Newcrest Mining's takeover of its junior competitor, Lihir Gold, had the effect of significantly ramping up its gold production in the September quarter.The world's fifth biggest gold producer said its production came to 674,219 ounces in the quarter, up
Newcrest Mining’s takeover of its junior competitor, Lihir Gold, had the effect of significantly ramping up its gold production in the September quarter.
The world’s fifth biggest gold producer said its production came to 674,219 ounces in the quarter, up 28% compared with the June quarter, and up 78.8% over the September 2009 quarter’s total.
“The increased production is a result of the merger between Newcrest and Lihir Gold,” Newcrest said in its quarterly production report.
The company’s guidance for 2010/11 was for gold production of 2.85 million to 3.00 million oz, which would be a 61.9% to 70.4% improvement on the actual figure for 2009/10 of 1.76 million oz.
Cash costs per ounce were $US441 compared with $US302 in the previous quarter. Half the increase in gross cash costs reflected the inclusion of Lihir, which is recognised as a higher cost operator.
Copper production of 17,693 tonnes was 16% lower than the previous quarter, reflecting lower throughput.
Like most other Australian exporters, Newcrest is feeling the pinch from the strong Australian dollar, which briefly hit parity with the U.S. dollar last weekend.
But the company expected increased production in the next quarter to act as a counterweight to the exchange rate.
Newcrest’s $A10 billion cash and share and share takeover of Papua New Guinea-based Lihir became effective on August 30. Its shares last traded at $A40.23, up 45Ac from Wednesday’s close.
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