The Western Australian

Newcrest has reported an improved performance from its Telfer operations in the East Pilbara in the June quarter, lifting production and cutting operating costs.

The gold miner lifted production by 35 per cent in the quarter to 120,100 ounces for full-year production of 425,536oz, up from 386,242oz the previous year. Copper production also rose to 4230t in the final quarter from 3438t in the previous quarter for full-year output of 16,212t.

The higher production rate was partly attributable to wet weather in the previous quarter.

Newcrest managing director Sandeep Biswas noted Telfer had achieved record total material movement, tonnes crushed and tonnes milled for the quarter.

All-in sustaining costs fell from $US1446/oz in the previous quarter to $1185/oz, suggesting the mine operated at a marginal profit of $US117/oz in the June quarter compared to a $US105/oz loss in the previous quarter.

Newcrest said the 18 per cent cost improvement over the quarter was primarily due to the higher throughput offsetting its fixed cost base.

Across its entire operations, Newcrest reported full-year production of 2.3 million ounces, a one per cent fall on the previous year. Copper production of 78,000t was 7 per cent down on the previous year.

The company reported an overall 6 per cent lift in all-in sustaining costs to $US835/oz, for a per ounce margin of $US473.

Newcrest also operates mines in New South Wales, Indonesia and on Lihir Island in Papua New Guinea.

Newcrest shares were up 96¢, or 4.8 per cent, to $20.96 at 9.40am.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here