Nevada Gold Mines LLC, the company formed by the joint venture agreement between Barrick Gold Corp. and Newmont Goldcorp Corp. officially launched on July 1.
The new company, owned 61.5 percent and operated by Barrick, and owned 38.5 percent by Newmont Goldcorp will rank as the largest gold producing complex in the world with three of the world’s top 10 Tier One gold assets (Goldstrike/Carlin, Cortez and Turquoise Ridge/Twin Creeks) and potentially another one in the making (Goldrush), Barrick said in a statement.
Barrick Gold Corp. said the joint venture is expected to produce 1.8 million ounces to 1.9 million ounces of gold in the second half of 2019.
The operations, which include 10 underground and 12 openpit mines in Nevada had produced a total of 4.1 million ounces of gold in 2018.
Barrick, which also operates the joint venture, Nevada Gold Mines LLC, estimates cost of sales there in the range of $940 to $970 per ounce, while all in sustaining costs are expected to be $920 to $950 per ounce for the second half of the year.
Barrick President and Chief Executive Officer Mark Bristow, who is chairman of the new company, says the establishment of Nevada Gold Mines was designed to combine arguably the industry’s best assets and people in order to deliver the best value to stakeholders.
“Its creation was driven by a compelling logic which had long been evident to all but had been elusive for two decades until we finally achieved a breakthrough this year,” Bristow said.
“Over the past months we have selected and set Nevada Gold Mines’ leadership in place. The company now has one team that shares one vision, and who are more than ready to race out of the starting blocks. We have also identified the very significant synergy opportunities which are immediately available and those which have been targeted for the future.”
Gary Goldberg, Newmont Goldcorp’s chief executive officer said, “This innovative joint venture represents a unique opportunity to generate additional long-term value for our shareholders, employees, and the communities of northern Nevada. By combining our assets and talent in Nevada, the joint venture will extend safe, profitable and responsible production much further than what each company could have done on its own. We look forward to actively participating in and supporting the JV to deliver a positive step-change in results.”