Newcrest lifts gold output 3%, exercises Cote d’Ivoire option

PERTH (miningweekly.com) – Gold miner Newcrest has reported a 3% increase in gold production during the three months to September, with the miner delivering 615 000 oz of gold and 24 000 t of copper.

“Newcrest achieved a 3% increase in production and a 15% increase in all-in sustaining cost (AISC) margin during the quarter, despite planned total plant shutdowns at Lihir and Telfer and lower grades at Lihir,” Newcrest MD and CEO Sandeep Biswas reported on Thursday,

ASIC for the quarter increased to A$790/oz, from A$787/oz in the June quarter.

Increased output from the ramp-up of the Cadia East and Gosowong operations, in New South Wales and Indonesia respectively, boosted gold production during the quarter.

The higher production was partially offset by reduced output from Lihir, in Papua New Guinea, owing to lower grades and a planned plant shutdown in July.

The Telfer operation, in Western Australia, also conducted a planned dual-mill shutdown during the quarter, but was able to offset the adverse production impact by reducing unplanned downtime events, compared with the previous quarter.

During the quarter under review, the Cadia operation delivered 195 301 oz of gold and 18 774 t of copper, while Gosowong delivered 57 690 oz of gold. The Telfer mine delivered 110 255 oz of gold and 4 949 t of copper, while Lihir produced 206 760 oz of gold

The Bonikro mine, in Cote d’Ivoire, delivered 34 973 oz, while Hidden Valley, in New South Wales, delivered 10 520 oz.

For the full year, Newcrest expects gold production to reach between 2.35-million and 2.6-million ounces of gold, while copper production of between 80 000 t and 90 000 t is targeted.

Meanwhile, Newcrest on Thursday exercised a purchase option over ASX-listed Apollo Consolidated’s 80%-held Seguela gold project, in Cote d’Ivoire.

Under the terms of the option, Newcrest holds the right to fund up to two years of exploration on the property, and, on decision to exercise the option, will purchase 100% of the Seguela permit from the existing permit holder, an Ivorian subsidiary, which is 80% held by Apollo.

The option exercise triggers the first installment of various consideration payments totalling $3.5-million, and a final payment will be made on the completion of the transfer of the title to Newcrest, following Ministerial approval.

Apollo will retain a 1.2% net smelter royalty on the project, allowing the junior exposure to any subsequent commercial success.