Newcrest meets FY16 production guidance, cuts debt to $2.1bn
JOHANNESBURG (miningweekly.com) – Australia’s largest gold producer Newcrest has met its production target for a third year, producing 2.4-million ounces of gold in the 12 months to June 30.
The group increased its production by 0.7% year-on-year in 2016, but its fourth-quarter production slid by 6% quarter-on-quarter to 598 037 oz, owing to production disruptions at the Gosowong mine, in Indonesia, and lower grades at Cadia, in New South Wales.
The interruptions at Gosowong and Cadia were partially offset by a strong result at the Lihir mine, in Papua New Guinea, which recorded a record quarterly gold production result of 245 973 oz, compared with 223 059 oz in the March quarter.
The ramp-up of Cadia East has also progressed and the mine has substantially replaced the ore previously sourced from the now closed Ridgeway mine.
“We have delivered a solid performance considering the challenges we have experienced at some sites,” MD and CEO Sandeep Biswas said in a statement on Monday.
The company produced 83 070 t of copper in the year, which is 14.2% less than 2015’s production, and its fourth-quarter output decreased by 7.4% on the March quarter’s production to 21 228 t.
The group reported a full-year all-in sustaining cost (AISC) of $404/oz, compared with 2015’s $780/oz. The June quarter’s AISC was higher at $787/oz, which Newcrest said was owing to a $56/oz increase in sustaining capital expenditure as previously ordered equipment had arrived at sites.
Meanwhile, Biswas also announced that Newcrest had reduced its net debt by 27% over the year to $2.1-billion at the end of June. This, he said, reflected the group’s focus on cash generation.
The gold miner, which has not provided a production guidance for 2017, will report on its full-year financial result in August.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
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