Price slide causes Newcrest to review projects
PERTH (miningweekly.com) – Australian gold major Newcrest Mining has warned that it is reviewing its operations in light of the declining gold price and the strong operating currencies.
“With its major projects ramping up, and the more challenging external environment, Newcrest continues to review all of its business activities, particularly those related to higher-cost current, or future production,” the miner said in its quarterly results.
The miner blamed the review on the continued high operating and capital costs of its projects, as well as the recent decline in commodity prices, which had not been accompanied by a reduction in the strength of either the Australian dollar or the Papua New Guinea Kina.
During the three months to March, ASX- and TSX-listed Newcrest increased its gold production to 532 237 oz, compared with the 492 906 oz produced during the previous three months.
Quarterly copper production decreased slightly to 19 023 t, compared with the 19 926 t produced in the three months to December.
Newcrest noted that the new and expanded operations at the Cadia East and Lihir mines performed to plan during the March quarter. Gold production at the Bonikro mine also increased by 10%, reflecting an increase in head grade.
However, quarterly production at Lihir and Goswong were negatively affected by restricted capacity and poor ground conditions, causing Newcrest to cut back on its 2012/13 production forecast by some 10%.
In March, the gold miner reported that full-year production was expected to be between 2-million and 2.15-million ounces, with yearly copper production remaining at between 75 000 t and 85 000 t.
Meanwhile, the miner noted that its study efforts remained focus on the Wafi-Golpu project, where good drilling results and better metallurgical recoveries continued to improve project economics.
The team was currently working on achieving a lower cost approach to first production.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation