGS method PRP89: dry samples to 105°C, crush to 75 % passing 2 mm, split 250 g, pulverize 85 % passing 75 microns. Samples were analyzed following procedures summarized in Table 4, where information about methodology can be found on the SGS Canada Website, in the analytical guide (here).
Table 4. Au and Ag Analytical Methods
* Sample C00126417 returned > 1000 g/t Ag in over limit method GO_ICP42Q100, and is currently pending a second over limit using method GO_FAG37V. For purposes of this News Release, Sample C00126417 has been capped at 1000 g/t Ag, and is reflected in any calculations for composite interval purposes.
Quality assurance and control ("QAQC") is maintained internally at the lab through rigorous use of internal certified reference materials, blanks, and duplicates. An additional QAQC program was administered by TDG Gold through the use of certified reference materials ("CRMs"), duplicate samples and blank samples that were blindly inserted into the sample batch. If a QAQC sample returns an unacceptable value an investigation into the results is triggered and when deemed necessary, the samples that were tested in the batch with the failed QAQC sample are re-tested. For the purposes of this press release, results are ‘preliminary' and thus have not undergone TDG's comprehensive QAQC investigations.
Qualified Person
The technical content of this news release has been reviewed and approved by Steven Kramar, MSc., P.Geo., a qualified person as defined by National Instrument 43-101.
This news release includes historical drilling information that has been reviewed by the Company's geological team. The Company's review of the historical records and information reasonably substantiate the validity of the information presented in this news release; however, the Company cannot directly verify the accuracy of the historical data, including the procedures used for sample collection and analysis. Therefore, the Company encourages investors to exercise appropriate caution when evaluating these results. Further data review is underway, in order to verify the validity of the data for the anticipated NI 43-101 compliant mineral resource estimate.
About TDG Gold Corp.
TDG is a major mineral claim holder in the historical Toodoggone Production Corridor of north-central British Columbia, Canada, with over 23,000 hectares of brownfield and greenfield exploration opportunities under direct ownership or earn-in agreement. TDG's flagship projects are the former producing, high-grade gold-silver Shasta, Baker and Mets mines, which are all road accessible, produced intermittently between 1981-2012, and have over 65,000 m of historical drilling. In 2021, TDG has advanced the projects through compilation of historical data, new geological mapping, geochemical and geophysical surveys, and, for Shasta, drill testing of the known mineralization occurrences and their extensions. TDG currently has 78,361,085 common shares issued and outstanding.
ON BEHALF OF THE BOARD
Fletcher Morgan
Chief Executive Officer
For further information contact:
TDG Gold Corp.,
Telephone: +1.604.536.2711
Email: info@tdggold.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
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TDG Gold Corp. Intercepts 76.71 g/t Gold and 1,725 g/t Silver 75 metres from Surface at Shasta, Toodoggone District, BC
A summary of high grade intercepts to date is highlighted below and detailed in Table 1.
- SH21-004: 21.6 g/t Au & 593 g/t Ag over 0.5 m
- SH21-005: 25.22 g/t Au & 1189 g/t Ag over 0.5 m
- SH21-006: 76.71 g/t Au & 1725 g/t Ag over 0.5 m
- SH21-008: 20.8 g/t Au & 582 g/t Ag over 0.5 m
…This sample was previously "capped" at 1,000 g/t Ag, pending overlimit analysis.
High grade gold-silver intercepts occur in proximity to the mineralizing structure(s), where intense silicification, potassic alteration and veining produce a hydrothermal breccia of host rocks. These high grade ‘pods' were the focus of historical mining and production efforts and are surrounded by significant widths of ‘halo'-style medium to lower grade mineralization, which TDG is incorporating in a bulk-mining scenario as part of working towards an open-pit NI 43-101 compliant mineral resource estimate. This mineralization style is characteristic of the low sulphidation epithermal deposits located within the Toodoggone District.
TDG's interpretation of results received to date is that the data provide corroborative evidence with the historical drilling at Shasta and confirms the presence of a mineralized breccia body at Shasta which extends over 400 metres ("m") from north to south at the Creek Zone with the potential for further mineralization at depth, to the north, south and east towards the JM Zone. Drill results the JM Zone are still pending along with drillholes testing for potential extension of the mineralization between the Creek and JM Zones, and also 700 metres to the south of the JM Pit at the Cayley-Rainier Zone.
In 2020-2021, TDG recompiled over 28,000 m of historical drilling at Shasta, which indicated less than 50% of the historical core had been assayed compared to the total length of the drillhole. Historical efforts were focused on the high grade pods and the material comprising the halo was left un-assayed. This information was used to target TDG's 2021 diamond drill program with the aims of validating the historical drillhole data, and testing extensions around the historical workings and mineralized target zones.
In total, TDG completed 8,048 m of diamond drilling (> 90% oriented core) at Shasta. This amount of oriented core data collected will enable Company geologists to understand vein/mineralization orientations and sequence different generations of mineralizing events, to better understand and target future endeavours. All holes were drilled within the Permitted Mine Area ("PMA") and covered approximately 60% of the known mineralized target zones at Shasta. In 2022, TDG expects to publish an inaugural NI 43-101 Mineral Resource Estimate for Shasta and to continue expanding the gold and silver mineralized footprint with subsequent drilling on and off the PMA, under a Notice of Work ("NoW") authorization, granted in 2021.
TABLE 1. High grade gold-silver intercepts from previously published diamond drillholes SH21-001 to SH21-008 and SH07-01 to SH07-003.
Drillhole | Depth From | Depth To | Length | Au | Ag | AuEq |
SH21-004 | 69.0 | 69.5 | 0.5 | 21.60 | 593 | 29.01 |
SH21-004 | 69.5 | 70.0 | 0.5 | 13.80 | 641 | 21.81 |
SH21-004 | 71.0 | 71.5 | 0.5 | 11.00 | 336 | 15.2 |
SH21-005 | 96.5 | 97.0 | 0.5 | 12.00 | 474 | 17.93 |
SH21-005 | 97.5 | 98.0 | 0.5 | 15.83 | 851 | 26.47 |
SH21-005 | 98.0 | 98.5 | 0.5 | 25.22 | 1189 | 40.08 |
SH21-006 | 28.0 | 28.5 | 0.5 | 5.70 | 558 | 12.68 |
SH21-006 | 51.5 | 52.0 | 0.5 | 13.39 | 847 | 23.98 |
SH21-006 | 98.5 | 99.0 | 0.5 | 76.71 | 1725 | 98.27 |
SH21-008 | 66.0 | 67.0 | 1.0 | 15.00 | 44.5 | 15.56 |
SH21-008 | 68.0 | 68.5 | 0.5 | 8.63 | 135 | 10.32 |
SH21-008 | 72.0 | 72.5 | 0.5 | 15.50 | 165 | 17.56 |
SH21-008 | 72.5 | 73.0 | 0.5 | 11.40 | 218 | 14.13 |
SH21-008 | 75.0 | 75.5 | 0.5 | 20.80 | 582 | 28.08 |
SH21-008 | 75.5 | 76.0 | 0.5 | 20.40 | 443 | 25.94 |
SH21-008 | 77.0 | 77.55 | 0.55 | 7.36 | 384 | 12.16 |
SH21-008 | 83.5 | 84.0 | 0.5 | 5.86 | 417 | 11.07 |
SH21-008 | 120.7 | 121.25 | 0.55 | 6.36 | 367 | 10.95 |
SH07-01 | 69.0 | 70.1 | 1.1 | 7.53 | 329 | 11.64 |
SH07-01 | 82.0 | 84.0 | 2.0 | 7.80 | 331 | 11.94 |
*Gold equivalent (AuEq) is used for illustrative purposes, to express the combined value of Au and Ag as a percentage of Au. Calculations are uncut and no allowances have been made to accommodate potential recovery losses that would occur in a mining scenario. AuEq is calculated using 80:1 silver to gold ratio.
** Intervals are core-length weighted. True width is estimated between 75 to 95 % of core length, and core recovery is calculated to be > 95 %
***Calculated composites/intercepts are truncated to 2 significant digits for Au/AuEq and the nearest whole number for Ag.
Previously published results from diamond drillholes SH21-001 to SH21-008 and resampled historical drillholes SH07-01 to SH07-003 (see news releases dated January 04, 2022, January 11, 2022 and January 24, 2022) were preliminary. All were drilled into the Shasta Creek Zone approximately ± 150 m from the historical Creek Pit. Results from these drillholes have been finalized by SGS's internal Data Quality Analysis (DQA) and all subsequent overlimit circuits are complete. TDG's internal QAQC is still underway, waiting for all results from the 51 completed drillholes to be compiled and laboratory performance verified. Final results will be published on TDG's website at that time. TDG is currently awaiting final assay results from 44 of the 51 diamond drillholes drilled at Shasta in 2021, and laboratory progress has been slowed by an unusual volume of samples submitted and the ongoing COVID-19 global pandemic. TDG expects to publish more results over the coming weeks.
QA/QC
Samples for the Shasta 2021 drill program followed chain of custody between collection, processing and delivery to an SGS laboratory in Burnaby, B.C. The drill cores were delivered to the core shack at TDG's Baker Mine site, and processed by geologists who inserted certified reference materials, blanks and duplicates (pulp and coarse) into the sampling sequence. The 2021 drill core was cut in half (1/2 HQ core) and placed in zip-tied polyurethane bags, then in security-sealed rice bags before being delivered directly from the Baker Mine site, to Bandstra Transportation Systems in Prince George, B.C., and ultimately to the SGS laboratory in Burnaby, B.C. Samples were prepared and analyzed following procedures summarized in Table 2, where information about methodology can be found on the SGS Canada Website, in the analytical guide (here).
TABLE 2. Au and Ag Analytical Methods
Drillhole | Prep | Method Au | Method Ag | Method Au- | Method Ag- |
SH07-001 | PRP89 | GO_FAI50V10 | GE_IMS40Q12 | N/A | GO_ICP42Q100 |
SH21-004 | PRP89 | GO_FAI50V5 | GE_IMS40Q12 | GO_FAG50V | GO_ICP42Q100 |
SH21-005 | PRP89 | GO_FAI50V10 | GE_IMS40Q12 | GO_FAG37V | GO_ICP42Q100 |
SH21-006* | PRP89 | GO_FAI50V10 | GE_IMS40Q12 | N/A | GO_ICP42Q100 |
SH21-008 | PRP89 | GO_FAI50V5 | GE_IMS40Q12 | GO_FAG50V | GO_ICP42Q100 |
* Samples returning > 1000 g/t Ag in overlimit method GO_ICP42Q100, utilized a second overlimit method: GO_FAG37V.
Quality assurance and control ("QAQC") is maintained internally at the lab through rigorous use of internal certified reference materials, blanks, and duplicates. An additional QAQC program was administered by TDG Gold through the use of certified reference materials ("CRMs"), duplicate samples and blank samples that were blindly inserted into the sample batch. If a QAQC sample returns an unacceptable value an investigation into the results is triggered and when deemed necessary, the samples that were tested in the batch with the failed QAQC sample are re-tested. For the purposes of this press release, results are ‘preliminary' and thus have not undergone TDG's comprehensive QAQC investigations.
Qualified Person
The technical content of this news release has been reviewed and approved by Steven Kramar, MSc., P.Geo., a qualified person as defined by National Instrument 43-101.
This news release includes historical drilling information that has been reviewed by the Company's geological team. The Company's review of the historical records and information reasonably substantiate the validity of the information presented in this news release; however, the Company cannot directly verify the accuracy of the historical data, including the procedures used for sample collection and analysis. Therefore, the Company encourages investors to exercise appropriate caution when evaluating these results. Further data review is underway, in order to verify the validity of the data for the anticipated NI 43-101 compliant mineral resource estimate.
About TDG Gold Corp.
TDG is a major mineral claim holder in the historical Toodoggone Production Corridor of north-central British Columbia, Canada, with over 23,000 hectares of brownfield and greenfield exploration opportunities under direct ownership or earn-in agreement. TDG's flagship projects are the former producing, high-grade gold-silver Shasta, Baker and Mets mines, which are all road accessible, produced intermittently between 1981-2012, and have over 65,000 m of historical drilling. In 2021, TDG advanced the projects through compilation of historical data, new geological mapping, geochemical and geophysical surveys, and, for Shasta, drill testing of the known mineralization occurrences and their extensions. TDG currently has 78,361,085 common shares issued and outstanding.
ON BEHALF OF THE BOARD
Fletcher Morgan
Chief Executive Officer
For further information contact:
TDG Gold Corp.,
Telephone: +1.604.536.2711
Email: info@tdggold.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
SOURCE: TDG Gold Corp.
View source version on accesswire.com:
https://www.accesswire.com/686884/TDG-Gold-Corp-Intercepts-7671-gt-Gold-and-1725-gt-Silver-75-metres-from-Surface-at-Shasta-Toodoggone-District-BC
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TDG Gold Corp. Samples Up To 32.9 g/t And 27.6 g/t Gold at Mets, Toodoggone, B.C.
TDG Gold Corp. (TSXV:TDG) (the "Company" or "TDG") is pleased to announce the results of the 2021 exploration program at its former producing high-grade gold Mets Mining Lease located in the road accessible Toodoggone Production Corridor of north-central, B.C. Highlights include grab samples yielding 32.90 grams per tonne ("gt") gold ("Au") and 27.61 gt Au collected from locations of known historical drill collars (Table 1
TDG's Mets Mining Lease consists of 200 hectares located 23 kilometres ("km") by road from TDG's Baker Mine (Figure 1). A summary of historical exploration work completed at Mets was published by TDG in its news release dated May 19, 2021 (here). TDG has recompiled 7,944 metres ("m") of diamond drilling of the 8,784 m reported to have been drilled historically, along with review of the 2,622 m of historical trenching. Historical drill highlights include DDH MT86-08 which intersected 25.9 m of 9.52 g/t Au and MT86-05 intersecting 46.4 m of 3.57 g/t Au (including 11.8 m of 13.93 g/t Au).
Figure 1. Location of TDG's road accessible Mets Mining Lease 23 km northwest of TDG's Baker Mine.
In 2021, TDG completed a ground-based magnetometer survey consisting of 25 line-km that has highlighted several trends (Figure 2), in addition to geological grab sampling over historical collar locations (Figure 3).
Ground Magnetometer Survey Results
Using GEMS Overhauser 19W magnetometer units, a total of 25 line-km of ground-based magnetometer surveys were completed in 2021 on Mets. Magnetic data imagery highlighted several trends, interpreted by Company geologists to coincide with the historically trenched and drilled tested mineralization trend, defined by quartz ± quartz-barite veining, is part of a gold-silver bearing low sulphidation epithermal vein.
Historical trenching and drilling coincide with the A-Zone / Mets Structure. The structure is characterized as a magnetic low lineament in the 2021 magnetic survey. Figure 2 displays the respective historical drill intercepts with respect to the 2021 Total Magnetic Intensity ("MAG TMI").
Figure 2. Mets Historic Drilling And 2021 Magnetic TMI Imagery.
Grab Sampling Results
Select grab sampling was completed by Company geologists while completing general reconnaissance of the historically producing Mets property. Samples were selected based on the proximity to historical trenches and drillhole collars, targeting the quartz ± quartz-barite veins. Highlights include grab samples yielding 32.90 grams per tonne ("g/t") gold ("Au") and 27.61 g/t Au.
Table 1: 2021 Mets Rock Sample Results - Gold ("Au"), Silver ("Ag").
Sample ID | Easting | Northing | Au (g/t) | Ag (g/t) |
C00125601 | 600172 | 6367207 | 0.20 | |
C00125602 | 600110 | 6367269 | 1.85 | |
C00125603 | 600056 | 6367432 | 32.90 | 1.74 |
C00125604 | 599951 | 6367497 | 0.050 | 0.48 |
C00125605 | 599965 | 6367521 | 0.040 | 0.23 |
C00125606 | 599976 | 6367540 | 0.15 | |
C00125607 | 600033 | 6367549 | 0.14 | |
C00125608 | 600051 | 6367518 | 0.13 | |
C00125609 | 600058 | 6367494 | 0.62 | |
C00125610 | 600107 | 6367556 | 0.59 | |
C00125262 | 600053 | 6367326 | 4.25 | 0.42 |
C00125263 | 600064 | 6367362 | 27.61 | 7.25 |
Figure 3. Mets Historic Drilling and 2021 Rock Sampling Results.
Methodology
Select Grab Sampling: Data for geological field samples include: mineralogy, texture, alteration, and/or structure, and is located using a Garmin GPS64. Field notes are recorded in a field book and/or tablet computer. A rock hammer is used to separate the sample from its exposure and placed into a polyurethane bag with unique sample tag is place in the respective bag and secured using a zip-tie, and subsequently placed in security-sealed rice bags. The respective samples are then shipped as a batch to a third-party lab.
Magnetometer: The survey was conducted using GSM-19W Overhauser "Walking" magnetometers and a stationary GSM-19T Proton "Base Station" unit. "Walking" magnetometers recorded in situ magnetic field intensity while the "Base Station" recorded diurnal variations in the regional magnetic field during the survey. Positioning data was provided by handheld Garmin GPS64 units which were carried by each instrument operator in the field.
Following the completion of the survey, a set of corrections and Quality Assurance / Quality Control ("QA/QC") procedures were applied to the magnetic data, including diurnal correction, low-pass noise reduction, and individual operator leveling. After this QA/QC process was completed, the data was interpolated using industry-standard Golden Surfer 12 software. After interpolation, high-resolution Total Magnetic Intensity ("TMI") imagery was exported as a georeferenced TIFF image with matching contour shapefile.
QA/QC
Samples were submitted to SGS Canada's ("SGS") laboratory facility in Burnaby, B.C., following a chain of shipping custody from TDG to SGS, for preparation and analysis. The SGS facility is accredited to the ISO/IEC 17025 standard for gold assays, and all analytical methods include internal quality control materials at set frequencies with established data acceptance criteria. As a result of SGS' rigorous internal QA/QC protocols, TDG did not submit external (blind) QA/QC materials, using a ‘fit for purpose' approach with the analytical data. Samples were analyzed following the procedures summarized in Table 2, where more information about methodology can be found on the SGS website, in the analytical guide (here).
Table 2: Au and Ag Analytical Methods.
SGS | Sample | Collected | Prep | Prep | Prep | Method | Method |
Certificate | ID | Weight (kg) | Dry | Crush | Pulverize | Au | Ag |
BBM21-11672 | C00125601 | 1.95 | DRY105_WT | CRU12-15,22 | PUL85 | GOFAI50V10 | GE_IMS40Q12 |
BBM21-11672 | C00125602 | 1.35 | DRY105_WT | CRU12-15,22 | PUL85 | GOFAI50V10 | GE_IMS40Q12 |
BBM21-11672 | C00125603 | 1.85 | DRY105_WT | CRU12-15,22 | PUL85 | GOFAI50V10 | GE_IMS40Q12 |
BBM21-11672 | C00125604 | 2.35 | DRY105_WT | CRU12-15,22 | PUL85 | GOFAI50V10 | GE_IMS40Q12 |
BBM21-11672 | C00125605 | 1.52 | DRY105_WT | CRU12-15,22 | PUL85 | GOFAI50V10 | GE_IMS40Q12 |
BBM21-11672 | C00125606 | 1.61 | DRY105_WT | CRU12-15,22 | PUL85 | GOFAI50V10 | GE_IMS40Q12 |
BBM21-11672 | C00125607 | 1.48 | DRY105_WT | CRU12-15,22 | PUL85 | GOFAI50V10 | GE_IMS40Q12 |
BBM21-11672 | C00125608 | 2.10 | DRY105_WT | CRU12-15,22 | PUL85 | GOFAI50V10 | GE_IMS40Q12 |
BBM21-11672 | C00125609 | 2.38 | DRY105_WT | CRU12-15,22 | PUL85 | GOFAI50V10 | GE_IMS40Q12 |
BBM21-11672 | C00125610 | 2.55 | DRY105_WT | CRU12-15,22 | PUL85 | GOFAI50V10 | GE_IMS40Q12 |
BBM21-11672 | C00125262 | 2.00 | DRY105_WT | CRU12-15,22 | PUL85 | GOFAI50V10 | GE_IMS40Q12 |
BBM21-11672 | C00125263 | 1.00 | DRY105_WT | CRU12-15,22 | PUL85 | GOFAI50V10 | GE_IMS40Q12 |
Qualified Person
The technical content of this news release has been reviewed and approved by Steven Kramar, MSc., P.Geo., a qualified person as defined by National Instrument 43-101.
This news release includes historical drilling information that has been reviewed by the Company's geological team. The Company's review of the historical records and information reasonably substantiate the validity of the information presented in this news release; however, the Company cannot directly verify the accuracy of the historical data, including the procedures used for sample collection and analysis. Therefore, the Company encourages investors to exercise appropriate caution when evaluating these results.
About TDG Gold Corp.
TDG is a major mineral claim holder in the historical Toodoggone Production Corridor of north-central British Columbia, Canada, with over 23,000 hectares of brownfield and greenfield exploration opportunities under direct ownership or earn-in agreement. TDG's flagship projects are the former producing, high-grade gold-silver Shasta, Baker and Mets mines, which are all road accessible, produced intermittently between 1981-2012, and have over 65,000 m of historical drilling. In 2021, TDG advanced the projects through compilation of historical data, new geological mapping, geochemical and geophysical surveys, and, for Shasta, drill testing of the known mineralization occurrences and their extensions. TDG currently has 78,361,085 common shares issued and outstanding.
ON BEHALF OF THE BOARD
Fletcher Morgan
Chief Executive Officer
For further information contact:
TDG Gold Corp.,
Telephone: +1.604.536.2711
Email: info@tdggold.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
SOURCE:TDG Gold Corp.
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TDG Gold Corp. Announces Anticipated Termination of the Nueva Esperanza Acquisition
TDG Gold Corp. (TSXV:TDG) (the "Company" or "TDG") advises that TDG has notified Kingsgate Consolidated Limited ("Kingsgate") that it anticipates that certain conditions precedent to the acquisition ("Acquisition") of the "Nueva Esperanza" silver-gold project pursuant to the terms of the definitive agreement (the "Agreement") between the Company and Kingsgate will not be fulfilled prior to the outside date for completion of the Acquisition on January 31, 2022, and therefore TDG anticipates that it will terminate the Agreement on such date
The results from TDG's 2021 exploration and drill programs on its project portfolio in the Toodoggone Production Corridor have exceeded the Company's expectations and the Company intends to now focus 100% of its efforts there.
With the substantial increase in geological knowledge gained from the 2021 exploration and drill programs, the Company is very confident of further expanding the known mineralization and discovering additional new deposits on the Toodoggone project. The results of the 2021 exploration and drill programs are still being received and analyzed, and the Company will be announcing such results during the first quarter of 2022.
