MELBOURNE, Australia, Jan. 24, 2013 /CNW/ - Newcrest Mining Limited
("Newcrest" or "the Company") (ASX: NCM) (TSX: NM) is pleased to
announce its quarterly report for the period ended 31 December 2012.
Major project milestones achieved
Newcrest's two major expansion projects, comprising the Cadia East
development and the Lihir Million Ounce Plant Upgrade ("MOPU"), both
achieved major milestones during the quarter. Production volume from
Cadia East continued to ramp up and commercial production milestones
were achieved by the end of December 2012; first commercial production
commenced from 1 January 2013. The Lihir MOPU project is in the final
stages of commissioning which is expected to be complete by the end of
January 2013, after which production ramp up commences. Both projects
have a forecast final cost within 8% of their budget.
The successful completion of these two major projects represents a
significant milestone for Newcrest. Together, Lihir MOPU and Cadia
East establish the platform to enable delivery of significant
production growth in both gold and copper over the next five years at
lower unit cash costs.
Production for the December 2012 quarter was 492,906 ounces of gold and
19,926 tonnes of copper. Gold and copper production increased 7% over
the September 2012 quarter. The Company's gold and copper production is
expected to progressively increase over the remainder of the financial
year.
Cash costs were A$727 per ounce and cash margins were A$924 per ounce in
the quarter. Total production cost was A$1,031 per ounce. Unit costs
were marginally higher in the quarter primarily due to increased mining
and milling activity, the effects of reduced grade at Gosowong and
Lihir, and a larger production contribution from the higher cost Telfer
operation. Cash costs are expected to reduce over the next two
quarters as Cadia East and Lihir MOPU volumes make a larger
contribution to total production.
Exploration drilling activities achieved promising results in West
Africa and Fiji. In PNG, appraisal drilling results at Golpu indicate
improved gold and copper grades in the proposed first lift of the block
cave and have enhanced the understanding of the orebody structure.
During the December 2012 quarter, Newcrest completed the sale of a 7.5%
interest in PT Nusa Halmahera Minerals (PTNHM), the incorporated joint
venture company that owns the Gosowong operation. The sale was to our
existing joint venture partner, PT Aneka Tambang (Antam). New
enterprise agreements for Telfer and Cadia Valley employees, each with
four year duration, were successfully completed during the December
2012 quarter.
Guidance
Financial year 2013 group guidance ranges for gold and copper production
and site costs remain unchanged. Newcrest's total gold production is
expected to be at the low end of the 2.3 to 2.5Moz guidance range.
Key Points
-
Quarterly gold production 492,906oz (460,425oz in the September 2012
quarter)
-
Quarterly copper production 19,926t (18,598t)
-
Quarterly cash cost A$727/oz (A$703/oz) and gross cash margin A$924/oz
(A$880/oz)
-
Cadia East project achieved first commercial production milestones by
the end of December 2012
-
Lihir MOPU project in final stages of commissioning; expected project
completion by end January 2013
-
High grade mineralisation identified at Hiré and Bouaflé in West Africa
-
Promising drill results in the Waivaka corridor in Fiji
-
Higher gold and copper grades identified at Golpu Lift 1
-
Sale of 7.5% interest in PTNHM to Antam
-
New four-year enterprise agreements in place for employees at Telfer and
Cadia Valley
Copies of the full Quarterly Release and presentation can be found on
Newcrest's website www.newcrest.com.au and on www.sedar.com.
Forward Looking Statements
These materials include forward looking statements. Often, but not
always, forward looking statements can generally be identified by the
use of forward looking words such as "may", "will", "expect", "intend",
"plan", "estimate", "anticipate", "continue", and "guidance", or other
similar words and may include, without limitation, statements regarding
plans, strategies and objectives of management, anticipated production
or construction commencement dates and expected costs or production
outputs.
