The world’s fifth-largest miner has cut its output guidance as rainfall across Eastern Australia cut nearly 50 000 ounces of gold from production due to the rainfall in eastern Australia.
The rain that has shut down output from the coal industry in the regions has caused Newcrest mining to cut 28 000 troy ounces from production from its Cadia Valley, Cracow and Mt Rawdon mines.
It’s expected to remove another 20 000 oz in the March quarter.
These losses combined with those from its Bonikro mine due to the political unrest in the West African country of Ivory Coast has cut the miners gold production guidance for the full year to the end of June.
Its overall range of 2.85 million oz to 2.85 million oz has been scaled back to between 2.85 million oz and 2.95 million oz, equivalent to a drop in the median expectation of 0.9 per cent for the company.
There was an even bigger drop in expected copper output, with a fall in median expectation of 6.6 per cent from a range of 88 000 tonnes to 86 000 tonnes down to between 75 000 tonnes and 80 000 tonnes.
The figures are not expected to have a major impact on gold prices, because Newcrest accounts for only around 2.7 per cent of the 111.7 million oz of gold produced each year.
However the news does highlight the affects of the bad weather on commodities other than coal.
The heavy rains in north and northwest Queensland have affected the world’s biggest producers of bauxite, zinc, lead and silver.
Newcrest’s second quarter report said it had experienced a “challenging operating environment” due to the weather, with water flooding the open pit mine at Cadia Hill and preventing the company from reaching high-grade ores.