Newcrest production declines slightly in March Q

PERTH (miningweekly.com) – Australian gold major Newcrest Mining has reported a 2.6% decline in gold production and a 12.3% decline in copper production for the three months to December.

Group gold production for the quarter reached 598 602 oz, while copper production reached 22 074 t in the three months to March, with Newcrest telling shareholders on Thursday that production from the Cadia mine, in New South Wales, was lower as the company proactively managed cave draw from the Panel Cave 2, to evenly propagate the cave and optimise the cave shape.

Production from the Telfer mine, in Western Australia, was also lower in the quarter owing to record rainfall in January. This was partially offset by increased production at the Gosowong mine, in Indonesia.

Meanwhile, group all-in sustaining costs for the quarter was down 5.1% on the previous quarter, driven by a decrease in costs per ounces from all sites, except the Telfer operation.

All-in sustaining costs for the March quarter was recorded at A$713/oz.

Newcrest on Thursday told shareholders that for the full year, group gold production was expected to be at the bottom-end of the guidance of between 2.35-million and 2.6-million ounces, with the Cadia mine unlikely to meet its production guidance owing to recent seismic events.

The Telfer mine is also expected to produce at the bottom-end of its target range, while the Gosowong mine’s production is expected to exceed its guidance range.