PERTH (miningweekly.com) – Gold major Newcrest Mining has reported a 17% drop in gold production for the three months to September, compared with the June quarter, on the back of planned maintenance shutdowns and lower grades.

Group gold production for the September quarter reached 527 115 oz, down from the 637 032 oz reported in the June quarter, while group copper production in the same period declined from 38 671 t to 32 459 t, and group silver production from 435 587 oz to 361 957 oz.

Lower head grades and planned maintenance at the Cadia operation saw gold production fall from 186 766 oz to 142 194 oz during the quarter under review, while lower head grades at Lihir, in Papua New Guinea, also resulted in a 22% decline in gold production, from 212 932 oz to 165 243 oz.

Gold production at Telfer, in Western Australia, was down 13% on the June quarter, from 97 443 oz to 84 372 oz, driven by lower mill throughput owing to planned maintenance shutdowns, while Red Chris, in Canada, reported a 10% drop in gold production, from 13 678 oz to 12 259 oz, owing to lower recovery resulting from circuit instability, as well as lower mill throughput with the primary crusher undergoing planned maintenance.

Brucejack production, also in Canada, was down from 90 408 oz to 84 123 oz on the back of lower head grades.

Newcrest expected gold and copper production to improve in the December quarter, on the back of lower planned maintenance.

“This week a colleague and team member from our mining and development contractor, Procon, was involved in a critical incident while working underground at our Brucejack operation. There is nothing more important than the safety and wellbeing of those who work with us, and our focus is on providing support to all those impacted during this distressing time as we assist with the ongoing investigation,” Newcrest MD and CEO Sandeep Biswas said on Thursday.

“While overshadowed by the upsetting news from Brucejack, Newcrest delivered a solid performance during the September quarter which reflected our normal cadence for planned major maintenance shutdowns across our operations during this period.

Our group gold and copper production has increased substantially from a year ago, reflecting maintenance and productivity improvements at Cadia and Lihir, and additional ounces from Brucejack. Following this strong start to the year we expect gold and copper production to be higher in the December quarter on lower planned maintenance and remain on track to meet 2023 guidance.”

Meanwhile, Newcrest’s all-in sustaining cost of $1 098/oz for the quarter was 23% higher than the prior period, driven by lower gold and copper sales volumes with lower production following planned maintenance, and a lower realised copper price. This was partly offset by the benefit of a weakening Australian and Canadian dollar against the US dollar on operating costs.

Newcrest told shareholders that with a significant proportion of operating costs exposed to the Australian and Canadian dollars, continued weakness of these currencies against the US dollar would favourably impact all-in sustaining costs.

“With a focus on capital management, continued strong operating performance in line with our guidance and a clear pathway to materially increase our already significant copper production in the future, I believe Newcrest’s upside potential will be recognised more broadly as we strive to unlock further value for our shareholders,” said Biswas.