Newcrest on track

NEWCREST Mining has maintained its full-year guidance despite a 12% drop in gold production in the September quarter.
Newcrest on track
Newcrest on track
Newcrest on track
Newcrest on track
Newcrest on track

As previously announced on October 7, the company posted a 12% drop in gold production to 561,731 ounces of gold, in line with plan, while copper production rose to 24,831 tonnes.

Production was lower due to anticipated lower grades at Gosowong, Cadia Valley and Lihir and planned major shutdowns at Lihir.

All-in sustaining costs dropped 5% to $A864 per ounce, with AISC across all operations below the average realised gold price of $1393/oz.

Cadia Valley's AISC were just $207/oz, down from $326/oz in the June quarter, which offset a 38% jump in AISC at Gosowong to $771/oz and a 3% rise in costs at Lihir to $1353/oz.

The AISC margin for the September quarter was $529/oz, up from $469/oz in the June quarter and $434/oz for the 2014 financial year.

Newcrest's Cadia East panel cave 2 started commercial production as of October 1, which was earlier than expected, though it will temporarily raise AISC over the coming quarters during ramp-up.

"It is pleasing to see Cadia East Panel Cave 2 achieving commercial production so early in the financial year, which positions Cadia East well to continue to increase its contribution to the company," Newcrest managing director and CEO Sandeep Biswas said.

"The focus at Lihir remains on progressive implementation of improvement programs to lift production, cost and cash performance."

Guidance for FY15 of 2.2-2.4 million ounces of gold at total AISC of $2.3-2.6 billion has been maintained.

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