Newmont reports lower gold production from Batu Hijau
Friday, August 3 2007 - 12:49 AM WIB
Gold production was down due to lower volume of ore processed and lower ore grade.
The company reported that on May 25, 2007, PT.Pukuafu Indah, a minority partner at Batu Hijau fully repaid their loan and accrued interest, and as a result, Newmont’s economic interest in the mine was reduced to 45% from 52.875%.
Total tons mined decreased by 24% from the prior year quarter, primarily due to longer hauling distances. The waste-to-ore ratio increased to 5.9 in the second quarter of 2007, up from 0.95 in the prior year quarter, in preparation for the next phase of high- grade ore mining.
Fewer waste tons were mined in the second quarter as compared to the first quarter and will continue to be lower during the second half of the year as mining progresses through waste material.
The company also reported that consolidated capital expenditures at Batu Hijau were US$17 million during the second quarter of 2007. Batu Hijau's consolidated capital expenditures for the year are expected to be at the lower end or below the current range of $140 to $150 million, with spending focused primarily on sustaining mine development for the remainder of the year, the company said. (alex/denny)
| Q2 2007 | Q2 2006 | YTD 2007 | YTD 2006 | |
| Tons mined (000 dry short tons) | ||||
| Ore | 8,108 | 37,361 | 9,640 | 68,552 |
| Waste | 47,609 | 35,489 | 109,792 | 64,487 |
| Total | 55,717 | 72,850 | 119,432 | 133,039 |
| Tons milled (000 dry short tons) | 11,641 | 12,080 | 23,621 | 22,909 |
| Average ore grade: | ||||
| Gold (oz/ton) | 0.010 | 0.013 | 0.010 | 0.011 |
| Copper | 0.56% |
0.52% | 0.53% | 0.51% |
| Average mill recovery rate: | ||||
| Gold | 80.7% | 81.7% | 80.3% | 79.4% |
| Copper | 83.4% | 86.2% | 82.0% | 85.8% |
| Gold ounces produced (thousands): | ||||
| Consolidated | 98 | 126 | 186 | 209 |
| Gold ounces sold (thousands): | ||||
| Consolidated | 90 | 134 | 174 | 207 |
| Copper pounds produced (millions): | ||||
| Consolidated | 109 | 109 | 205 | 203 |
| Copper pounds sold (millions): | ||||
| Consolidated | 97 | 117 | 188 | 198 |
| Gold production costs (millions): | ||||
| Costs applicable to sales | 20$ | 27$ | 48$ | 42$ |
| Depreciation, depletion and amortization | 5$ | 6$ | 11$ | 10$ |
| Gold production costs (per ounce sold): | ||||
| Direct mining and production costs | 214$ | 189$ | 266$ | 194$ |
| By-product credits | (6) | (8) | (7) | (8) |
| Royalties and production taxes | 14 | 13 | 14 | 12 |
| Reclamation/accretion expense | 2 | 2 | 3 | 2 |
| Costs applicable to sales | 330$ | 208$ | ||
| Depreciation, depletion, and amortization | 74$ | 51$ | ||
| Copper production costs (millions): | ||||
| Costs applicable to sales | 134$ | 84$ | 262$ | 149$ |
| Depreciation, depletion and amortization | 26$ | 18$ | 54$ | 34$ |
| Copper production costs (per pound sold): | ||||
| Direct mining and production costs | 1.41$ | 0.71$ | 1.41$ | 0.75$ |
| By-product credits | (0.04) | (0.03) | (0.04) | (0.03) |
| Royalties and production taxes | 0.02 | 0.02 | 0.02 | 0.02 |
| Reclamation/accretion expense | 0.01 | 0.01 | 0.01 | 0.01 |
| Costs applicable to sales | 1.40$ | 0.71$ | 1.40$ | 0.75$ |
| Depreciation, depletion, and amortization | 0.28$ |
0.16$ | 0.29$ | 0.17$ |