PERTH (miningweekly.com) – Gold major Newcrest Mining has reported an 8% increase in gold production and a 52% increase in copper production during the December quarter, compared with the previous three months.

Gold production in the December quarter reached 551 000 oz, while copper production was up to 38 000 t, driven by increased production at the Cadia, Telfer and Red Chris operations.

Newcrest told shareholders that the increased production at these assets was partially offset by lower production at the Lihir and Gosowong mines.

Cadia, in New South Wales, delivered 239 722 oz of gold and 26 478 t of copper during the quarter, while Telfer, in Western Australia, produced 103 155 oz of gold and 4 335 t of copper, with Red Chris, in Canada contributing 8 509 oz of gold and 6 882 t of copper.

Lihir, in Papua New Guinea, added 163 994 oz of gold, down from the 217 506 oz delivered in the previous quarter, while Gosowong, in Indonesia, added 35 735 oz of gold, down from the 40 305 produced in the September quarter.

Newcrest noted on Thursday that the Lihir operation's transition to a biannual shutdown strategy during the first half of the 2020 financial year had an adverse impact on gold production owing to the extended shutdown duration. Lihir’s production was also impacted by lower than expected old grades.

“As expected, Newcrest has achieved a significant improvement in its production and all-in sustaining cost (AISC) per ounce in this quarter against the prior quarter,” said MD and CEO Sandeep Biswas.

“Central to this success was Cadia’s stand-out performance which culminated in the site achieving its second highest quarterly gold production result. Telfer and Lihir’s production outcomes for the half-year were below expectation and corrective action plans are being put in place with the objective of improving their performance over the next six months.”

AISC for the quarter was down A$40 from the September quarter, to A$859/oz.

For the full 2020, Newcrest’s gold and copper production has remained unchanged at between 2.3-million and 2.5-million ounces of gold, and between 130 000 t and 145 000 t of copper, at AISC of between A$1 835/oz and A$1 965/oz.