Newcrest reports increased output in gold, copper and silver

NEWCREST Mining Ltd, the sole operator of Lihir gold mine and joint operator of newly commissioned Hidden Valley Gold mine, has recorded increased gold, copper and silver production for the third quarter of this year.
Newcrest’s third quarter report ending Sept 30 showed that overall gold production from all operation was 674,219oz compared with production of 526,131 oz during the previous quarter.
Newcrest managing director Ian Smith said the increased production was the result of the merger between Newcrest and Lihir Gold Ltd (LGL).
However, its copper production of 17,693 tonnes were 16% lower than the previous quarter reflecting lower feed grade and mill throughput, partly offset by increased copper recoveries.
Cash costs were A$488 per ounce compared to A$342 per ounce in the previous quarter.
Smith said 50% of the increase in gross cash costs (prior to stripping adjustments) reflected the inclusion of the former Lihir operations with 45% of the increase attributable to lower gold and copper production driven by grade.
About 5% relates to the impact of exchange rate movement, the reports said.
The fourth largest gold miner in the world and the single biggest in Asia- Pacific region said its expected increased production in the next quarter would act as a counterweight to exchange rate while most synergistic savings delivered so far would be seen at the headline financial level rather than sites.
Newcrest and LGL completed the merger of the two companies under a scheme of arrangement on Sept 13.