Newcrest Mining Limited - Quarterly Report for the Three Months Eended 30 June 2013
MELBOURNE, Victoria, July 25, 2013 /CNW/ - Newcrest Mining Ltd. (Newcrest) (ASX:NCM) (TSX: NM) is pleased to announce its quarterly report for the three months ended 30 June 2013 (these figures are unaudited*)
Overview
Newcrest's production for the 2013 financial year was 2,109,784 ounces of gold and 80,366 tonnes of copper at a cash cost of A$750 per ounce and total cost of A$1,040 per ounce, following production in the June 2013 quarter of 642,032 ounces of gold and 22,818 tonnes of copper.
The production performance for the June 2013 quarter represents a 25% increase in gold production and a 20% increase in copper production over the March 2013 quarter. This increase was principally driven by increased plant capacity at Lihir, the ongoing ramp-up of the Cadia East panel cave, and mining of higher grade stopes at Gosowong.
At Cadia Valley, Cadia East continued to perform in line with the Company's expectations. Panel Cave 1 produced at an annualised rate of 5.4Mtpa for the June 2013 quarter. The development of Panel Cave 2 continued in line with the Company's expectations. Ridgeway ore production was maintained at a rate of 8Mtpa.
At Lihir, the plant performed in line with the Company's expectations during the June 2013 quarter. The projects to expand flotation capacity and to refurbish the Neutralisation Cyanidation Adsorption (NCA) circuit were both completed in the June 2013 quarter. Increased production at Gosowong and Telfer during the June 2013 quarter was primarily associated with higher gold grades. At Hidden Valley, the crusher at the front of the overland conveyor commenced commissioning.
Exploration continued during the June 2013 quarter with positive drilling results at Gosowong, Telfer and Wafi Golpu.
As announced in previous Company releases, Newcrest is focused on maximising free cash flow and production outcomes will reflect the Company operating in this manner. Newcrest has responded to the current market environment by reducing the production of high cost ounces, operating and corporate costs, capital expenditure and exploration activities.
Guidance
Newcrest's 2013 financial year gold production of 2.11 million ounces was within the 2.00 to 2.15 million ounces range announced to the market on 28 March 2013. Full year copper production of 80,366 tonnes was within the original guidance of 75 to 85 thousand tonnes. Total site costs# of A$2.43 billion were within the original aggregate guidance range of A$2.34 to A$2.47 billion, and expected total capital expenditure for the 2013 financial year remains within the original guidance range of A$1.8 to A$2.0 billion.
As announced on 7 June 2013, gold production for the 2014 financial year is expected to be 2.0 to 2.3 million ounces, with capital expenditure around A$1 billion and exploration expenditure around A$85 million. Copper production for the 2014 financial year is expected to be 75 to 85 thousand tonnes. The first quarter gold production for financial year 2014 is expected to be lower than the June 2013 quarter, with production expected
to progressively increase over the course of the financial year. Production and costs will continue to be actively managed to target a free cash flow neutral or positive outcome for the Company for the 2014 financial year.
Key Points
- Quarterly gold production 642,032oz (a 25% increase on 514,421oz in the March 2013 quarter)
- Quarterly copper production 22,818t (a 20% increase on 19,023t in the March 2013 quarter)
- Quarterly cash cost A$762/oz (A$799/oz in the March 2013 quarter)
- Quarterly gross cash margin A$672/oz (A$785/oz in the March 2013 quarter)
- Quarterly total cost of A$1,069/oz (A$1,086/oz in the March 2013 quarter)
- Cadia East Panel Cave 1 and Lihir plant expansion production performance in line with Company expectations
- Cadia East Panel Cave 2 development on schedule
- New Lihir flotation plant and NCA circuit both completed and in commissioning
- Hidden Valley crusher at the front of the overland conveyor in commissioning
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 Ltd.. 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.
* Site cost, cash cost, total cost and all-in sustaining cost are all non-IFRS financial information and have not been subject to audit by the Company's external auditor.
# Site cost is the sum of mining, milling, and administration & other costs. This measure excludes smelting, refining & transport costs, royalties, stripping and inventory, and by-product credits.
SOURCE Newcrest Mining Ltd.
Contact
Investor Enquiries - North America / Europe
Steve Warner
T: + 1 212 351 5064
E: steve.warner@newcrest.com.au
Investor Enquiries - Australia / Asia
Spencer Cole
T: +61 3 9522 5316
E: spencer.cole@newcrest.com.au
Media Enquiries
Kerrina Watson
T: +61 3 9522 5593
E: kerrina.watson@newcrest.com.au
This information is available at www.newcrest.com.au and at www.sedar.com.