MELBOURNE, Australia, Oct. 21, 2014 /CNW/ - Newcrest Mining Limited (ASX: NCM) – Quarterly Report for the three months ending 30 September 2014 (these figures are unaudited).
- Quarterly gold production of 561,731 ounces
- Quarterly copper production of 24,831 tonnes
- Average realised gold price for the quarter of A$1,393/oz
- Group All-In Sustaining Cost1 for the quarter of A$864/oz
(US$801/oz at an average A$:US$ exchange rate in the quarter of $0.926)
- All-In Sustaining Cost at each operation was below the average realised gold price for the quarter
- Cadia East Panel Cave 2 commenced commercial production from 1 October 2014
- Full year guidance remains unchanged
Newcrest's production for the September 2014 quarter was 561,731 ounces of gold and 24,831 tonnes of copper with an All-In Sustaining Cost (AISC) of A$864 (US$801)2 per ounce. This represents a 12% decrease in gold production and 5% reduction in AISC per ounce compared to the June 2014 quarter. The AISC margin in the September 2014 quarter was A$529 (US$489)2 per ounce.
Gold production for the September 2014 quarter was below the June 2014 quarter, as expected3. The September 2014 quarter was characterised by anticipated lower gold grades than the June 2014 quarter at Gosowong, Cadia Valley and Lihir, and also by major planned shuts in the mill area and Autoclave 4 at Lihir.
Mine production at Cadia East continued to ramp up in the September 2014 quarter to 3.2Mt, 39% higher than the previous quarter. Cadia East Panel Cave 2 commenced commercial production from 1 October 2014. At Lihir, throughput was impacted by a planned 12 day shutdown of Autoclave 4. Encouragingly, mill throughput was 3% higher than the June 2014 quarter. The average grade to the mill of 2.32g/t in the quarter was 14% lower than the 2.69g/t in the June 2014 quarter and in line with the mine plan.
The improvement in the Company's AISC per ounce outcome was primarily the result of a strong AISC at Cadia Valley, together with its greater share of total Newcrest sales in the period, and lower levels of sustaining capital expenditure.
As previously announced, the commencement of commercial production at Cadia East Panel Cave 2 is expected to temporarily increase the unit AISC of Cadia East gold production over the coming few quarters from that achieved in the September 2014 quarter, as production from Cadia East Panel Cave 2 is profitable but not yet at full ramp up rates.
Guidance for the full year remains unchanged.
Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said "It is pleasing to see Cadia East Panel Cave 2 achieving commercial production so early in the financial year, which positions Cadia East well to continue to increase its contribution to the Company. The focus at Lihir remains on progressive implementation of improvement programs to lift production, cost and cash performance."
1 All-In Sustaining Cost metrics as per World Gold Council Guidance Note on Non-GAAP Metrics, released 27 June 2013. Newcrest Group All-In Sustaining Cost will vary from quarter to quarter as a result of various factors including production performance, timing of sales, the level of sustaining capital and the relative contribution of each asset.
2 September 2014 quarter AISC and AISC margin in Australian Dollars are converted to US Dollars at an average A$:US$ exchange rate of $0.926.
3 Newcrest's June 2014 Quarterly Report stated that production in the September quarter was expected to be lower than the June quarter.
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 2012 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 ceased its listing on the Toronto Stock Exchange on 4 September 2013 and recently applied to the Ontario Securities Commission ("OSC") for a decision that the company cease as a reporting issuer in Canada. In the meantime, Newcrest will remain subject to certain Canadian disclosure requirements and standards and will continue, in accordance with the requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, 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 2013 Resources and Reserves Statement, the reconciliation is set out in Newcrest's Canadian News Release dated 14 February 2014, 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 Targets, Exploration Results, Mineral Resources and Ore Reserves and other scientific and technical information, is based on information compiled by Mr C. Moorhead. Mr Moorhead is the Executive General Manager Minerals and a full-time employee of Newcrest Mining Limited. He is a shareholder in Newcrest Mining Limited and is entitled to participate in Newcrest's executive equity long term incentive plan, details of which are included in Newcrest's 2014 Remuneration Report. Ore Reserves growth is one of the performance measures under that plan. He is a Fellow of The Australasian Institute of Mining and Metallurgy. 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 2012 and is a Qualified Person within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101"). Mr Moorhead consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears including sampling, analytical and test data underlying the results.
SOURCE: Newcrest Mining Limited
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