Newcrest Mining Ltd
(ASX:NCM) has issued a full year production downgrade for both gold and copper, blaming a challenging operating environment such as Australia’s severe wet weather crisis and African politics.
While cost guidance remains unchanged, the miner now expects 2010-11 gold production to fall from up to 3 million ounces to be between 2.85 million and 2.95 million ounces.
Copper production is also expected to dip from up to 86,000 tonnes to between 75,000 tonnes and 80,000 tonnes.
The downgrade has been issued despite a 7.2 per cent rise in December quarter gold production on the back of higher gold grades and more throughput at its operations.
In December Newcrest suspected its Bonikro operations in West Africa as a precaution against the country’s political environment following elections.
The company advises it expects the plant to resume operations in February, with mining to recommence shortly after.
Newcrest booked a net profit of $602 million in the year ended 30 June 2010.