The results of the 2021 programs will guide the 2022 exploration and drilling programs at the Toodoggone project, which will be funded by the proceeds from the sale of flow-through units as announced in the Company's press releases dated December 17, December 23 and December 30, 2021.
About TDG Gold Corp.
TDG is a major mineral claim holder in the historical Toodoggone Production Corridor of north-central British Columbia, Canada, with over 23,000 hectares of brownfield and greenfield exploration opportunities under direct ownership or earn-in agreement. TDG's flagship projects are the former producing, high-grade gold-silver Shasta, Baker and Mets mines, which are all road accessible, produced intermittently between 1981 and 2012, and have over 65,000 m of historical drilling. In 2021, TDG has advanced the projects through compilation of historical data, new geological mapping, geochemical and geophysical surveys, and, for Shasta, drill testing of the known mineralization occurrences and their extensions. TDG currently has 78,361,085 common shares issued and outstanding.
ON BEHALF OF THE BOARD
Fletcher Morgan
Chief Executive Officer
For further information contact:
TDG Gold Corp.,
Telephone: +1.604.536.2711
Email: info@tdggold.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Forward looking statements in this press release include the Company's plans with respect to further exploration of its mineral properties. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
SOURCE: TDG Gold Corp.
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TDG Gold Corp. Drills 38.0 metres of 3.04 g/t Gold and 101 g/t Silver at Shasta Creek North, Toodoggone, B.C.
TDG Gold Corp. (TSXV:TDG) (the "Company" or "TDG") is pleased to announce drill results from drillholes SH21-007 and SH21-008 from its 2021 diamond drill program with both holes drilled approximately 150 metres ("m") north of the historical Shasta Creek Zone open pit. Drill intercepts include 38.0 m of 3.04 grams per tonne ("gt") gold ("Au") with 101 gt silver ("Ag") [4.30 gt AuEq*] in drillhole SH21-008. Assay results were received directly from SGS Canada Inc. ("SGS") from TDG's Shasta project which is located in the Toodoggone District of north-central B.C. Results have been received directly from SGS Canada Inc. ("SGS") and whilst SGS has completed its QAQC protocols for these results, a comprehensive internal Data Quality Analysis ("DQA") by TDG is still underway with subsequent assay results from the Shasta project still pending. Therefore, the results for the purposes of this news release are still considered preliminary
The northern section of TDG's Shasta project consists of the northerly portions of the Creek and JM Zones and also the Upper Creek Zone. Collectively, these zones at Shasta represent an opportunity to explore and evaluate the continuity and grade of the historical ore body in an area that was under-explored. The 2021 drilling in this area was designed to step west from the Shasta Fault, test underneath the historical mine workings and confirm the grade of mineralization reported from historical results as part of data validation in anticipation of the Mineral Resource Estimate work underway by Moose Mountain Technical Services. Results presented here are for SH21-007 and SH21-008 (Table 1).
Table 1. Significant Results from Holes SH21-007 & SH21-008.
Hole | From | To | Length | Au | Ag | AuEq* |
(m) | (m) | (m) | (g/t) | (g/t) | (g/t) | |
SH21-07 | 67.6 | 106.0 | 38.4 | 0.71 | 32 | 1.11 |
SH21-08 | 66.0 | 104.0 | 38.0 | 3.04 | 101 | 4.30 |
including | 72.0 | 79.0 | 7.0 | 7.90 | 220 | 10.64 |
SH21-08 | 116.0 | 126.0 | 10.0 | 0.82 | 34 | 1.25 |
*Gold equivalent ("AuEq") calculated using 80:1 silver to gold ratio. | ||||||
** Intervals are core-length weighted. True width is estimated between 75 to 95 % of core length. |
Historically, drilling and mining was concentrated adjacent to the Shasta Fault, and the entirety of core was not sent for assay analysis. Holes drilled in 2021 within the northern section of the Shasta project consisted of infill drilling between historical holes and to test continuity of mineralization to the north (Figure 1). Select historical results are presented in Table 2 and a cross-section in Figure 2. Results are still pending for 2021 drillholes SH21-006, SH21-013, SH21-017, SH21-019, SH21-021 and SH21-023; and also for re-assays of the 2007 drillholes SH07-13, SH07-14 and SH07-15.
SH21-007 and SH21-008 both intersected the Shasta Fault at the predicted depth. As reported in TDG's news release of September 28, 2021 (see here), the footwall to the fault encountered a broad zone of silicified volcaniclastics with stockwork quartz veining, strong pervasive potassic alteration with a sulphide assemblage comprised of pyrite, chalcopyrite and acanthite, a package of host rocks, mineralization and alteration typical of the Shasta mineralization seen in historical holes.
Figure 1. Plan view of the northern Shasta Creek Zone (Holes SH21-007 & SH21-008).
Table 2. Significant Results from Historical Holes Adjacent to SH21-007 & SH21-008.
Hole | From | To | Length | Au | Ag | AuEq** |
(m) | (m) | (m) | (g/t) | (g/t) | (g/t) | |
SH89-040 | 71.0 | 108.0 | 37.0 | 1.84 | 106 | 3.16 |
SH89-045 | 109.6 | 138.7 | 29.1 | 0.77 | 37 | 1.23 |
SH89-039 | 56.0 | 67.0 | 11.0 | 0.85 | 42 | 1.37 |
SH91-011* | 41.8 | 44.8 | 3.1 | 0.10 | 6 | 0.18 |
SH91-012* | 46.3 | 63.1 | 16.8 | 0.51 | 18 | 0.73 |
SH87-010 | 14.2 | 84.0 | 69.8 | 0.74 | 39 | 1.22 |
*The only assayed core. | ||||||
**Gold equivalent ("AuEq") calculated using 80:1 silver to gold ratio. | ||||||
** Intervals are core-length weighted. True width from historical core is unknown. |
Figure 2. Cross-section of 6,347,550 N (Holes SH21-007 & SH21-008).
All 2021 drill holes are HQ sized drill cores. Particulars for drill holes (location, depth, etc.)are presented in Table 3. The geology of the 2021 drill holes described in TDG's September 28, 2021 news release… (here). Assay results for remaining 2021 drillholes and 2007 re-assays are still pending at this time.
…Note, in TDG's September 28, 2021 news release, drillholes SH21-007 and SH21-008 were mis-plotted, which has been corrected in this news release. This error does not materially change the content of either news release.
Table 3. Drillhole particulars.
HOLE | UTME (NAD83) | UTMN (NAD83) | Azimuth(°) | Dip(°) | Final Depth (m) |
SH21-007 | 620,855 | 6,347,565 | 90 | -60 | 151 |
SH21-008 | 620,855 | 6,347,565 | 60 | -60 | 204 |
QA/QC
Samples for the Shasta 2021 drill program followed chain of custody between collection, processing and delivery to an SGS laboratory in Burnaby, B.C. The drill cores were delivered to the core shack at TDG's Baker Mine site, and processed by geologists who inserted certified reference materials, blanks and duplicates (pulp and coarse) into the sampling sequence. 2021 Drill core was cut in half (1/2 HQ core) and placed in zip-tied polyurethane bags, then in security-sealed rice bags before being delivered directly from the Baker Mine, to Bandstra Transportation Systems in Prince George, B.C., and ultimately to SGS laboratory Burnaby, B.C. 2007 drill core was split (mechanically). Core samples were prepared for analysis according to SGS method PRP89: dry samples to 105°C, crush to 75 % passing 2 mm, split 250 g, pulverize 85 % passing 75 microns.
Samples were analyzed following procedures summarized in Table 4, where information about methodology can be found on the SGS Canada Website, in the analytical guide (here).
Table 4. Au and Ag Analytical Methods.
Certificate | Hole | Method Au | Method Ag | Method Au-Overlimit | Method Ag-Overlimit |
BBM21-13116 | SH21-07 | GO_FAI50V10 | GE_IMS40Q12 | N/A | GO_FAG37V |
BBM21-13135 | SH21-07 | GO_FAI50V10 | GE_IMS40Q12 | N/A | N/A |
BBM21-12566 | SH21-08 | GE_FAI50V5 | GE_IMS40Q12 | GO_FAG50V | GO_ICP42Q100 |
BBM21-12567 | SH21-08 | GE_FAI50V5 | GE_IMS40Q12 | N/A | GO_ICP42Q100 |
BBM21-12578 | SH21-08 | GE_FAI50V5 | GE_IMS40Q12 | N/A | N/A |
Quality assurance and control ("QAQC") is maintained internally at the lab through rigorous use of internal certified reference materials, blanks, and duplicates. An additional QAQC program was administered by TDG Gold through the use of certified reference materials ("CRMs"), duplicate samples and blank samples that were blindly inserted into the sample batch. If a QAQC sample returns an unacceptable value an investigation into the results is triggered and when deemed necessary, the samples that were tested in the batch with the failed QAQC sample are re-tested. For the purposes of this press release, results are ‘preliminary' and thus have not undergone SGS internal QAQC or TDG's DQA investigations.
Qualified Person
The technical content of this news release has been reviewed and approved by Steven Kramar, MSc., P.Geo., a qualified person as defined by National Instrument 43-101.
This news release includes historical drilling information that has been reviewed by the Company's geological team. The Company's review of the historical records and information reasonably substantiate the validity of the information presented in this news release; however, the Company cannot directly verify the accuracy of the historical data, including the procedures used for sample collection and analysis. Therefore, the Company encourages investors to exercise appropriate caution when evaluating these results. Further data review is underway, in order to verify the validity of the data for the anticipated NI 43-101 compliant mineral resource estimate.
About TDG Gold Corp.
TDG is a major mineral claim holder in the historical Toodoggone Production Corridor of north-central British Columbia, Canada, with over 23,000 hectares of brownfield and greenfield exploration opportunities under direct ownership or earn-in agreement. TDG's flagship projects are the former producing, high-grade gold-silver Shasta, Baker and Mets mines, which are all road accessible, produced intermittently between 1981-2012, and have over 65,000 m of historical drilling. In 2021, TDG has advanced the projects through compilation of historical data, new geological mapping, geochemical and geophysical surveys, and, for Shasta, drill testing of the known mineralization occurrences and their extensions. The Company has entered into a binding agreement to acquire the Nueva Esperanza silver-gold advanced exploration and development project located in the Maricunga Belt of northern Chile, subject to closing conditions being satisfied. TDG currently has 78,361,085 common shares issued and outstanding.
ON BEHALF OF THE BOARD
Fletcher Morgan
Chief Executive Officer
For further information contact:
TDG Gold Corp.,
Telephone: +1.604.536.2711
Email: info@tdggold.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
SOURCE:TDG Gold Corp.
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TDG Gold Corp. Drills 29.0 Metres of 1.78 G/T Gold and 89 G/T Silver at Shasta Creek Zone, Toodoggone, B.C.
TDG Gold Corp. (TSXV:TDG) (the "Company" or "TDG") is pleased to announce the first composite drill results from its 2021 Shasta diamond drill campaign which include 29.0 metres ("m") of 1.78 grams per tonne ("gt") gold ("Au") with 89 gt silver ("Ag") [2.89 gt AuEq**] in drillhole SH21-005 and 33.5 m of 1.03 gt Au with 41 gt Ag [1.53 gt AuEq**] in drillhole SH21-004 - both within the Shasta Creek Zone south of the historical workings at TDG's Shasta project located in the Toodoggone District of north-central B.C. Included in this update are the over-limit assay results from drillholes SH21-004 and SH21-005 which were unavailable in TDG's November 29, 2021 news release (see here) along with results from drillholes SH21-001, SH21-003 and historical 2007 drillholes re-assayed in 2021 (SH07-001 and SH07-002). Results have been received directly from SGS Canada Inc. ("SGS") and whilst SGS has completed its QAQC protocols for these results, a comprehensive internal Data Quality Analysis ("DQA") by TDG is still underway with subsequent assay results from the Shasta project still pending. Therefore the results for the purposes of this news release are still considered preliminary
With the additional assay information from drillholes SH21-004, SH21-005 and the 2007 drillholes, cross section 6,347,280 N (see Figure 2) was constructed offering a more comprehensive understanding of the Shasta Fault system, the high-grade pods of mineralization in proximity to the fault, and the ‘halo' of Au-Ag mineralization adjacent the high-grade pods. This was previously under-tested by historical exploration and mining efforts. In addition, the updated over-limit assays from holes SH21-004 and SH21-005 provide true length-weighted composite grades through mineralized intersections, where Au-Ag grades were previously underrepresented by the upper limits of prior analysis.
Table 1 presents (below) precious metal concentrations with yellow highlighted values updated from the November 29, 2021, news release for drillholes SH21-004 and SH21-005.
Table 1. Updated select intervals of previously published preliminary assay results.
Hole | Depth From (m) | Depth To (m) | Width (m) | Au (g/t) | Ag (g/t) |
SH21-004 | 69 | 69.5 | 0.5 | 21.60 | 593 |
SH21-004 | 69.5 | 70 | 0.5 | 13.80 | 641 |
SH21-004 | 70 | 70.5 | 0.5 | 0.88 | 33 |
SH21-004 | 70.5 | 71 | 0.5 | 0.30 | 9 |
SH21-004 | 71 | 71.5 | 0.5 | 11.00 | 336 |
SH21-004 | 72 | 72.5 | 0.5 | 0.79 | 39 |
SH21-004 | 73 | 73.5 | 0.5 | 0.75 | 45 |
SH21-005 | 62 | 62.5 | 0.5 | 1.62 | 66 |
SH21-005 | 62.5 | 63 | 0.5 | 6.18 | 153 |
SH21-005 | 63 | 63.5 | 0.5 | 5.36 | 79 |
SH21-005 | 95 | 95.5 | 0.5 | 2.79 | 160 |
SH21-005 | 95.5 | 96 | 0.5 | 4.36 | 257 |
SH21-005 | 96 | 96.5 | 0.5 | 1.21 | 51 |
SH21-005 | 96.5 | 97 | 0.5 | 12.00 | 474 |
SH21-005 | 97 | 97.5 | 0.5 | 3.06 | 147 |
SH21-005 | 97.5 | 98 | 0.5 | 15.83 | 851 |
SH21-005 | 98 | 98.5 | 0.5 | 25.22 | 1,189 |
SH21-005 | 98.5 | 99 | 0.5 | 0.99 | 41 |
2021 drillholes are HQ and 2007 drillholes are NQ size drill cores and are located in the Shasta Creek Zone vicinity (Figure 1). Particulars for drillholes (location, depth, etc.)are presented in Table 2, and mineralization and geology is described in TDG's November 29, 2021 news release for the Shasta Creek Zone vicinity.
Figure 1. Plan view of Shasta Creek Zone (drillholes SH21-004, SH21-005, SH07-01, SH07-02).
Table 2. Drillhole particulars.
HOLE | UTME (NAD83) | UTMN (NAD83) | Azimuth(°) | Dip(°) | Final Depth (m) |
SH07-01 | 620,979 | 6,347,294 | 90 | -45 | 102 |
SH07-02 | 620,957 | 6,347,281 | 90 | -45 | 127 |
SH21-01 | 620,951 | 6,347,350 | 90 | -45 | 72 |
SH21-03 | 620,893 | 6,347,330 | 90 | -60 | 109 |
SH21-004 | 620,902 | 6,347,281 | 90 | -45 | 130 |
SH21-005 | 620,902 | 6,347,281 | 115 | -70 | 127 |
Table 3 presents the significant intervals for the mentioned drillholes, and Figure 2 presents a schematic cross section of drillholes SH21-004, SH21-005, SH07-01 and SH07-02 illustrating the relationship between the high-grade pods of mineralization and the halo of significant intervals adjacent to the high-grade mineralization.
Table 3. Significant Intervals.
Hole | From | To | Length | Au | Ag | AuEq** |
(m) | (m) | (m) | (g/t) | (g/t) | (g/t) | |
SH07-01 | 58.2 | 102.7 | 44.5 | 0.86 | 41 | 1.37 |
including | 69.0 | 74.0 | 5.0 | 2.22 | 109 | 3.58 |
and | 80.0 | 86.0 | 6.0 | 3.14 | 131 | 4.77 |
SH07-02 | 71.0 | 103.7 | 32.7 | 0.48 | * | * |
SH21-01 | 19.0 | 29.0 | 10.0 | 0.32 | 32 | 0.72 |
including | 21.2 | 24.5 | 3.3 | 0.49 | 49 | 1.11 |
SH21-03 | 55.0 | 78.5 | 23.5 | 0.61 | 57 | 1.28 |
including | 61.0 | 62.5 | 1.5 | 2.13 | 302 | 5.91 |
and | 64.0 | 66.5 | 2.5 | 1.71 | 113 | 3.12 |
and | 71.0 | 72.5 | 1.5 | 1.32 | 137 | 3.03 |
SH21-03 | 90.5 | 103.5 | 13.0 | 0.82 | 61 | 1.59 |
including | 92.0 | 95.0 | 3.0 | 1.67 | 109 | 3.03 |
and | 96.5 | 98.0 | 1.5 | 1.81 | 189 | 4.17 |
SH21-04 | 63.5 | 65.0 | 1.5 | 1.33 | 6 | 1.40 |
SH21-04 | 69.0 | 102.5 | 33.5 | 1.03 | 41 | 1.53 |
including | 69.0 | 73.5 | 4.5 | 6.45 | 224 | 9.26 |
SH21-05 | 62.0 | 68.0 | 6.0 | 2.25 | 40 | 2.76 |
including | 62.0 | 63.5 | 1.5 | 4.39 | 99 | 5.63 |
SH21-05 | 92.0 | 121.0 | 29.0 | 1.78 | 89 | 2.89 |
including | 95.0 | 99.0 | 4.0 | 8.18 | 396 | 13.14 |
and | 101.5 | 105.5 | 4.0 | 1.88 | 88 | 2.98 |
* Silver results pending re-analysis. | ||||||
** Gold equivalent (AuEq) calculated using 80:1 silver to gold ratio. | ||||||
*** Intervals are core-length weighted. True width is estimated between 75 to 95 % of core length. |
Figure 2. Cross section of Shasta Creek Zone (holes SH21-004, SH21-005, SH07-01, SH07-02). Results from SH21-030 are still pending.
QA/QC
Samples for the Shasta 2021 drill program followed chain of custody between collection, processing and delivery to a SGS laboratory in Burnaby, B.C. The drill cores were delivered to the core shack at TDG's Baker Mine site, and processed by geologists who inserted certified reference materials, blanks and duplicates (pulp and coarse) into the sampling sequence. The 2021 drill core was cut in half (1/2 HQ core) and 2007 drill core was split (1/2 NQ core) and placed in zip-tied polyurethane bags, then in security-sealed rice bags before being delivered directly from the Baker Mine site, to Bandstra Transportation Systems in Prince George, B.C., and ultimately to SGS laboratory Burnaby, B.C. Core samples were prepared for analysis according to SGS method PRP89: dry samples to 105°C, crush to 75 % passing 2 mm, split 250 g, pulverize 85 % passing 75 microns.
Samples were analyzed following procedures summarized in Table 4, where information about methodology can be found on the SGS Canada Website, in the analytical guide (here).
Table 4. Au and Ag Analytical Methods.
Certificate | Hole | Method Au | Method Ag | Method Au-Overlimit | Method Ag-Overlimit |
BBM21-13014 | SH07-01 | GO_FAI50V10 | GE_IMS40Q12 | N/A | GO_ICP42Q100 |
BBM21-13343 | SH07-02 | GO_FAI50V10 | GE_IMS40Q12 | N/A | N/A |
BBM21-12204 | SH21-001 | GO_FAI50V10 | GE_IMS40Q12 | N/A | GO_ICP42Q100 |
BBM21-12205 | SH21-003 | GO_FAI50V10 | GE_IMS40Q12 | N/A | GO_ICP42Q100 |
BBM21-12561 | SH21-004 | GE_FAI50V5 | GE_IMS40Q12 | GO_FAG50V | GO_ICP42Q100 |
BBM21-12603 | SH21-004 | GE_FAI50V5 | GE_IMS40Q12 | N/A | N/A |
BBM21-12562 | SH21-005 | GO_FAI50V10 | GE_IMS40Q12 | GO_FAG37V | GO_ICP42Q100 |
BBM21-12759 | SH21-005 | GO_FAI50V10 | GE_IMS40Q12 | N/A | GO_ICP42Q100 |
Quality assurance and control ("QAQC") is maintained internally at the lab through rigorous use of internal certified reference materials, blanks, and duplicates. An additional QAQC program was administered by TDG Gold through the use of certified reference materials ("CRMs"), duplicate samples and blank samples that were blindly inserted into the sample batch. If a QAQC sample returns an unacceptable value an investigation into the results is triggered and when deemed necessary, the samples that were tested in the batch with the failed QAQC sample are re-tested. For the purposes of this press release, results are ‘preliminary' and thus have not undergone SGS internal QAQC or TDG's DQA investigations.
Qualified Person
The technical content of this news release has been reviewed and approved by Steven Kramar, MSc., P.Geo., a qualified person as defined by National Instrument 43-101.
About TDG Gold Corp.
TDG is a major mineral claim holder in the historical Toodoggone Production Corridor of north-central British Columbia, Canada, with over 23,000 hectares of brownfield and greenfield exploration opportunities under direct ownership or earn-in agreement. TDG's flagship projects are the former producing, high-grade gold-silver Shasta, Baker and Mets mines, which are all road accessible, produced intermittently between 1981-2012, and have over 65,000 m of historical drilling. In 2021, TDG has advanced the projects through compilation of historical data, new geological mapping, geochemical and geophysical surveys, and, for Shasta, drill testing of the known mineralization occurrences and their extensions. The Company has entered into a binding agreement to acquire the Nueva Esperanza silver-gold advanced exploration and development project located in the Maricunga Belt of northern Chile, subject to closing conditions being satisfied. TDG currently has 78,361,085 common shares issued and outstanding.
ON BEHALF OF THE BOARD
Fletcher Morgan
Chief Executive Officer
For further information contact:
TDG Gold Corp.,
Telephone: +1.604.536.2711
Email: info@tdggold.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
SOURCE:TDG Gold Corp.
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Falco Resources
Overview
Falco Resources (TSXV:FPC) is a Canadian company focused on developing gold and base metal projects in the Rouyn-Noranda region of Quebec. Rouyn-Noranda is an established mining camp with a long history of exploration and development. The Noranda mining camp has historically produced 19 million ounces (Moz) of gold and 2.9 billion pounds (Blbs) of copper, and yet it is still under-explored for gold.
Falcon’s principal property, Horne 5 project, holds 67,000 acres or nearly 67 percent of the total area of the entire mining camp and is located under the former Horne mine which produced 11.6 Moz of gold and 2.5 Blbs of copper. The 2021 feasibility study on the Horne 5 project suggests strong project economics with a total mine life of 15 years, after-tax NPV at 5 percent of US$761 million, and a payback period of 4.8 years, assuming gold prices at $1,600/oz. At the current gold prices of over $2,300/oz, the project economics will be even better.
