Newmont Increases its Mineral Reserves

Newmont reported that it significantly increased its mineral reserves in 2022. In addition, the company noted that its metals diversification strategy will enable production for the next 10 years.

The company increased its gold reserves by 3.6% in 2022, going from 92.8 million oz to 96.1 million oz. Newmont stressed it differs from other key mining companies in that its gold reserves are located in top-tier jurisdictions, it has an operating reserve life of more than a decade and it has a strong pipeline of projects. Additionally, the company has reserves of 68 million gold equivalent oz of copper, silver, lead, zinc and molybdenum, providing numerous unlocking opportunities.

"In 2022, Newmont replaced depletion and grew reserves by nearly 4% as we continued to focus on extending mine life, developing districts and discovering new opportunities in the most favorable mining jurisdictions. Our diverse, global portfolio of operations and projects delivers steady production for at least the next decade, leading the industry with approximately six million gold ounces per year. Supported by the most extensive exploration program in the industry, our team is actively building a profitable and resilient production pipeline for the next several decades," said Tom Palmer, President and CEO, Newmont.

The company also announced that it will spend around US$200 million on exploration operations in 2023, with 80% of the investment allocated for expansion programs and 20% to boost greenfield projects. Moreover, Newmont's joint venture investment is set at around US$25 million. The company emphasized that its exploration investment will be 32% in North America, 30% in South America, 18% in Africa and 20% in Australia as well as other areas.

Newmont is a US-based mining company with operations in North and South America, as well as in Australia and Africa. The company is the only gold producer listed on the S&P 500 Index. Newmont has been recognized for its principled environmental, social and governance (ESG) practices, too. Its Peñasquito operation is one of the most important silver and gold projects in Mexico.

Recently, Newmont confirmed that it submitted a non-binding proposal to acquire 100% of the issued share capital of Newcrest Mining Limited (Newcrest) for US$17 billion. If the transaction would be completed with the proposed amount, this would be the most significant transaction of the gold-producing sector, surpassing Newmont’s acquisition of Goldcorp for US$10 billion. Nevertheless, Newcrest has rejected the proposal.