Newcrest Mining has announced an 8.4% decline in gold production in its latest annual report.
While progress was made with first production at Hidden Valley in Papua New Guinea and higher gold production at Telfer, this was offset by lower planned production at Cadia Valley.
At the Cadia Valley mine, Newcrest saw lower grades and associated recoveries costs.
From year to year, gold production dropped from approximately 1.78 million ounces to approximately 1.63 million ounces, which was coupled with a 7.4% drop in sales volume.
However, Newcrest saw an increase in revenues from gold due to the soaring gold price which rose from $917 per ounce at 30 June 2008 to $1169 in 12 months.
Newcrest saw an 18.3% rise in total gold revenue from US$1.6 billion in June 2008 to US$1.9 billion in June 2009.
Inversely, despite increased copper output of 8.2%, Newcrest realised a loss of 17.7% on the year, falling from revenues of US$721 million to US$593 million.
Added to this, it was hit with a net loss of US$32 million due to a strengthening Australian dollar in the second half of the 2008/2009 financial year.
Newcrest’s cashflow from operations exceeded $1 billion for the second year running.