Newcrest Mining extends power contract, reduces costs at Cadia

Company News

by Jessica Amir

One of the world’s largest Gold producer’s Newcrest Mining (ASX:NCM) has extended its electricity contract at its NSW Cadia site, reducing its costs by 20 per cent.

Newcrest says the five-year extension with EnergyAustralia, not only provides costs certainty and reduced tariffs, but beats its cost estimates.

In August the company told shareholders Cadia’s operating costs would increase in the order of $55 to $60 per ounce, compared to FY17. But now the new contract reduces that impact to about $30 to $35 per ounce.

As a result of this, favourable copper prices and exchange rates, it’s now expecting its total FY18 AISC will be at the lower end of its guidance range ($255 to $295 million).

Shares in Newcrest (ASX:NCM) closed 0.3 per cent lower yesterday to $23.26

Jessica Amir

Finance News Network
Jessica is a senior finance journalist and presents the Market Outlook, Market at Midday and Market Wrap. She also presents ASX company news and interviews CEOs. She joined FNN in January 2017 with six years of broadcast journalism experience. She worked as a journalist and producer with Sky News Business, ABC 1, ABC's The Business and ABC24. She also worked in regional Australia for Prime 7 and WIN News as a TV reporter. In her prior life she worked as a financial planner.