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Nevada - Newmont’s Foundation Trent Tempel, General Manager, Eastern Nevada Ali Soltani, General Manager, Western Nevada John McKinstry, General Manager,

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Presentation on theme: "Nevada - Newmont’s Foundation Trent Tempel, General Manager, Eastern Nevada Ali Soltani, General Manager, Western Nevada John McKinstry, General Manager,"— Presentation transcript:

1 Nevada - Newmont’s Foundation Trent Tempel, General Manager, Eastern Nevada Ali Soltani, General Manager, Western Nevada John McKinstry, General Manager, Midas June 2002 Nevada Tour – June 2002

2 June 12, 2002 – Page 2 Nevada Newmont’s Foundation  38 years of innovation  Produced 36 million ounces  31 million ounces of reserves  2,600 employees  Utilization of our asset base 200020012002E Production3.02.7 ~2.7 Cash cost/oz$203$222 $205-210

3 June 12, 2002 – Page 3 Newmont Mines and Property ~1.8 million acres Twin Creeks Deep Star Gold Quarry Checkerboard Property Winnemucca 200 Miles NORTH Elko Carlin 80 Lone Tree Trenton Phoenix Mule Canyon 1996 Newmont Gold Company 1997 Santa Fe merger 2001 Battle Mountain Gold merger 2002 Normandy merger Barrick/Homestake NEVADA Deep Post Midas

4 June 12, 2002 – Page 4  Unparalleled mining and processing flexibility  9 open pit & 5 underground mines  15 processing facilities  Pipeline of new projects to sustain production A Long-Lived Core Asset

5 June 12, 2002 – Page 5 Current Nevada Ore Flows

6 June 12, 2002 – Page 6 High Low ROM Dump Leach ($0.50-$0.65) Twin Creeks Lone Tree Complex South Area Twin Creeks North Area Low Ore Grade (oz/t) Cost/ton High Refractory % Grade oz/t Cost $/t Generalized Processing Matrix Crushed Dump Leach ($1.00-$1.40) South Area North Area Direct Cyanide Mill ($3.00-$16.00) Mill 5 – South Area Juniper – Twin Creeks Sage – Twin Creeks Midas – Western Nevada Dump Oxidation - Low-Ratio Leach ($1.50-$2.25) Twin Creeks Lone Tree South Area North Area Bio-Milling ($7.00-$9.00) Mill 5 - South Area Flotation to Autoclave or Roaster ($7.50-$8.00) Lone Tree Refractory Milling ($16.00-$20.00) Sage Autoclave – Twin Creeks Lone Tree Autoclave Mill 6 Roaster – South Area

7 June 12, 2002 – Page 7 Gold Production Cash Cost$232$205 $209 $211 $203 $222 ~$205-210 Total Cost$302 $268 $273 $263 $260 $269 ~$260-270 2.33 2.78 2.77 2.50 3.04 30% 35% 42% 54% 67% 2.70 65% ~2.7 68% (million ounces)

8 June 12, 2002 – Page 8 Gold Production Cash Cost$232$205 $209 $211 $203 $222 ~$205-210 Total Cost$302 $268 $273 $263 $260 $269~$260-270 2.33 2.78 2.77 2.50 3.04 2.70 ~2.7 (million ounces)

9 June 12, 2002 – Page 9 Nevada Manpower

10 June 12, 2002 – Page 10 Significant Initiatives  Electrical Power  $65 million per year operating cost for Nevada (2 nd to labor)  Tiger Teams integral to reducing consumption (~10%)  Workforce Optimization  Comprehensive review of organizational structure  Natural extension of 5-year attrition mode – Total employment down from 3,500 to 2,600 since 1997  Midas Integration  Accelerated integration  Synergies of $8 million per annum  Other  80 – 100 teams focused on wide spectrum of change initiatives  Key focus: safety, environmental, productivity, cost and cash flow

11 June 12, 2002 – Page 11 Capital Expenditures ($ million)

12 June 12, 2002 – Page 12 Production Pipeline First Production  Deep Post Underground 2001  Gold Quarry Chukar Underground2002E  Gold Quarry South Layback2004E  Leeville Underground 2005E  Twin Creeks South Layback2005E  Phoenix Sulfide2008E  Emigrant Pit?????  Gold Margin Underground?????  Rain Saddle Underground????? Capital rationing and flexible scheduling to sustain Nevada production.

