Newcrest quarterly output drops almost 17%

Newcrest sold its interest in the Gosowong mine in Indonesia (pictured) during the quarter. Image by Newcrest.

Newcrest Mining (ASX: NCM) on Thursday reported a nearly 17% fall in third-quarter gold production, hurt by lower output at its Cadia and Telfer mines and divestment of its Indonesian mine during the three-month period.

The Australian miner said total gold production fell to 518,770 ounces in the three months ended March 31, from 623,124 ounces a year earlier. The figure missed the UBS estimate of 562,000 tonnes gold output for the period.

Cadia’s lower production in the quarter was in line with the company’s expectations and reflects planned maintenance shuts of both concentrators and lower grade ore feed to the mill, while production at Telfer was 6% lower than the prior quarter due to a reduction in underground ore mill feed.

This loss in production was offset by improvements at the Lihir and Red Chris mines, where gold output increased by 14% and 43%, respectively.

“Newcrest’s gold production in the quarter is in line with our expectations following the recent update to guidance and reflects the impacts of planned shuts at Cadia and Telfer and the divestment of Gosowong in March,” managing director and CEO Sandeep Biswas said in the media release.

The company added that production in the June quarter is expected to be higher than the March quarter due to a lower level of planned shutdown events across the portfolio.

(With files from Reuters)