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