Forward looking statements inherently involve known and unknown risks,
uncertainties and other factors that may cause the company's actual
results, performance and achievements to differ materially from any
future results, performance or achievements. Relevant factors may
include, but are not limited to, changes in commodity prices, foreign
exchange fluctuations and general economic conditions, increased costs
and demand for production inputs, the speculative nature of exploration
and project development, including the risks of obtaining necessary
licenses and permits and diminishing quantities or grades of reserves,
political and social risks, changes to the regulatory framework within
which the company operates or may in the future operate, environmental
conditions including extreme weather conditions, recruitment and
retention of personnel, industrial relations issues and litigation.
Forward looking statements are based on the company and its management's
good faith assumptions relating to the financial, market, regulatory
and other relevant environments that will exist and affect the
company's business and operations in the future. The company does not
give any assurance that the assumptions on which forward looking
statements are based will prove to be correct, or that the company's
business or operations will not be affected in any material manner by
these or other factors not foreseen or foreseeable by the company or
management or beyond the company's control.
Although the company attempts and has attempted to identify factors that
would cause actual actions, events or results to differ materially from
those disclosed in forward looking statements, there may be other
factors that could cause actual results, performance, achievements or
events not to be as anticipated, estimated or intended, and many events
are beyond the reasonable control of the company. Accordingly, readers
are cautioned not to place undue reliance on forward looking
statements. Forward looking statements in these materials speak only
at the date of issue. Subject to any continuing obligations under
applicable law or any relevant stock exchange listing rules, in
providing this information the company does not undertake any
obligation to publicly update or revise any of the forward looking
statements or to advise of any change in events, conditions or
circumstances on which any such statement is based.
Ore Reserves and Mineral Resources Reporting Requirements
As an Australian company with securities listed on the Australian
Securities Exchange ("ASX"), Newcrest is subject to Australian
disclosure requirements and standards, including the requirements of
the Corporations Act and the ASX. Investors should note that it is a
requirement of the ASX listing rules that the reporting of ore reserves
and mineral resources in Australia comply with the 2004 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (the "JORC Code") and that Newcrest's ore
reserve and mineral resource estimates comply with the JORC Code. As a
company listed on the Toronto Stock Exchange ("TSX"), Newcrest is
subject to certain Canadian disclosure requirements and standards,
including the requirements of National Instrument 43-101 - Standards of
Disclosure for Mineral Projects of the Canadian Securities
Administrators ("NI 43-101"). In accordance with NI 43-101, Newcrest
reports its ore reserves and mineral resources estimates in compliance
with the JORC Code, along with reconciliation to the material
differences between the JORC Code and the applicable definitions
adopted by the Canadian Institute of Mining, Metallurgy and Petroleum
(CIM Definition Standards). There are no material differences between
the definitions of Measured, Indicated and Inferred Mineral Resources,
and Proven and Probable Reserves, under the CIM Definition Standards
and the equivalent or corresponding definitions in the JORC Code.
Competent Person's Statement
The information in this quarterly report that relates to Exploration
Results and other scientific and technical information is based on
information compiled by C. Moorhead, EGM Minerals for Newcrest Mining
Limited who is a Fellow of The Australasian Institute of Mining and
Metallurgy, and a full-time employee of Newcrest Mining Limited. Mr
Moorhead has sufficient experience which is relevant to the styles of
mineralisation and types of deposits under consideration and to the
activity which he is undertaking to qualify as a Competent Person as
defined in the JORC Code and is a Qualified Person within the meaning
of NI 43-101. Mr Moorhead consents to and has approved the inclusion in
this quarterly report of the matters based on this information in the
form and context in which it appears including sampling, analytical and
test data underlying the results. For details of exploration reports
refer to the Newcrest website at www.newcrest.com.au.
Exploration Target
The potential quantity and grade related to any Exploration Target
identified in this report is conceptual in nature as there has been
insufficient exploration to define a Mineral Resource. It is uncertain
if further exploration will result in the determination of a Mineral
Resource. Refer to Newcrest's detailed exploration summary on our
website at www.newcrest.com.au and on www.sedar.com.
SOURCE: Newcrest Mining Limited
