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Newcrest’s Sept quarter output falls, 2015 guidance unchanged

Newcrest’s Sept quarter output falls, 2015 guidance unchanged

Photo by Bloomberg

7th October 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Gold miner Newcrest Mining has reported a 5% decline in all-in sustaining costs during the three months to September, but also posted a 12% quarter-on-quarter production decline.

All-in sustaining cost for the quarter under review reached A$864/oz, with Newcrest producing 561 731 oz of gold and 24 831 t of copper.

The gold miner reported on Tuesday that the lower output was not unexpected, and was impacted on by the lower gold grades at Gosowong, in Indonesia, Cadia Valley, in New South Wales and Lihir, in Papua New Guinea, as well as the planned shutdowns of the mill area and the Autoclave 4 at the Lihir plant.

Mine production at the Cadia East operation continued to ramp up during the quarter under review, with the mine delivering 3.2-million tonnes, a 39% increase on the previous quarter.

Overall gold production from the Cadia Valley operation remained broadly unchanged to that experienced in the three months to June, with the increase in the ore volume offsetting the impact of the lower gold grades and recoveries.

“It was 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,” said Newcrest MD and CEO Sandeep Biswas.

Meanwhile, production at the Lihir operation delivered 20 775 oz of gold during the quarter, a 12% reduction over the June quarter production, following a 12-day shutdown of Autoclave 4.

At the Telfer operation, in Western Australia, gold production for the quarter was up 5%, to 6 399 oz, while the Gosowong mine produced 28% less gold in the September quarter than in the June quarter, owing to gold grades being 32% lower.

Looking ahead, Newcrest has maintained its 2015 production outlook of between 2.2-million and 2.4-million ounces, while copper production was expected to be between 75 000 t and 85 000 t.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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