Newcrest reports improved gold performance

Gold production is up for Newcrest Mining in 2015, thanks to
ramping up at the Cadia East mine, in Papua New Guinea and the Ivory Coast.

Gold output reached 610,186 troy ounces in the 2015 March quarter,
up 5.7 per cent from 577,110 ounces produced in the same period of 2014.

Australia’s largest gold miner has also reported lower
operating costs, attributed to the softening Australian dollar, as well as
higher grade mineralisation at the Bonikro mine on the Ivory Coast, and increased
production at Cadia East.

Cost per ounce in the March quarter was $946, compared to $963
per ounce in the December quarter 2014.

Newcrest quoted an average price received of $1556 per
ounce, up from $1402 in the previous quarter.

However, copper production has seen a fall, with 24,307
tonnes produced compared to 25,508 produced in the December quarter.

Reduced output was attributed to lower grade ores at
Ridgeway mine, and disruptions at the Telfer mine including adverse weather
events.

Despite the lower output, guidance for copper production was
lifted by 5000 tonnes bringing the 2015 expectation to 95,000-105,000 tonnes.

Newcrest (ASX:NCM) shares have recovered well after the
March slump from $14.46 to $12.29, however this morning has seen a drop from $14.50
at start of trade to $14.01 at 10:36am.

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