28/01/2022 - 15:21

Newcrest knocked on quarterly figures

28/01/2022 - 15:21

Bookmark

Save articles for future reference.

Newcrest shares fell sharply in response to a quarterly update that detailed a 10 per cent lift in production but potential COVID-19 headwinds at its PNG operations.

Newcrest knocked on quarterly figures
Newcrest chief executive Sandeep Biswas. Photo: Attila Csaszar

Newcrest Mining shares fell sharply in response to a quarterly update that detailed a 10 per cent lift in production but potential COVID-19 headwinds at its PNG operations.

Gold production for the December quarter reached 436,085 ounces, marking a 10.1 per cent increase on the previous quarter and keeping the miner on track for full-year guidance of between 1.8 million to 2 million ounces.

All-in sustaining costs of $US1,127 were 11 per cent lower than the prior period, which Newcrest said reflected higher gold and copper sales volumes and a higher realised copper price.

Newcrest chief executive Sandeep Biswas said the company was well positioned for a strong second half.

“We maintained a strong operational focus on maintenance and productivity improvements during the quarter,” he said in a statement.

“It was a tremendous achievement for our team to safely complete the replacement and upgrade of the SAG mill motor at Cadia, which is now operating at full capacity.”

But the update was not well-received by investors, with Newcrest’s share price dropping nearly 8 per cent to its lowest since late 2018.

While the company said It had not experienced any material COVID-19 related disruptions to production, it said a second outbreak in Papua New Guinea had reduced staff levels at its Lihir operations.

“Newcrest continues to maintain strong COVID-19 controls at Lihir, focusing on containment through testing, contact tracing, isolation procedures and continuation of the vaccine rollout,” Newcrest said in a statement.

But if flagged the potential for further disruptions and elevated costs, anticipating that production would be at the lower end of its guidance 700,000oz to 800,000oz range for FY22.

“Elevated costs related to the pandemic are expected to continue through FY22.”

Newcrest closed today’s session at $21.50.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options