Newcrest Mining has exceeded its gold production targets at the Cadia gold operation in New South Wales after achieving records for mined ore and throughput rates.
The company mined ore volumes from Cadia East reached 38.1 million tonnes per annum and throughput of 34.3 million tonnes per annum in the June quarter, contributing to 764,895 ounces of gold produced at the site in the financial year.
This was above Newcrest’s guidance range of 680,000 to 760,000 ounces of gold mined at Cadia.
Total gold production in the June quarter was 6 per cent higher than the previous period partially due to Cadia’s performance.
Newcrest has produced 2.09 million ounces of gold in the 2021 financial year, which is at the upper end of its 1.95 million to 2.15 million guidance range.
A new quarterly all-in-sustaining-cost (AISC) record of negative $US377 ($512) per ounce was also achieved at Cadia due to higher gold and copper sales volumes along with record high copper prices this year.
Newcrest’s AISC for the June quarter was $US797 per ounce, which was $US96 per ounce lower than the previous period due to higher gold and copper sales.
Company managing director and chief executive officer Sandeep Biswas said these results came despite recent seismic activity at Cadia.
“Following the localised seismic event at Cadia earlier this month, the prohibition notice has been lifted and we are currently rehabilitating the affected area,” he said.
“As previously disclosed, we do not expect this event to impact gold and copper production in financial year 2022 and our development and expansion works continue uninterrupted.”
Cadia produced 96,042 tonnes of copper for the 2021 financial year against a guidance of 95,000 to 105,000 tonnes.
Newcrest stated its SAG mill motor at Cadia commenced in early July and expected it to be completed within 19 weeks.
The miner is also on track to commission Cadia’s molybdenum plant which will achieve first production by the end of September 2021 and will be used as another revenue stream for the mine.
Newcrest’s Telfer gold mine in Western Australia produced 126,000 ounces in the June quarter, marking a 19 per cent higher result than the previous period, and produced 393,164 ounces of gold for the financial year.
Telfer’s AISC of $1203 per ounce was 19 per cent lower than the previous period due to strong gold and copper sales.
The mine also produced 16,278 tonnes of copper in the 2021 financial year.
“Newcrest has safely delivered its group production and cost guidance for the year following a strong fourth quarter,” Biswas said.
“Cadia exceeded the top end of its production guidance range and delivered mine and mill throughput records, showcasing the quality of this world class asset.”