Newmont Mining Corp.’s (NEM - Free Report) Akyem project in Ghana is expected to be completed on time and under budget.
The company’s Akyem project (100% owned) is located approximately 80 miles (125 kilometers) northwest of Accra. In January 2010, Newmont received the mining lease. Upon permit approval, production is slated to begin in late 2013 or early 2014. On December 31, 2010, Newmont reported 7.2 million ounces of gold reserves.
The Akyem reserve is one of West Africa's underdeveloped resources and has the potential to double gold output from the region.
Newmont had estimated annual production output at 400,000 - 550,000 ounces in the first five years of production, which is a boost to Africa's second-biggest gold producer after South Africa, Ghana, with 2,97 million ounces in 2010.
In late October 2011, Newmont released its third-quarter 2011 results. Newmont reported attributable gold and copper production of 1.3 million ounces and 58 million pounds, respectively, in the quarter, at costs applicable to sales (CAS) of $622 per ounce, and $1.10 per pound on a co-product basis.
For fiscal 2011, the company reiterated its previous expectation of attributable gold production of approximately 5.1 million to 5.3 million ounces, with attributable copper production of 190 to 220 million pounds. Costs applicable to sales are expected to be between $560 and $590 per ounce for gold. Costs applicable to sales are anticipated to be between $1.25 and $1.50 per pound for copper.
The company currently plans to spend $2.1 to $2.5 billion in attributable capital expenditures in 2011, or $2.7 to $3.0 billion on a consolidated basis.
Newmont is slated to release its fourth-quarter 2011 and fiscal year 2011 results either on 15th February 2012 or on 24th February 2012.
The company faces stiff competition from Posco (PKX - Free Report) and Arcelor Mittal (MT - Free Report) .
Newmont has a short-term (1 to 3 months) Zacks #3 Rank (Hold) and a long-term Neutral recommendation.