13 June 12, 2002 – Page 13 Deep Post Underground Mine  Life-of-mine:3.1 million ounces @ 0.76 opt  Commenced production:2Q 2001 – ahead of schedule  Annualized mining rate:1,500 tpd  Average annual production:416,000 ounce (2003-2006)  Total cash costs:$159/ounce  Recent developments:  Increased production due to higher grade  Better ground conditions  Exploration upside

14 June 12, 2002 – Page 14 Chukar Underground  Chukar Underground  Currently in development  ~ $6 million capital cost  Au Reserves (300/ounce)  278,000 tons at 0.49 ounces/ton containing 138,000 ounces  NRM: 115,000 tons at 0.46 opt  Production  2 - 4 years at approximately 80,000 ounce  ~ $180 - $184/ounce cash cost  High grade feed for Carlin roaster

15 June 12, 2002 – Page 15 Gold Quarry South Layback  Au Reserves ($300/ounce)  60.1 million tons 0.063 opt containing 3.8 million ounces  Production  6 years totaling 2.6 million ounces  ~$230/ounce cash cost  First full year of production begins 2004  Open pit mining  Capital Cost  $26 million  Recent Developments  Concurrent reclamation  Improved mine design with phased approach

16 June 12, 2002 – Page 16 Leeville Underground  Au Reserves ($300/ounce)  6.5 million tons at 0.46 opt containing 3.0 million ounces  NRM: 1.6 million tons at 0.53 opt  Production  7+ years at approximately 500,000 ounces per annum  ~$195/ounce cash cost  Production would begin in 2005  High grade feed for the Carlin roaster  Capital Cost  $170 million  Recent Developments  Change in mining method  Change in mining sequence

17 June 12, 2002 – Page 17 Twin Creeks South Layback  Au Reserves ($300/ounce)  29.3 million tons at 0.066 opt containing 1.9 million ounces  Non-reserve material: 5.9 million tons at 0.051 opt  Production  7 years totaling 1.6 million ounces  ~$210/ounce cash cost  Production begins 2005  Open pit mining  Feed Juniper Oxide Mill for 6 years  Capital Cost  $15 million - $20 million  Recent Developments  Ability to backfill  Positive model reconciliation

18 June 12, 2002 – Page 18 Phoenix Sulfide  Au Reserves ($300/ounce)  174 million tons at 0.034 opt containing 6.0 million ounces  NRM: 142 million tons at 0.024 opt  Copper Reserves  461 million pounds  Production  13 years at average of 390,000 ounces Au, 27.5 million pounds Cu  ~$150/ounce cash cost (after by-product credits)  Production begins 2008  Feed for Lone Tree autoclave  Capital Cost  $200 million - $225 million  Including $35 million for SX-EW / upgrading Lone Tree

19 June 12, 2002 – Page 19 % Total Nevada Reserves 15.1 million ounces48% Mining 52 million tons/year35% 2002E mine production – ~ 1.2 million ounces36% 2002E process production – ~1 million ounces36% Eastern Nevada Cornerstone of our Nevada Foundation Carlin Roaster

20 June 12, 2002 – Page 20 Carlin Highlights  Roaster  Lower temperatures result in higher recovery  Improved availability  Bio-Mill  Improved heap permeability  Improved CIL efficiency  Deep Post  Exploration upside  Stockpile Management  Drilling and kreiging stockpiles  Maximizing cash flow  Concurrent Reclamation

21 June 12, 2002 – Page 21 Improving Roaster Productivity Throughput (000 tons)Availability % Ounces Produced (000) 9899000102E Grade opt0.230.250.300.240.24 Recovery90%90%88%90%91% Grade and Recovery

22 June 12, 2002 – Page 22 Western Nevada Featuring Million-Ounce Producer Twin Creeks % Total NV Reserves 16.2 million ounces52% Mining 100 million tons/yr65% 2002E mine production - ~2.1 million ounces64% 2002E process production - ~1.7 million ounces 64% Twin Creeks

