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Newmont (NEM) Achieves Commercial Production at Twin Creeks
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Newmont Mining Corporation (NEM - Free Report) said that its Twin Creeks Underground expansion project has achieved commercial production and the project was completed on schedule for $42 million (below initial guidance of $45-$55 million).
The project enables the company to add higher-grade, lower-cost gold production at its Twin Creeks operation in Nevada. The mine will add 30,000-40,000 ounces of gold per annum at all-in sustaining costs of $650-$750 per ounce for the initial five years of production. Moreover, the new ore will enable the company to process stockpiled ore, which was earlier classified as waste, and extend processing life to 2030. The project also has an internal rate of return of roughly 20%.
Per the company, this expansion improves recoveries at Twin Creeks and extends profitable production, serving as a platform to further explore the deposit. Notably, this is the sixth time that the company has completed a project on or ahead of schedule and at or below budget over the last five years.
Earlier this year, Newmont and Barrick Gold Corporation gave approval for the Turquoise Ridge Mine Optimization project involving sinking of a new production shaft to access the richest part of the deposit. It is expected to lower unit costs by more than 20%, increase ventilation capacity and boost ore production rates to roughly 1.1 million tons per year when it comes on line in 2022.
Over the last five years, Newmont has developed six new mines and expanded into four continents including Tanami in 2017 and Merian and Long Canyon in 2016. In 2015, Newmont completed value-accretive acquisition of Cripple Creek and Victor, and delivered profitable growth at the mine in 2016.
Newmont’s shares have gained 16.6% in the past year, outperforming the industry’s rise of roughly 1.5%.
Chemours has an expected long-term earnings growth rate of 15.5%. Its shares have gained 15.3% in a year.
Westlake Chemical has an expected long-term earnings growth rate of 12.2%. Its shares have rallied 61.6% in a year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Newmont (NEM) Achieves Commercial Production at Twin Creeks
Newmont Mining Corporation (NEM - Free Report) said that its Twin Creeks Underground expansion project has achieved commercial production and the project was completed on schedule for $42 million (below initial guidance of $45-$55 million).
The project enables the company to add higher-grade, lower-cost gold production at its Twin Creeks operation in Nevada. The mine will add 30,000-40,000 ounces of gold per annum at all-in sustaining costs of $650-$750 per ounce for the initial five years of production. Moreover, the new ore will enable the company to process stockpiled ore, which was earlier classified as waste, and extend processing life to 2030. The project also has an internal rate of return of roughly 20%.
Per the company, this expansion improves recoveries at Twin Creeks and extends profitable production, serving as a platform to further explore the deposit. Notably, this is the sixth time that the company has completed a project on or ahead of schedule and at or below budget over the last five years.
Earlier this year, Newmont and Barrick Gold Corporation gave approval for the Turquoise Ridge Mine Optimization project involving sinking of a new production shaft to access the richest part of the deposit. It is expected to lower unit costs by more than 20%, increase ventilation capacity and boost ore production rates to roughly 1.1 million tons per year when it comes on line in 2022.
Over the last five years, Newmont has developed six new mines and expanded into four continents including Tanami in 2017 and Merian and Long Canyon in 2016. In 2015, Newmont completed value-accretive acquisition of Cripple Creek and Victor, and delivered profitable growth at the mine in 2016.
Newmont’s shares have gained 16.6% in the past year, outperforming the industry’s rise of roughly 1.5%.
Zacks Rank & Stocks to Consider
Newmont currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are The Chemours Company (CC - Free Report) and Westlake Chemical Corporation (WLK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has an expected long-term earnings growth rate of 15.5%. Its shares have gained 15.3% in a year.
Westlake Chemical has an expected long-term earnings growth rate of 12.2%. Its shares have rallied 61.6% in a year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>