MELBOURNE, Australia, Oct. 18, 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 September 2012.
Production for the September 2012 quarter was 460,425 ounces of gold and 18,598 tonnes of copper. Cash costs were A$703 per ounce and cash margins were A$880 per ounce. Gold production is expected to progressively increase over the remainder of the financial year.
Newcrest's major project expansions at Cadia Valley and Lihir are nearing completion and both remain on schedule. The Lihir MOPU project is expected to be completed in the December 2012 quarter. Cadia East is on schedule to achieve first commercial production in the December 2012 quarter.
Newcrest updated its Ore Reserve and Mineral Resource estimates for Wafi and Golpu during the quarter, following completion of the technical pre-feasibility study for the Golpu deposit. The Golpu deposit is estimated to have Ore Reserves containing 12.4Moz of gold and 5.4Mt of copper (100% terms). The deposits at Wafi-Golpu (Wafi, Golpu and Nambonga) are estimated to have Mineral Resources containing 28.5Moz of gold and 9.06Mt of copper (100% terms).
The Company renewed its bilateral bank lending facilities during the quarter, which comprise agreements with 10 banks for US$250 million each, for a total amount of US$2.5 billion, over terms of three and five years.
Newcrest raised US$1.0 billion during the quarter through the issue of corporate bonds in the United States with maturities of ten and thirty years. Proceeds were used to repay existing short term indebtedness of Newcrest and for general corporate purposes.
Financial year 2012/2013 guidance ranges for production, costs and capital expenditure remains unchanged.
- Quarterly gold production 460,425oz (587,310oz in the June 2012 quarter)
- Quarterly copper production 18,598t (20,544t)
- Quarterly cash cost A$703/oz (A$604/oz)
- Gross cash margin in the September 2012 quarter of A$880/oz (A$970/oz)
- Cadia East project is on track for first commercial production in the December 2012 quarter
- Lihir MOPU is on track for completion in the December 2012 quarter
- Ore Reserve and Mineral Resource estimates for Wafi and Golpu were updated
- 2012/13 financial year guidance remains unchanged
- Bilateral bank debt facilities were renewed
- US$1.0 billion of long dated funding was raised in the United States bond market
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 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 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). 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.
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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