Su­per Pit pro­duc­tion tipped to hit four-year high

Kalgoorlie Miner - - NEWS - Jar­rod Lu­cas

Canada’s Bar­rick Gold and US gi­ant New­mont Min­ing, 50:50 own­ers of Kal­go­or­lie-Boul­der’s Su­per Pit, are fore­cast­ing pro­duc­tion to hit a four-year high in 2015.

Toronto-based Bar­rick and Den­ver-based New­mont yes­ter­day re­leased their Septem­ber quar­terly re­sults which showed their share of pro­duc­tion from Aus­tralia’s sec­ond-big­gest gold mine was 97,000oz and 89,000oz, re­spec­tively.

The 8000oz dif­fer­ence, worth about $13 mil­lion yes­ter­day, is a typ­i­cal quirk from the world’s two big­gest gold min­ers which do not pub­licly agree on much de­spite sev­eral merger at­tempts.

De­pend­ing on which fore­cast in­vestors be­lieve, Bar­rick is pro­ject­ing be­tween 315,000 and 330,000oz from the Su­per Pit this year.

If pro­duc­tion beats 327,000oz, it will be the best re­sult for Bar­rick since 2011.

New­mont, which has de­clared an in­ter­est in Bar­rick’s Su­per Pit stake, is pro­ject­ing in the range of 310,000 to 340,000oz.

The up­per end of guid­ance puts New­mont close to achiev­ing a fouryear pro­duc­tion high. It would rep­re­sent a re­mark­able re­cov­ery by op­er­a­tors Kal­go­or­lie Con­sol­i­dated Gold Mines, which lost 16 days of pro­duc­tion be­cause of a shut­down of its Fimis­ton plant in Fe­bru­ary and com­mis­sioned a new ul­tra­fine grind­ing mill in June.

Yes­ter­day’s quar­terly an­nounce­ments, in which Bar­rick posted a net loss of $264 mil­lion and New­mont posted $758 mil­lion in ad­justed earn­ings be­fore in­ter­est, taxes, de­pre­ci­a­tion and amor­ti­sa­tion, also re­veal a dra­matic fall in costs at the Su­per Pit in the past 12 months.

Bar­rick’s all-in sus­tain­ing costs were $US725 an ounce in the Septem­ber quar­ter, while New­mont’s were $US872/oz. A year ago, the part­ners were min­ing at $US1040/ oz and $1062/oz, re­spec­tively.

KCGM on Wed­nes­day con­firmed fea­si­bil­ity stud­ies were on­go­ing for ad­di­tional cut­backs.

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