Newcrest Mining has continued its bullish development at its Cadia gold mine in New South Wales, leading to operational records headlining the June quarter.
The company achieved a record annualised mine ore volume of 31.8 million tonnes a year and record annualised mill throughput rate of 34.2 million tonnes a year at Cadia for the June quarter.
This solid quarter led Cadia to exceed its annual production guidance and also achieved a 21 per cent increase in gold production compared to the March quarter.
Cadia’s operations have not been stalled by COVID-19 and have not experienced any “disruptions to the supply of goods or services or to its workforce.”
Newcrest managing director and chief executive officer Sandeep Biswas said Cadia’s performances highlighted its benefits as an asset to the company.
“Newcrest has safely delivered a strong fourth quarter enabling us to meet our Group gold production guidance for the year, notwithstanding the challenges of addressing the risks associated with the COVID-19 pandemic,” he said.
“Cadia exceeded the top end of its production guidance range and achieved record annualised mine and mill throughput rates in the quarter, further highlighting the strength of this world-class asset.”
Newcrest produced 573,000 ounces of gold in the June quarter overall, marking a 7 per cent increase from the March quarter.
Biswas said the company had not encountered a single positive case of COVID-19 across its workforce.
“This is a reflection of the extensive program of preventative actions we have implemented, the support of our host communities and governments in the jurisdictions in which we operate and the adherence to safe practices by our people,” he said.
Newcrest’s all-in sustaining cost (AISC) also increased by 7 per cent to $878 an ounce in the June quarter.
“The 7 per cent increase was primarily driven by higher levels of sustaining capital at Cadia and Lihir, timing of sales at Lihir and lower by-product credits reflecting a lower realised copper price,” Newcrest stated.
The company’s other Australian asset, the Telfer gold mine in Western Australia, achieved a 37 per cent increase to its mill throughput in the June quarter, with gold production at 17 thousand ounces higher than the March quarter.
Stripping and mining in Telfer’s Main Dome was completed in the June quarter, with all open pit mining activities now taking place at the mine’s West Dome.