Newcrest Mining has tightened its full-year gold production guidance below forecast highs and cut its estimates on copper output, citing African politics and wet weather in Australia.
Newcrest, the world's fourth largest gold company, said gold production in 2010-11 was likely to be between 2.85 million and 2.95 million ounces, tightened from previous guidance of 2.85 million to 3 million.
Stock rose at the open regardless, up 26 cents to $37.29.
Copper production guidance now was forecast between 75,000 tonnes and 80,000 tonnes, down from earlier expectations of 80,000 tonnes to 86,000 tonnes.
Newcrest’s West African operations at Bonikro in Cote d’Ivoire have been suspended since December 2010, leading to a production cut of 7000 ounces in the December quarter.
The suspension was a precaution against the nation’s political situation following elections, and Newcrest said the shutdown was costing 8000 ounces of gold for each month the plant remained out of action.
It said Bonikro was expected to have its processing plant resume operation in February, with mining to recommence shortly after.
High rainfall in southeastern Australia have also hit some of the company’s operations, which slashed a further 21,000 ounces from planned December quarter production.
Sites impacted included Cadia Hill in NSW, which had production 18,000 ounces lower than forecast, and Cracow and Mt Rawdon in Queensland, which had a combined reduction of 3,000 ounces.
Slowing of access to high grade ore at Cadia Hill is expected to reduce production from the site by a further 16,000 to 20,000 ounces.Despite the falls in some sites, overall gold production in the three months to December 31 rose 7.2 per cent, to 722,783 ounces, compared to the prior three months.
Compared to the corresponding period in 2009, before Newcrest’s takeover of Lihir Gold, production was up 63 per cent.
All sites except Mt Rawdon had higher production.
Newcrest’s gold cash costs of $440 per ounce ($US435 per ounce) were 10 per cent lower than the prior quarter.
Copper production for the three months to December 2010 was 17,712 tonnes, down 25.8 per cent on the equivalent period of 2009, but in line with the 2010 September quarter figure.
AAP