Newcrest Mining Limited (ASX, TSX, PNGX: NCM) has released to the market its September 2020 Quarterly Report along with the September 2020 Quarterly Exploration Report.
September quarter in line with expectations and on track for meeting annual guidance following completion of major planned maintenance in the quarter:
o Group gold production of 503koz(1) and copper production of 35kt o Group AISC of $980(1) per ounce, delivering a robust AISC margin of 46% or $847(2) per ounce
o Cadia records lowest ever quarterly AISC at $113 per ounce
Gold and copper production expected to increase in the December quarter
Successful secondary listing on the Toronto Stock exchange supports Newcrest’s growth strategy in the Americas and broadens its access to the large North American capital pool
Cadia and Lihir growth projects moved into execution phase with attractive rates of return and short payback
Lihir clay management studies improve confidence in production plan deliverability; mine optimisation study on track for completion by end December 2020
Havieron potential continues to grow as drill results return best intercepts to date; Initial Inferred Mineral Resource expected in December 2020 quarter (see Quarterly Exploration Report released today)
Industry-leading TRIFR steady at 2.6 and no interruption to operations due to COVID-19
Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said “Consistent with prior years we executed a number of planned shutdown events across our operations in the September quarter, which is reflected in our production and All-In Sustaining Cost per ounce. We expect production to be higher in the December quarter and the Company is on track to meet its FY21 production guidance. Our world-class Cadia asset continues to impress,
reporting its lowest ever quarterly All-In Sustaining Cost of $113 per ounce, equating to an AISC margin of $1,724 per ounce for the quarter. This showcases the strength of Newcrest’s unique technical capability as one of the few mining companies globally able to do block cave mining, which underpins Cadia’s performance.”
“In line with our strategy of pursuing growth in the Americas, we listed on the Toronto Stock Exchange in October. We
believe that this secondary listing will improve the global visibility of the Company and broaden our access to the large
North American capital pool following our acquisition of 70% of the Red Chris mine in Canada, our equity investments
in Ecuador and our expanding portfolio of exciting exploration and early stage entry prospects in the Americas.”
“In October, the Board approved Stage 2 of the Cadia Expansion Project and the Lihir Front End Recovery Project to
the execution phase. The Cadia expansion is expected to increase plant capacity to 35mtpa, enabling an increase in
gold and copper recoveries, an increase in production and a reduction in unit costs. The Lihir Front End Recovery
Project is expected to deliver additional production through an improvement in life of mine gold recoveries.”
“It’s evident that the difficult near-term operating conditions we highlighted at Lihir earlier this year adversely impacted
our recent share price performance, so I’m pleased to report that the ongoing Lihir studies have improved our
confidence in production plan deliverability and our first quarter performance across the Group is in line with
expectations. Lihir is a uniquely large, long-life asset and I remain confident we are on track to realise its full potential.”
“Newcrest has uniquely long-life, low-cost production and an exciting pipeline of expansion and exploration projects.
Our Quarterly Exploration Report, also released today, further highlights the potential of the Havieron project as it
continues to expand its mineralisation and reports its best high-grade intercept to date.”
“As we continue to deliver against the strongly value-accretive opportunities across our portfolio, including production
growth to come from Havieron and Red Chris, I believe the considerable upside we see will be more broadly
recognised” said Mr Biswas.
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