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Newmont Goldcorp says fire damage at Musselwhite mine to be fixed in 2020

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Newmont Goldcorp says fire damage at Musselwhite mine to be fixed in 2020

Newmont Goldcorp Corp. is working toward resolving issues caused by a fire earlier in the year that damaged the conveyor system at its large Musselwhite mine in Ontario.

The company is about 70% through the rehabilitation of the structure, President Thomas Palmer said on a July 25 earnings call. The timing of the ultimate fix of the system will be determined by an ongoing bid process for fabrication and installation of a new conveyor, he added.

"I will say that's a work in progress, and they are doing an excellent job in terms of ensuring that they are setting up that rehab for the long term in a mine that has a very long life," Palmer said. He added that it would be 2020 before that conveyor system is commissioned and up and running.

Newmont Goldcorp reported a net loss to shareholders of US$25.0 million for the second quarter. The company attributed part of its decline in net income to the fire at Musselwhite as well as a temporary suspension at its Penasquito mine in Mexico where operations ramped back up in June.

The company also pointed to costs associated with a joint venture transaction in Nevada with Barrick Gold Corp., higher interest and other factors lowering its net income in the quarter.

Newmont Goldcorp CEO Gary Goldberg noted the closing of the Goldcorp deal, the integration of assets, the joint venture with Barrick and successes in operational, financial and sustainability performance as highlights of the quarter.

The company reported US$679 million in adjusted EBITDA for the period, with the Goldcorp integration process "on track to deliver an additional US$365 million in annual cash flow."

"Newmont Goldcorp delivered a strong first half in 2019," Goldberg said. "We are well positioned to build on that performance in the second half and for decades to come."