METS

Lycopodium extends Newmont connection in Ghana

Western Australia-based Lycopodium has won another new engineering and procurement management contract in Africa.

Haydn Black
 Newmont's Ahafo South operations in Ghana are set to expand substantially

Newmont's Ahafo South operations in Ghana are set to expand substantially

The A$62 million contract will see it support Newmont's new 3.5 million ounce Ahafo North development in Ghana, about 30km from the existing Ahafo South operations.
 
Lycopodium has been working with Newmont in Ghana since 2003 helping develop both Ahafo South in 2006 and, in 2013, the Akyem gold mine some 150km away.
 
It has been involved in the engineering designs to facilitate the procurement of long lead items, and the development of a detailed project execution plan, schedule, and capital cost estimate.
 
Construction of the US$700-800 million Ahafo North project is expected to commence once Newmont has approval from Ghana's government, however, the EPM contract awards means Lycopodium can now progress procurement of critical path, long lead items.
 
Lycopodium will undertake the detailed engineering design and procurement services for the design of the process plant and infrastructure, while the project continues with the final permitting approvals.
 
Ahafo North spans a strike length of some 14km, and will see development of a 3.7Mtpa processing plant to be fed by four openpits.
 
Newmont claims annual production of 643,000 ounces per annum from Ahafo South, and 422,000ozpa from Akyem, and Ahafo North to add 300,000ozpa from 2024.
 
At all-in sustaining costs for the first five full years of production are estimated at $600-700/oz, with a 13-year mine life forecast.
 
Since the start of the year, Lycopodium has won contracts for work across Africa, including at Prospect Resources' Arcadia lithium project in Zimbabwe, Roxgold's Seguela greenfields gold project in Cote d'Ivoire, and Orezone Gold Corporation's Bombore gold project in Burkina Faso.
 
Lycopodium shares were steady at A$5.50 today, just shy of its January peak of $5.99, and up from its 12-month low of $3.75.
 
At current levels, the engineering company is worth $219 million.
 

 

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.