MELBOURNE, Australia, April 22, 2013 /CNW/ - Newcrest Mining Limited ("the Company") (ASX: NCM) (TSX: NM) is pleased to announce its quarterly report for the period ended 31 March 2013.
Newcrest's production for the March 2013 quarter was 514,421 ounces of gold and 19,023 tonnes of copper at a cash cost of $799 per ounce and a cash margin of $785 per ounce. Gold production was 4% higher than achieved in the December 2012 quarter.
The new and expanded operations at Cadia East and Lihir performed to plan in the March 2013 quarter. The Cadia East mine operated as expected and during the quarter the second phase primary crusher was commissioned on time. At Lihir, the new plant performed as expected and, importantly, the new autoclave performance achieved nameplate capacity.
Quarterly production was adversely impacted at both Lihir and Gosowong, as discussed in the 28 March 2013 release. At Lihir the repair of Autoclave 1 is now complete and at Gosowong access to the higher grade ore zones has been re-established.
Exploration results at Telfer, Gosowong, Côte d'Ivoire and Wafi-Golpu were encouraging. These programs will continue to be the focus of the next six months of drilling activity.
The Cadia East Lift 2 project is progressing well and remains on track for completion in the 2014 financial year. The flotation upgrade and NCA refurbishment projects at Lihir are also progressing in line with plan and will be completed in the second half of the 2013 calendar year. Completion and commissioning of the Hidden Valley primary crusher is expected in May 2013.
Newcrest's project study effort remains focused on Wafi-Golpu. Good drilling results and better metallurgical recoveries continue to improve the project economics for Golpu. Work by the Golpu study team is targeted at achieving a lower cost approach to first production.
Operating and capital costs overall continue to be high in the global gold mining industry. Also, the recent decline in commodity prices has not been accompanied by a reduction in the strength of the Australian Dollar and Papua New Guinean Kina. With its major projects ramping up and the more challenging external environment, Newcrest continues to review all of its business activities, particularly those related to higher cost current or future production. As previously stated, the Company is focused on creating a strong return from our major investments in expanded lower cost production sources and generating free cashflow.
As previously advised, gold production guidance for the financial year 2012/13 is 2.00 to 2.15 million ounces. Copper production, total cost and capital guidance remain unchanged from original guidance.
- Quarterly gold production 514,421oz (492,906oz in the December 2012 quarter)
- Quarterly copper production 19,023t (19,926t)
- Quarterly cash cost A$799/oz (A$727/oz)
- Gross cash margin A$785/oz (A$924/oz)
- Cadia East and new Lihir plant (previously MOPU) production performance in line with expectations
- Confirmed continuity of high grade mineralisation at Golpu Lift 2 and extension into a potential Lift 3
- Focus on free cash flow and generating higher returns
- Actions to simplify and reduce activity and costs across the business
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 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 resources estimates in compliance with the JORC Code, along with 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 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.
SOURCE: Newcrest Mining Limited
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This information is available on our website at www.newcrest.com.au and www.sedar.com