Recent news flow including the operating lease and indemnity agreement (OLIA) with Glencore (LON:GLEN) and the Horne 5 project’s environmental impact assessment (EIA) admissibility are significant milestones in the advancement of the project towards construction. Falco is now aiming to proceed with the next steps related to obtaining government permits and financing for its Horne 5 project.
Falco Resources operating license and indemnity agreement (OLIA) with Glencore Canada will enable Falco to utilize a portion of Glencore's lands. The agreement entails establishing a technical committee comprising two representatives from Glencore and two from Falco, tasked with safeguarding the uninterrupted operations of Glencore’s Horne copper smelter. Additionally, a parallel strategic committee will be formed. Glencore will nominate one representative to join Falco's board of directors.
The successful completion of the OLIA, coupled with life-of-mine copper-zinc concentrate offtake agreements with Glencore, positions Falco to advance its Horne 5 project towards construction. The company is advancing with the permitting and financing processes for the project.
Company Highlights
- Falco Resources is a Canadian explorer of base and precious metals focused on developing its mineral properties in the Rouyn-Noranda region in Quebec, Canada.
- The company holds 67,000 acres of mining claims in the Rouyn-Noranda mining camp, accounting for nearly 67 percent of the entire mining camp.
- Rouyn-Noranda has a long history of mining and exploration. The area has established infrastructure and has been host to 50 former producers, including 20 base metal mines and 30 gold mines.
- Falco’s principal asset is the Horne 5 project which is a gold project with significant base metal by-products. It is located under the former Horne Mine which produced 11.6 Moz of gold and 2.5 billion pounds of copper.
- The Horne 5 is a world-class deposit containing 7.6 Moz gold equivalent in measured and indicated resources and 1.7 Moz gold equivalent in inferred resources.
- The Horne 5 project represents a robust, high-margin, 15-year underground mining project with attractive economics. The 2021 feasibility study indicates after-tax NPV at 5 percent of US$761 million and after-tax IRR of 18.9 percent.
- The operating lease and indemnity agreement (OLIA) with Glencore coupled with EIA admissibility receipt from the government body positions Falco to advance its Horne 5 project towards construction.
Key Project
Horne 5 Project
The Horne 5 project is a world-class deposit located beneath the former Horne mine in the Rouyn -Noranda mining camp. Horne mine was operated by Noranda from 1926 to 1976 and produced 11.6 Moz of gold and 2.5 Blbs of copper. The Rouyn-Noranda mining camp has a rich exploration history having produced 19 Moz of gold and 2.9 Blbs of copper. The camp has hosted 50 producers including 20 base metal mines and 30 gold mines.
The Horne 5 is a world-class deposit containing 6.1 Moz gold equivalent in proven and probable reserves, 7.6 Moz gold equivalent in measured and indicated resources, and 1.7 Moz gold equivalent in inferred resources. The project boasts strong partners including Osisko Development, Osisko Gold Royalties, Glencore, and the Quebec Government. Osisko Development is a major shareholder in Falco Resources with a 17.3 percent stake, and the Quebec Government holds close to 8 percent stake in Falco.
Aside from gold, Horne 5 has significant base metal by-products. As per the feasibility study, precious metals (gold + silver) account for 75.6 percent of the mining revenue, while base metals (copper and zinc), account for 24.3 percent of the total mine revenue.
The 2021 updated feasibility study on the Horne 5 project indicates robust project economics. The feasibility study shows the project would generate an after-tax NPV at 5 percent of US$761 million and an after-tax IRR of 18.9 percent over the 15-year mine life. The production profile would average annual production of 220,300 oz gold over the life of the mine. Further, the study suggests significant copper and zinc by-product credits from the copper and zinc production, as well as the highly automated modern operations resulting in a low projected all-in sustaining cost (AISC) of $587/oz. Horne 5’s AISC is among the first quartile of global low-cost operations.
Recent news flows including the OLIA with Glencore and the Horne 5 project’s EIA admissibility are significant milestones in the advancement of the project towards construction.
Falco Resources’ OLIA with Glencore Canada enables Falco to utilize a portion of Glencore's lands. The agreement entails establishing a technical committee comprising two representatives from Glencore and two from Falco, tasked with safeguarding the uninterrupted operations of Glencore’s Horne copper smelter. Additionally, a parallel strategic committee will be formed. Glencore will nominate one representative to join Falco's board of directors.
The successful completion of OLIA coupled with life-of-mine copper-zinc concentrate offtake agreements with Glencore positions Falco to advance its Horne 5 project towards construction. Further, the receipt of confirmation of the admissibility of its EIA for the Horne 5 project from the Ministry of the Environment, the Fight Against Climate Change, Wildlife and Parks is a significant milestone. It provides a path forward for the advancement of the project.
The company is now advancing with the permitting and financing processes for the project. The construction of the Horne 5 mine could begin by February 2025.
Management Team
Luc Lessard – President, Chief Executive Officer and Director
Luc Lessard brings over 30 years of experience in the design, construction, and operation of mines. Before joining Falco, he held senior executive positions at Osisko Gold Royalties, Canadian Malartic GP (a joint venture of Agnico Eagle Mines and Yamana Gold), and Osisko Mining Corporation. At Osisko Mining Corporation, he oversaw the design, construction, and commissioning of the Canadian Malartic gold mine. Lessard has been involved in numerous surface and underground mining projects throughout his career. Lessard holds a bachelor’s degree in mining engineering from Laval University.
Anthony Glavac – Chief Financial Officer
Anthony Glavac has 20 years of experience in financial reporting, including over 14 years in the mining industry. Before joining Falco, he served as the director of financial reporting and internal controls at Dynacor Gold Mines and as the interim chief financial officer at Alderon Iron Ore. Glavac was previously the senior manager at KPMG, where he worked with a diverse portfolio of public and private companies, offering services such as audit, taxation, strategic advisory, and assistance with public offerings. Glavac is also engaged with other public companies within the mining sector.
Helene Cartier – Vice-president Environment, Sustainable Development and Community Relations
Helene Cartier possesses over 20 years of expertise in the environmental field. She began her mining career as part of the Cambior team before transitioning to the role of vice-president of environmental services and sustainable development at Osisko Mining Corporation. There, she played a pivotal role in the development and commissioning phases of the Canadian Malartic gold mine. She has served on the board of directors of several public and private companies.
Mireille Tremblay – Vice-president Legal Affairs and Corporate Secretary
Mireille Tremblay possesses more than 25 years of experience in business law, primarily in securities, mergers and acquisitions, corporate finance, and governance. Before joining Falco in January 2021 as the director of legal affairs, Tremblay served as a legal advisor to clients across diverse industries, including the mining sector. She advocated for companies and investors involved in mining transactions in Africa, notably during the construction of a gold mine in Burkina Faso and in negotiations with the Ivorian government. Additionally, she has represented numerous companies, underwriters, and investors in various contexts, including public offerings and private placement financings, both domestically and internationally. Tremblay holds a law degree from the University of Montreal.
Mario Caron – Independent Chair
Mario Caron possesses extensive expertise in the mining sector, accumulating over four decades of experience in senior executive and board roles. He has garnered this wealth of knowledge through engagements in underground and open pit operations, both domestically and abroad. Caron has served as CEO of public companies and has experience securing mining licenses and various permits in numerous jurisdictions. Caron earned his Bachelor of Engineering in mining, at McGill University.
Alexander Dann – Non-independent Director
Alexander Dann, a chartered professional accountant, has served with multinational public enterprises on financial operations and strategic planning. He brings more than 25 years of experience within the mining and manufacturing domains. He was chief financial officer of The Flowr Corporation, where he led the company towards its public listing on the TSXV. He also served as the CFO of Avion Gold and Era Resources, contributing significantly until their acquisitions by Endeavour Mining and The Sentient Group, respectively. He holds a bachelor’s degree in business administration from L’Universite Laval in Quebec City.
Claude Dufresne – Independent Director
Claude Dufresne has over three decades of experience in the mining industry. He has served in leadership roles at companies such as Niobay Metals and IAMGOLD. He was the founder of a metals company, Camet Metallurgy, which specialized in the sale and marketing of various metals. He obtained a diploma in mining engineering with a specialty in mineral processing from Universite Laval in 1991.
Paola Farnesi – Independent Director
Paola Farnesi has over 30 years of experience in corporate finance, financial reporting, M&A, and risk management. She is currently vice-president and treasurer of Domtar Corporation. Before this, she held various senior executive positions at Domtar including vice-president, internal audit. Before joining Domtar, Farnesi worked at Ernst & Young. She holds a Bachelor of Commerce and a Graduate degree in Public Accountancy from McGill University. She is a member of the Chartered Professional Accountants of Quebec and has earned the ICD.D designation from the Institute of Corporate Directors.
This article was written in collaboration with Couloir Capital.
OUTBACK ANNOUNCES $5 MILLION FINANCING
/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES/
TSX.V: OZ | OTCQB: OZBKF | FSE: S600
Outback Goldfields Corp . (the " Company " or " Outback ") (TSXV: OZ) (OTCQB: OZBKF) is pleased to announce a non-brokered private placement for minimum gross proceeds of $5,000,000 (the " Offering "). The Offering is being completed in conjunction with the Company's previously announced acquisition of a prospective portfolio of gold projects in Finland (the " Finnish Assets ") from a subsidiary of S2 Resources Ltd. (" S2 "), as detailed in the Company's press release dated March 1, 2024 (the " Transaction ").
Pursuant to the Offering, Outback will issue a minimum of 125,000,000 subscription receipts (each, a " Subscription Receipt ") at a price of $0.04 per Subscription Receipt (the " Offering Price ") for minimum gross proceeds of $5,000,000 . Each Subscription Receipt, upon satisfaction of the Release Conditions (as defined herein), will automatically convert into one unit (each, a " Unit "), with each Unit comprising of one common share of the Company (each, a " Share ") and one common share purchase warrant of the Company (each, a " Warrant "). Each Warrant shall entitle the holder thereof to purchase one additional Share at a price of $0.06 for a period of three years following the conversion of the Subscription Receipts.
"This transformative acquisition from S2 provides our shareholders with a world-class portfolio of 100% owned projects as well as joint ventures with major mining companies in a highly prospective jurisdiction," commented Chris Donaldson , CEO of Outback. "The Central Lapland Greenstone Belt of Northern Finland is an emerging gold camp and is host to several recent gold discoveries as well as Europe's largest primary gold mine, Agnico Eagle's Kittilä Mine, which produces over 200koz gold per annum. We look forward to welcoming new shareholders and working with S2 to complete this transaction and focus our technical team on making additional gold discoveries in Finland ."
Share Consolidation
Prior to completion of the Transaction, Outback expects to complete a consolidation of its outstanding common shares (each, a " Share ") pursuant to which it will issue one post-consolidation Share for each ten pre-consolidation Shares (the " Consolidation "). The number of Units underlying the Subscription Receipts will be adjusted to reflect the Consolidation, such that it is expected that an aggregate of 12,500,000 Units will be issued on conversion of the Subscription Receipts at a deemed issuance price of $0.40 per Unit.
Transaction Update
On March 1, 2024 , Outback announced the acquisition of the Finnish Assets from S2 for total consideration of $7,000,000 , consisting of a $1,500,000 cash payment and the issuance of $5,500,000 in Shares (the " Consideration Shares "). The deemed issuance price of the Consideration Shares will be equal to the Offering Price such that S2 will receive 13,750,000 Shares, on a post-Consolidation basis, on completion of the Transaction. It is expected that S2 will own approximately 43% of Outback, on a basic basis, upon completion of the Offering and the Transaction. It is anticipated that the Transaction will close in July 2024 .
The completion of the Transaction remains subject to a number of terms and conditions, among other standard conditions for a transaction of this nature, including, among other things: (i) the negotiation and execution of the Definitive Agreement; (ii) completion of the Offering; (iii) if required by the TSXV, approval of the shareholders of Outback; (iv) the preparation of a NI 43-101 compliant technical report for each of the material Finnish Assets that is acceptable to the TSXV and Outback; (v) the receipt of all required regulatory, stock exchanges (including the TSXV), creditor, court, security holder and other approvals, consents, permits, waivers, exemptions and orders; and (vi) if required by the TSXV, delivery of a sponsor report. There can be no assurance that all of the necessary regulatory and shareholder approvals will be obtained or that all conditions of closing will be met.
Offering Details
Expiry of the Warrants will be subject to acceleration if, following the issuance of the Warrants, the closing price of the Shares on the TSX Venture Exchange (the " TSXV "), or other such Canadian stock exchange on which the Shares are then principally traded, equals or exceeds $0.90 per Share, on a post-Consolidation basis, for a period of twenty consecutive trading days during the exercise period. In that case, the Company may accelerate the expiry date of the Warrants to the date which is 30 trading days from the date notice is given by the Company, by way of dissemination of a news release, to the holders of the Warrants.
The gross proceeds of the Offering will be held in escrow until the closing of the Transaction and the satisfaction of certain escrow release conditions (collectively, the " Release Conditions "). Upon satisfaction of the Release Conditions, the net proceeds from the Offering will be used by the Company to fund its acquisition of the Finnish Assets, for an initial exploration program on the S2 Finnish Assets and for general corporate purposes. If the Release Conditions are not met within 90 days of closing of the Offering then all funds will be released from escrow and returned to subscribers.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
All the securities issuable under the Offering will be subject to a four-month hold period from the date of closing of the Offering. The Offering remains subject to the receipt of all required regulatory approvals, including, without limitation, the approval of the TSXV.
Completion of the Transaction is subject to a number of conditions, including but not limited to, TSXV acceptance and if applicable, disinterested shareholder approval. Where applicable, the Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Outback should be considered highly speculative.
The TSXV has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release contains forward-looking statements or forward-looking information relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements in this news release include but are not limited to: obtaining the necessary approvals required for the Transaction and the Offering; completion of the Transaction and the Offering and the timing thereof; final terms of the Transaction and Offering; the benefits of the Transaction and the Offering; and exploration activities.
Forward-looking statements are based on the reasonable assumptions, estimates, analyses and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable. Assumptions have been made regarding, among other things: the benefits of the Transaction and the Offering; the Company's ability to carry on exploration and development activities; the timely receipt of required approvals; the price of metals; the integration of assets acquired by the Company; and the Company's ability to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors include but are not limited to: the Company's early stage of development; the fluctuation of the price of metals; the availability of additional funding as and when required; the speculative nature of mineral exploration and development; the timing and ability to maintain and, where necessary, obtain necessary permits and licenses; the uncertainty in geologic, hydrological, metallurgical and geotechnical studies and opinions; infrastructure risks, including access to water and power; environmental risks and hazards; risks associated with negative operating cash flow; and risks associated with dilution. For a further discussion of risks relevant to the Company, see the Company's other public disclosure documents.
Although management has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There is no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except as, and to the extent required by, applicable securities laws.
SOURCE Outback Goldfields Corp.
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Newmont Reports First Quarter 2024 Results
Newmont Corporation (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) (Newmont or the Company) today announced first quarter 2024 results and declared a first quarter dividend of $0.25 per share.
"Newmont delivered a strong first quarter operational performance, producing 2.2 million gold equivalent ounces and generating over $1.4 billion in cash from operations before working capital changes," said Tom Palmer, Newmont's President and Chief Executive Officer. "Underpinned by the gold industry's leading portfolio of Tier 1 gold and copper operations, we remain well-positioned to achieve our full-year guidance and deliver meaningful synergies and productivity improvements from the combined portfolio. We remain focused on delivering on the commitments we laid out at the beginning of this year, creating an attractive value proposition for new and existing investors during this unique time in the gold industry."
Q1 2024 Results 1
- Delivered $288 million in dividends to shareholders; declared a dividend of $0.25 per share of common stock for the first quarter of 2024 2
- Announced sale of the Lundin Gold stream credit facility and offtake agreement ("Lundin Gold Financing Facilities") for $330 million, further monetizing Newmont's non-core assets while maintaining its equity interest in Lundin Gold
- Produced 1.7 million attributable gold ounces and 489 thousand gold equivalent ounces (GEOs) 3 from copper, silver, lead and zinc; primarily driven by production of 1.4 million gold ounces from Newmont's Tier 1 Portfolio 4
- Reported gold Costs Applicable to Sales (CAS) per ounce of $1,057 and gold All-In Sustaining Costs (AISC) per ounce of $1,439; Newmont's Tier 1 Portfolio reported CAS of $1,000 per ounce and AISC of $1,378 per ounce 5
- Generated $776 million of cash from operating activities, net of working capital changes of $(666) million; reported $(74) million in Free Cash Flow net of working capital changes and $850 million of capital reinvestment to sustain current operations and advance high-return projects; excluding the stamp duty payment in connection with the Newcrest transaction, Newmont generated Free Cash Flow of $217 million 5
- Reported Net Income of $179 million, Adjusted Net Income (ANI) of $0.55 per share and Adjusted EBITDA of $1.7 billion for the quarter 5
- Delivered $105 million in synergies to date from the Newcrest acquisition; on track to realize $500 million in annual synergies by the end of 2025 6
- Firmly on track to deliver 2024 guidance for production, costs and capital spend; full-year production expected to be second-half weighted as previously indicated 7
- Classified six non-core assets and one project as held for sale, resulting in a non-cash impairment of $485 million
- Refinanced approximately $2 billion of debt acquired from the Newcrest acquisition; targeting a $1 billion debt reduction
- Published 20 th Annual Sustainability Report and 3 rd Annual Taxes and Royalties Contribution Report, providing a transparent review of Newmont's ESG performance, tax strategy and economic contributions
____________________ |
1 Newmont's actual condensed consolidated financial results remain subject to completion and final review by management and external auditors for the quarter ended March 31, 2024. Newmont intends to file its Q1 2024 Form 10-Q on or about the close of business on April 29, 2024. See notes at the end of this release. |
2 Newmont's Board of Directors declared a dividend of $0.25 per share of common stock for the first quarter of 2024, payable on June 27, 2024 to holders of record at the close of business on June 4, 2024. |
3 Gold equivalent ounces (GEOs) calculated using Gold ( $1,400 /oz.), Copper ( $3.50 /lb.), Silver ( $20.00 /oz.), Lead ( $1.00 /lb.) and Zinc ( $1.20 /lb.) pricing for 2024. |
4 Newmont's go-forward portfolio is focused on Tier 1 assets, consisting of (1) six managed Tier 1 assets (Boddington, Tanami, Cadia, Lihir, Peñasquito and Ahafo), (2) assets owned through two non-managed joint ventures at Nevada Gold Mines and Pueblo Viejo, including four Tier 1 assets (Carlin, Cortez, Turquoise Ridge and Pueblo Viejo), (3) three emerging Tier 1 assets (Merian, Cerro Negro and Yanacocha), which do not currently meet the criteria for Tier 1 Asset, and (4) an emerging Tier 1 district in the Golden Triangle in British Columbia (Red Chris and Brucejack), which does not currently meet the criteria for Tier 1 Asset. Newmont's Tier 1 portfolio also includes attributable production from the Company's equity interest in Lundin Gold (Fruta del Norte). Tier 1 Portfolio cost and capital metrics include the proportional share of the Company's interest in the Nevada Gold Mines joint venture. |
5 Non-GAAP metrics; see reconciliations at the end of this release. |
6 Synergies are a management estimate provided for illustrative purposes and should not be considered a GAAP or non-GAAP financial measure. Synergies represent management's combined estimate of pre-tax synergies, supply chain efficiencies and Full Potential improvements, as a result of the integration of Newmont's and Newcrest's businesses that have been monetized for the purposes of the estimation. Such estimates are necessarily imprecise and are based on numerous judgments and assumptions. See cautionary statement at the end of this release regarding forward-looking statements. |
7 See discussion of outlook and cautionary statement at the end of this release regarding forward-looking statements. |
Advancing Portfolio Optimization with Sale of Lundin Gold Financing Facilities
Newmont announced today that Lundin Gold Inc. (Lundin Gold) has agreed to buy out 100 percent of the balance of the stream credit facility agreement and offtake agreement for the Fruta del Norte gold mine in Ecuador for total consideration of $330 million, payable in cash in two tranches: $180 million as of the expected closing date of June 28, 2024, and the remaining $150 million by September 30, 2024. Newmont has maintained its exposure to the Fruta del Norte operation through its equity interest in Lundin Gold.
In connection with the acquisition of Newcrest and the Company's strategy to create lasting value, Newmont committed to delivering at least $2 billion in near-term cash improvements through portfolio optimization within the first two years. The early repayment of the facilities is another step in delivering on this commitment as Newmont continues to build a more profitable and resilient future for the business.
Summary of First Quarter Results
2023 | 2024 | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | FY | |||||||||||||||||
Average realized gold price ($/oz) | $ | 1,906 | $ | 1,965 | $ | 1,920 | $ | 2,004 | $ | 1,954 | $ | 2,090 | $ | 2,090 | |||||||||
Attributable gold production (Moz) 1 | 1.27 | 1.24 | 1.29 | 1.74 | 5.55 | 1.68 | 1.68 | ||||||||||||||||
Gold CAS ($/oz) 2,3 | $ | 1,025 | $ | 1,054 | $ | 1,019 | $ | 1,086 | $ | 1,050 | $ | 1,057 | $ | 1,057 | |||||||||
Gold AISC ($ per ounce) 3 | $ | 1,376 | $ | 1,472 | $ | 1,426 | $ | 1,485 | $ | 1,444 | $ | 1,439 | $ | 1,439 | |||||||||
GAAP net income (loss) from continuing operations ($M) | $ | 339 | $ | 153 | $ | 157 | $ | (3,170 | ) | $ | (2,521 | ) | $ | 166 | $ | 166 | |||||||
Adjusted net income ($M) 4 | $ | 320 | $ | 266 | $ | 286 | $ | 452 | $ | 1,324 | $ | 630 | $ | 630 | |||||||||
Adjusted net income per share ($/diluted share) 4 | $ | 0.40 | $ | 0.33 | $ | 0.36 | $ | 0.46 | $ | 1.57 | $ | 0.55 | $ | 0.55 | |||||||||
Adjusted EBITDA ($M) 4 | $ | 990 | $ | 910 | $ | 933 | $ | 1,382 | $ | 4,215 | $ | 1,694 | $ | 1,694 | |||||||||
Cash from operations before working capital ($M) 5 | $ | 843 | $ | 763 | $ | 874 | $ | 777 | $ | 3,257 | $ | 1,442 | $ | 1,442 | |||||||||
Net cash from operating activities ($M) | $ | 481 | $ | 656 | $ | 1,001 | $ | 616 | $ | 2,754 | $ | 776 | $ | 776 | |||||||||
Capital expenditures ($M) 6 | $ | 526 | $ | 616 | $ | 604 | $ | 920 | $ | 2,666 | $ | 850 | $ | 850 | |||||||||
Free cash flow ($M) 7 | $ | (45 | ) | $ | 40 | $ | 397 | $ | (304 | ) | $ | 88 | $ | (74 | ) | $ | (74 | ) |
FIRST QUARTER 2024 FINANCIAL AND PRODUCTION SUMMARY
Attributable gold production 1 decreased 4 percent to 1,675 thousand ounces from the prior quarter primarily due to lower production at Tanami due to a planned mill shutdown and seasonal rainfall impacts, and the ongoing stripping campaigns at Boddington and Akyem. In addition, lower production was delivered from the non-managed joint venture at Nevada Gold Mines. This unfavorable impact was partially offset by higher production at Peñasquito and Yanacocha, as well as a full quarter of ownership of the sites acquired in the Newcrest transaction. Full year production for 2024 is expected to be second-half weighted as previously indicated.
