PERTH (miningweekly.com) – Gold major Newcrest Mining has reported an 11% drop in production for the three months to March, but assured shareholders that it was on track to deliver on its full-year expectations.

During the quarter under review, gold production declined to 551 590 oz, from 621 125 oz in the previous three months, resulting from lower mill throughput following increased maintenance activity at most of Newcrest’s operations.

At the Ridgeway mine, in New South Wales’ Cadia Valley, Newcrest replaced a conveyor belt, while a shutdown to complete the Cadia East west crusher tie-in was also undertaken, along with processing plant maintenance at the Lihir operation, in Papua New Guinea.

The Cadia Valley operations delivered 133 245 oz of gold and 13 844 t of copper during the quarter. At Lihir, Newcrest produced 164 359 oz of gold during the three months to March, while Hidden Valley, also in Papua New Guinea delivered 26 241 oz of gold and 248 602 oz of silver.

The Goswong mine, in Indonesia, produced 70 562 oz of gold, with the Telfer operation, in Western Australia, delivering a further 127 489 oz of gold. The Bonikoro mine, in Cote d’Ivoire, delivered 29 694 oz of gold during the quarter under review.

All-in sustaining costs for the quarter were 7% higher than the three months to December, at A$988/oz, owing primarily to a 24% increase in sustaining capital expenditure and a 15% reduction in by-product credits. However, site operating costs were marginally lower during the quarter, with each operation reporting an all-in sustaining cost below the average realised gold price for the quarter.

“Newcrest continues to maintain a sharp focus on cost reduction initiatives across the entire business,” said MD and CEO Greg Robinson on Wednesday.

“Our year-to-date all-in sustaining costs of A$998/oz is A$285/oz lower than last financial year, which has enabled us to expand our all-in sustaining cost operating margin to A$462/oz this quarter, despite the lower gold price environment.”

Robinson noted that for the full year, group production was expected to be around 2.3-million ounces.