Gold miner Newcrest Mining's production guidance for the full year remains unchanged despite flat output in the December quarter.
Gold miner Newcrest Mining's production guidance for the full year remains unchanged despite flat output in the December quarter.
Newcrest still expects to produce 2.35 million to 2.6 million ounces of gold and 80,000 to 90,000 tonnes of copper for the 12 months to June 30, 2017 - in line with guidance provided in September 2016.
The miner produced 614,715oz of gold in the three months to the end of December, down slightly from 615,498oz in the September quarter.
But production from continuing operations was up 2 per cent. Newcrest sold its 50 per cent stake in the Hidden Valley mine in Papua New Guinea in the September quarter of 2016.
Copper production rose 6.1 per cent to 25,176t in the December quarter, from 23,723t in the prior quarter.
Newcrest said production at its Telfer mine in Western Australia was impacted in January by significant rainfall temporarily flooding one of the pits, but production was still on track to meet full-year guidance.
In its quarterly production report released today, Newcrest said it had cut production costs by 4.9 per cent per ounce in the December quarter.
But margins fell 11.1 per cent as a result of lower gold prices.
Chief executive Sandeep Biswas said the mill at the Lihir mine in Papua New Guinea processed a record 13 million tonnes of ore, and the mill at the Cadia mine near Orange in NSW was processing ore at an annualised rate of 24.6mt - up 6 per cent on the previous quarter.
"These achievements and efforts by all our operations contributed to a 5 per cent decrease in Newcrest's all-in sustaining cost per ounce, and an increase in production from our continuing operations," he said.
Newcrest shares were 7 cents, or 0.33 per cent, higher at $21.25 this morning.
