Newcrest enjoyed a 10 per cent increase in production over the December quarter due to an increase in the company’s mill capacity at its Cadia operation in New South Wales.
Cadia’s mill capacity was improved with completion of the replacement and upgrade of the SAG (semi-autogenous grinding) mill motor at the site.
Mill throughput rates were also higher at Lihir, in Papua New Guinea, and Telfer, in the Pilbara region of Western Australia, with a reduction in planned and unplanned shutdown activities compared to the September 2021 quarter.
According to the company’s December quarterly report, Newcrest remains on track to deliver its full year production guidance.
Newcrest reported all-in sustaining costs at 11 per cent lower than the prior period, reflecting higher gold and copper sales volumes, a higher realised copper price, lower sustaining capital and production stripping expenditure.
Newcrest managing director and chief executive officer Sandeep Biswas said the company maintained a strong operational focus on maintenance and productivity improvements during the quarter.
“It was a tremendous achievement for our team to safely complete the replacement and upgrade of the SAG mill motor at Cadia, which is now operating at full capacity. It was also pleasing to receive approval to increase the permitted processing capacity at Cadia from 32Mtpa to 35Mtpa during the period,” Biswas said.
“Across all our operations, we are well positioned for a strong second half and remain on track to meet our FY22 guidance.”
Biswas said the company is very excited to take another step forward in its profitable growth journey with the agreement to acquire Canadian company Pretium Resources signed in November 2021.
“Brucejack is an asset we have been watching and evaluating for a number of years, and we are delighted that an orebody of its grade, quality and significant potential, will become part of our already exceptional asset portfolio,” he said.
“We expect the acquisition to deliver immediate production, earnings and cash flow growth to Newcrest and our balance sheet will remain strong and well positioned as we progress our exciting organic growth projects at Cadia, Havieron, Lihir and Red Chris.
“We look forward to completing the transaction in the March 2022 quarter and applying our exploration and innovation expertise to unlock further value for our shareholders.