Production costs on the up at Newmont’s Boddington mine

While costs across Newmont Mining’s Asia Pacific operation fell, the company’s Boddington gold mine in Western Australia recorded increasing production costs for the September quarter.

While costs across Newmont Mining’s Asia Pacific operation fell, the company’s Boddington gold mine in Western Australia recorded increasing production costs for the September quarter.

All-in sustaining costs at the Boddington site jumped 12 per cent to $US1197 an ounce, in comparison to the same period last year.

Newmont said gold costs at the operation jumped 11 per cent ounce as a result of inventory write-downs.

But the spike has been partially offset by higher production.

Higher throughput and recovery saw gold production increase 7 per cent to 178,000 ounces in comparison with the same time last year.

Copper production for the September quarter fell 6 per cent as a result of lower mill grade.

Newmont is maintaining its 2013 gold production outlook of between 700,000 and 750,000 ounces.

But lower than expected mill throughputs has seen the 2013 copper production outlook revised down to between 60 and 70 million pounds.

The miner reported all-in sustaining costs for the remainder of its Australian and New Zealand operation of $US996 per ounce for the September quarter.

In July, Australian Mining reported Newmont slashed almost half off the value of its Boddington gold mine, citing a decision to cut its gold price assumption to $US1400 an ounce down from $US1500 an ounce.

"That filters through in terms of the valuation that we use for the impairment," chief financial officer Tom Mahoney said at the time.

In December Newmont valued the asset at $US4.7 billion based on its performance and outlook, however in July it revised its book value by $US2.1 billion.

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