PERTH (miningweekly.com) – Gold major Newcrest Mining has reported a slight decline in gold and copper production for the three months to March, compared with the prior quarter, as an improved operating performance at Brucejack, Lihir and Fruta del Norte offset by lower gold production at Cadia, Telfer and Red Chris.

Gold production during the three months to March reached 509 637 oz, down from the 512 130 oz produced in the December quarter, while copper production was down from 34 564 t to 31 148 t in the previous quarter.

Gold production at the Cadia project reduced from 169 262 oz to 133 468 oz, with the project also contributing 22 392 t of copper production. The operation was impacted by lower mill throughput compared with the prior quarter.

Gold production at Lihir increased from 154 143 oz to 168 404 oz, driven by increased mill throughput following improved rainfall during the quarter, as well as higher gold grades. At Telfer, gold production fell slightly from 87 985 oz to 85 452 oz, with the project contributing 5 076 t of copper during the quarter.

Brucejack contributed 70 160 oz of gold during the quarter, up from the 51 813 oz contributed in the December quarter, as operations returned to full capacity following a fatality in October last year, while Red Chris contributed 7 347 oz of gold and 3 680 t of copper during the quarter.

The Fruta del Norte project also delivered 44 807 oz of gold during the quarter, up from the 38 764 oz contributed in the December quarter.

“We continued to deliver on our strategy in 2023, with our pipeline of high-quality organic gold and copper growth projects marking a number of important milestones,” said interim CEO Sherry Dehue on Thursday.

“At Lihir, the Phase 14A feasibility study was released early in the quarter, demonstrating attractive financial returns with upside potential as we look to unlock additional high grade mineralisation outside the current ore reserve. We then significantly increased the exploration target at East Ridge, highlighting the exciting opportunity this discovery presents for the future of Red Chris, and in April, the Wafi-Golpu framework memorandum of understanding was signed, moving us closer to developing this world-class copper-gold deposit.”

Newcrest’s all-in sustaining cost of $1 012/oz3 for the quarter was 7% lower than the prior period, driven by a higher copper realised price, lower production stripping expenditure at Lihir and Telfer and lower sustaining capital expenditure at Red Chris, Cadia and Brucejack. In addition, gold production was higher at Brucejack, Lihir and Fruta del Norte, driving an increase in gold sales volumes for the group. This was partly offset by the impact of a stronger Australian dollar against the US dollar on operating costs.

“Our third quarter performance has positioned us well to achieve our group 2023 production guidance. We expect gold and copper production to increase in the June quarter and remain on track to deliver a strong 2023 result, supported by continued momentum in gold and copper prices,” said Duhe.

For the full year, gold production is targeted at between 2.1-million and 2.4-million ounces, with copper production targeted at between 135 000 t and 155 000 t.

“Following the rejection of Newmont’s two non-binding indicative proposals to acquire Newcrest during the quarter, a further non-binding indicative proposal was received in April, valuing Newcrest at over A$29-billion and representing a 46% premium to our share price prior to their initial proposal in February. The revised proposal highlights our outstanding portfolio of long-life gold and copper assets, our high-quality growth and exploration pipeline, and the achievements of our exceptional people.

“The Newcrest board has agreed to provide Newmont the opportunity to conduct confirmatory due diligence on an exclusive basis, enabling it to put forward a binding proposal. Through this period, we will remain steadfastly focused on our business and the safety and wellbeing of our people, to continue delivering value for our shareholders,” said Duhe.