MELBOURNE, Australia, July 26, 2012 /CNW/ - Newcrest Mining Limited ("Newcrest" or "the Company") (ASX: NCM) (TSX: NM) is pleased to announce its quarterly report for the period ended 30 June 2012.
Production for the June 2012 quarter was 587,310 ounces of gold and 20,544 tonnes of copper. Cash costs were A$604 per ounce and cash margins remained strong at A$970 per ounce.
Newcrest's major project expansions at Cadia Valley and Lihir remain on schedule. The Lihir MOPU project is on budget and on schedule for completion in the December 2012 quarter. Cadia East is on schedule to achieve first commercial production in the December 2012 quarter and is within 10% above the original estimated capital cost of $1.9 billion.
Exploration continued with 46 rigs in operation across a broad portfolio of high quality near mine and greenfields projects in Australia, Papua New Guinea, Indonesia and Côte d'Ivoire. Excellent results were achieved at Wafi Golpu, Lihir and Bonikro in the June 2012 quarter.
Newcrest's full financial year 2012 gold production of 2,285,917 ounces was in line with the updated guidance range provided to the market on 24 April 2012 while Newcrest's full year copper production of 76,015 tonnes slightly exceeded the updated guidance range. Newcrest's cash costs pre by-product credits of A$2,031 million for the full financial year 2012 are slightly below the updated guidance range, while full year unit cash costs post by-product credits of A$603/oz are within the guidance range provided.
- Quarterly gold production 587,310oz (532,237oz in the March 2012 quarter)
- Quarterly copper production 20,544t (18,072t)
- Quarterly cash cost A$604/oz (A$609/oz)
- Gross cash margin in the June 2012 quarter of A$970/oz (A$978/oz)
- Cadia East remains on schedule for first commercial production in the December 2012 quarter and is approximately 80% complete
- Lihir MOPU remains on schedule for project completion in the December 2012 quarter and is approximately 91% complete
- Presence of a new gold zone confirmed west of Golpu; upper zone of Golpu looks more promising
- Confirmation of the continuity of the high grade domain outside of the present resource shell at Lihir
- Drilling at Bonikro confirmed and upgraded the Inferred Resource, indicating strong potential for a pit expansion
Forward Looking Statement
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 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 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 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 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.
Competent Persons 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.
The potential quantity and grade related to Exploration Targets 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
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