Newcrest Pursues Mine Expansions, Annual Target Despite Q1 Production Drop
Australian gold miner Newcrest Mining Ltd will pursue its planned mine expansions as well as its annual target production guidance despite reporting a drop in its first quarter September production of the safe haven precious yellow metal gold.
The company's gold production for the period in review declined 22 per cent to 460,425 ounces from 587,296 ounces a year ago. It was likewise a 21.6 per cent fall from the June quarter record of 587,310 ounces.
Yet Australia's largest gold producer remained confident things will pick up in the following quarters as it expects production to be boosted by the completion of the ongoing project expansions at Cadia Valley and Lihir.
"It hasn't been the best quarter for us . . . (but) we are looking obviously for a pretty exciting six months ahead," said Greg Robinson, Newcrest chief executive.
For this, the ASX- and TSX- listed company maintained its production guidance for the 2012/13 financial year at between 2.3-million ounces and 2.5-million ounces of gold.
The Lihir Million Ounce Plant Upgrade project in Papua New Guinea (PNG) is expected to be completed in the December 2012 quarter, while the Cadia East underground mine in central western NSW will achieve first commercial production also in the December 2012 quarter, the company said.
Newcrest's first quarter September copper production registered at 18,598 tonnes, down 3.28 per cent lower from a year ago and down 9.47 per cent from the June quarter.
Newcrest operates mines in four countries, including Australia, PNG, Indonesia and Ivory Coast.
The Cadia East underground mine will become Australia's largest underground mine.