Looking ahead, operations at Cerro Negro are currently suspended as a full investigation is conducted following the tragic fatalities of two members of the Newmont workforce on April 9, 2024. In addition, operations are temporarily suspended at Telfer, one of Newmont's non-core assets, as further work is completed to remediate the safe operation of the tailings storage facility.
Average realized gold price was $2,090, an increase of $86 per ounce over the prior quarter. Average realized gold price includes $2,082 per ounce of gross price received, a favorable impact of $19 per ounce mark-to-market on provisionally-priced sales and reductions of $11 per ounce for treatment and refining charges.
Gold CAS 2 totaled $1.7 billion for the quarter. Gold CAS per ounce 3 was largely in line with the prior quarter at $1,057 per ounce.
Gold AISC per ounce 3 was largely in line with the prior quarter at $1,439 per ounce, with a slight improvement from lower sustaining capital spend.
Attributable gold equivalent ounce (GEO) production from other metals increased 69 percent to 489 thousand ounces from the prior quarter primarily due to the ramp-up of Peñasquito to full operations after the resolution of the labor strike in the fourth quarter of 2023, combined with higher co-product grades from the Chile Colorado pit. In addition, Cadia delivered higher copper production.
CAS from other metals 2 totaled $416 million for the quarter. CAS per GEO 3 decreased 34 percent to $829 per ounce from the prior quarter primarily due to higher other metal sales as a result of the increased volumes at Peñasquito.
AISC per GEO 3 decreased 33 percent to $1,148 per ounce compared to the prior quarter primarily due to lower CAS per GEO as a result of the increased volumes at Peñasquito, as well as lower sustaining capital spend.
Net income from continuing operations attributable to Newmont stockholders was $166 million or $0.15 per diluted share, an increase of $3.3 billion from the prior quarter primarily due to the recognition of impairment charges and higher reclamation and remediation expense during the fourth quarter of 2023, as well as higher average realized gold prices and lower CAS in the first quarter of 2024.
Adjusted net income 4 was $630 million or $0.55 per diluted share, compared to $452 million or $0.46 per diluted share in the prior quarter. Primary adjustments to first quarter net income include a loss on assets held for sale of $485 million, changes in the fair value of investments of $31 million, Newcrest transaction and integration costs of $29 million and settlement costs of $21 million.
Adjusted EBITDA 4 increased 23 percent to $1,694 million for the quarter, compared to $1,382 million for the prior quarter.
Consolidated cash from operations before working capital 5 increased 86 percent from the prior quarter to $1.4 billion primarily due to higher realized gold prices, lower CAS and lower Newcrest transaction and integration costs.
Consolidated net cash from operating activities increased 26 percent from the prior quarter to $776 million primarily due to the improvement in cash from operations described above, partially offset by a $666 million reduction in operating cash flow due to changes in working capital, including a $291 million stamp duty payment in connection with the Newcrest acquisition, a build in inventories, stockpiles and ore on leach pads of $193 million, a build in accounts receivable of $84 million and reclamation spend of $59 million, primarily related to the construction of the Yanacocha water treatment facilities.
Free Cash Flow 7 was $(74) million compared to $(304) million in the prior quarter primarily due to lower sustaining and development capital expenditures.
Capital expenditures 6 decreased 8 percent from the prior quarter to $850 million primarily due to lower sustaining and development capital spend. Development capital expenditures in 2024 primarily relate to Ahafo North, Tanami Expansion 2, Cadia Block Caves and Cerro Negro expansion projects.
Balance sheet and liquidity remained strong in the first quarter, ending the quarter with $2.3 billion of consolidated cash, cash of $342 million included in Current assets held for sale , with approximately $6.7 billion of total liquidity; reported net debt to adjusted EBITDA of 1.2x 8 .
NON-MANAGED JOINT VENTURE AND EQUITY METHOD INVESTMENTS 9
Nevada Gold Mines (NGM) attributable gold production was 264 thousand ounces, with CAS of $1,177 per ounce 3 and AISC of $1,576 per ounce 3 for the first quarter.
Pueblo Viejo (PV) attributable gold production was 54 thousand ounces for the quarter. Cash distributions received for the Company's equity method investment in Pueblo Viejo totaled $45 million in the first quarter. Capital contributions of $9 million were made during the quarter related to the expansion project at Pueblo Viejo.
Fruta del Norte attributable gold production is reported on a quarter lag. Production reported in the first quarter of 2024 was 21 thousand ounces. Cash distributions received from the Company's equity method investment in Fruta del Norte were $8 million for the first quarter.
____________________ |
1 Attributable gold production includes ounces from the Company's equity method investment in Pueblo Viejo (40%) and in Lundin Gold (31.9%). |
2 Consolidated Costs applicable to sales (CAS) excludes Depreciation and amortization and Reclamation and remediation. |
3 Non-GAAP measure. See end of this release for reconciliation to Costs applicable to sales. |
4 Non-GAAP measure. See end of this release for reconciliation to Net income (loss) attributable to Newmont stockholders. |
5 Cash from operations before working capital is a non-GAAP metric with the most directly comparable GAAP financial metric being to Net cash provided by (used in) operating activities, as shown reconciled in the Condensed Consolidated Statements of Cash Flows. |
6 Capital expenditures refers to Additions to property plant and mine development from the Consolidated Statements of Cash Flows. |
7 Non-GAAP measure. See end of this release for reconciliation to Net cash provided by operating activities. Excluding the stamp duty payment in connection with the Newcrest transaction, Newmont generated Free Cash Flow of $217 million. |
8 Non-GAAP measure. See end of this release for reconciliation. |
9 Newmont has a 38.5% interest in Nevada Gold Mines, which is accounted for using the proportionate consolidation method. In addition, Newmont has a 40% interest in Pueblo Viejo, which is accounted for as an equity method investment, as well as a 31.9% interest in Lundin Gold, who wholly owns and operates the Fruta del Norte mine, which is accounted for as an equity method investment on a quarter lag. |
Key Projects in Execution
Newmont's project pipeline supports stable production with improving margins and mine life 1 . Newmont's 2024 outlook includes current development capital costs and production related to the key projects of Tanami Expansion 2, Ahafo North and Cadia Block Caves.
- Tanami Expansion 2 (Australia) secures Tanami's future as a long-life, low-cost producer by extending mine life beyond 2040 through the addition of a 1,460 meter hoisting shaft and supporting infrastructure to process 3.3 million tonnes per year and provide a platform for future growth. The expansion is expected to increase average annual gold production by approximately 150 to 200 thousand ounces per year for the first five years and reduce operating costs by approximately 30 percent, bringing average all-in sustaining costs to $900 to $1,000 per ounce for Tanami (2028 - 2032). As a result of the identification of required overbreak and underbreak remediation, commercial production for the project is now expected in the second half of 2027. Total capital costs are now estimated to be between $1.7 and $1.8 billion, incorporating the required remediation work. Development costs (excluding capitalized interest) since approval were $806 million, of which $54 million related to 2024.
- Ahafo North (Ghana) expands our existing footprint in Ghana with four open pit mines and a stand-alone mill located approximately 30 kilometers from the Company's Ahafo South operations. The project is expected to add between 275 and 325 thousand ounces per year with all-in sustaining costs of $800 to $900 per ounce for the first five full years of production (2026 - 2030). Ahafo North is the best unmined gold deposit in West Africa with approximately 4.1 million ounces of Reserves and 1.3 million ounces of Measured, Indicated and Inferred Resources 2 and significant upside potential to extend beyond Ahafo North's current 13-year mine life. Commercial production for the project is expected in the second half of 2025. Total capital costs are estimated to be between $950 and $1,050 million. Development costs (excluding capitalized interest) since approval were $434 million, of which $59 million related to 2024.
- Cadia Block Caves (Australia) includes two existing panel caves to recover approximately 5.9 million ounces of Gold Reserves as well as 1.3 million tonnes of Copper Reserves. First ore has been delivered from the first panel cave (PC2-3), and development is underway at the second panel cave (PC1-2). The newly-acquired project is currently under review, and a more fulsome update on the anticipated metrics is expected to be provided in the second half of 2024. Development capital costs (excluding capitalized interest) since approval were $76 million, of which $40 million related to 2024.
Committed to Concurrent Reclamation
Since mines operate for a finite period, careful closure planning is crucial to address the diverse social, economic, environmental and regulatory impacts associated with the end of mining operations. Newmont's global Closure Strategy integrates closure planning throughout each operation's lifespan, aiming to create enduring positive and sustainable legacies that last long after mining ceases. Newmont continues to accrue to reclamation and remediation spend through the year. Newmont expects to incur a cash outflow of approximately $600 million in 2024 and $700 million in 2025, primarily related to the construction of two new water treatment plants and post-closure management at Yanacocha. The operation's ongoing closure planning study advanced to the feasibility state in December 2023 and continues to address several complex closure issues, including water management, social impacts and tailings. A long-term water management solution will replace five existing water treatment facilities with two, addressing the watersheds along the continental divide. Certain estimated costs remain subject to revision as ongoing study work and assessment of opportunities that incorporates the latest design considerations remain in progress.
____________________ |
1 Project estimates remain subject to change based upon uncertainties, including future market conditions, macroeconomic and geopolitical conditions, changes in interest rates, inflation, commodities and raw materials prices, supply chain disruptions, labor markets, engineering and mine plan assumptions, future funding decisions, consideration of strategic capital allocation and other factors, which may impact estimated capital expenditures, AISC and timing of projects. See end of this release for cautionary statement regarding forward-looking statements. |
2 Total resources presented for Ahafo North includes Measured and Indicated resources of 1 million gold ounces and Inferred resources of 300 thousand gold ounces. See cautionary statement at the end of this release. |
Newmont's 2024 Outlook
For a more detailed discussion, see the Company's 2024 Outlook released on February 22, 2024, available on Newmont.com . Please see the cautionary statement and footnotes for additional information.
Guidance Metric | 2024E |
Attributable Gold Production (Koz) | |
Managed Tier 1 Portfolio | 4,100 |
Non-Managed Tier 1 Portfolio | 1,530 |
Total Tier 1 Portfolio | 5,630 |
Non-Core Assets | 1,300 |
Total Newmont Attributable Gold Production (Koz) | 6,930 |
Attributable Gold CAS ($/oz) ($1,900/oz price assumption) | |
Managed Tier 1 Portfolio | 980 |
Non-Managed Tier 1 Portfolio | 1,130 |
Total Tier 1 Portfolio | 1,000 |
Non-Core Assets | 1,400 |
Total Newmont Gold CAS ($/oz) a | 1,050 |
Attributable Gold AISC ($/oz) ($1,900/oz price assumption) | |
Managed Tier 1 Portfolio | 1,250 |
Non-Managed Tier 1 Portfolio | 1,440 |
Total Tier 1 Portfolio | 1,300 |
Non-Core Assets | 1,750 |
Total Newmont Gold AISC ($/oz) a | 1,400 |
Copper ($8,818/tonne price assumption) a | |
Copper Production - Tier 1 Portfolio (ktonne) | 144 |
Copper Production - Non-Core Assets (ktonne) | 8 |
Total Newmont Copper Production (ktonne) | 152 |
Copper CAS - Tier 1 Portfolio ($/tonne) | $5,050 |
Copper CAS - Non-Core Assets ($/tonne) | $11,050 |
Total Newmont Copper CAS ($/tonne) b | $5,080 |
Copper AISC - Tier 1 Portfolio ($/tonne) | $7,350 |
Copper AISC - Non-Core Assets ($/tonne) | $12,540 |
Total Newmont Copper AISC ($/tonne) b | $7,380 |
Silver ($23.00/oz price assumption) | |
Silver Production (Moz) | 34 |
Silver CAS ($/oz) b | $11.00 |
Silver AISC ($/oz) b | $15.40 |
Lead ($2,205/tonne price assumption) a | |
Lead Production (ktonne) | 95 |
Lead CAS ($/tonne) b | $1,220 |
Lead AISC ($/tonne) b | $1,570 |
Zinc ($2,976/tonne price assumption) a | |
Zinc Production (ktonne) | 245 |
Zinc CAS ($/tonne) b | $1,550 |
Zinc AISC ($/tonne) b | $2,300 |
Attributable Capital | |
Sustaining Capital ($M) a | $1,800 |
Development Capital ($M) a | $1,300 |
Consolidated Expenses | |
Exploration & Advanced Projects ($M) | $450 |
General & Administrative ($M) | $300 |
Interest Expense ($M) | $365 |
Depreciation & Amortization ($M) | $2,850 |
Adjusted Tax Rate c,d | 34% |
a Co-product metal pricing assumptions in imperial units equate to Copper ($4.00/lb.), Lead ($1.00/lb.) and Zinc ($1.35/lb.). |
b Consolidated basis |
c The adjusted tax rate excludes certain items such as tax valuation allowance adjustments. |
d Assuming average prices of $1,900 per ounce for gold, $4.00 per pound for copper, $23.00 per ounce for silver, $1.00 per pound for lead, and $1.35 per pound for zinc and achievement of current production, sales and cost estimates, we estimate our consolidated adjusted effective tax rate related to continuing operations for 2024 will be 34%. |
2024 Site Outlook a
2024 Outlook | Consolidated | Attributable | Consolidated CAS | Consolidated All-In Sustaining | Attributable | Attributable | |||||
Managed Tier 1 Portfolio | |||||||||||
Boddington | 575 | 575 | 1,150 | 1,420 | 145 | — | |||||
Tanami | 400 | 400 | 900 | 1,430 | 170 | 340 | |||||
Cadia | 370 | 370 | 620 | 1,150 | 305 | 260 | |||||
Lihir | 630 | 630 | 1,050 | 1,270 | 105 | — | |||||
Ahafo | 725 | 725 | 860 | 1,060 | 110 | — | |||||
Ahafo North | — | — | — | — | — | 290 | |||||
Peñasquito | 250 | 250 | 780 | 1,030 | 145 | — | |||||
Cerro Negro | 290 | 290 | 860 | 1,110 | 50 | 130 | |||||
Yanacocha | 290 | 290 | 1,180 | 1,370 | 25 | 50 | |||||
Merian c | 295 | 220 | 1,280 | 1,570 | 40 | — | |||||
Brucejack | 310 | 310 | 1,130 | 1,370 | 50 | — | |||||
Red Chris | 40 | 40 | 1,120 | 1,530 | 65 | — | |||||
Non-Managed Tier 1 Portfolio | |||||||||||
Nevada Gold Mines d | 1,080 | 1,080 | 1,130 | 1,440 | 290 | 130 | |||||
Pueblo Viejo e | — | 300 | — | — | — | — | |||||
Fruta Del Norte f | — | 150 | — | — | — | — | |||||
Non-Core Assets | |||||||||||
Telfer | 230 | 230 | 2,180 | 2,470 | 35 | — | |||||
Akyem | 170 | 170 | 1,780 | 2,100 | 15 | — | |||||
CC&V | 170 | 170 | 1,270 | 1,610 | 25 | — | |||||
Porcupine | 270 | 270 | 1,090 | 1,510 | 75 | 100 | |||||
Éléonore | 270 | 270 | 1,080 | 1,500 | 75 | — | |||||
Musselwhite | 190 | 190 | 1,060 | 1,620 | 75 | — | |||||
Co-Product Production | |||||||||||
Boddington - Copper (ktonne) | 37 | 37 | 6,020 | 7,600 | — | — | |||||
Cadia - Copper (ktonne) | 80 | 80 | 3,600 | 6,580 | — | — | |||||
Peñasquito - Silver (Moz) | 34 | 34 | 11.00 | 15.40 | — | — | |||||
Peñasquito - Lead (ktonne) | 95 | 95 | 1,220 | 1,570 | — | — | |||||
Peñasquito - Zinc (ktonne) | 245 | 245 | 1,550 | 2,300 | — | — | |||||
Red Chris - Copper (ktonne) | 27 | 27 | 6,440 | 9,570 | — | — | |||||
Telfer - Copper (ktonne) | 8 | 8 | 11,050 | 12,540 | — | — |
a 2024 outlook projections are considered forward-looking statements and represent management's good faith estimates or expectations of future production results as of February 22, 2024. Outlook is based upon certain assumptions, including, but not limited to, metal prices, oil prices, certain exchange rates and other assumptions. For example, 2024 Outlook assumes $1,900/oz Au, $8,818/tonne Cu, $23.00/oz Ag, $2,976/tonne Zn, $2,205/tonne Pb, $0.70 AUD/USD exchange rate, $0.75 CAD/USD exchange rate and $90/barrel WTI. Production, CAS, AISC and capital estimates exclude projects that have not yet been approved. The potential impact on inventory valuation as a result of lower prices, input costs, and project decisions are not included as part of this Outlook. Assumptions used for purposes of Outlook may prove to be incorrect and actual results may differ from those anticipated, including variation beyond a +/-5% range. Outlook cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon Outlook and forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. Amounts may not recalculate to totals due to rounding. See cautionary at the end of this release. |
b All-in sustaining costs (AISC) as used in the Company's Outlook is a non-GAAP metric; see below for further information and reconciliation to consolidated 2024 CAS outlook. |
c Consolidated production for Merian is presented on a total production basis for the mine site; attributable production represents a 75% interest for Merian. |
d Represents the ownership interest in the Nevada Gold Mines (NGM) joint venture. NGM is owned 38.5% by Newmont and owned 61.5% and operated by Barrick. The Company accounts for its interest in NGM using the proportionate consolidation method, thereby recognizing its pro-rata share of the assets, liabilities and operations of NGM. |
e Attributable production includes Newmont's 40% interest in Pueblo Viejo, which is accounted for as an equity method investment. |
f Attributable production includes Newmont's 31.9% interest in Lundin Gold, who wholly owns and operates the Fruta del Norte mine, which is accounted for as an equity method investment on a quarter lag. |
2023 | 2024 | ||||||||||||||||||||||||||
Operating Results | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |||||||||||||||||
Attributable Sales (koz) | |||||||||||||||||||||||||||
Attributable gold ounces sold (1) | 1,188 | 1,197 | 1,229 | 1,726 | 5,340 | 1,581 | 1,581 | ||||||||||||||||||||
Attributable gold equivalent ounces sold | 265 | 251 | 59 | 321 | 896 | 502 | 502 | ||||||||||||||||||||
Average Realized Price ($/oz, $/lb) | |||||||||||||||||||||||||||
Average realized gold price | $ | 1,906 | $ | 1,965 | $ | 1,920 | $ | 2,004 | $ | 1,954 | $ | 2,090 | $ | 2,090 | |||||||||||||
Average realized copper price | $ | 4.18 | $ | 3.26 | $ | 3.68 | $ | 3.69 | $ | 3.71 | $ | 3.72 | $ | 3.72 | |||||||||||||
Average realized silver price (2) | $ | 19.17 | $ | 20.56 | N.M. | $ | 19.45 | $ | 19.97 | $ | 20.41 | $ | 20.41 | ||||||||||||||
Average realized lead price (2) | $ | 0.86 | $ | 0.92 | N.M. | $ | 0.90 | $ | 0.90 | $ | 0.92 | $ | 0.92 | ||||||||||||||
Average realized zinc price (2) | $ | 1.18 | $ | 0.73 | N.M. | $ | 3.71 | $ | 0.96 | $ | 0.92 | $ | 0.92 | ||||||||||||||
Attributable Gold Production (koz) | |||||||||||||||||||||||||||
Boddington | 199 | 209 | 181 | 156 | 745 | 142 | 142 | ||||||||||||||||||||
Tanami | 63 | 126 | 123 | 136 | 448 | 90 | 90 | ||||||||||||||||||||
Cadia | — | — | — | 97 | 97 | 122 | 122 | ||||||||||||||||||||
Lihir | — | — | — | 134 | 134 | 181 | 181 | ||||||||||||||||||||
Ahafo | 128 | 137 | 133 | 183 | 581 | 190 | 190 | ||||||||||||||||||||
Peñasquito (2) | 85 | 38 | — | 20 | 143 | 45 | 45 | ||||||||||||||||||||
Cerro Negro | 67 | 48 | 71 | 83 | 269 | 81 | 81 | ||||||||||||||||||||
