Newcrest meets FY16 production guidance, cuts debt to $2.1bn
A strong performance at the Lihir mine, in Papua New Guinea, has helped to offset production disruptions elsewhere in the group.
JOHANNESBURG (miningweekly.com) – Australia’s largest gold producer Newcrest has met its production target for a third year, producing 2.4-million ounces of gold in the 12 months to June 30.
The group increased its production by 0.7% year-on-year in 2016, but its fourth-quarter production slid by 6% quarter-on-quarter to 598 037 oz, owing to production disruptions at the Gosowong mine, in Indonesia, and lower grades at Cadia, in New South Wales.
The interruptions at Gosowong and Cadia were partially offset by a strong result at the Lihir mine, in Papua New Guinea, which recorded a record quarterly gold production result of 245 973 oz, compared with 223 059 oz in the March quarter.
The ramp-up of Cadia East has also progressed and the mine has substantially replaced the ore previously sourced from the now closed Ridgeway mine.
“We have delivered a solid performance considering the challenges we have experienced at some sites,” MD and CEO Sandeep Biswas said in a statement on Monday.
The company produced 83 070 t of copper in the year, which is 14.2% less than 2015’s production, and its fourth-quarter output decreased by 7.4% on the March quarter’s production to 21 228 t.
The group reported a full-year all-in sustaining cost (AISC) of $404/oz, compared with 2015’s $780/oz. The June quarter’s AISC was higher at $787/oz, which Newcrest said was owing to a $56/oz increase in sustaining capital expenditure as previously ordered equipment had arrived at sites.
Meanwhile, Biswas also announced that Newcrest had reduced its net debt by 27% over the year to $2.1-billion at the end of June. This, he said, reflected the group’s focus on cash generation.
The gold miner, which has not provided a production guidance for 2017, will report on its full-year financial result in August.
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