Newmont Corporation NEM recently announced it would expand the use of its next-generation 5G wireless network to improve underground mining safety, following the results of trials at its Cadia mine in New South Wales, Australia. Last February, Newmont announced it would conduct 5G trials with Ericsson and Telstra Purple at the Cadia mine, one of the world’s largest underground gold and copper mines.
Prior to the study, Cadia’s Wi-Fi was limited to 20-30 megabits per second (Mbps) upload speeds when operating autonomous equipment such as ore loaders and remote-operated mining machines. Under load, the wireless connection was unstable and unpredictable. There was insufficient capacity to run the required number of machines simultaneously in an area, especially given the high volume of video being uploaded and frequent false triggers of automated safety stops due to network packet loss.
Using Ericsson private 5G, Newmont demonstrated the feasibility of achieving upload speeds of approximately 90 Mbps on access drives and descents throughout the underground complex, and 150 Mbps upload and 500 Mbps download speeds on critical extraction drives. The underground connection proved to be highly reliable and consistent, eliminating previous Wi-Fi limitations and delivering the stable performance required for remote control and autonomous mining equipment.
Going forward, NEM will leverage 5G to further deploy its autonomous vehicle fleet, including drilling rigs, graders and autonomous haul trucks, as part of its future mining operations, leveraging 5G’s unique capacity and capabilities to facilitate and streamline operational capabilities, as well as introduce additional safety systems, such as radar and collision avoidance, to improve safety systems throughout the mine.
Based on this trial, 5G now has a firm place in Newmont’s communications strategy for Cadia and other Tier 1 underground and surface mines around the world, and NEM plans to expand the use of its 5G network across its global network of Tier 1 underground gold-copper mines.
Newmont shares have risen 20.9% over the past year compared with the industry’s decline of 3.9%.
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Newmont said on its second-quarter conference call that it expects gold production to remain stable at about 6.9 million ounces in 2024, with production to be focused in the second half of the year. NEM also forecasts costs to sell gold in 2024 of $1,050 per ounce and all-in sustaining costs of $1,400 per ounce.
Newmont Price and Consensus
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Zacks Rank and other major stocks
NEM currently carries a Zacks Rank #1 (Strong Buy).
Other top stocks in the basic materials sector include: Carpenter Technology Co., Ltd. CRS, Eldorado Gold Corporation Ego and Agnico Eagle Mines Limited A M E M.
Carpenter Technology currently carries a Zacks Rank #1. CRS has surpassed the Zacks Consensus Estimate over the last four quarters, with the average earnings surprise being 15.9%. The company’s shares have risen 137.1% over the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Eldorado’s current fiscal year earnings is $1.32 per share, indicating an increase of 131.6% over the prior year. EGO, a Zacks Rank #1 stock, has surpassed consensus estimates over the past four quarters, with the average earnings surprise being 430.3%. The company’s shares have risen about 79.3% over the past year.
Agnico Eagle Mines currently carries a Zacks Rank #2 (Buy). AEM has surpassed the Zacks Consensus Estimate for the last four consecutive quarters, with the average earnings surprise being 15.7%. The company’s shares have risen 54.1% over the past year.
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Newmont Corporation (NEM): Free Stock Analysis Report
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