Newcrest strengthens Cadia as Australia’s leading gold producer

The Cadia site. Image: Newcrest Mining.

Newcrest Mining’s Cadia mine in New South Wales is comfortably Australia’s top producing gold mine so far this year.

And it looks like the operation is well placed to move further ahead on the leaderboard after the June quarter.

Newcrest finished off the 2019 financial year with quarterly and annual gold production records at Cadia.

The company produced 240,903 ounces of gold at Cadia during the June quarter, giving it 2019 financial year output of 912,777 ounces at the mine.

Its latest quarterly output at Cadia was an improvement on the site’s March quarter production of 218,819 ounces, an amount that was more than 60,000 ounces ahead of Australia’s next largest producing mine during that period – Newmont Goldcorp’s Boddington mine in Western Australia (according to Surbiton Associates).

Cadia also achieved a record annualised mill throughput rate of 31.7 million tonnes a year in the June quarter, guiding it to its highest ever gold and copper production returns.

The production increase at Cadia has pushed Newcrest’s quarterly output six per cent higher across the company with 661,000 ounces.

“Newcrest had a strong fourth quarter, enabling us to meet our group production and cost guidance. Cadia delivered a quarterly and annual gold production record, exceeding the top end of its production guidance range,” Newcrest chief executive Sandeep Biswas said.

“Our focus on safe production and operational discipline has culminated in a further reduction in injury rates and a record low group all-in sustaining cost an ounce for the quarter and the year.”

Newcrest produced 2.488 million ounces of gold and 106,000 tonnes of copper in the 2019 financial year, representing a six per cent and 36 per cent increase on 2018 respectively.

The company reached all-in sustaining costs of $US720 ($1032) an ounce for the June quarter, which was two per cent lower than the prior quarter due to higher gold and copper sales at Cadia and favourable movement in exchange rates.

Newcrest delivered a 10 per cent increase in gold production at its Lihir mine in Papua New Guinea compared with the prior quarter, thanks to an increase in mill throughput.

Lihir’s higher mill throughput reflects the planned shutdowns and unplanned outages at the mine in the March quarter, according to Newcrest.

The company’s Telfer and Gosowong gold production in Western Australia and Indonesia was lower than the prior quarter, primarily due to lower grade.

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