Newmont Delays Yanacocha Sulfides Project and Appoints Dean Gehring to Lead Assets in Peru
15 September 2022 - 3:00PM
Business Wire
Newmont Corporation (NYSE: NEM, TSX: NGT) has announced it will
delay the full-funds investment decision for the Yanacocha Sulfides
project in Peru to the second half of 2024. To complement this
announcement, Newmont has appointed Dean Gehring as Chief
Development Officer – Peru to lead the Company’s Yanacocha
operations and the Sulfides project.
The Company has completed an extensive review of the Yanacocha
Sulfides project scope and schedule and revised the project
timeline. As part of its review, Newmont considered the
unprecedented and evolving market conditions, including the
continued war in Ukraine, record inflation rates, the rising prices
for commodities and raw materials, prolonged supply chain
disruptions and competitive labor markets.
As Chief Development Officer – Peru, Dean will lead Newmont’s
Yanacocha operations and Yanacocha Sulfides project. A 30-year
mining industry veteran, Dean brings extensive global leadership
experience to the role, having previously managed operations and
projects in the United States, Canada, Indonesia, Suriname and
Peru, including as the head of Newmont’s South America region. Most
recently, Dean served as Newmont’s Executive Vice President and
Chief Technology Officer, integrating teams and systems across the
global enterprise during a pivotal period following the acquisition
of Goldcorp and throughout the COVID-19 pandemic.
“Newmont has a long history of operating in Peru, and Yanacocha
is an important part of Newmont’s world-class portfolio and
long-term strategy. Dean brings a breadth of experience in
successfully operating in this important region, and a proven
capability in building and leading teams to successfully deliver
results in complex operating environments,” said Tom Palmer,
Newmont President and Chief Executive Officer. “Dean is uniquely
qualified to ensure operational excellence while working closely
with government stakeholders, business partners and local
communities to manage the development of this project in the
current global economic context.”
Newmont will continue to manage the Yanacocha operations
responsibly while also finding opportunities to enhance operations,
including the construction of two water treatment plants, with an
anticipated initial spend of around $350 million over the next two
years.
Ahead of the full-funds investment decision for the Sulfides
project, Newmont will continue advanced engineering and long-lead
procurement activities to de-risk the project seeking a profitable
and predictable path forward. Following the investment decision
anticipated in the second half of 2024, the project is expected to
be developed over a three-year period, adding average annual
production of approximately 525,000 gold equivalent ounces per year
for the first five years of operation.
About Newmont
Newmont is the world’s leading gold company and a producer of
copper, silver, zinc and lead. The Company’s world-class portfolio
of assets, prospects and talent is anchored in favorable mining
jurisdictions in North America, South America, Australia and
Africa. 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. The Company is an industry leader
in value creation, supported by robust safety standards, superior
execution and technical expertise. Newmont was founded in 1921 and
has been publicly traded since 1925.
At Newmont, our purpose is to create value and improve lives
through sustainable and responsible mining. To learn more about
Newmont’s sustainability strategy and initiatives, go to
www.newmont.com.
Cautionary Statement
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. Forward-looking
statements in this release may include, without limitation, (i)
expectations regarding the future of the Yanacocha Sulfides project
in Peru, including the timing of full-funds investment decision and
the development timeline; (ii) expectations regarding the addition
of significant gold, copper and silver productions for decades to
come from development of the project; (iii) estimates of future
capital expenditures, including development and sustaining capital;
and (iv) other project and planning expectations. 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 and uncertainties,
which could cause actual results to differ materially. Similarly,
forward-looking statements are based upon certain assumptions,
which may prove to be incorrect. Such assumptions include, but are
not limited to: (i) geotechnical, metallurgical, hydrological and
other assumptions of physical conditions; (ii) permitting,
development, and mine plans assumptions; (iii) assumptions
regarding political developments and community relations in Peru;
(iv) exchange rate assumptions; (v) price assumptions for gold,
copper, silver, zinc, lead and oil; (vi) cost, supply chain and
labor market assumptions; (vii) mineral reserve and mineralized
material estimates; and (vii) other planning assumptions,
including, without limitation, relating to the impacts of Covid-19
or similar variants and future market conditions on economic
assumptions for the project. For a detailed discussion of risks and
other factors that might impact future looking statements and
related assumptions, see the Company’s Annual Report on Form 10-K
for the year ended December 31, 2021 filed with the U.S. Securities
and Exchange Commission (the “SEC”), under the heading “Risk
Factors", available on the SEC website or www.newmont.com, and the
Company's other SEC filings, including the Quarterly Report on Form
10-Q for the quarter ended June 30, 2022. The Company does not
undertake any obligation to release publicly revisions to any
“forward-looking statement” after the date hereof or to reflect the
occurrence of unanticipated events, except as may be required under
applicable securities laws. Investors should not assume that any
lack of update to a previously issued “forward-looking statement”
constitutes a reaffirmation of that statement. Continued reliance
on “forward-looking statements” is at investors’ own risk.
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version on businesswire.com: https://www.businesswire.com/news/home/20220915005419/en/
Media Contact Courtney Boone
303.837.5159 courtney.boone@newmont.com
Investor Contact Daniel Horton
303.837.5468 daniel.horton@newmont.com
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