Newcrest quarterly output up 17%
Newcrest Mining Limited (NCM) reported a 17% increase in gold production to 442,333 ounces compared to the previous quarter and reaffirmed FY10 gold production guidance at 1.81 – 1.91 million ounces. The company said the main contributors to the rise were record quarterly production at Telfer, higher production at Cadia Valley and ramp up at Hidden Valley.
Newcrest gross cash costs fell 31% in the December quarter to $310/oz, while net cash costs fell 29% to $310/oz.
The company said the lower cost profile was due to lower site operating costs, increased production and higher by-product credits.
Meanwhile, copper production rose 12% to 23,860 tonnes compared to the previous quarter.
Looking ahead, Newcrest said Hidden Valley would be fully commissioned for mining and process throughput by the end of January, however the process plant profile for full recovery of both gold and silver would not be finalised until the end of February.
”The original design capacity for the Hidden Valley mine and processing plant of 250koz of gold will be achieved during the fourth quarter of FY10,” the company said.
“Newcrest’s share of annual production for FY10 will be lower at approximately 75 – 85koz of gold.”
Newcrest increased its copper guidance range to 85 – 90kt for the year and maintained cost guidance for each site but added that indications are that costs would be at the lower end of the guidance range.
At the close of trade Wednesday, Newscrest shares were trading at $32.30.
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