Newmont: Margins Improve, But Production Below Plan - Seeking Alpha28 Oct 2023 06:48
Another interesting read from well reserched Taylor Dart at Seeking Alpha. He doesn't specifically mention Havieron here, but does Telfer:
"And as investors familiar with Newcrest will know, Newmont is expected to see a significant increase in its Australian production to 1.8+ million ounces per annum next year assuming Telfer is not divested. And these ounces will come at a lower-cost overall, with Tanami 2 set to improve costs and Cadia being a much lower-cost operation, with AISC at Cadia of $45/oz."
https://seekingalpha.com/article/4644300-newmont-q3-earnings-margins-improve-but-production-below-plan
Looking further forwards though, he did cover Havieron quite widely in his last piece back in September, when he looked more deeply into the Australian AISC's going forwards:
"Hence, this will be a very different looking group of assets from a free cash flow standpoint later this decade when Havieron and Red Chris Block Cave are online, Brucejack is further optimized and Lihir's production profile is above 1.0 million ounces per annum...."
"...So, while the price paid may look steep, it's hard to put a price on multiple assets with what look to be at least 25 year mine lives (Cadia, Havieron, Red Chris, Wafi Golpu) with all-in sustaining costs coming in between [-] $100/oz and ~$800/oz, miles below the current industry average. ..."
"...Importantly, these are entirely separate from world-class intercepts coming from other assets in the portfolio like at Havieron (~150 meters at 3.7 grams per tonne of gold and 0.15% copper) and Red Chris (~248 meters at 1.6 grams per tonne of gold and 1.4% copper, or ~3.5 grams per tonne gold-equivalent)...."
"...So, while we will see lower costs immediately for Newmont if the Newcrest deal is approved, the medium-term and long-term benefits are also significant, with low-cost projects like Havieron (70%) and Red Chris Block Cave (70%) paving a path towards sub $1,000/oz AISC and the potential for even lower AISC if Wafi-Golpu (50%) is developed (another asset that's expected to have negative AISC)..."
https://seekingalpha.com/article/4634569-newmont-stock-sitting-trough-multiple-ahead-margin-recovery
Sign In
Follow the stocks