23 June 12, 2002 – Page 23  Manpower flexibility  Equipment utilization  Toll milling  Oxide mine plan at Phoenix  Synergies  Carbon handling (Carlin, Mesquite)  Refining (Carlin, Mesquite, Midas) Western Nevada Opportunities

24 June 12, 2002 – Page 24 Newmont’s largest Nevada mine % Total NV Reserves 6.0 million ounces19% Mining 50 million tons/yr33% 2002E mine production - 1.30 million ounces39% 2002E process production - 1.03 million ounces*36% Processing 2 autoclaves 2 oxide mills 3 oxide leach pads *Includes other ore sources Twin Creeks Profile

25 June 12, 2002 – Page 25 Autoclaves - 3,454 k tons @ 0.243 opt - 89% Recovery = ~ 747,000 ounces* Twin Creeks Autoclaves Production Summary 2002 * Excludes Getchell toll milling

26 June 12, 2002 – Page 26 %Total NV Reserves 2.1 million ounce 7% Mining 50 million tons/year32% 2002E mine production - 582,000 ounces18% 2002E process production - 573,000 ounces21% Lone Tree Complex Profile

27 June 12, 2002 – Page 27 875 k tons @ 0.566 opt - 94.6% recovery = ~ 469,000 ounces Lone Tree Autoclave Production Summary 2002

28 June 12, 2002 – Page 28 Midas Profile  Au Reserves ($300/ounces)  2.1 million ounces  Production (10.5 months of 2002)  ~ 200,000 ounces  ~ 970 tpd  ~ 1.7 million ounces Ag by-product  Cash Cost ~$100/ounce  Free Milling

29 June 12, 2002 – Page 29 Midas Mining  High grade (0.67oz/t)  Quartz vein  Low sulfides  Narrow, steep dipping  Selective mining  Decline access

30 June 12, 2002 – Page 30 Midas Milling  Specialty mill  High recoveries  Merrill Crowe  Environmentally sound  Optimization study initiated

31 June 12, 2002 – Page 31  Midas Synergies  Production  Staff  Hourly  Procurement  Ore Haulage  Bussing  Assays  Other  Annual Savings ~$8 million Midas Opportunities

32 June 12, 2002 – Page 32 Midas Highlights Additional Opportunities  Utilizing spare capacity at Twin Creeks for treating low grade ore  Increased production and efficiency  Exploration upside potential

33 June 12, 2002 – Page 33 Western Nevada Opportunities  Equipment utilization  Lone Tree pit backfill  Reduced LOM mining cost 20%  Twin Creeks pit backfill  Reduced LOM mining cost 15% Truck Transfer

34 June 12, 2002 – Page 34 Western Nevada Opportunities  Sloping of leach pads  Phoenix Project  Focus on capital reduction  Utilize idle Newmont milling assets  Review cost of crushing vs SAG milling  Use of Echo Bay-McCoy Cove assets  High pressure grinding rolls Twin Creeks North Leach Pad Sloping

35 June 12, 2002 – Page 35 Western Nevada Opportunities  Getchell Ores  Tolling agreement  125,850 tons  0.417 opt  49,234 recovered ounces to Placer Dome Headframe at Getchell Property

36 June 12, 2002 – Page 36 Nevada Operations On-going Optimization  Optimize people: retention and development  Optimize equipment  Ore transport/processing synergies  Optimize procurement practices  Focus on technical staff and technology

37 June 12, 2002 – Page 37 Cautionary Statement PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOR STATEMENT This presentation contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbor created by such section. Such forward-looking statements include, without limitation, (i) estimates of future earnings, and the sensitivity of earnings to the gold and other metals prices; (ii) estimates of future gold and other metals production and sales, (iii) estimates of future cash costs and total production costs; (iv) estimates regarding future synergy savings from acquisitions; (v) estimates of future cash flows, and the sensitivity of cash flows to the gold and other metals prices; (vi) statements regarding future debt repayments and the restructuring or refinancing of credit facilities and other indebtedness; (vii) estimates of future capital expenditures; (viii) statements regarding future exploration results and the replacement of reserves; (ix) statements regarding future asset sales or rationalization efforts; and (x) statements regarding modifications to the company's hedge position. Where the company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such forward-looking 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 such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see Page 8 of the company's 2001 Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission, as well as the company's other SEC filings. The company disclaims any intention to update any forward looking statement.


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