Newcrest Mining has reported lower gold production in the September quarter but says it still expects to meet production and cost guidance.
Shares in Newcrest slipped $1.66, or 4.6 per cent, to a two-week low of $34.09 in early trade.
Australia’s largest gold miner produced 587,296 ounces of gold, 16 per cent lower than the previous quarter.
That was due to maintenance shutdowns at Lihir in Papua New Guinea, Telfer in Western Australia and Gosowong in Indonesia, along with high rainfall at Lihir.
Gross cash margin increased by 19 per cent to $1029 per ounce, due to a higher realised gold price of $1623 per ounce during the quarter. Cash costs of $594 per ounce were 10 per cent higher than the previous quarter, reflecting lower gold production and higher maintenance costs associated with processing plant shutdowns.
September quarter copper production of 19,228 tonnes was slightly lower than the previous quarter.
Output is forecast to rise to up to 2.925 million ounces this financial year.
Production in 2010-11 was 2.527 million ounces, reflecting the integration of the newly-acquired Lihir assets and increased output from new mines at Ridgeway Deeps in NSW and Hidden Valley in PNG.
Newcrest’s two major expansion projects, Cadia East in NSW and Lihir MOPU were on track, the company said.
Increased output at those projects will drive Newcrest’s target of full-year production of four million ounces within five years.
The sale of its Cracow and Mt Rawdon mines to Evolution Mining was on track for early November, this year.
In return, Newcrest will have a one-third stake in the new company, a mid-tier gold company to be formed by the merger between Catalpa Resources and Conquest Mining.
Shorter-term bilateral debt facilities have been increased from $US1.1 billion to $US2 billion with eight banks.
AAP