MELBOURNE, Victoria, July 25, 2013 /CNW/ - Newcrest Mining Limited
(Newcrest) (ASX:NCM) (TSX: NM) is pleased to announce its quarterly
report for the three months ended 30 June 2013 (these figures are
unaudited*)
Overview
Newcrest's production for the 2013 financial year was 2,109,784 ounces
of gold and 80,366 tonnes of copper at a cash cost of A$750 per ounce
and total cost of A$1,040 per ounce, following production in the June
2013 quarter of 642,032 ounces of gold and 22,818 tonnes of copper.
The production performance for the June 2013 quarter represents a 25%
increase in gold production and a 20% increase in copper production
over the March 2013 quarter. This increase was principally driven by
increased plant capacity at Lihir, the ongoing ramp-up of the Cadia
East panel cave, and mining of higher grade stopes at Gosowong.
At Cadia Valley, Cadia East continued to perform in line with the
Company's expectations. Panel Cave 1 produced at an annualised rate of
5.4Mtpa for the June 2013 quarter. The development of Panel Cave 2
continued in line with the Company's expectations. Ridgeway ore
production was maintained at a rate of 8Mtpa.
At Lihir, the plant performed in line with the Company's expectations
during the June 2013 quarter. The projects to expand flotation capacity
and to refurbish the Neutralisation Cyanidation Adsorption (NCA)
circuit were both completed in the June 2013 quarter. Increased
production at Gosowong and Telfer during the June 2013 quarter was
primarily associated with higher gold grades. At Hidden Valley, the
crusher at the front of the overland conveyor commenced commissioning.
Exploration continued during the June 2013 quarter with positive
drilling results at Gosowong, Telfer and Wafi Golpu.
As announced in previous Company releases, Newcrest is focused on
maximising free cash flow and production outcomes will reflect the
Company operating in this manner. Newcrest has responded to the current
market environment by reducing the production of high cost ounces,
operating and corporate costs, capital expenditure and exploration
activities.
Guidance
Newcrest's 2013 financial year gold production of 2.11 million ounces
was within the 2.00 to 2.15 million ounces range announced to the
market on 28 March 2013. Full year copper production of 80,366 tonnes
was within the original guidance of 75 to 85 thousand tonnes. Total
site costs# of A$2.43 billion were within the original aggregate guidance range of
A$2.34 to A$2.47 billion, and expected total capital expenditure for
the 2013 financial year remains within the original guidance range of
A$1.8 to A$2.0 billion.
As announced on 7 June 2013, gold production for the 2014 financial year
is expected to be 2.0 to 2.3 million ounces, with capital expenditure
around A$1 billion and exploration expenditure around A$85 million.
Copper production for the 2014 financial year is expected to be 75 to
85 thousand tonnes. The first quarter gold production for financial
year 2014 is expected to be lower than the June 2013 quarter, with
production expected
to progressively increase over the course of the financial year.
Production and costs will continue to be actively managed to target a
free cash flow neutral or positive outcome for the Company for the 2014
financial year.
Key Points
-
Quarterly gold production 642,032oz (a 25% increase on 514,421oz in the
March 2013 quarter)
-
Quarterly copper production 22,818t (a 20% increase on 19,023t in the
March 2013 quarter)
-
Quarterly cash cost A$762/oz (A$799/oz in the March 2013 quarter)
-
Quarterly gross cash margin A$672/oz (A$785/oz in the March 2013
quarter)
-
Quarterly total cost of A$1,069/oz (A$1,086/oz in the March 2013
quarter)
-
Cadia East Panel Cave 1 and Lihir plant expansion production performance
in line with Company expectations
-
Cadia East Panel Cave 2 development on schedule
-
New Lihir flotation plant and NCA circuit both completed and in
commissioning
-
Hidden Valley crusher at the front of the overland conveyor in
commissioning
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
licences 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). In relation to the December 2012 Resources
and Reserves Statement, the reconciliation is set out in Newcrest's
Canadian News Release dated 8 February 2013, and is available at www.sedar.com and at Newcrest's website www.newcrest.com.au. Except as otherwise noted in that document, 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.
* Site cost, cash cost, total cost and all-in sustaining cost are all
non-IFRS financial information and have not been subject to audit by
the Company's external auditor.
# Site cost is the sum of mining, milling, and administration & other
costs. This measure excludes smelting, refining & transport costs,
royalties, stripping and inventory, and by-product credits.
SOURCE: Newcrest Mining Limited
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