Newmont?s Batu Hijau copper, gold production soar on higher ore grade
Thursday, November 1 2007 - 12:47 AM WIB
During the quarter, Batu Hijau produced 174 million pounds of copper and 211,000 ounces of gold, much higher than last year?s third quarter production of 100 million pounds of copper and 63,000 ounces of gold.
The company attributed the increase to processing significantly higher ore grades during the quarter as dryer weather conditions allowed increased mining in Phase 4 at the bottom of the pit.
Mill throughput and copper and gold recoveries also increased as a result of processing softer, higher grade ore.
Total tons mined decreased by 25% from the year ago quarter, primarily due to longer hauling distances.
The company continues to expect equity gold and copper sales of between 210,000 and 230,000 ounces and 190 and 210 million pounds, respectively, in 2007, it said.
Total costs applicable to sales increased $57 million from the year ago quarter, primarily due to less stockpiling of ore in the third quarter of 2007 compared to the year ago quarter
The average realized copper price, after treatment and refining charges, increased to $3.34 per pound from $1.04 per pound in the year ago quarter, as copper sales were completely unhedged in the third quarter of 2007.
The company said that capital expenditures at Batu Hijau were $19 million and $43 million for the three and nine months ended September 30, 2007. The company has lowered its expected capital expenditures at Batu Hijau for the year from between $140 and $150 million to between $100 and $110 million. It did not give specific reason.
Newmont has 45 percent shares in PT.Newmont Nusa Tenggara, the company that runs Batu Hijau mine. Local company PT Pukuafu Indah (PI) has 20 percent, with the remaining balance held by a consortium led by Japan?s Sumitomo. (alex/denny)
| Q3 2007 | Q3 2006 | YTD 2007 | YTD 2006 | |
| Tons mined (000 dry short tons) | ||||
| Ore | 15,319 | 37,601 | 24,959 | 106,153 |
| Waste | 47,872 | 46,747 | 157,664 | 111,234 |
| Total | 63,191 | 84,348 | 186,623 | 217,378 |
| Tons milled (000 dry short tons) | 12,984 | 11,362 | 36,605 | 34,271 |
| Average ore grade: | ||||
| Gold (oz/ton) | 0.020 | 0.007 | 0.013 | 0.010 |
| Copper | 0.73% |
0.52% | 0.60% | 0.51% |
| Average mill recovery rate: | ||||
| Gold | 84.1% | 75.2% | 82.3% | 78.4% |
| Copper | 92.1% | 85.4% | 86.6% | 85.7% |
| Gold ounces produced (thousands): | ||||
| Consolidated | 211 | 63 | 397 | 272 |
| Gold ounces sold (thousands): | ||||
| Consolidated | 200 | 59 | 374 | 266 |
| Copper pounds produced (millions): | ||||
| Consolidated | 174 | 100 | 379 | 303 |
| Copper pounds sold (millions): | ||||
| Consolidated | 163 | 90 | 351 | 288 |
| Gold production costs (millions): | ||||
| Costs applicable to sales | 29$ | 17$ | 77$ | 58$ |
| Depreciation,depletion and amortization | 5$ | 4$ | 16$ | 14$ |
| Gold production costs (per ounce sold): | ||||
| Direct mining and production costs | 138$ | 279$ | 198$ | 212$ |
| By-product credits | (7) | (11) | (7) | (8) |
| Royalties and production taxes | 14 | 15 | 14 | 13 |
| Reclamation/accretion expense | 2 | 3 | 2 | 2 |
| Costs applicable to sales | 147$ | 286$ |
207$ |
219$ |
| Depreciation, depletion, and amortization | 27$ | 66$ |
44$ |
52$ |
| Copper production costs (millions): | ||||
| Costs applicable to sales | 111$ | 66$ | 373$ | 215$ |
| Depreciation, depletion and amortization | 24$ | 14$ | 78$ | 49$ |
| Copper production costs (per pound sold): | ||||
| Direct mining and production costs | 0.68$ | 0.72$ | 1.07$ | 0.75$ |
| By-product credits | (0.04) | (0.03) | (0.04) | (0.03) |
| Royalties and production taxes | 0.03 | 0.03 | 0.02 | 0.02 |
| Reclamation/accretion expense | 0.01 | 0.01 | 0.01 | 0.01 |
| Costs applicable to sales | 0.68$ | 0.73$ | 1.06$ | 0.75$ |
| Depreciation, depletion, and amortization | 0.14$ |
0.14$ | 0.22$ | 0.16$ |