Newcrest Mining Limited (ASX:NCM) has downgraded its 2011-12 production guidance.
Our biggest goldminer’s expecting to produce between 2.43 million and 2.55 million ounces of gold this financial year, down from a previous estimate of between 2.775 million and 2.925 million ounces.
It’s blaming rain in Papua New Guinea and NSW, as well as lower grades that it’s mined at its Telfer mine in the Pilbara in Western Australia.
Although it’s 13 per cent down on the mid-point of the previous guidance, the miner says after adjusting for the recent sales of its Cracow and Mt Rawdon mines, it’s only about "six per cent below the original minimum guidance level".
Newcrest reported a profit of $966 million for the 2011 financial year.
