Newcrest on target to produce 2.5 million ounces of gold

Newcrest has slashed operating costs at its Cadia Valley operations as commercial production commenced at its newly built panel cave two.

In its September quarterly report, the company said it had slashed all-in sustaining costs at the mine by 37 per cent to $207 per ounce.

Cadia Valley’s September quarter production was 153,119 ounces of gold and 17,535 tonnes of copper.

This is in line with the previous quarter as a 14 per cent increase in mill throughput was offset by lower gold grade and recoveries.

However mine production at the new $2 billion Cadia East mine continues to ramp up and was 39 per cent higher in the three months to September at 3.9Mt.

Commercial production has also commenced at the mine’s second panel cave ahead of schedule.

At Newcrest’s Telfer mine, production was 5 per cent higher than last quarter at 134,771 ounces of gold and 7,296 tonnes of copper with an all-n sustaining cost of $894 per ounce.

The company also operates mines in Papua New Guinea, Indonesia, and the Ivory Coast.

Its total production for the September quarter totalled 561,731 ounces of gold and 24,831 tonnes of copper, a fall of 12 per cent on the June quarter and four per cent in the same period last year.

Newcrest said lower production was anticipated as lower gold grades were obtained from Gosowong, Cadia Valley and Lihir, and also by major planned shuts in the mill area and Autoclave 4 at Lihir mine.

The average realised gold price for the quarter was $1,393 an ounce.

Newcrest re-affirmed its full year guidance of gold output of between 2.2 million to 2.5 million ounces.

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