Yanacocha | 56 | 65 | 87 | 68 | 276 | 91 | 91 | ||||||||||||||||||||
Merian (75%) | 62 | 40 | 62 | 78 | 242 | 57 | 57 | ||||||||||||||||||||
Brucejack | — | — | — | 29 | 29 | 37 | 37 | ||||||||||||||||||||
Red Chris | — | — | — | 5 | 5 | 6 | 6 | ||||||||||||||||||||
Managed Tier 1 Portfolio | 660 | 663 | 657 | 989 | 2,969 | 1,042 | 1,042 | ||||||||||||||||||||
Nevada Gold Mines | 261 | 287 | 300 | 322 | 1,170 | 264 | 264 | ||||||||||||||||||||
Pueblo Viejo (40%) (3) | 60 | 51 | 52 | 61 | 224 | 54 | 54 | ||||||||||||||||||||
Fruta Del Norte (31.9%) (4) | — | — | — | — | — | 21 | 21 | ||||||||||||||||||||
Non-Managed Tier 1 Portfolio | 321 | 338 | 352 | 383 | 1,394 | 339 | 339 | ||||||||||||||||||||
Total Tier 1 Portfolio | 981 | 1,001 | 1,009 | 1,372 | 4,363 | 1,381 | 1,381 | ||||||||||||||||||||
Telfer | — | — | — | 43 | 43 | 31 | 31 | ||||||||||||||||||||
Akyem | 71 | 49 | 75 | 100 | 295 | 69 | 69 | ||||||||||||||||||||
CC&V | 48 | 41 | 45 | 38 | 172 | 28 | 28 | ||||||||||||||||||||
Porcupine | 66 | 60 | 64 | 70 | 260 | 61 | 61 | ||||||||||||||||||||
Éléonore | 66 | 48 | 50 | 68 | 232 | 56 | 56 | ||||||||||||||||||||
Musselwhite | 41 | 41 | 48 | 50 | 180 | 49 | 49 | ||||||||||||||||||||
Non-Core Assets (5) | 292 | 239 | 282 | 369 | 1,182 | 294 | 294 | ||||||||||||||||||||
Total Attributable Gold Production | 1,273 | 1,240 | 1,291 | 1,741 | 5,545 | 1,675 | 1,675 | ||||||||||||||||||||
Attributable Co-Product GEO Production (kGEO) | |||||||||||||||||||||||||||
Boddington | 64 | 67 | 58 | 56 | 245 | 49 | 49 | ||||||||||||||||||||
Cadia | — | — | — | 90 | 90 | 118 | 118 | ||||||||||||||||||||
Peñasquito (2) | 224 | 189 | — | 116 | 529 | 288 | 288 | ||||||||||||||||||||
Red Chris | — | — | — | 20 | 20 | 28 | 28 | ||||||||||||||||||||
Tier 1 Portfolio | 288 | 256 | 58 | 282 | 884 | 483 | 483 | ||||||||||||||||||||
Telfer | — | — | — | 7 | 7 | 6 | 6 | ||||||||||||||||||||
Non-Core Assets (5) | — | — | — | 7 | 7 | 6 | 6 | ||||||||||||||||||||
Total Attributable Co-Product GEO Production | 288 | 256 | 58 | 289 | 891 | 489 | 489 | ||||||||||||||||||||
Gold CAS Consolidated ($/oz) | |||||||||||||||||||||||||||
Boddington | $ | 841 | $ | 777 | $ | 848 | $ | 941 | $ | 847 | $ | 1,016 | $ | 1,016 | |||||||||||||
Tanami | $ | 936 | $ | 829 | $ | 655 | $ | 702 | $ | 759 | $ | 902 | $ | 902 | |||||||||||||
Cadia | $ | — | $ | — | $ | — | $ | 1,079 | $ | 1,079 | $ | 648 | $ | 648 | |||||||||||||
Lihir | $ | — | $ | — | $ | — | $ | 1,117 | $ | 1,117 | $ | 936 | $ | 936 | |||||||||||||
Ahafo | $ | 992 | $ | 910 | $ | 969 | $ | 924 | $ | 947 | $ | 865 | $ | 865 | |||||||||||||
Peñasquito (2) | $ | 1,199 | $ | 831 | N.M. | $ | 1,306 | $ | 1,219 | $ | 853 | $ | 853 | ||||||||||||||
Cerro Negro | $ | 1,146 | $ | 1,655 | $ | 1,216 | $ | 1,132 | $ | 1,257 | $ | 861 | $ | 861 | |||||||||||||
Yanacocha | $ | 1,067 | $ | 1,187 | $ | 1,057 | $ | 975 | $ | 1,069 | $ | 972 | $ | 972 | |||||||||||||
Merian (75%) | $ | 1,028 | $ | 1,501 | $ | 1,261 | $ | 1,155 | $ | 1,207 | $ | 1,221 | $ | 1,221 | |||||||||||||
Brucejack | $ | — | $ | — | $ | — | $ | 1,898 | $ | 1,898 | $ | 2,175 | $ | 2,175 | |||||||||||||
Red Chris | $ | — | $ | — | $ | — | $ | 905 | $ | 905 | $ | 940 | $ | 940 | |||||||||||||
Nevada Gold Mines | $ | 1,109 | $ | 1,055 | $ | 992 | $ | 1,125 | $ | 1,070 | $ | 1,177 | $ | 1,177 | |||||||||||||
Tier 1 Portfolio | $ | 1,019 | $ | 1,001 | $ | 980 | $ | 1,050 | $ | 1,016 | $ | 1,000 | $ | 1,000 | |||||||||||||
Telfer | $ | — | $ | — | $ | — | $ | 1,882 | $ | 1,882 | $ | 2,632 | $ | 2,632 | |||||||||||||
Akyem | $ | 810 | $ | 1,087 | $ | 1,032 | $ | 877 | $ | 931 | $ | 1,006 | $ | 1,006 | |||||||||||||
CC&V | $ | 1,062 | $ | 1,186 | $ | 1,253 | $ | 1,122 | $ | 1,156 | $ | 1,394 | $ | 1,394 | |||||||||||||
Porcupine | $ | 1,071 | $ | 1,225 | $ | 1,189 | $ | 1,186 | $ | 1,167 | $ | 1,042 | $ | 1,042 | |||||||||||||
Éléonore | $ | 1,095 | $ | 1,477 | $ | 1,338 | $ | 1,224 | $ | 1,263 | $ | 1,441 | $ | 1,441 | |||||||||||||
Musselwhite | $ | 1,313 | $ | 1,356 | $ | 1,045 | $ | 1,068 | $ | 1,186 | $ | 1,175 | $ | 1,175 | |||||||||||||
Non-Core Assets (5) | $ | 1,043 | $ | 1,264 | $ | 1,159 | $ | 1,214 | $ | 1,169 | $ | 1,306 | $ | 1,306 | |||||||||||||
Total Gold CAS (6) | $ | 1,025 | $ | 1,054 | $ | 1,019 | $ | 1,086 | $ | 1,050 | $ | 1,057 | $ | 1,057 | |||||||||||||
Total Gold CAS (by-product) (6) | $ | 916 | $ | 1,024 | $ | 1,022 | $ | 1,060 | $ | 1,011 | $ | 891 | $ | 891 |
2023 | 2024 | ||||||||||||||||||||||||||
Operating Results (continued) | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | |||||||||||||||||
Co-Product CAS Consolidated ($/GEO) | |||||||||||||||||||||||||||
Boddington | $ | 809 | $ | 766 | $ | 816 | $ | 944 | $ | 830 | $ | 942 | $ | 942 | |||||||||||||
Cadia | $ | — | $ | — | $ | — | $ | 1,017 | $ | 1,017 | $ | 594 | $ | 594 | |||||||||||||
Peñasquito (2) | $ | 954 | $ | 1,162 | N.M. | $ | 1,602 | $ | 1,283 | $ | 843 | $ | 843 | ||||||||||||||
Red Chris | $ | — | $ | — | $ | — | $ | 1,020 | $ | 1,020 | $ | 1,011 | $ | 1,011 | |||||||||||||
Tier 1 Portfolio | $ | 918 | $ | 1,062 | $ | 1,636 | $ | 1,235 | $ | 1,118 | $ | 807 | $ | 807 | |||||||||||||
Telfer | $ | — | $ | — | $ | — | $ | 1,703 | $ | 1,703 | $ | 2,882 | $ | 2,882 | |||||||||||||
Non-Core Assets (5) | $ | — | $ | — | $ | — | $ | 1,703 | $ | 1,703 | $ | 2,882 | $ | 2,882 | |||||||||||||
Total Co-Product GEO CAS (6) | $ | 918 | $ | 1,062 | $ | 1,636 | $ | 1,254 | $ | 1,127 | $ | 829 | $ | 829 | |||||||||||||
Gold AISC Consolidated ($/oz) | |||||||||||||||||||||||||||
Boddington | $ | 1,035 | $ | 966 | $ | 1,123 | $ | 1,172 | $ | 1,067 | $ | 1,242 | $ | 1,242 | |||||||||||||
Tanami | $ | 1,219 | $ | 1,162 | $ | 890 | $ | 1,046 | $ | 1,060 | $ | 1,149 | $ | 1,149 | |||||||||||||
Cadia | $ | — | $ | — | $ | — | $ | 1,271 | $ | 1,271 | $ | 989 | $ | 989 | |||||||||||||
Lihir | $ | — | $ | — | $ | — | $ | 1,517 | $ | 1,517 | $ | 1,256 | $ | 1,256 | |||||||||||||
Ahafo | $ | 1,366 | $ | 1,237 | $ | 1,208 | $ | 1,114 | $ | 1,222 | $ | 1,010 | $ | 1,010 | |||||||||||||
Peñasquito (2) | $ | 1,539 | $ | 1,078 | N.M. | $ | 1,670 | $ | 1,590 | $ | 1,079 | $ | 1,079 | ||||||||||||||
Cerro Negro | $ | 1,379 | $ | 1,924 | $ | 1,438 | $ | 1,412 | $ | 1,509 | $ | 1,120 | $ | 1,120 | |||||||||||||
Yanacocha | $ | 1,332 | $ | 1,386 | $ | 1,187 | $ | 1,198 | $ | 1,266 | $ | 1,123 | $ | 1,123 | |||||||||||||
Merian (75%) | $ | 1,235 | $ | 2,010 | $ | 1,652 | $ | 1,454 | $ | 1,541 | $ | 1,530 | $ | 1,530 | |||||||||||||
Brucejack | $ | — | $ | — | $ | — | $ | 2,646 | $ | 2,646 | $ | 2,580 | $ | 2,580 | |||||||||||||
Red Chris | $ | — | $ | — | $ | — | $ | 1,439 | $ | 1,439 | $ | 1,277 | $ | 1,277 | |||||||||||||
Nevada Gold Mines | $ | 1,405 | $ | 1,388 | $ | 1,307 | $ | 1,482 | $ | 1,397 | $ | 1,576 | $ | 1,576 | |||||||||||||
Tier 1 Portfolio | $ | 1,381 | $ | 1,387 | $ | 1,355 | $ | 1,444 | $ | 1,397 | $ | 1,378 | $ | 1,378 | |||||||||||||
Telfer | $ | — | $ | — | $ | — | $ | 1,988 | $ | 1,988 | $ | 3,017 | $ | 3,017 | |||||||||||||
Akyem | $ | 1,067 | $ | 1,461 | $ | 1,332 | $ | 1,110 | $ | 1,210 | $ | 1,254 | $ | 1,254 | |||||||||||||
CC&V | $ | 1,375 | $ | 1,631 | $ | 1,819 | $ | 1,793 | $ | 1,644 | $ | 1,735 | $ | 1,735 | |||||||||||||
Porcupine | $ | 1,412 | $ | 1,587 | $ | 1,644 | $ | 1,665 | $ | 1,577 | $ | 1,470 | $ | 1,470 | |||||||||||||
Éléonore | $ | 1,420 | $ | 2,213 | $ | 2,107 | $ | 1,796 | $ | 1,838 | $ | 1,920 | $ | 1,920 | |||||||||||||
Musselwhite | $ | 1,681 | $ | 2,254 | $ | 1,715 | $ | 1,771 | $ | 1,843 | $ | 1,766 | $ | 1,766 | |||||||||||||
Non-Core Assets (5) | $ | 1,359 | $ | 1,808 | $ | 1,685 | $ | 1,629 | $ | 1,610 | $ | 1,712 | $ | 1,712 | |||||||||||||
Total Gold AISC (6) | $ | 1,376 | $ | 1,472 | $ | 1,426 | $ | 1,485 | $ | 1,444 | $ | 1,439 | $ | 1,439 | |||||||||||||
Total Gold AISC (by-product) (6) | $ | 1,354 | $ | 1,531 | $ | 1,467 | $ | 1,540 | $ | 1,480 | $ | 1,373 | $ | 1,373 | |||||||||||||
Co-Product AISC Consolidated ($/GEO) | |||||||||||||||||||||||||||
Boddington | $ | 1,019 | $ | 977 | $ | 1,108 | $ | 1,181 | $ | 1,067 | $ | 1,081 | $ | 1,081 | |||||||||||||
Cadia | $ | — | $ | — | $ | — | $ | 1,342 | $ | 1,342 | $ | 1,027 | $ | 1,027 | |||||||||||||
Peñasquito (2) | $ | 1,351 | $ | 1,581 | N.M. | $ | 2,098 | $ | 1,756 | $ | 1,102 | $ | 1,102 | ||||||||||||||
Red Chris | $ | — | $ | — | $ | — | $ | 1,660 | $ | 1,660 | $ | 1,400 | $ | 1,400 | |||||||||||||
Tier 1 Portfolio | $ | 1,322 | $ | 1,492 | $ | 2,422 | $ | 1,666 | $ | 1,565 | $ | 1,120 | $ | 1,120 | |||||||||||||
Telfer | $ | — | $ | — | $ | — | $ | 2,580 | $ | 2,580 | $ | 3,745 | $ | 3,745 | |||||||||||||
Non-Core Assets (5) | $ | — | $ | — | $ | — | $ | 2,580 | $ | 2,580 | $ | 3,745 | $ | 3,745 | |||||||||||||
Total Co-Product GEO AISC (6) | $ | 1,322 | $ | 1,492 | $ | 2,422 | $ | 1,703 | $ | 1,579 | $ | 1,148 | $ | 1,148 |
(1) | Attributable gold ounces sold excludes ounces related to the Pueblo Viejo mine, which is 40% owned by Newmont and accounted for as an equity method investment, and the Fruta del Norte mine, which is wholly owned by Lundin Gold whom the Company holds a 31.9% interest and is accounted for as an equity method investment. | |
(2) | For the three months ended June 30, 2023 and September 30, 2023, Peñasquito production was impacted due to the suspension of operations as a result of the Union labor strike. Sales activity recognized in the third quarter of 2023 was related to adjustments on provisionally price concentrate sales subject to final settlement. Consequently, price per ounce/pound metrics are not meaningful ("N.M"). | |
(3) | Represents attributable gold from Newmont's 40% interest in Pueblo Viejo, which is accounted for as an equity method investment. Attributable gold ounces produced at Pueblo Viejo are not included in attributable gold ounces sold, as noted in footnote (1). Income and expenses of equity method investments are included in Equity income (loss) of affiliates . | |
(4) | Represents attributable gold from Newmont's 31.9% interest in Lundin Gold, who wholly owns and operates the Fruta del Norte mine, which is accounted for on a quarterly-lag as an equity method investment. Attributable gold ounces produced by Lundin Gold represent prior quarter production and are not included in attributable gold ounces sold, as noted in footnote (1). Income and expenses of equity method investments are included in Equity income (loss) of affiliates . | |
(5) | Sites are classified as held for sale as of March 31, 2024. | |
(6) | Non-GAAP measure. See end of this release for reconciliation. |
NEWMONT CORPORATION | |||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||||||||||
(unaudited, in millions except per share) | |||||||||||||||||||||||||||||||||
2023 (1) | 2024 | ||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | ||||||||||||||||||||||||
Sales | $ | 2,679 | $ | 2,683 | $ | 2,493 | $ | 3,957 | $ | 11,812 | $ | 4,023 | $ | 4,023 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||
Costs applicable to sales (2) | 1,482 | 1,543 | 1,371 | 2,303 | 6,699 | 2,106 | 2,106 | ||||||||||||||||||||||||||
Depreciation and amortization | 461 | 486 | 480 | 681 | 2,108 | 654 | 654 | ||||||||||||||||||||||||||
Reclamation and remediation | 66 | 66 | 166 | 1,235 | 1,533 | 98 | 98 | ||||||||||||||||||||||||||
Exploration | 48 | 66 | 78 | 73 | 265 | 53 | 53 | ||||||||||||||||||||||||||
Advanced projects, research and development | 35 | 44 | 53 | 68 | 200 | 53 | 53 | ||||||||||||||||||||||||||
General and administrative | 74 | 71 | 70 | 84 | 299 | 101 | 101 | ||||||||||||||||||||||||||
Loss on assets held for sale | — | — | — | — | — | 485 | 485 | ||||||||||||||||||||||||||
Impairment charges | 4 | 4 | 2 | 1,881 | 1,891 | 12 | 12 | ||||||||||||||||||||||||||
Other expense, net | 4 | 37 | 35 | 441 | 517 | 61 | 61 | ||||||||||||||||||||||||||
2,174 | 2,317 | 2,255 | 6,766 | 13,512 | 3,623 | 3,623 | |||||||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||||||
Other income (loss), net | 99 | (17 | ) | 42 | (212 | ) | (88 | ) | 121 | 121 | |||||||||||||||||||||||
Interest expense, net of capitalized interest | (65 | ) | (49 | ) | (48 | ) | (81 | ) | (243 | ) | (93 | ) | (93 | ) | |||||||||||||||||||
34 | (66 | ) | (6 | ) | (293 | ) | (331 | ) | 28 | 28 | |||||||||||||||||||||||
Income (loss) before income and mining tax and other items | 539 | 300 | 232 | (3,102 | ) | (2,031 | ) | 428 | 428 | ||||||||||||||||||||||||
Income and mining tax benefit (expense) | (213 | ) | (163 | ) | (73 | ) | (77 | ) | (526 | ) | (260 | ) | (260 | ) | |||||||||||||||||||
Equity income (loss) of affiliates | 25 | 16 | 3 | 19 | 63 | 7 | 7 | ||||||||||||||||||||||||||
Net income (loss) from continuing operations | 351 | 153 | 162 | (3,160 | ) | (2,494 | ) | 175 | 175 | ||||||||||||||||||||||||
Net income (loss) from discontinued operations | 12 | 2 | 1 | 12 | 27 | 4 | 4 | ||||||||||||||||||||||||||
Net income (loss) | 363 | 155 | 163 | (3,148 | ) | (2,467 | ) | 179 | 179 | ||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests | (12 | ) | — | (5 | ) | (10 | ) | (27 | ) | (9 | ) | (9 | ) | ||||||||||||||||||||
Net income (loss) attributable to Newmont stockholders | $ | 351 | $ | 155 | $ | 158 | $ | (3,158 | ) | $ | (2,494 | ) | $ | 170 | $ | 170 | |||||||||||||||||
Net income (loss) attributable to Newmont stockholders: | |||||||||||||||||||||||||||||||||
Continuing operations | $ | 339 | $ | 153 | $ | 157 | $ | (3,170 | ) | $ | (2,521 | ) | $ | 166 | $ | 166 | |||||||||||||||||
Discontinued operations | 12 | 2 | 1 | 12 | 27 | 4 | 4 | ||||||||||||||||||||||||||
$ | 351 | $ | 155 | $ | 158 | $ | (3,158 | ) | $ | (2,494 | ) | $ | 170 | $ | 170 | ||||||||||||||||||
Weighted average common shares (millions): | |||||||||||||||||||||||||||||||||
Basic | 794 | 795 | 795 | 978 | 841 | 1,153 | 1,153 | ||||||||||||||||||||||||||
Effect of employee stock-based awards | 1 | — | 1 | 1 | — | — | — | ||||||||||||||||||||||||||
Diluted | 795 | 795 | 796 | 979 | 841 | 1,153 | 1,153 | ||||||||||||||||||||||||||
Net income (loss) attributable to Newmont stockholders per common share: | |||||||||||||||||||||||||||||||||
Basic: | |||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.42 | $ | 0.19 | $ | 0.20 | $ | (3.24 | ) | $ | (3.00 | ) | $ | 0.15 | $ | 0.15 | |||||||||||||||||
Discontinued operations | 0.02 | — | — | 0.01 | 0.03 | — | — | ||||||||||||||||||||||||||
$ | 0.44 | $ | 0.19 | $ | 0.20 | $ | (3.23 | ) | $ | (2.97 | ) | $ | 0.15 | $ | 0.15 | ||||||||||||||||||
Diluted: | |||||||||||||||||||||||||||||||||
Continuing operations | $ | 0.42 | $ | 0.19 | $ | 0.20 | $ | (3.24 | ) | $ | (3.00 | ) | $ | 0.15 | $ | 0.15 | |||||||||||||||||
Discontinued operations | 0.02 | — | — | 0.01 | 0.03 | — | — | ||||||||||||||||||||||||||
$ | 0.44 | $ | 0.19 | $ | 0.20 | $ | (3.23 | ) | $ | (2.97 | ) | $ | 0.15 | $ | 0.15 |
(1) | Certain amounts and disclosures in the prior year have been reclassified to conform to the current year presentation. | |
(2) | Excludes Depreciation and amortization and Reclamation and remediation . |
NEWMONT CORPORATION | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||||
(unaudited, in millions) | |||||||||||||||||||||||||
2023 (1) | 2024 | ||||||||||||||||||||||||
MAR | JUN | SEP | DEC | MAR | JUN | SEP | DEC | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,657 | $ | 2,829 | $ | 3,190 | $ | 3,002 | $ | 2,336 | |||||||||||||||
Trade receivables | 348 | 185 | 78 | 734 | 782 | ||||||||||||||||||||
Investments | 847 | 409 | 24 | 23 | 23 | ||||||||||||||||||||
Inventories | 1,067 | 1,111 | 1,127 | 1,663 | 1,385 | ||||||||||||||||||||
Stockpiles and ore on leach pads | 905 | 858 | 829 | 979 | 745 | ||||||||||||||||||||
Derivative assets | — | — | — | 198 | 114 | ||||||||||||||||||||
Other current assets | 735 | 742 | 707 | 913 | 765 | ||||||||||||||||||||
Current assets held for sale | — | — | — | — | 5,656 | ||||||||||||||||||||
Current assets | 6,559 | 6,134 | 5,955 | 7,512 | 11,806 | ||||||||||||||||||||
Property, plant and mine development, net | 24,097 | 24,284 | 24,474 | 37,563 | 33,564 | ||||||||||||||||||||
Investments | 3,216 | 3,172 | 3,133 | 4,143 | 4,138 | ||||||||||||||||||||
Stockpiles and ore on leach pads | 1,691 | 1,737 | 1,740 | 1,935 | 1,837 | ||||||||||||||||||||
Deferred income tax assets | 170 | 166 | 138 | 268 | 210 | ||||||||||||||||||||
Goodwill | 1,971 | 1,971 | 1,971 | 3,001 | 2,792 | ||||||||||||||||||||
Derivative assets | — | — | — | 444 | 412 | ||||||||||||||||||||
Other non-current assets | 670 | 669 | 673 | 640 | 576 | ||||||||||||||||||||
Total assets | $ | 38,374 | $ | 38,133 | $ | 38,084 | $ | 55,506 | $ | 55,335 | |||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Accounts payable | $ | 648 | $ | 565 | $ | 651 | $ | 960 | $ | 698 | |||||||||||||||
Employee-related benefits | 302 | 313 | 345 | 551 | 414 | ||||||||||||||||||||
Income and mining taxes payable | 213 | 155 | 143 | 88 | 136 | ||||||||||||||||||||
Lease and other financing obligations | 96 | 96 | 94 | 114 | 99 | ||||||||||||||||||||
Debt | — | — | — | 1,923 | — | ||||||||||||||||||||
Other current liabilities | 1,493 | 1,564 | 1,575 | 2,362 | 1,784 | ||||||||||||||||||||
Current liabilities held for sale | — | — | — | — | 2,351 | ||||||||||||||||||||
Current liabilities | 2,752 | 2,693 | 2,808 | 5,998 | 5,482 | ||||||||||||||||||||
Debt | 5,572 | 5,574 | 5,575 | 6,951 | 8,933 | ||||||||||||||||||||
Lease and other financing obligations | 451 | 441 | 418 | 448 | 436 | ||||||||||||||||||||
Reclamation and remediation liabilities | 6,603 | 6,604 | 6,714 | 8,167 | 6,652 | ||||||||||||||||||||
Deferred income tax liabilities | 1,800 | 1,795 | 1,696 | 2,987 | 3,094 | ||||||||||||||||||||
Employee-related benefits | 395 | 399 | 397 | 655 | 610 | ||||||||||||||||||||
Silver streaming agreement | 805 | 786 | 787 | 779 | 753 | ||||||||||||||||||||
Other non-current liabilities | 437 | 426 | 429 | 316 | 300 | ||||||||||||||||||||
Total liabilities | 18,815 | 18,718 | 18,824 | 26,301 | 26,260 | ||||||||||||||||||||
Commitments and contingencies | |||||||||||||||||||||||||
EQUITY | |||||||||||||||||||||||||
Common stock | 1,281 | 1,281 | 1,281 | 1,854 | 1,855 | ||||||||||||||||||||
Treasury stock | (261 | ) | (261 | ) | (263 | ) | (264 | ) | (274 | ) | |||||||||||||||
Additional paid-in capital | 17,386 | 17,407 | 17,425 | 30,419 | 30,436 | ||||||||||||||||||||
Accumulated other comprehensive income (loss) | 23 | 13 | 8 | 14 | (16 | ) | |||||||||||||||||||
(Accumulated deficit) Retained earnings | 948 | 785 | 623 | (2,996 | ) | (3,111 | ) | ||||||||||||||||||
Newmont stockholders' equity | 19,377 | 19,225 | 19,074 | 29,027 | 28,890 | ||||||||||||||||||||
Noncontrolling interests | 182 | 190 | 186 | 178 | 185 | ||||||||||||||||||||
Total equity | 19,559 | 19,415 | 19,260 | 29,205 | 29,075 | ||||||||||||||||||||
Total liabilities and equity | $ | 38,374 | $ | 38,133 | $ | 38,084 | $ | 55,506 | $ | 55,335 |
(1) | Certain amounts and disclosures in the prior year have been reclassified to conform to the current year presentation. |
NEWMONT CORPORATION | |||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||||||||||||||||||
(unaudited, in millions) | |||||||||||||||||||||||||||||||||
2023 (1) | 2024 | ||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | Q3 | Q4 | FY | ||||||||||||||||||||||||
Operating activities: | |||||||||||||||||||||||||||||||||
Net income (loss) | $ | 363 | $ | 155 | $ | 163 | $ | (3,148 | ) | $ | (2,467 | ) | $ | 179 | $ | 179 | |||||||||||||||||
Non-cash adjustments: | |||||||||||||||||||||||||||||||||
Depreciation and amortization | 461 | 486 | 480 | 681 | 2,108 | 654 | 654 | ||||||||||||||||||||||||||
Loss on assets held for sale | — | — | — | — | — | 485 | 485 | ||||||||||||||||||||||||||
Net loss (income) from discontinued operations | (12 | ) | (2 | ) | (1 | ) | (12 | ) | (27 | ) | (4 | ) | (4 | ) | |||||||||||||||||||
Reclamation and remediation | 61 | 59 | 167 | 1,219 | 1,506 | 94 | 94 | ||||||||||||||||||||||||||
Deferred income taxes | 15 | 6 | (24 | ) | (101 | ) | (104 | ) | 53 | 53 | |||||||||||||||||||||||
Change in fair value of investments | (41 | ) | 42 | 41 | 5 | 47 | (31 | ) | (31 | ) | |||||||||||||||||||||||
