Newcrest Mining Ups Gold Production During Q1 2015

Newcrest Mining Ltd. (ASX:NCM) released its March 2015 quarterly report, noting that its gold production came in at 610,186 ounces, while copper output came to 24,307 tonnes. The former is up from the December 2014 quarter, while the latter is down.

The company recorded an average realized gold price of US$1,226 per ounce, or AU$1,556.

Other highlights include:

• Group All-In Sustaining Cost for the quarter of AUD 946/oz or USD 745/oz (at an average AUD/USD exchange rate in the quarter of $0.788)
• Cadia East gold production of 121,592 ounces in the quarter was 19% higher than the previous quarter
• Group full year FY15 guidance(1) adjusted favourably:
  • Copper production guidance range increased by 5kt to 95-105kt;
  • All-In Sustaining Costs to be around the bottom end of guidance range of AUD 2.3bn to 2.5bn
  • Total capital expenditure expected to be below original guidance, now AUD 585-625m

The press release also states:

Cadia copper production guidance range for FY15 has been increased by 5kt to ~75kt, which contributes to Newcrest now expecting Group All-In Sustaining costs to be around the bottom end of the current guidance range of AUD 2,300m to 2,500m.

Guidance for total capital expenditure has been reduced to AUD 585m to 625m, reflecting a focus on capital efficiency across the Company, a lower cost environment in Australia and Cadia East capital expenditure coming in below expectation. Lower sustaining capital expenditure at Lihir is expected to be partially offset by marginally higher maintenance expenditure targeting improved reliability.

Managing Director and CEO Sandeep Biswas commented:

Newcrest continued to pay down debt from free cash flow generated in the period, including the proceeds from the partial sale of our stake in Evolution. Lihir showed some improvement in the quarter as part of a staged and structured improvement strategy focusing on plant reliability, stability and intensity.

Click here to read the full Newcrest Mining Ltd. (ASX:NCM) press release.