Newcrest reports strong quarterly gold production, achieves annual guidance
(Kitco News) - Australia's Newcrest, one of the largest gold mining companies worldwide, today announced that its gold production of 542koz in June 2021 quarter was 6% higher than the prior period driven by a strong performance from Cadia and Telfer.
The company said that Newcrest's AISC for the June 2021 quarter of $797/oz was $96/oz lower than the prior period, reflecting the benefit of higher copper sales volumes at Cadia, Telfer and Red Chris, a higher realised copper price and higher gold sales volumes at Telfer and Cadia.
At Cadia, the higher volumes of ore processed offset the reduction in grade and contributed to an 8% increase in gold production in the period to 195 koz. Cadia's new quarterly AISC record of negative $377/oz reflects the benefits of higher gold and copper sales volumes and a higher realised copper price.
At Lihir, gold production of 176koz was 4% lower than the prior period reflecting the impact of unplanned downtime in the autoclaves, lower head grade and recovery rates. Lihir's AISC of $1,481/oz was 15% higher than the prior period driven by an increase in stripping activities in Phase 15, timing of sustaining capital spent and higher COVID-19 related costs
At Telfer, gold production of 126koz was 19% higher than the prior period driven by higher throughput and recovery, partially offset by lower head grade and a reduction in dump leach ounces. Telfer's AISC of $1,203/oz was 19% lower than the prior period primarily driven by higher gold and copper sales volumes and a higher realised copper price.
Gold production at the Red Chris mine in Canada of 11koz was in line with the prior period, with higher throughput and recovery offset by lower gold head grade. Red Chris' AISC of $651/oz is 70% lower than the prior period and is a quarterly record for the site.
CEO Sandeep Biswas said, "Newcrest has safely delivered its group production and cost guidance for the year following a strong fourth quarter. Cadia exceeded the top end of its production guidance range and delivered mine and mill throughput records, showcasing the quality of this world class asset. Newcrest's All-In Sustaining Cost of $797/oz for the June quarter was underpinned by record quarterly AISC outcomes for Cadia and Red Chris, translating to an impressive All-In Sustaining Cost margin of $983/oz."