How is Newmont’s project pipeline looking?

Newmont Mining (NEM) has a strong project pipeline of 16 projects across different stages of development throughout the world. Out of these, three projects deserve particular mention, as they are in the execution stage and provide great opportunity to Newmont to enhance its production profile in the near-term. These include Merian, Turf vent shaft, and Correnso.

We’ll discuss each of these projects in detail in the subsequent articles, but before that we’ll briefly go over the project pipeline for Newmont. To read more about the stages of mining, please refer to Market Realist’s Everything you need to know about gold and gold companies.

The Long Canyon project in North America, which is in the feasibility stage, is a multi-million ounce oxide deposit. It’s the only significant major discovery in Nevada in the last decade. The project provides an opportunity to grow synergies with Newmont’s existing Nevada operations.

Newmont has many projects in pre-feasibility stage, including Ahafo North and mill expansion in Africa, Tanami expansion in Australia, and Subika underground in Conga and Peru. The Subika underground expansion will extend the mine life at Ahafo South, improve grade, and add approximately 200,000 ounces to the company’s annual gold production. The company expects Ahafo North and Ahafo mill expansion to optimize throughput and help counter the impact of lower grade ore the company is currently mining.

Apart from the projects mentioned above, the remaining projects are in the initial stages of exploration and scoping study, which will take a long time to come online if they clear all the stages of mine development.

Goldcorp (GG) has more productive projects in pipeline than both Newmont and Barrick Gold (ABX). As such, its production profile is much more stable than these two players.

It’s important to note that ETFs like the SPDR Gold Trust (GLD) and the VanEck Vectors Gold Miners Index (GDX) are also a good way to invest in gold and gold stocks. GLD tracks spot gold prices. GDX replicates the NYSE Gold Mining Index.