(Gain) loss on asset and investment sales, net | (36 | ) | — | 2 | 231 | 197 | (9 | ) | (9 | ) | |||||||||||||||||||||||
Impairment charges | 4 | 4 | 2 | 1,881 | 1,891 | 12 | 12 | ||||||||||||||||||||||||||
Other non-cash adjustments | 28 | 13 | 44 | 21 | 106 | 9 | 9 | ||||||||||||||||||||||||||
Cash from operations before working capital (2) | 843 | 763 | 874 | 777 | 3,257 | 1,442 | 1,442 | ||||||||||||||||||||||||||
Net change in operating assets and liabilities | (362 | ) | (107 | ) | 127 | (171 | ) | (513 | ) | (666 | ) | (666 | ) | ||||||||||||||||||||
Net cash provided by (used in) operating activities of continuing operations | 481 | 656 | 1,001 | 616 | 2,754 | 776 | 776 | ||||||||||||||||||||||||||
Net cash provided by (used in) operating activities of discontinued operations | — | 7 | 2 | — | 9 | — | — | ||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | 481 | 663 | 1,003 | 616 | 2,763 | 776 | 776 | ||||||||||||||||||||||||||
Investing activities: | | | |||||||||||||||||||||||||||||||
Additions to property, plant and mine development | (526 | ) | (616 | ) | (604 | ) | (920 | ) | (2,666 | ) | (850 | ) | (850 | ) | |||||||||||||||||||
Proceeds from asset and investment sales | 181 | 33 | 5 | 15 | 234 | 35 | 35 | ||||||||||||||||||||||||||
Return of investment from equity method investees | — | 30 | — | 6 | 36 | 25 | 25 | ||||||||||||||||||||||||||
Purchases of investments | (525 | ) | (17 | ) | (3 | ) | (6 | ) | (551 | ) | (23 | ) | (23 | ) | |||||||||||||||||||
Contributions to equity method investees | (41 | ) | (23 | ) | (26 | ) | (18 | ) | (108 | ) | (15 | ) | (15 | ) | |||||||||||||||||||
Proceeds from maturities of investments | 557 | 424 | 374 | 8 | 1,363 | — | — | ||||||||||||||||||||||||||
Acquisitions, net | — | — | — | 668 | 668 | — | — | ||||||||||||||||||||||||||
Other | 12 | 11 | 1 | (2 | ) | 22 | 30 | 30 | |||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (342 | ) | (158 | ) | (253 | ) | (249 | ) | (1,002 | ) | (798 | ) | (798 | ) | |||||||||||||||||||
Net cash provided by (used in) investing activities of discontinued operations | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Net cash provided by (used in) investing activities | (342 | ) | (158 | ) | (253 | ) | (249 | ) | (1,002 | ) | (798 | ) | (798 | ) | |||||||||||||||||||
Financing activities: | |||||||||||||||||||||||||||||||||
Proceeds from issuance of debt, net | — | — | — | — | — | 3,476 | 3,476 | ||||||||||||||||||||||||||
Repayment of debt | — | — | — | — | — | (3,423 | ) | (3,423 | ) | ||||||||||||||||||||||||
Dividends paid to common stockholders | (318 | ) | (318 | ) | (318 | ) | (461 | ) | (1,415 | ) | (288 | ) | (288 | ) | |||||||||||||||||||
Distributions to noncontrolling interests | (34 | ) | (32 | ) | (41 | ) | (43 | ) | (150 | ) | (41 | ) | (41 | ) | |||||||||||||||||||
Funding from noncontrolling interests | 41 | 34 | 32 | 31 | 138 | 22 | 22 | ||||||||||||||||||||||||||
Payments on lease and other financing obligations | (16 | ) | (16 | ) | (16 | ) | (19 | ) | (67 | ) | (18 | ) | (18 | ) | |||||||||||||||||||
Payments for withholding of employee taxes related to stock-based compensation | (22 | ) | — | (2 | ) | (1 | ) | (25 | ) | (10 | ) | (10 | ) | ||||||||||||||||||||
Other | (1 | ) | (2 | ) | (36 | ) | (45 | ) | (84 | ) | (17 | ) | (17 | ) | |||||||||||||||||||
Net cash provided by (used in) financing activities | (350 | ) | (334 | ) | (381 | ) | (538 | ) | (1,603 | ) | (299 | ) | (299 | ) | |||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (8 | ) | 4 | (5 | ) | 7 | (2 | ) | (3 | ) | (3 | ) | |||||||||||||||||||||
Net change in cash, cash equivalents and restricted cash, including cash and restricted cash reclassified to assets held for sale | (219 | ) | 175 | 364 | (164 | ) | 156 | (324 | ) | (324 | ) | ||||||||||||||||||||||
Less: cash and restricted cash reclassified to assets held for sale (3) | — | — | — | — | — | (395 | ) | (395 | ) | ||||||||||||||||||||||||
Net change in cash, cash equivalents and restricted cash | (219 | ) | 175 | 364 | (164 | ) | 156 | (719 | ) | (719 | ) | ||||||||||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 2,944 | 2,725 | 2,900 | 3,264 | 2,944 | 3,100 | 3,100 | ||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 2,725 | $ | 2,900 | $ | 3,264 | $ | 3,100 | $ | 3,100 | $ | 2,381 | $ | 2,381 | |||||||||||||||||||
Reconciliation of cash, cash equivalents and restricted cash: | | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,657 | $ | 2,829 | $ | 3,190 | $ | 3,002 | $ | 3,002 | $ | 2,336 | $ | 2,336 | |||||||||||||||||||
Restricted cash included in Other current assets | 1 | 1 | 1 | 11 | 11 | 6 | 6 | ||||||||||||||||||||||||||
Restricted cash included in Other non-current assets | 67 | 70 | 73 | 87 | 87 | 39 | 39 | ||||||||||||||||||||||||||
Total cash, cash equivalents and restricted cash | $ | 2,725 | $ | 2,900 | $ | 3,264 | $ | 3,100 | $ | 3,100 | $ | 2,381 | $ | 2,381 |
(1) | Certain amounts and disclosures in the prior year have been reclassified to conform to the current year presentation. | |
(2) | Cash from operations before working capital is a non-GAAP metric with the most directly comparable GAAP financial metric being to Net cash provided by (used in) operating activities , as shown reconciled above. | |
(3) | During the first quarter of 2024, certain non-core assets were determined to meet the criteria for assets held for sale. As a result, the related assets and liabilities, including $342 of Cash and cash equivalents and $53 of restricted cash, included in Other current assets and Other non-current assets , were reclassified to C urrent assets held for sale and Current liabilities held for sale , respectively. |
Non-GAAP Financial Measures
Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by GAAP. These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Refer to Non-GAAP Financial Measures within Part II, Item 7 within our Form 10-K for the year ended December 31, 2023, filed with the SEC on February 29, 2024 for further information on the non-GAAP financial measures presented below, including why management believes that its presentation of non-GAAP financial measures provides useful information to investors.
Adjusted net income (loss)
Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows:
Three Months Ended | |||||||||||
per share data (1) | |||||||||||
basic | diluted | ||||||||||
Net income (loss) attributable to Newmont stockholders | $ | 170 | $ | 0.15 | $ | 0.15 | |||||
Net loss (income) attributable to Newmont stockholders from discontinued operations | (4 | ) | — | — | |||||||
Net income (loss) attributable to Newmont stockholders from continuing operations | 166 | 0.15 | 0.15 | ||||||||
Loss on assets held for sale (2) | 485 | 0.43 | 0.43 | ||||||||
Change in fair value of investments (3) | (31 | ) | (0.03 | ) | (0.03 | ) | |||||
Newcrest transaction and integration costs (4) | 29 | 0.03 | 0.03 | ||||||||
Settlement costs (5) | 21 | 0.02 | 0.02 | ||||||||
Impairment charges (6) | 12 | 0.01 | 0.01 | ||||||||
(Gain) loss on asset and investment sales, net (7) | (9 | ) | (0.01 | ) | (0.01 | ) | |||||
Restructuring and severance (8) | 6 | — | — | ||||||||
Reclamation and remediation charges (9) | 6 | — | — | ||||||||
Tax effect of adjustments (10) | (147 | ) | (0.13 | ) | (0.13 | ) | |||||
Valuation allowance and other tax adjustments (11) | 92 | 0.08 | 0.08 | ||||||||
Adjusted net income (loss) | $ | 630 | $ | 0.55 | $ | 0.55 | |||||
| |||||||||||
Weighted average common shares (millions): (12) | 1,153 | 1,153 |
(1) | Per share measures may not recalculate due to rounding. | |
(2) | Loss on assets held for sale, included in Loss on assets held for sale , represents the loss recorded for the six non-core assets and the development project that met the requirements to be presented as held for sale in 2024. | |
(3) | Change in fair value of investments, included in Other income (loss), net , primarily represents unrealized gains and losses related to the Company's investment in current and non-current marketable equity securities. | |
(4) | Newcrest transaction and integration costs, included in Other expense, net , represents costs incurred related to Newmont's acquisition of Newcrest completed in 2023 as well as subsequent integration costs. | |
(5) | Settlement costs, included in Other expense, net , are primarily comprised of wind down and demobilization costs related to the French Guiana project. | |
(6) | Impairment charges, included in Other expense, net , represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories. | |
(7) | (Gain) loss on asset and investment sales, net, included in Other income (loss), net , primarily represents the gain recognized on the purchase and sale of foreign currency bonds. | |
(8) | Restructuring and severance, included in Other expense, net , primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company. | |
(9) | Reclamation and remediation charges, included in Reclamation and remediation , represent revisions to reclamation and remediation plans at the Company's former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. | |
(10) | The tax effect of adjustments, included in Income and mining tax benefit (expense) , represents the tax effect of adjustments in footnotes (2) through (9), as described above, and are calculated using the applicable regional tax rate. | |
(11) | Valuation allowance and other tax adjustments, included in Income and mining tax benefit (expense) , is recorded for items such as foreign tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three months ended March 31, 2024 reflects the net increase or (decrease) to net operating losses, capital losses, tax credit carryovers, and other deferred tax assets subject to valuation allowance of $(65), the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $35, net reductions to the reserve for uncertain tax positions of $(2), recording of a deferred tax liability for the outside basis difference at Akyem of $117 due to the status change to held-for-sale, and other tax adjustments of $7. | |
(12) | Adjusted net income (loss) per diluted share is calculated using diluted common shares in accordance with GAAP. |
Three Months Ended | |||||||||||
per share data (1) | |||||||||||
basic | diluted | ||||||||||
Net income (loss) attributable to Newmont stockholders | $ | 351 | $ | 0.44 | $ | 0.44 | |||||
Net loss (income) attributable to Newmont stockholders from discontinued operations | (12 | ) | (0.02 | ) | (0.02 | ) | |||||
Net income (loss) attributable to Newmont stockholders from continuing operations | 339 | 0.42 | 0.42 | ||||||||
Change in fair value of investments (2) | (41 | ) | (0.05 | ) | (0.05 | ) | |||||
(Gain) loss on asset and investment sales, net (3) | (36 | ) | (0.05 | ) | (0.05 | ) | |||||
Impairment charges (4) | 4 | — | — | ||||||||
Restructuring and severance (5) | 2 | — | — | ||||||||
Other (6) | (4 | ) | — | — | |||||||
Tax effect of adjustments (7) | 16 | 0.02 | 0.02 | ||||||||
Valuation allowance and other tax adjustments (8) | 40 | 0.06 | 0.06 | ||||||||
Adjusted net income (loss) | $ | 320 | $ | 0.40 | $ | 0.40 | |||||
| |||||||||||
Weighted average common shares (millions): (9) | 794 | 795 |
(1) | Per share measures may not recalculate due to rounding. | |
(2) | Change in fair value of investments, included in Other income (loss), net , primarily represents unrealized gains and losses related to the Company's investment in current and non-current marketable and other equity securities. | |
(3) | (Gain) loss on asset and investment sales, net, included in Other income (loss), net , primarily represents the net gain recognized on the exchange of the previously held Maverix investment for Triple Flag and the subsequent sale of the Triple Flag investment. | |
(4) | Impairment charges, included in Other expense, net , represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories. | |
(5) | Restructuring and severance, included in Other expense, net , primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company. | |
(6) | Other, included in Other income (loss), net , primarily represents income received on the favorable settlement of certain matters that were outstanding at the time of sale of the related investment in 2022. | |
(7) | The tax effect of adjustments, included in Income and mining tax benefit (expense) , represents the tax effect of adjustments in footnotes (2) through (6), as described above, and are calculated using the applicable regional tax rate. | |
(8) | Valuation allowance and other tax adjustments, included in Income and mining tax benefit (expense) , is recorded for items such as foreign tax credits, capital losses, disallowed foreign losses, and the effects of changes in foreign currency exchange rates on deferred tax assets and deferred tax liabilities. The adjustment for the three months ended March 31, 2023 reflects the net increase or (decrease) to net operating losses, capital losses, tax credit carryovers, and other deferred tax assets subject to valuation allowance of $10, the effects of changes in foreign exchange rates on deferred tax assets and liabilities of $17, net reductions to the reserve for uncertain tax positions of $11, other tax adjustments of $2. | |
(9) | Adjusted net income (loss) per diluted share is calculated using diluted common shares in accordance with GAAP. |
Earnings before interest, taxes, depreciation and amortization and Adjusted earnings before interest, taxes, depreciation and amortization
Net income (loss) attributable to Newmont stockholders is reconciled to EBITDA and Adjusted EBITDA as follows:
| Three Months Ended | ||||||
| 2024 | 2023 | |||||
Net income (loss) attributable to Newmont stockholders | $ | 170 | $ | 351 | |||
Net income (loss) attributable to noncontrolling interests | 9 | 12 | |||||
Net (income) loss from discontinued operations | (4 | ) | (12 | ) | |||
Equity loss (income) of affiliates | (7 | ) | (25 | ) | |||
Income and mining tax expense (benefit) | 260 | 213 | |||||
Depreciation and amortization | 654 | 461 | |||||
Interest expense, net of capitalized interest | 93 | 65 | |||||
EBITDA | $ | 1,175 | $ | 1,065 | |||
Adjustments: | |||||||
Loss on assets held for sale (1) | $ | 485 | $ | — | |||
Change in fair value of investments (2) | (31 | ) | (41 | ) | |||
Newcrest transaction and integration costs (3) | 29 | — | |||||
Settlement costs (4) | 21 | — | |||||
Impairment charges (5) | 12 | 4 | |||||
(Gain) loss on asset and investment sales, net (6) | (9 | ) | (36 | ) | |||
Restructuring and severance (7) | 6 | 2 | |||||
Reclamation and remediation charges (8) | 6 | — | |||||
Other (9) | — | (4 | ) | ||||
Adjusted EBITDA | $ | 1,694 | $ | 990 |
(1) | Loss on assets held for sale, included in Loss on assets held for sale , represents the loss recorded for the six non-core assets and the development project that met the requirements to be presented as held for sale in 2024. | |
(2) | Change in fair value of investments, included in Other income (loss), net , primarily represents unrealized gains and losses related to the Company's investments in current and non-current marketable equity securities. | |
(3) | Newcrest transaction and integration costs, included in Other expense, net , represents costs incurred related to Newmont's acquisition of Newcrest completed in 2023 as well as subsequent integration costs. | |
(4) | Settlement costs, included in Other expense, net , are primarily comprised of wind-down and demobilization costs related to the French Guiana project in 2024 and litigation expenses in 2023. | |
(5) | Impairment charges, included in Other expense, net , represents non-cash write-downs of various assets that are no longer in use and materials and supplies inventories. | |
(6) | (Gain) loss on asset and investment sales, net, included in Other income (loss), net , in 2024 primarily represent the purchase and sale of foreign currency bonds. For 2023, primarily comprised of the net gain recognized on the exchange of the previously held Maverix investment for Triple Flag and the subsequent sale of the Triple Flag investment. | |
(7) | Restructuring and severance, included in Other expense, net , primarily represents severance and related costs associated with significant organizational or operating model changes implemented by the Company for all periods presented. | |
(8) | Reclamation and remediation charges, included in Reclamation and remediation , represent revisions to reclamation and remediation plans at the Company's former operating properties and historic mining operations that have entered the closure phase and have no substantive future economic value. | |
(9) | Other, included in Other income (loss), net , in 2023, represents income received during the first quarter of 2023, on the favorable settlement of certain matters that were outstanding at the time of sale of the related investment in 2022. |
Free Cash Flow
The following table sets forth a reconciliation of Free Cash Flow, a non-GAAP financial measure, to Net cash provided by (used in) operating activities , which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow, as well as information regarding Net cash provided by (used in) investing activities and Net cash provided by (used in) financing activities.
Three Months Ended | |||||||
2024 | 2023 | ||||||
Net cash provided by (used in) operating activities (1) | $ | 776 | $ | 481 | |||
Less: Additions to property, plant and mine development | (850 | ) | (526 | ) | |||
Free Cash Flow | $ | (74 | ) | $ | (45 | ) | |
Net cash provided by (used in) investing activities (2) | $ | (798 | ) | $ | (342 | ) | |
Net cash provided by (used in) financing activities | $ | (299 | ) | $ | (350 | ) |
(1) | Includes payment of $291 for stamp duty tax, related to the Newcrest transaction, in the first quarter of 2024. | |
(2) | Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company's computation of Free Cash Flow. |
Attributable Free Cash Flow
Management uses Attributable Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations that are attributable to the Company. Attributable Free Cash Flow is Net cash provided by (used in) operating activities after deducting net cash flows from operations attributable to noncontrolling interests less Net cash provided by (used in) operating activities of discontinued operations after deducting net cash flows from discontinued operations attributable to noncontrolling interests less Additions to property, plant and mine development after deducting property, plant and mine development attributable to noncontrolling interests. The Company believes that Attributable Free Cash Flow is useful as one of the bases for comparing the Company's performance with its competitors. Although Attributable Free Cash Flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company's calculation of Attributable Free Cash Flow is not necessarily comparable to such other similarly titled captions of other companies.
The presentation of non-GAAP Attributable Free Cash Flow is not meant to be considered in isolation or as an alternative to Net income attributable to Newmont stockholders as an indicator of the Company's performance, or as an alternative to Net cash provided by (used in) operating activities as a measure of liquidity as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. The Company's definition of Attributable Free Cash Flow is limited in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, the Company believes it is important to view Attributable Free Cash Flow as a measure that provides supplemental information to the Company's Condensed Consolidated Statements of Cash Flows.
The following tables set forth a reconciliation of Attributable Free Cash Flow, a non-GAAP financial measure, to Net cash provided by (used in) operating activities , which the Company believes to be the GAAP financial measure most directly comparable to Attributable Free Cash Flow, as well as information regarding Net cash provided by (used in) investing activities and Net cash provided by (used in) financing activities.
