Newcrest Mining Limited - Quarterly Report for the three months ending 30 September 2013
MELBOURNE, Australia, Oct. 17, 2013 /CNW/ - Newcrest Mining Limited ("Newcrest") (ASX: NCM) is pleased to announce its quarterly report for the period ended 30 September 2013.
(these figures are unaudited*)
- Quarterly gold production of 586,573oz (27% above September 2012 quarter; 9% below June 2013 quarter)
- Quarterly copper production of 19,632t (6% above September 2012 quarter; 14% below June 2013 quarter)
- Average realised gold price for the Quarter of A$1,442/oz
- An All-In Sustaining Cost^ for the Quarter of A$1,093/oz (US$1,001/oz), below the 2013 financial year average
- Group guidance for the 2014 financial year remains unchanged
Newcrest's production for the September 2013 quarter was 586,573 ounces of gold and 19,632 tonnes of copper at an All-In Sustaining Cost of A$1,093 per ounce (US$1,001 per ounce). Gold production for the quarter was below the June 2013 quarter (9%), as expected, and 27% higher than the prior corresponding period. At Cadia Valley, an 18% increase in mine production from the higher grade Cadia East Panel Cave 1 combined with consistent ore production from Ridgeway to deliver a 10% increase in gold production at a lower cash cost than the previous quarter. The development of Cadia East Panel Cave 2 progressed to plan during the quarter. Lihir transitioned to a significantly lower level of mining and material movement activity, with around 80% of mill feed sourced from stockpiles following the completion of the flotation plant capacity expansion. Reliability of the original plant continued to improve.
The Company maintained its focus on maximising free cash flow, with a range of initiatives to reduce operating and corporate costs and capital expenditure advanced during the quarter. The All-In Sustaining Cost for the September quarter was A$1,093 per ounce, which:
- is A$190 per ounce (or 15%) lower than the 2013 financial year average of A$1,283 per ounce;
- is US$1,001 per ounce, when translated at average exchange rates for the period; and
- compares with the average realised gold price for the quarter of A$1,442 per ounce.
With the exception of Gosowong, each site achieved a reduction in All-In Sustaining Cost per ounce for the quarter as against its average All-in Sustaining Cost per ounce for the full 2013 financial year.
Exploration continued during the September 2013 quarter with positive drilling results at Gosowong and Namosi.
The Company announced Board and Executive succession plans on 9 October 2013 with current Non-Executive Director Peter Hay to be appointed the new Chairman of Newcrest upon the retirement of the current Chairman Don Mercer in December 2013. Sandeep Biswas will join the company as Chief Operating Officer in January 2014 and is expected to succeed Greg Robinson as Chief Executive Officer in the second half of calendar year 2014.
The Company has stated it is managing the business to be free cash flow positive (after all capital, exploration and corporate expenditure) at a gold price of A$1,450 per ounce. The combination of the first quarter production and cost outcomes and expected business performance for the remainder of the 2014 financial year positions Newcrest to be free cash flow neutral or positive at a lower gold price than the previously stated A$1,450 per ounce (this includes taking account of the extra cash tax payment expected to be made this financial year; refer separate announcement regarding "New Bilateral Bank Loan Facilities and Voluntary R&D Tax Amendment").
^ All-In Sustaining Cost (AISC) is non-IFRS financial information. The quarterly AISC of A$1,093/oz is slightly different to that noted in the Company's market release of 9 October 2013, due to a subsequent adjustment to exploration expenditure for the period.
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. Newcrest was until recently listed on the Toronto Stock Exchange ("TSX") but ceased that listing on 4 September 2013. Newcrest will continue to be 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") until it ceases to be an Ontario Securities Commission registrant, Until that date, Newcrest will continue in accordance with NI 43-101, to report its ore reserves and mineral resources estimates in compliance with the JORC Code, along with a 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 presentation that relates to Exploration Results and other scientific and technical information are based on information compiled by C. Moorhead, EGM Minerals for Newcrest who is a Fellow of The Australasian Institute of Mining and Metallurgy, and a full-time employee of Newcrest. 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 presentation 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.
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