June Quarter 2020 Highlights
• Achieved FY20 production guidance, with Cadia exceeding the top end of its guidance range
• Group gold production of 573koz, up 7% on prior quarter, with a strong finish to the year from all operations
• Record annualised mined ore and mill throughput for the quarter at Cadia
• Refinanced debt at lower cost and extended the debt maturity profile
• Strengthened the balance sheet with a successful equity raising to support our strong growth portfolio
• Increased our exposure to the cash flows generated by the Tier 1 Fruta del Norte mine
• Quarterly copper production of 40kt, up 15% from the March 2020 quarter
• Quarterly AISC of $878 per ounce, resulting in a AISC margin of $768 per ounce
• Global exploration portfolio expanded with new projects and targets
• Newcrest’s operations remain COVID-19 free
• Established A$20 million Community Support Fund to assist communities with the COVID-19 pandemic
Gold production in the June quarter was 7% higher than the prior quarter due to a strong performance from all operations, coupled with a reduction in planned shutdown activities. Cadia achieved a record annualised mined ore volumes from Cadia East of 31.8mtpa and a record annualised mill throughput rate of 34.2mtpa for the quarter, which contributed to Cadia exceeding its production guidance range for the year and delivering a 21% increase in gold
production compared to the prior quarter.
At Lihir, gold production increased by 11% reflecting increases in head grade and recovery. Telfer’s gold production was 17% higher than the March quarter representing a 37% increase in mill
throughput in the period. Gold production at Red Chris was 27% higher in the current quarter driven by an increase in
throughput. Gosowong was divested in the prior quarter and Fruta del Norte operations were temporarily suspended in the quarter.
Newcrest’s AISC per ounce for the June 2020 quarter of $878 per ounce was $61 per ounce higher than the prior quarter. The 7% increase was primarily driven by higher levels of sustaining capital at Cadia and Lihir, timing of sales at Lihir and lower by-product credits reflecting a lower realised copper price.
Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said “Newcrest has safely delivered a strong fourth quarter enabling us to meet our Group gold production guidance for the year, notwithstanding the challenges of addressing the risks associated with the COVID-19 pandemic. Cadia exceeded the top end of its production guidance range and achieved record annualised mine and mill throughput rates in the quarter, further
highlighting the strength of this world-class asset.”
“We increased our exposure to the Fruta del Norte mine during the quarter with the acquisition of its finance facilities, which will provide us with significant additional cash flows from this asset going forward. With the support of our shareholders we further strengthened our balance sheet through our Institutional Placement and Share Purchase Plan. We also refinanced our debt, which reduced its cost and significantly smoothed and extended its maturity profile.
These actions, together with our strong underlying free cashflow generation, has given Newcrest a particularly strong balance sheet that positions us well to deliver our exciting growth portfolio.”
“We have not had a single positive case of COVID-19 across our workforce to date. This is a reflection of the extensive program of preventative actions we have implemented, the support of our host communities and governments in the jurisdictions in which we operate and the adherence to safe practices by our people. We established our A$20 million Community Support Fund which is designed to assist our local communities with the challenges associated with the COVID-19 pandemic and I am pleased to see the positive impact of numerous initiatives this fund has already
enabled,” said Mr Biswas.