Three Months Ended March 31, 2024 | |||||||||||
Consolidated | Attributable to | Attributable to | |||||||||
Net cash provided by (used in) operating activities | $ | 776 | $ | (7 | ) | $ | 769 | ||||
Less: Additions to property, plant and mine development (2) | (850 | ) | 4 | (846 | ) | ||||||
Free Cash Flow | $ | (74 | ) | $ | (3 | ) | $ | (77 | ) | ||
Net cash provided by (used in) investing activities (3) | $ | (798 | ) | ||||||||
Net cash provided by (used in) financing activities | $ | (299 | ) |
(1) | Adjustment to eliminate a portion of Net cash provided by (used in) operating activities and Additions to property, plant and mine development attributable to noncontrolling interests, which primarily relates to Merian (25%) for the three months ended March 31, 2024. | |
(2) | For the three months ended March 31, 2024, Merian had total consolidated Additions to property, plant and mine development of $15, on a cash basis. | |
(3) | Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company's computation of Free Cash Flow. |
Three Months Ended March 31, 2023 | |||||||||||
Consolidated | Attributable to | Attributable to | |||||||||
Net cash provided by (used in) operating activities | $ | 481 | $ | (12 | ) | $ | 469 | ||||
Less: Additions to property, plant and mine development (2) | (526 | ) | 3 | (523 | ) | ||||||
Free Cash Flow | $ | (45 | ) | $ | (9 | ) | $ | (54 | ) | ||
Net cash provided by (used in) investing activities (3) | $ | (342 | ) | ||||||||
Net cash provided by (used in) financing activities | $ | (350 | ) |
(1) | Adjustment to eliminate a portion of Net cash provided by (used in) operating activities and Additions to property, plant and mine development attributable to noncontrolling interests, which relates to Merian (25%) for the three months ended March 31, 2023. | |
(2) | For the three months ended March 31, 2023, Merian had total consolidated Additions to property, plant and mine development of $13 on a cash basis. | |
(3) | Net cash provided by (used in) investing activities includes Additions to property, plant and mine development, which is included in the Company's computation of Free Cash Flow. |
Net Debt
Net Debt is calculated as Debt and Lease and other financing obligations less Cash and cash equivalents and time deposits included in Time deposits and other investments , as presented on the Condensed Consolidated Balance Sheets. Cash and cash equivalents and time deposits are subtracted from Debt and Lease and other financing obligations as these are highly liquid, low-risk investments and could be used to reduce the Company's debt obligations.
The following table sets forth a reconciliation of Net Debt, a non-GAAP financial measure, to Debt and Lease and other financing obligations , which the Company believes to be the GAAP financial measures most directly comparable to Net Debt.
| At March 31, | At December 31, | |||||
Debt | $ | 8,933 | $ | 8,874 | |||
Lease and other financing obligations | 535 | 562 | |||||
Less: Cash and cash equivalents | (2,336 | ) | (3,002 | ) | |||
Less: Cash and cash equivalents included in current assets held for sale (1) | (342 | ) | — | ||||
Net debt | $ | 6,790 | $ | 6,434 |
(1) | During the first quarter of 2024, certain non-core assets were determined to meet the criteria for assets held for sale. As a result, the related assets and liabilities, including $342 of Cash and cash equivalents , were reclassified to Current assets held for sale and Current liabilities held for sale , respectively. |
Costs applicable to sales per ounce/gold equivalent ounce
Costs applicable to sales per ounce/gold equivalent ounce are calculated by dividing the costs applicable to sales of gold and other metals by gold ounces or gold equivalent ounces sold, respectively. These measures are calculated for the periods presented on a consolidated basis.
The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measures.
Costs applicable to sales per ounce
Three Months Ended | |||||||
2024 | 2023 | ||||||
Costs applicable to sales (1)(2) | $ | 1,690 | $ | 1,239 | |||
Gold sold (thousand ounces) | 1,599 | 1,208 | |||||
Costs applicable to sales per ounce (3) | $ | 1,057 | $ | 1,025 |
(1) | Includes by-product credits of $39 and $30 during the three months ended March 31, 2024 and 2023. | |
(2) | Excludes Depreciation and amortization and Reclamation and remediation . | |
(3) | Per ounce measures may not recalculate due to rounding. |
Costs applicable to sales per gold equivalent ounce
Three Months Ended | |||||||
2024 | 2023 | ||||||
Costs applicable to sales (1)(2) | $ | 416 | $ | 243 | |||
Gold equivalent ounces sold - other metals (thousand ounces) (3) | 502 | 265 | |||||
Costs applicable to sales per gold equivalent ounce (4) | $ | 829 | $ | 918 |
(1) | Includes by-product credits of $15 and $2 during the three months ended March 31, 2024 and 2023. | |
(2) | Excludes Depreciation and amortization and Reclamation and remediation . | |
(3) | Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) for each of 2024 and 2023. | |
(4) | Per ounce measures may not recalculate due to rounding. |
Costs applicable to sales per gold ounce for Nevada Gold Mines (NGM)
Three Months Ended | |||||||
2024 | 2023 | ||||||
Cost applicable to sales, NGM (1) | $ | 314 | $ | 286 | |||
Gold sold (thousand ounces), NGM | 267 | 258 | |||||
Costs applicable to sales per ounce, NGM (2) | $ | 1,177 | $ | 1,109 |
(1) | Excludes Depreciation and amortization and Reclamation and remediation . | |
(2) | Per ounce measures may not recalculate due to rounding. |
All-In Sustaining Costs
All-in sustaining costs represent the sum of certain costs, recognized as GAAP financial measures, that management considers to be associated with production. All-in sustaining costs per ounce amounts are calculated by dividing all-in sustaining costs by gold ounces or gold equivalent ounces sold.
Three Months Ended | Costs | Reclamation | Advanced | General and | Other | Treatment | Sustaining | All-In | Ounces | All-In | |||||||||||||||||||
Gold | |||||||||||||||||||||||||||||
Brucejack (10) | $ | 74 | $ | 1 | $ | — | $ | — | $ | — | $ | 1 | $ | 12 | $ | 88 | 34 | $ | 2,580 | ||||||||||
Red Chris (10) | 7 | — | — | — | — | 1 | 1 | 9 | 7 | $ | 1,277 | ||||||||||||||||||
Peñasquito | 38 | 1 | — | — | — | 3 | 5 | 47 | 44 | $ | 1,079 | ||||||||||||||||||
Merian | 90 | 2 | 2 | — | — | — | 19 | 113 | 74 | $ | 1,530 | ||||||||||||||||||
Cerro Negro | 63 | 2 | 1 | — | 1 | — | 15 | 82 | 74 | $ | 1,120 | ||||||||||||||||||
Yanacocha | 88 | 7 | 2 | — | — | — | 5 | 102 | 90 | $ | 1,123 | ||||||||||||||||||
Boddington | 144 | 5 | — | — | — | 3 | 24 | 176 | 142 | $ | 1,242 | ||||||||||||||||||
Tanami | 82 | 1 | — | — | — | — | 22 | 105 | 91 | $ | 1,149 | ||||||||||||||||||
Cadia (10) | 74 | — | 3 | — | — | 6 | 30 | 113 | 114 | $ | 989 | ||||||||||||||||||
Lihir (10) | 171 | 1 | 6 | — | — | — | 51 | 229 | 182 | $ | 1,256 | ||||||||||||||||||
Ahafo | 159 | 4 | — | — | — | 1 | 22 | 186 | 184 | $ | 1,010 | ||||||||||||||||||
Nevada Gold Mines | 314 | 4 | 2 | 2 | 1 | 2 | 95 | 420 | 267 | $ | 1,576 | ||||||||||||||||||
Corporate and Other (11) | — | — | 30 | 90 | 1 | — | 4 | 125 | — | $ | — | ||||||||||||||||||
Held for sale (14) | |||||||||||||||||||||||||||||
CC&V | 40 | 3 | 1 | — | 1 | — | 5 | 50 | 29 | $ | 1,735 | ||||||||||||||||||
Musselwhite | 57 | 1 | 2 | — | 1 | — | 25 | 86 | 49 | $ | 1,766 | ||||||||||||||||||
Porcupine | 63 | 5 | 2 | — | — | — | 19 | 89 | 61 | $ | 1,470 | ||||||||||||||||||
Éléonore | 80 | 2 | 4 | — | — | — | 21 | 107 | 56 | $ | 1,920 | ||||||||||||||||||
Telfer (10) | 70 | 2 | 3 | — | — | 1 | 3 | 79 | 26 | $ | 3,017 | ||||||||||||||||||
Akyem | 76 | 11 | — | 1 | — | — | 8 | 96 | 75 | $ | 1,254 | ||||||||||||||||||
Total Gold | $ | 1,690 | $ | 52 | $ | 58 | $ | 93 | $ | 5 | $ | 18 | $ | 386 | $ | 2,302 | 1,599 | $ | 1,439 | ||||||||||
Gold equivalent ounces - other metals (12)(13) | |||||||||||||||||||||||||||||
Red Chris (10) | $ | 31 | $ | — | $ | 2 | $ | — | $ | — | $ | 4 | $ | 6 | $ | 43 | $ | 31 | $ | 1,400 | |||||||||
Peñasquito | 255 | 9 | 1 | — | — | 35 | 34 | 334 | 303 | $ | 1,102 | ||||||||||||||||||
Boddington | 48 | 1 | — | — | — | 3 | 3 | 55 | 51 | $ | 1,081 | ||||||||||||||||||
Cadia (10) | 67 | — | 2 | — | — | 19 | 27 | 115 | 112 | $ | 1,027 | ||||||||||||||||||
Corporate and Other (11) | — | — | 1 | 8 | — | — | — | 9 | — | $ | — | ||||||||||||||||||
Held for sale (14) | |||||||||||||||||||||||||||||
Telfer (10) | 15 | 1 | 1 | — | — | 2 | 1 | 20 | 5 | $ | 3,745 | ||||||||||||||||||
Total Gold Equivalent Ounces | $ | 416 | $ | 11 | $ | 7 | $ | 8 | $ | — | $ | 63 | $ | 71 | $ | 576 | 502 | $ | 1,148 | ||||||||||
Consolidated | $ | 2,106 | $ | 63 | $ | 65 | $ | 101 | $ | 5 | $ | 81 | $ | 457 | $ | 2,878 |
(1) | Excludes Depreciation and amortization and Reclamation and remediation . | |
(2) | Includes by-product credits of $54. | |
(3) | Includes stockpile, leach pad, and product inventory adjustments of $2 at Brucejack, $1 at Peñasquito, $15 at Telfer, and $6 at NGM. | |
(4) | Reclamation costs include operating accretion and amortization of asset retirement costs of $33 and $30, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties that have entered the closure phase and have no substantive future economic value of $54 and $11, respectively. | |
(5) | Advanced projects, research and development and exploration excludes development expenditures of $1 at Peñasquito, $2 at Merian, $4 at Cerro Negro, $1 at Boddington, $8 at Tanami, $5 at Ahafo, $4 at Akyem, $3 at NGM, and $13 at Corporate and Other, totaling $41 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation. | |
(6) | Other expense, net is adjusted for Newcrest transaction and integration costs of $29, settlement costs of $21, impairment charges of $12, and restructuring and severance of $6. | |
(7) | Excludes capitalized interest related to sustaining capital expenditures. | |
(8) | Includes finance lease payments and other costs for sustaining projects of $15. | |
(9) | Per ounce measures may not recalculate due to rounding. | |
(10) | Sites acquired through the Newcrest transaction. | |
(11) | Corporate and Other includes the Company's business activities relating to its corporate and regional offices and all equity method investments. | |
(12) | Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2024. | |
(13) | For the three months ended March 31, 2024, Red Chris sold 6 thousand tonnes of copper, Peñasquito sold 10 million ounces of silver, 29 thousand tonnes of lead and 61 thousand tonnes of zinc, Boddington sold 9 thousand tonnes of copper, Cadia sold 20 thousand tonnes of copper, and Telfer sold 1 thousand tonnes of copper. | |
(14) | Sites are classified as held for sale as of March 31, 2024. |
Three Months Ended | Costs | Reclamation | Advanced Research and | General | Other | Treatment | Sustaining | All-In | Ounces | All-In | ||||||||||||||||||
Gold | ||||||||||||||||||||||||||||
CC&V | $ | 51 | $ | 2 | $ | 3 | $ | — | $ | — | $ | — | $ | 10 | $ | 66 | 48 | $ | 1,375 | |||||||||
Musselwhite | 58 | 1 | 1 | — | — | — | 14 | 74 | 44 | $ | 1,681 | |||||||||||||||||
Porcupine | 70 | 5 | 4 | — | — | — | 13 | 92 | 65 | $ | 1,412 | |||||||||||||||||
Éléonore | 75 | 2 | 1 | — | — | — | 19 | 97 | 68 | $ | 1,420 | |||||||||||||||||
Peñasquito | 67 | 3 | — | — | — | 4 | 12 | 86 | 56 | $ | 1,539 | |||||||||||||||||
Merian | 85 | 2 | 2 | — | — | — | 14 | 103 | 83 | $ | 1,235 | |||||||||||||||||
Cerro Negro | 70 | 1 | 1 | — | — | — | 12 | 84 | 61 | $ | 1,379 | |||||||||||||||||
Yanacocha | 56 | 7 | 3 | — | 1 | — | 3 | 70 | 53 | $ | 1,332 | |||||||||||||||||
Boddington | 167 | 4 | 1 | — | — | 5 | 28 | 205 | 198 | $ | 1,035 | |||||||||||||||||
Tanami | 61 | 1 | — | — | — | — | 17 | 79 | 65 | $ | 1,219 | |||||||||||||||||
Ahafo | 130 | 4 | — | — | 1 | — | 44 | 179 | 131 | $ | 1,366 | |||||||||||||||||
Akyem | 63 | 10 | — | — | — | — | 10 | 83 | 78 | $ | 1,067 | |||||||||||||||||
Nevada Gold Mines | 286 | 4 | 4 | 2 | — | 2 | 65 | 363 | 258 | $ | 1,405 | |||||||||||||||||
Corporate and Other (11) | — | — | 19 | 61 | — | — | 2 | 82 | — | $ | — | |||||||||||||||||
Total Gold | $ | 1,239 | $ | 46 | $ | 39 | $ | 63 | $ | 2 | $ | 11 | $ | 263 | $ | 1,663 | 1,208 | $ | 1,376 | |||||||||
Gold equivalent ounces - other metals (12)(13) | ||||||||||||||||||||||||||||
Peñasquito | $ | 190 | $ | 7 | $ | 1 | $ | — | $ | — | $ | 34 | $ | 36 | $ | 268 | 199 | $ | 1,351 | |||||||||
Boddington | 53 | 1 | 1 | — | — | 4 | 8 | 67 | 66 | $ | 1,019 | |||||||||||||||||
Corporate and Other (11) | — | — | 3 | 11 | — | — | — | 14 | — | $ | — | |||||||||||||||||
Total Gold Equivalent Ounces | $ | 243 | $ | 8 | $ | 5 | $ | 11 | $ | — | $ | 38 | $ | 44 | $ | 349 | 265 | $ | 1,322 | |||||||||
Consolidated | $ | 1,482 | $ | 54 | $ | 44 | $ | 74 | $ | 2 | $ | 49 | $ | 307 | $ | 2,012 |
(1) | Excludes Depreciation and amortization and Reclamation and remediation . | |
(2) | Includes by-product credits of $32. | |
(3) | Includes stockpile and leach pad inventory adjustments of $1 at Akyem, and $1 at NGM. | |
(4) | Beginning January 1, 2023, COVID-19 specific costs incurred in the ordinary course of business are recognized in Costs applicable to sales . | |
(5) | Reclamation costs include operating accretion and amortization of asset retirement costs of $24 and $30, respectively, and exclude accretion and reclamation and remediation adjustments at former operating properties that have entered the closure phase and have no substantive future economic value of $38 and $4, respectively. | |
(6) | Advanced projects, research and development and exploration excludes development expenditures of $2 at Peñasquito, $1 at Merian, $1 at Cerro Negro, $4 at Tanami, $6 at Ahafo, $3 at Akyem, $3 at NGM and $19 at Corporate and Other, totaling $39 related to developing new operations or major projects at existing operations where these projects will materially benefit the operation. | |
(7) | Other expense, net is adjusted for impairment charges of $4 and restructuring and severance costs of $2. | |
(8) | Excludes capitalized interest related to sustaining capital expenditures. | |
(9) | Includes finance lease payments for sustaining projects of $22. | |
(10) | Per ounce measures may not recalculate due to rounding. | |
(11) | Corporate and Other includes the Company's business activities relating to its corporate and regional offices and all equity method investments. | |
(12) | Gold equivalent ounces is calculated as pounds or ounces produced multiplied by the ratio of the other metals price to the gold price, using Gold ($1,400/oz.), Copper ($3.50/lb.), Silver ($20.00/oz.), Lead ($1.00/lb.) and Zinc ($1.20/lb.) pricing for 2023. | |
(13) | For the three months ended March 31, 2023, Peñasquito sold 6 million ounces of silver, 17 thousand tonnes of lead and 45 thousand tonnes of zinc, and Boddington sold 12 thousand tonnes of copper. |
A reconciliation of the 2024 Gold AISC outlook to the 2024 Gold CAS outlook is provided below. The estimates in the table below are considered "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.
2024 Outlook - Gold (1)(2) | |||
(in millions, except ounces and per ounce) | Outlook Estimate | ||
Cost Applicable to Sales (3)(4) | $ | 6,900 | |
Reclamation Costs (5) | 190 | ||
Advanced Projects & Exploration (6) | 160 | ||
General and Administrative (7) | 235 | ||
Other Expense | 10 | ||
Treatment and Refining Costs | 135 | ||
Sustaining Capital (8) | 1,495 | ||
Sustaining Finance Lease Payments | 25 | ||
All-in Sustaining Costs | $ | 9,150 | |
Ounces (000) Sold (9) | 6,555 | ||
All-in Sustaining Costs per Ounce | $ | 1,400 |
(1) | The reconciliation is provided for illustrative purposes in order to better describe management's estimates of the components of the calculation. Estimates for each component of the forward-looking All-in sustaining costs per ounce are independently calculated and, as a result, the total All-in sustaining costs and the All-in sustaining costs per ounce may not sum to the component ranges. While a reconciliation to the most directly comparable GAAP measure has been provided for the 2024 AISC Gold Outlook on a consolidated basis, a reconciliation has not been provided on an individual site or project basis in reliance on Item 10(e)(1)(i)(B) of Regulation S-K because such reconciliation is not available without unreasonable efforts. | |
(2) | All values are presented on a consolidated basis for Newmont. | |
(3) | Excludes Depreciation and amortization and Reclamation and remediation . | |
(4) | Includes stockpile and leach pad inventory adjustments. | |
(5) | Reclamation costs include operating accretion and amortization of asset retirement costs. | |
(6) | Advanced Project and Exploration excludes non-sustaining advanced projects and exploration. | |
(7) | Includes stock-based compensation. | |
(8) | Excludes development capital expenditures, capitalized interest and change in accrued capital. | |
(9) | Consolidated production for Merian is presented on a total production basis for the mine site and excludes production from Pueblo Viejo and Fruta del Norte. |
Net debt to Adjusted EBITDA ratio
Management uses net debt to Adjusted EBITDA as non-GAAP measures to evaluate the Company's operating performance, including our ability to generate earnings sufficient to service our debt. Net debt to Adjusted EBITDA represents the ratio of the Company's debt, net of cash and cash equivalents, to Adjusted EBITDA. Net debt to Adjusted EBITDA does not represent, and should not be considered an alternative to, net income (loss), operating income (loss), or cash flow from operations as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. Although Net Debt to Adjusted EBITDA and similar measures are frequently used as measures of operations and the ability to meet debt service requirements by other companies, our calculation of net debt to Adjusted EBITDA measure is not necessarily comparable to such other similarly titled captions of other companies. The Company believes that net debt to Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors. Management's determination of the components of net debt to Adjusted EBITDA is evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted EBITDA as follows:
Three Months Ended | |||||||||||||||
March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | ||||||||||||
Net income (loss) attributable to Newmont stockholders | $ | 170 | $ | (3,158 | ) | $ | 158 | $ | 155 | ||||||
Net income (loss) attributable to noncontrolling interests | 9 | 10 | 5 | — | |||||||||||
Net loss (income) from discontinued operations | (4 | ) | (12 | ) | (1 | ) | (2 | ) | |||||||
Equity loss (income) of affiliates | (7 | ) | (19 | ) | (3 | ) | (16 | ) | |||||||
Income and mining tax expense (benefit) | 260 | 77 | 73 | 163 | |||||||||||
Depreciation and amortization | 654 | 681 | 480 | 486 | |||||||||||
Interest expense, net of capitalized interest | 93 | 81 | 48 | 49 | |||||||||||
EBITDA | 1,175 | (2,340 | ) | 760 | 835 | ||||||||||
Adjustments: | |||||||||||||||
Loss on assets held for sale | 485 | — | — | — | |||||||||||
Change in fair value of investments | (31 | ) | 5 | 41 | 42 | ||||||||||
Newcrest transaction and integration costs | 29 | 427 | 16 | 21 | |||||||||||
Settlement costs | 21 | 5 | 2 | — | |||||||||||
Impairment charges | 12 | 1,881 | 2 | 4 | |||||||||||
(Gain) loss on asset and investment sales, net | (9 | ) | 231 | 2 | — | ||||||||||
Restructuring and severance | 6 | 5 | 7 | 10 | |||||||||||
Reclamation and remediation charges | 6 | 1,158 | 104 | (2 | ) | ||||||||||
Pension settlements | — | 9 | — | — | |||||||||||
COVID-19 specific costs | — | 1 | — | — | |||||||||||
Other | — | — | (1 | ) | — | ||||||||||
Adjusted EBITDA | 1,694 | 1,382 | 933 | 910 | |||||||||||
12 month trailing Adjusted EBITDA | $ | 4,919 | |||||||||||||
Newcrest pro forma adjusted EBITDA (pre-acquisition) (1) | $ | 883 | |||||||||||||
12 month trailing pro forma Adjusted EBITDA | $ | 5,802 | |||||||||||||
Total Debt | $ | 8,933 | |||||||||||||
Lease and other financing obligations | 535 | ||||||||||||||
Less: Cash and cash equivalents | (2,336 | ) | |||||||||||||
Less: Cash and cash equivalents reclassified to current assets held for sale (2) | (342 | ) | |||||||||||||
Total net debt | $ | 6,790 | |||||||||||||
Net debt to pro forma Adjusted EBITDA | 1.2 |
(1) | Represents Newcrest's pre-acquisition Adjusted EBITDA on a US GAAP basis from January 1, 2023 through to the acquisition date, November 6, 2023. This amount is added to our adjusted EBITDA to include a full twelve months of Newcrest results on a pro forma basis for the rolling twelve months ended March 31, 2024. The pro forma adjusted EBITDA was derived from Newcrest unaudited financial information for the 10 months ended October 31, 2023 and November 1, 2023 through November 6, 2023, the acquisition date. Newcrest's pre-acquisition Adjusted EBITDA has been added to our adjusted EBITDA for the purposes of Net Debt to Pro Forma Adjusted EBITDA ratio only. | |
(2) | During the first quarter of 2024, certain non-core assets were determined to meet the criteria for assets held for sale. As a result, $342 of Cash and cash equivalents were reclassified to C urrent assets held for sale . |
Net average realized price per ounce/ pound
Average realized price per ounce/ pound are non-GAAP financial measures. The measures are calculated by dividing the net consolidated gold, copper, silver, lead and zinc sales by the consolidated gold ounces, copper pounds, silver ounces, lead pounds and zinc pounds sold, respectively. These measures are calculated on a consistent basis for the periods presented on a consolidated basis. Average realized price per ounce/ pound statistics are intended to provide additional information only, do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently.
