Industry Trend Analysis - Newmont Project To Double Gold Output - MAR 2016

BMI View: Suriname ' s gold mining sector will remain dominated by Canadian firms Newmont Mining and Iamgold , as the former ' s Merian project comes online in the second half of 2016.

Suriname's gold production growth will be supported by new projects coming online, most notably Newmont Mining's major Merian project, set to come online in late 2016, and Iamgold's Rosebel mine. According to the USGS, gold, along with alumina and oil, accounts for approximately 95% of Suriname's total exports. Despite persistently weak prices, gold will continue to be an important source of revenue for the government. In Q315, Newmont reported the USD1.0bn Merian project to be progressing on schedule, with production expected to begin in H216. The project will produce between 400-500 thousand ounces (koz) per annum over the first five years, with all-in sustaining costs between USD650-750/oz. Newmont operates the project through its 100% owned subsidiary, Suriname Gold Corp (Surgold) and the Surinamese government maintains the option to earn in up to 25% of the mine. Additionally, Canada-based Suparna Gold Corp will continue to explore the Sara Creek gold deposit.

Iamgold To Remain Key Player

Newmont, Iamgold Well Positioned To Invest
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Note: February 2015 = 100. Source: Bloomberg

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