Dallas, Texas 07/30/2014 (FINANCIALSTRENDS) – Newmont Mining Corporation (NYSE:NEM) the gold producer with worldwide assets had good news to report for its second quarter of 2014. The company in its press release noted that, the EPS for the quarter was $0.20, beating expectations by $0.01. Revenue for the quarter too was in-line in comparison to previous results, at $1.77 billion.
Earlier on Tuesday, Newmont Mining Corporation (NYSE:NEM) had announced that it would invest in the gold mine located at Suriname and develop the property of Merian gold mine. The investment the company would likely make in this region is expected to be in the region of $900 million to roughly $1 billion. The interest in this gold mine for this producer lies in the gold reserves, which is estimated to be 4.2 million ounce and it is expected to produce approximately 300K to 400K ounces per year. It is expected that Merian site life could span for a little more than a decade. Another focus for Newmont Mining Corporation with respect to this site is the quality of the ore. The high grade ore as well as the throughput which is expected to be in the early phases is also set to produce output to the tune of 400K to 500K ounce per year within the first five years.
Newmont Mining Corporation (NYSE:NEM) projects are expected to run up costs on an average of $750 to $850 per ounce within the first five year period. Following the phased investment the mine is expected to begin production during 2016. However the work would be subject to further approval by the government.
Newmont Mining Corporation (NYSE:NEM) with the return of in-line financial report for the second quarter has definitely established the processes to achieve higher targets in the following fiscals, if Merian gold mine were to deliver as per expectations.