Newcrest Mining (ASX:NCM) reports a 4% drop in gold production

Company News

by Melissa Darmawan

Newcrest Mining (ASX:NCM) reports a 4 per cent drop in their gold production for the March quarter of this year. The company attributes the impact of planned shutdown events at their New South Wales operations in Cadia Hill and their Papua New Guinea operations, Lihir goldmine which was anticipated in their December 2020 quarterly report. This was partially offset by a 6 per cent increase in gold production at their Telfer mine in Western Australia driven by higher production rates and gold recovery improvements.

The company saw an uplift of 1.38 per cent in copper productions to 35,034 tonnes and an improved all-in sustaining cost of $891 per ounce, which is a $72 per ounce improvement from their December 2020 quarterly figures.

Newcrest managing eirector and chief executive officer Sandeep Biswas said “our world-class Cadia asset set a new record during the March 2021 quarter, reporting its lowest ever quarterly All-In Sustaining Cost of negative $160/oz. This record, along with unit cost reductions at all other sites, delivered a 7% reduction in our all-In sustaining cost per ounce for the quarter and a strong all-In sustaining cost margin of $854/oz".

The company says that they are on track to hit their FY21 guidance with a target group production of 1,950,000 to 2,150,000 ounces of gold for the full year. Year-to-date, the company has produced 1,550,990 ounces.
On the copper front, the company is targeting full-year guidance of 135,000 to 155,000 tonnes of copper with 104,354 tonnes produced year-to-date.

Shares in Newcrest Mining (ASX:NCM) are trading 1.77 per cent at $26.99.