Newcrest Mining gold production hit by mine suspension

Monday, 25 Jul 2016 10:42:08 | Michael Janda

Newcrest's Telfer mine reported a fall in production. (Newcrest)

Newcrest Mining has reported a decline in June quarter production, but output was up slightly over the financial year.

The gold and copper miner reported a 0.7 per cent increase in output to 2.4 million ounces over the financial year, but production eased 6 per cent in the June quarter relative to the March quarter.

Newcrest said the decline in June quarter output was largely attributable to an extended production suspension at the Gosowong mine in Indonesia due to a "geotechnical event" in February that trapped one miner underground, who was successfully rescued.

The company said it has managed to reduce production costs by 2.3 per cent to $US762, however profit margins still fell by 8.4 per cent to $US404 an ounce due to weaker realised gold prices over the 2016 financial year.

Newcrest's margin in the June quarter jumped to $US468 an ounce on the back of a much higher average realised gold price of $US1,255 an ounce.

"We have delivered a solid performance considering the challenges we have experienced at some sites," said Newcrest's chief executive Sandeep Biswas.

"The 27 per cent reduction in net debt reflects our focus on cash generation.

"We look forward to safely building upon this performance with the continued ramp up of Cadia East and our ongoing operational improvements at Lihir."

Newcrest's share price was down 2.6 per cent at $23.42, but other gold miners were also trading lower due to a fall in the precious metal's price to $US1,317 an ounce.

AustraliaPlus

About Us
|
Terms of Use
|
RSS
|
Privacy Policy
|
Contact Us
|
Shanghai Call Center: 962288
|
Tip-off hotline: 52920043

沪ICP证：沪ICP备05050403号-1
|
互联网新闻信息服务许可证：31120180004
|
网络视听许可证：0909346
|
广播电视节目制作许可证：沪字第354号
|
增值电信业务经营许可证：沪B2-20120012

Newcrest Mining gold production hit by mine suspension

Email this to your friend