Shares of Australia's largest gold miner Newcrest Mining fell after the company reported its September quarter gold production slid from the previous quarter.

Early trading showed Newcrest shares collapsed 4.6 per cent, or $1.66 to a two-week low of $34.09.

The miner reported production reached only 587,296 ounces of gold, reflecting a 16 per cent drop from the previous quarter. Maintenance shutdowns at its Lihir in Papua New Guinea, Telfer in Western Australia and Gosowong in Indonesia projects, and bad weather at Lihir contributed to the low output.

"Strong exploration results continued during the quarter at Wafi-Golpu, Namosi, Lihir, Gosowong and Telfer," Business Spectator quoted the miner saying in its quarterly production report.

Gross cash margin jumped 19 per cent in the quarter to $1,029 per ounce due to higher prices of gold, while cash costs registered 10 per cent higher, at $594 per ounce, than the previous quarter owing to lower gold production and higher maintenance costs.

Copper production for September slid to 19,228 tonnes. Output is forecast to rise to up to 2.925 million ounces this financial year.

Overall, production in 2010/11 gave 2.527 million ounces, suggesting the integration of the newly-acquired Lihir assets and increased output from new mines at Ridgeway Deeps in NSW and Hidden Valley in PNG.

The company's two major expansion projects, Cadia East in NSW and Lihir MOPU were also on track, Newcrest said.

Increased output at those projects will drive Newcrest's target of full-year production of four million ounces within five years.