The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measure:
Three Months Ended | |||||||
2024 | 2023 | ||||||
Consolidated gold sales, net | $ | 3,341 | $ | 2,303 | |||
Consolidated copper sales, net | 297 | 110 | |||||
Consolidated silver sales, net | 201 | 117 | |||||
Consolidated lead sales, net | 60 | 32 | |||||
Consolidated zinc sales, net | 124 | 117 | |||||
Total sales | $ | 4,023 | $ | 2,679 |
Three Months Ended March 31, 2024 | |||||||||||||||||||
Gold | Copper | Silver | Lead | Zinc | |||||||||||||||
(ounces) | (pounds) | (ounces) | (pounds) | (pounds) | |||||||||||||||
Consolidated sales: | |||||||||||||||||||
Gross before provisional pricing and streaming impact | $ | 3,329 | $ | 316 | $ | 182 | $ | 61 | $ | 149 | |||||||||
Provisional pricing mark-to-market | 30 | 9 | 4 | — | (3 | ) | |||||||||||||
Silver streaming amortization | — | — | 27 | — | — | ||||||||||||||
Gross after provisional pricing and streaming impact | 3,359 | 325 | 213 | 61 | 146 | ||||||||||||||
Treatment and refining charges | (18 | ) | (28 | ) | (12 | ) | (1 | ) | (22 | ) | |||||||||
Net | $ | 3,341 | $ | 297 | $ | 201 | $ | 60 | $ | 124 | |||||||||
Consolidated ounces/pounds sold (1)(2) | 1,599 | 80 | 10 | 65 | 135 | ||||||||||||||
Average realized price (per ounce/pound): (3) | |||||||||||||||||||
Gross before provisional pricing and streaming impact | $ | 2,082 | $ | 3.95 | $ | 18.50 | $ | 0.95 | $ | 1.10 | |||||||||
Provisional pricing mark-to-market | 19 | 0.12 | 0.39 | (0.01 | ) | (0.02 | ) | ||||||||||||
Silver streaming amortization | — | — | 2.78 | — | — | ||||||||||||||
Gross after provisional pricing and streaming impact | 2,101 | 4.07 | 21.67 | 0.94 | 1.08 | ||||||||||||||
Treatment and refining charges | (11 | ) | (0.35 | ) | (1.26 | ) | (0.02 | ) | (0.16 | ) | |||||||||
Net | $ | 2,090 | $ | 3.72 | $ | 20.41 | $ | 0.92 | $ | 0.92 |
(1) | Amounts reported in millions except gold ounces, which are reported in thousands. | |
(2) | For the three months ended March 31, 2024 the Company sold 36 thousand tonnes of copper, 29 thousand tonnes of lead, and 61 thousand tonnes of zinc. | |
(3) | Per ounce/pound measures may not recalculate due to rounding. |
Three Months Ended March 31, 2023 | |||||||||||||||||||
Gold | Copper | Silver | Lead | Zinc | |||||||||||||||
(ounces) | (pounds) | (ounces) | (pounds) | (pounds) | |||||||||||||||
Consolidated sales: | |||||||||||||||||||
Gross before provisional pricing and streaming impact | $ | 2,297 | $ | 105 | $ | 110 | $ | 35 | $ | 143 | |||||||||
Provisional pricing mark-to-market | 17 | 9 | 2 | (2 | ) | (4 | ) | ||||||||||||
Silver streaming amortization | — | — | 16 | — | — | ||||||||||||||
Gross after provisional pricing and streaming impact | 2,314 | 114 | 128 | 33 | 139 | ||||||||||||||
Treatment and refining charges | (11 | ) | (4 | ) | (11 | ) | (1 | ) | (22 | ) | |||||||||
Net | $ | 2,303 | $ | 110 | $ | 117 | $ | 32 | $ | 117 | |||||||||
Consolidated ounces/pounds sold (1)(2) | 1,208 | 26 | 6 | 36 | 99 | ||||||||||||||
Average realized price (per ounce/pound): (3) | |||||||||||||||||||
Gross before provisional pricing and streaming impact | $ | 1,901 | $ | 3.99 | $ | 17.98 | $ | 0.95 | $ | 1.44 | |||||||||
Provisional pricing mark-to-market | 14 | 0.33 | 0.30 | (0.06 | ) | (0.04 | ) | ||||||||||||
Silver streaming amortization | — | — | 2.56 | — | — | ||||||||||||||
Gross after provisional pricing and streaming impact | 1,915 | 4.32 | 20.84 | 0.89 | 1.40 | ||||||||||||||
Treatment and refining charges | (9 | ) | (0.14 | ) | (1.67 | ) | (0.03 | ) | (0.22 | ) | |||||||||
Net | $ | 1,906 | $ | 4.18 | $ | 19.17 | $ | 0.86 | $ | 1.18 |
(1) | Amounts reported in millions except gold ounces, which are reported in thousands. | |
(2) | For the three months ended March 31, 2023 the Company sold 12 thousand tonnes of copper, 17 thousand tonnes of lead, and 45 thousand tonnes of zinc. | |
(3) | Per ounce/pound measures may not recalculate due to rounding. |
Gold by-product metrics
Copper, silver, lead, zinc and molybdenum are by-products often obtained during the process of extracting and processing the primary ore-body. In our GAAP Consolidated Financial Statements, the value of these by-products is recorded as a credit to our CAS and the value of the primary ore is recorded as Sales. In certain instances, copper, silver, lead and zinc are co-products, or a significant resource in the primary ore-body, and the revenue is recorded as Sales in our GAAP Consolidated Financial Statements.
Gold by-product metrics are non-GAAP financial measures that serve as a basis for comparing the Company's performance with certain competitors. As Newmont's operations are primarily focused on gold production, "Gold by-product metrics" were developed to allow investors to view Sales, CAS per ounce and AISC per ounce calculations that classify all copper, silver, lead, zinc and molybdenum production as a by-product, even when copper, silver, lead or zinc is a significant resource in the primary ore-body. These metrics are calculated by subtracting copper, silver, lead and zinc sales recognized from Sales and including these amounts as offsets to CAS.
Gold by-product metrics are calculated on a consistent basis for the periods presented on a consolidated basis. These metrics are intended to provide supplemental information only, do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Other companies may calculate these measures differently as a result of differences in the underlying accounting principles, policies applied and in accounting frameworks, such as in IFRS.
The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measures:
Three Months Ended | |||||||
2024 | 2023 | ||||||
Consolidated gold sales, net | $ | 3,341 | $ | 2,303 | |||
Consolidated other metal sales, net | 682 | 376 | |||||
Sales | $ | 4,023 | $ | 2,679 | |||
Costs applicable to sales | $ | 2,106 | $ | 1,482 | |||
Less: Consolidated other metal sales, net | (682 | ) | (376 | ) | |||
By-product costs applicable to sales | $ | 1,424 | $ | 1,106 | |||
Gold sold (thousand ounces) | 1,599 | 1,208 | |||||
Total Gold CAS per ounce (by-product) (1) | $ | 891 | $ | 916 | |||
Total AISC | $ | 2,878 | $ | 2,012 | |||
Less: Consolidated other metal sales, net | (682 | ) | (376 | ) | |||
By-product AISC | $ | 2,196 | $ | 1,636 | |||
Gold sold (thousand ounces) | 1,599 | 1,208 | |||||
Total Gold AISC per ounce (by-product) (1) | $ | 1,373 | $ | 1,354 |
(1) | Per ounce measures may not recalculate due to rounding. |
Conference Call Information
A conference call will be held on Thursday, April 25, 2024 at 11:00 a.m. Eastern Time (9:00 a.m. Mountain Time); it will also be available on the Company's website.
Conference Call Details
Dial-In Number | 833.470.1428 | |
Intl Dial-In Number | 404.975.4839 1 | |
Dial-In Access Code | 475768 | |
Conference Name | Newmont | |
Replay Number | 866.813.9403 | |
Intl Replay Number | 929.458.6194 | |
Replay Access Code | 418753 | |
1 For toll-free phone numbers, refer to the following link: https://www.netroadshow.com/events/global-numbers?confId=49005 |
Webcast Details
Title: Newmont First Quarter 2024 Earnings Conference Call |
The first quarter 2024 results will be available before the market opens on Thursday, April 25, 2024, on the "Investor Relations" section of the Company's website, Newmont.com . Additionally, the conference call will be archived for a limited time on the Company's website.
About Newmont
Newmont is the world's leading gold company and a producer of copper, zinc, lead, and silver. The company's world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social, and governance practices. Newmont is an industry leader in value creation, supported by robust safety standards, superior execution, and technical expertise. Founded in 1921, the company has been publicly traded since 1925.
Cautionary Statement Regarding Forward Looking Statements, Including Outlook Assumptions:
This news 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. Where a forward-looking statement 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. Forward-looking statements often address our expected future business and financial performance and financial condition; and often contain words such as "anticipate," "intend," "plan," "will," "would," "estimate," "expect," "believe," "pending" or "potential." Forward-looking statements in this news release may include, without limitation, (i) estimates of future production and sales, including production outlook, average future production and upside potential, including our Full Potential initiatives and synergies; (ii) estimates of future costs applicable to sales and all-in sustaining costs; (iii) estimates of future capital expenditures, including development and sustaining capital; (iv) expectations regarding the Tanami Expansion 2, Ahafo North and Cadia Block Caves projects, including, without limitation, expectations for production, milling, costs applicable to sales and all-in sustaining costs, capital costs, mine life extension, construction completion commercial production, and other timelines; (v) any share repurchases; (vi) estimates of future cost reductions, synergies, including pre-tax synergies, savings and efficiencies, Full Potential and productivity improvements, and future cash flow enhancements through portfolio optimization, (vii) expectations regarding future exploration and the development, growth and potential of Newmont Corporation's ("Newmont"), project pipeline and investments; (viii) expectations regarding future investments or divestitures, including of non-core assets; (ix) expectations regarding free cash flow and returns to stockholders, including with respect to future dividends and future share repurchases, the dividend framework and expected payout levels; (x) expectations regarding future mineralization, including, without limitation, expectations regarding reserves and recoveries; (xi) expectations regarding organic growth in our operations; and (xii) other outlook. 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 operations and 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 for the Australian dollar to U.S. dollar and Canadian dollar to U.S. dollar, as well as other exchange rates being approximately consistent with current levels; (v) certain price assumptions for gold, copper, silver, zinc, lead and oil; (vi) prices for key supplies; (vii) the accuracy of current mineral reserve, mineral resource and mineralized material estimates; and (viii) other planning assumptions. Uncertainties include those relating to general macroeconomic uncertainty and changing market conditions, changing restrictions on the mining industry in the jurisdictions in which we operate, impacts to supply chain, including price, availability of goods, ability to receive supplies and fuel, and impacts of changes in interest rates. Such uncertainties could result in operating sites being placed into care and maintenance and impact estimates, costs and timing of projects. Uncertainties in geopolitical conditions could impact certain planning assumptions, including, but not limited to commodity and currency prices, costs and supply chain availabilities.
Future dividends beyond the dividend payable on June 27, 2024 to holders of record at the close of business on June 4, 2024 have not yet been approved or declared by the Board of Directors, and an annualized dividend payout or dividend yield has not been declared by the Board. Management's expectations with respect to future dividends are "forward-looking statements" and the Company's dividend policy is non-binding. The declaration and payment of future dividends remain at the discretion of the Board of Directors and will be determined based on Newmont's financial results, balance sheet strength, cash and liquidity requirements, future prospects, gold and commodity prices, and other factors deemed relevant by the Board.
For a more detailed discussion of such risks and other factors that might impact future looking statements, see the Company's Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the "SEC") on February 29, 2024, under the heading "Risk Factors", and other factors identified in the Company's reports filed with the SEC, available on the SEC website or at www.newmont.com . 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. Investors are also encouraged to review our Form 10-Q for the quarter ended March 31, 2024, expected to be filed on, or about April 29, 2024.
Notice Regarding Reserve and Resource:
Unless otherwise stated herein, the reserves stated in this release represent estimates at December 31, 2023, which could be economically and legally extracted or produced at the time of the reserve determination. Estimates of proven and probable reserves are subject to considerable uncertainty. Such estimates are, or will be, to a large extent, based on metal prices and interpretations of geologic data obtained from drill holes and other exploration techniques, which data may not necessarily be indicative of future results. Additionally, resource does not indicate proven and probable reserves as defined by the SEC or the Company's standards. Estimates of measured, indicated and inferred resource are subject to further exploration and development, and are, therefore, subject to considerable uncertainty. Inferred resources, in particular, have a great amount of uncertainty as to their existence and their economic and legal feasibility. The Company cannot be certain that any part or parts of the resource will ever be converted into reserves. For additional information on our reserves and resources, please see Item 2 of the Company's Form 10-K, filed on February 29, 2024 with the SEC.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240425686032/en/
Media Contact
Jennifer Pakradooni
globalcommunications@newmont.com
Investor Contact - Global
Neil Backhouse
investor.relations@newmont.com
Investor Contact - Asia Pacific
Christopher Maitland
apac.investor.relations@newmont.com
News Provided by Business Wire via QuoteMedia
March 2024 Quarterly Activities Report and Appendix 5B
Highlights
Exploration – Golden Ridge Project, NE Tasmania
- Assay results from soil sampling completed during the quarter at Golden Ridge identified new prospect targets and now define anomalous gold in soils over a combined strike length of at least 9km along the granodiorite contact zone, further enhancing the potential large scale of the overall Golden Ridge target deposit
- Infill and extension soil sampling is ongoing across the Golden Ridge project area
- Initial geological/vein modelling of mineralisation at Trafalgar Prospect indicates the deposit comprises multiple sub-parallel high-grade veins and associated splays, open along strike and down dip
- An initial 1,500m drill program (Phase 3) planned at the Trafalgar prospect comprising infill and extension drilling targeting down-dip and along-strike extensions to previous high- grade gold intercepts, includes multiple intersections grading >100g/t Au
- Post quarter, Phase 3 drilling commenced at Trafalgar Prospect
Exploration – Firetower Project, NW Tasmania
- Final assay results from recent 4-hole diamond drilling program received
- All holes intersected significant mineralised intervals, with a best result of:
- 2019FTD007E:
- 17.0m @ 2.31g/t Au, 0.16% Co, 0.38% WO3, 0.16% Cu from 121.0, including:
- 1.7m @ 6.64g/t Au, 0.12% Co, 0.87% WO3 and 0.14% Cu from 121m and
- 5.5m @ 3.27g/t Au, 0.24% Co, 0.53% WO3, 0.33% Cu from 132.5m
- 2019FTD007E:
- Modelling of updated drilling data indicated key structural controls to polymetallic mineralisation zones with depth and strike extension target zones recognised
- Detailed surface mapping and sampling program initiated over priority target areas
Exploration – Parker Dome Project, WA
- Soil sampling outlined multiple, large-scale lithium anomalies of up to 187ppm Li2O at the recently optioned Parker Dome project
- Lithium anomalies extend up to 2,300m length and 900m width
Exploration – Lake Johnston Project, WA
- Soil sampling outlined a large, high priority lithium anomaly
- Priority Target 1 presents as a large scale (4km x 1km), strong anomaly with 23 samples returning assay results over 100ppm Li2O
Corporate
- Share Purchase Plan and Tranche 2 Placement completed raising $1.1 million
- Post quarter, one-for-two Renounceable Rights Issue, partially underwritten to $750,000 and priced at 3 cents per new share announced to raise up to $2.5 million
- The Company’s cash position at 31 March 2024 was $1.53 million
Click here for the full ASX Release
This article includes content from Flynn Gold, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Quarterly Activities & Cash Flow Report – March 2024
Many Peaks Minerals Limited (Many Peaks or the Company) (ASX: MPK) is pleased to provide the Quarterly Activities Report for the period ending 31 March 2024.
HIGHLIGHTS
Acquisition of Advanced Gold Projects In Cote D’Ivoire
- Agreement with Turaco Gold Limited (Turaco) executed to acquire 100% ownership of Turaco’s and Predictive Discovery Ltd.’s joint venture, which holds the right to acquire an 85% interest in four mineral permits in Cote d’Ivoire, with recent gold discoveries and over US$4 million in prior exploration expenditure
- Acquisition encompasses a vast 1,275km2 land package including advanced stage exploration projects;
Odienne Project
- Adjoining recent discovery drilling by Awalé Resources/Newmont joint venture associated with the same high-strain corridor as Predictive’s 5.4Moz Au Bankan and Centamin’s 2.16Moz ABC Projects
- Recent first pass, wide-spaced A/C drilling, reveals gold mineralisation zone extending over 1,200 meters, with notable results including 12m @ 1.18g/t gold from 4m, 12m @ 1.06g/t gold from 16m, and 8m @ 1.30g/t gold from 28m
Ferke Gold Project
- Featuring the recent Ouarigue South discovery with open mineralisation for follow-up, and reported drill intercepts including;
- 35.95m @ 3.88 g/t gold within
- 77.6m @ 2.33 g/t gold from 45.9m (FNDC001) and
- 91.1m @ 2.02 g/t gold from surface (FNDC008).
- Covers an area of 300km2 and features a 16km mineralised trend in soils with minimal exploration follow-up in 12.5km gold anomaly along trend of the Ouarigue South discovery
Queensland Gold & Copper
- RC drilling results at Mt Steadman Gold Project returned 8m @ 2.63g/t gold identifying significant extension to previously drilled shallow gold mineralisation
- Diamond drilling results at the Yarrol Gold Project confirm additional gold mineralisation associated with geophysical anomalies on margins of partially drilled 4km long mineralised diorite body
Corporate
- Completion of Bookbuild for non-Brokered, two tranche placement of A$2 Million in support of activities at the Company’s newly-acquired Cote d’Ivoire Gold Projects.
- Mr Ben Phillips appointed as a Non-Executive Director, effective 1 February 2024
During the quarter, the Company announced the acquisition of advanced gold projects in Cote d’Ivoire. (Refer to ASX Announcement 26 March 2024.) The Ferke and Odienne Projects in Cote d’Ivoire deliver Many Peaks with a solid foundation of exploration success, offering the potential for significant high-grade ounces in the near term. Both projects benefit from systematic geochemical coverage and high-resolution geophysics, which have confirmed gold mineralisation through drilling. Leveraging over US$4 million of previous expenditure has identified multiple ready-for-follow-up targets, including extension targets, presenting Many Peaks with a transformative acquisition opportunity with viable near-term resource potential. Many Peaks’ team boasts extensive West African operating experience tied to multiple discovery and development projects over the past 15 years and looks forward to operating in Cote d'Ivoire, an emerging premier jurisdiction within West Africa known for recent exploration and development successes.
Many Peaks entered into a binding Share Sale Agreement (Agreement) with Turaco Gold Limited (Turaco) to acquire its 89% interest in CDI Holdings (Guernsey) Ltd (CDI Holdings). CDI Holdings is an 89% subsidiary of Turaco, held with Predictive Discovery Limited (Predictive), holding an 11% free carry ownership in a joint venture with Turaco. The Agreement will trigger Turaco’s drag-along right in its joint venture with Predictive, whereby Many Peaks will also acquire Predictive’s remaining 11% interest and consolidate 100% ownership of the joint venture entity CDI Holdings.
CDI Holdings is the holding company for two wholly-owned Ivorian entities, including the Ivorian subsidiary party to a joint venture with Gold Ivoire Minerals SARL (GIV Joint Venture) in Cote d’Ivoire in which it has earned a 65% interest and retains an exclusive right to earn-in to an 85% interest by sole funding any project within four mineral licences in Cote d’Ivoire to feasibility study.
The consideration for the purchase of 100% of CDI Holdings will be an aggregate 5,617,978 fully paid ordinary shares in Many Peaks, subject to a 12-month voluntary escrow, to be issued under the Company’s capacity under ASX listing rule 7.1. Upon completion, Many Peaks will also assume a royalty deed for a 1% net smelter return royalty payable to Resolute (Treasury) Pty Ltd (Resolute)—further information on terms and conditions precedent outlined below.
Click here for the full ASX Release
This article includes content from Many Peaks Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Indicator Minerals in Gold Exploration (Updated 2024)
Indicator minerals, also known as pathfinder minerals, are used by those engaged in mineral exploration to effectively narrow down the search area for many different types of ore deposits.
When found as grains in sediments and/or rocks, these minerals give clues as to the presence and location of specific types of mineralization. They tend to be used in the search for gold, copper, nickel, tungsten, diamond and platinum-group metals deposits.
In indicator mineral-based exploration programs, sediments and rocks are either geochemically tested or visually inspected for clues about the distance and direction of their source. When it comes to visual inspection, rocks are examined for certain grain morphologies and surface textures in order to obtain information about transport distance and bedrock source.
How are indicator and pathfinder minerals used in gold exploration?
When indicator or pathfinder minerals are found, explorers will use a number of techniques to gain information on where a gold deposit might be. Here’s a look at four of those methods.
1. Gold grain morphology
Gold grain morphology takes advantage of the fact that gold is a very malleable metal whose surface shape will be changed via weathering and erosion as it travels further away from its source.
Under the gold grain morphology classification system, gold grains are “rated” as either pristine, modified or reshaped based on their appearance. Pristine gold grains have maintained their primary shape and surface texture. The discovery of pristine grains indicates that you are less than 500 meters from the source of a gold sample. Modified gold grains are slightly reshaped, and the discovery of modified gold grains indicates that you are up to 1,000 meters away from the source. Reshaped gold grains have been worn down as a result of traveling more than 1,000 meters from the source.
By taking multiple samples of sediment and classifying the gold grains according to the above scheme, the search area for a source of gold can be narrowed down. This process has been used systematically over the past four decades in the search for sources of gold.
2. Gold grain inclusions
Gold grains can also be examined for the presence of other minerals. Inclusions of other minerals within gold grains can provide insight into the ore and help geologists gauge which minerals are present in the bedrock source of the gold. In turn, that can provide clues about deposit type and associated mineralization. For example, enargite inclusions may indicate a high-sulfidation epithermal source, while argentite inclusions may indicate mesothermal gold.
It’s worth noting that while inclusions can give valuable insight on deposit types and their possible location, they are often easily eroded from gold through transport. Thus, inclusions are often only useful when found in close proximity to a bedrock source.
3. Composition studies
As with gold grain morphology, composition studies involve gathering and examining mineral samples to obtain information on transport directions and distances.
Compositional studies identify different populations within and/or between samples and potential bedrock sources. Silver, platinum, palladium, copper, mercury, lead, iron and tellurium can all be examined for clues leading to gold deposits.
4. Geochemistry
Finally, explorers will often use geochemistry to test minerals for clues and patterns that may lead to gold — the process depends on identifying and analyzing pathfinder minerals. Examples of pathfinder minerals that are geochemical indicators for gold include silver, copper, lead, zinc, cobalt, nickel, arsenic, antimony, tellurium, selenium and mercury.
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This is an updated version of an article originally published by the Investing News Network in 2011.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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