THEJO

“Portfolio improvements achieved during the year included the completion of materials handling projects at Musselwhite and Éléonore in Canada, the progression of the autonomous haulage system at Boddington and the Tanami Expansion 2 project in Australia”

Musselwhite and Éléonore in Canada, the progression of the autonomous haulage system at Boddington and the Tanami Expansion 2 project in Australia.

Tanami Expansion 2 secures Tanami’s future as a long-life, low-cost producer with potential to extend mine life beyond 2040 through the addition of a 1,460 metre hoisting shaft and supporting infrastructure to achieve 3.5 million tonnes per year of production and provide a platform for future growth. The expansion is expected to increase average annual gold production by approximately 150,000 to 200,000 ounces per year for the first five years and is expected to reduce operating costs by approximately 10 per cent. Capital costs for the project are estimated to be between $850 million and $950 million with a commercial production date in the first half of 2024. 2020 also saw a mining method change at Subika Underground in Ghana, while advanced study work at Ahafo North (Ghana) and Yanacocha Sulfides (Peru) continued, with both projects expected to reach full funds approval in 2021.

Ahafo North expands Newmont’s existing footprint in Ghana, with four open pit mines and a stand-alone mill located approximately 30 kilometres from the company’s Ahafo South operations. The project is expected to add 300,000 ounces per year with all-in sustaining costs between $600 to $700 per ounce for the first five full years of production (2024-2028), with estimated capital costs of between $700 and $800 million. Ahafo North is the best unmined gold deposit in West Africa with approximately 3.5 million ounces of reserves. With over a million ounces of measured and indicated and inferred resources there is significant upside potential to extend beyond Ahafo North’s current 13-year mine life.

Yanacocha is South America’s largest gold mine, located between 3,500 and

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4,100 metres above sea level in the province and department of Cajamarca, approximately 800 kilometres northeast of Lima. The operation is a joint venture between Newmont (51.35%), Minas Buenaventura (43.65%) and Sumitomo Corporation (5%).

Yanacocha Sulfides will develop the first phase of sulfide deposits and an integrated processing circuit, including an autoclave to process gold, copper and silver feedstock. The project is expected to add 500,000 gold equivalent ounces per year with all-in sustaining costs between $700 to $800 per ounce for the first five full years of production (20262030).

The first phase focuses on developing the Yanacocha Verde and Chaquicocha deposits to extend Yanacocha’s operations beyond 2040 with second and third phases having the potential to extend life for multiple decades.

In the United States, Newmont’s operations in the state of Nevada have been combined with those of Barrick Gold since 1 January 2019. Identified synergies are expected to deliver up to $500 million per year over the first five years, then stepping down over time. These will come mainly from integrated mine planning, optimized mining and processing, cost reductions and the combination of Turquoise Ridge and Twin Creeks into a single mine. Production, CAS and AISC for the company’s 38.5 per cent ownership interest in Nevada Gold Mines is as provided by Barrick Gold Corporation.

In Canada, in December 2020, Newmont announced the successful completion of two key projects at its Musselwhite mine at Lake Opapimiskan, Ontario, with the full commissioning of the mine’s conveyor system and the material handling project.

“I am extremely proud of the work that has been completed by the team at Musselwhite to safely deliver these two critical projects, whilst managing through the unprecedented challenges

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caused by Covid-19,” said Tom Palmer. “Musselwhite is an important part of our North America region, and with the commissioning of these two projects is positioned to contribute to Newmont’s portfolio for many years to come.”

The conveyor system and the material handling systems work in association to efficiently move material from deeper mine levels to the surface. Haul distances are reduced as the ore crushed at depth will be hoisted from the underground crushers to the conveyor system and brought to the surface for processing.

Covid-19 response

The year’s achievements cannot obscure the effects of the pandemic, however. In addition to its normal operating costs, Newmont incurred incremental Covid specific costs of $92 million during 2020 for activities such as additional health and safety procedures, increased transportation and community fund contributions.

On 9 April 2020, Newmont announced the establishment of a US$20 million fund to help host communities, governments and employees combat the Covid-19 pandemic. The company continues to maintain wide-ranging protective measures for its workforce and neighbouring communities, including screening, physical distancing, deep cleaning and avoiding exposure for at-risk individuals.

Newmont has also been working closely with local governments, medical institutions, charities and non-governmental organizations to direct funds towards the greatest needs, targeting three key elements, employee and community health, food security and local economic resilience.

“Our purpose to create value and improve lives through sustainable and responsible mining is more relevant now than ever before,” said CEO Tom Palmer. “The strength of our portfolio

“Tanami Expansion 2 secures Tanami’s future as a long-life, low-cost producer with potential to extend mine life beyond 2040”