Newmont reported $ 66 million in costs at Peñasquito

The Newmont company reported $ 66 million in costs at its Peñasquito mine, located in Zacatecas, Mexico.

Peñasquito’s operations were temporarily halted on April 12, 2020, as the mine was placed under care and maintenance because the Mexican federal government issued a decree ordering the temporary suspension of all non-essential activities, including mining. , in response to Covid-19.

In May 2020, production acceleration activities began with a gradual approach in accordance with Mexican government regulations after the designation of mining as an essential activity.

Milling activities resumed in May 2020 and production started in June 2020.

Newmont recognized $ 38 million in cash and $ 28 million in non-cash care and maintenance costs included in Care and Maintenance and Depreciation and Amortization, respectively, at Peñasquito in the second quarter of 2020.

Gold production increased 475% mainly driven by the community-led blockade in 2019, partially offset by operations put in care and maintenance in the second quarter of 2020.

Newmont

The company posted adjusted net income of $ 261 million for the second quarter of 2020, up from $ 92 million in the same quarter the year before.

Newmont also reported $ 984 million in adjusted EBITDA and $ 388 million in free cash flow.

Newmont’s revenues increased 5% year-over-year, $ 2.37 billion, benefited by record gold prices.

Peñasquito is an open pit operation located in the northeast corner of the state of Zacatecas, approximately 200 kilometers northeast of the city of Zacatecas and is accessible by paved roads with a private airport near the site.

The property started producing in 2009, and commercial production was accomplished in 2010.

Goldcorp acquired its property in the mine in 2006 when it acquired Glamis and Newmont acquired Peñasquito in 2019 in the Newmont Goldcorp transaction.

Peñasquito is made up of 20 mining concessions covering approximately 113,231 acres (45,823 hectares). Concessions were granted for a duration of 50 years, and will expire between 2045 and 2060, and a second term of 50 years may be granted if the applicant has complied with all appropriate regulations and submits the application within the five years prior to the date. expiration.

To maintain these concessions, Peñasquito must pay periodic mining rights and submit annual mining reports.