Payback time for Gaddafi’s home

LONGER-than-anti­ci­pated rainfall and maintenance shutdown at Lihir contributed to Newcrest Mining’s lower production in the September quarter.
Newcrest owned 50% of the Hidden Valley mine and the other 50% is owned by South African miner, Harmony Gold.
They were also in a 50-50 arrangement with exploration work on Wafi-Golpu project which was expected to become the one of the world’s largest gold and copper mines within the next four years.
Although Newcrest reported a lower production in the third quarter, it still expected to meet production and cost guidance.
Shares in Newcrest had slipped A$1.66, or 4.6%,  a two-week low of A$34.09 on the Australian Stock Exchange.
It is Australia’s largest gold miner, producing 587,296 ounces of gold, 16% lower than the previous quarter.
Apart from Lihir maintenance shut-down, Telfer in Western Australia and Gosowong in Indonesia were also shutdown for scheduled maintenance.
Higher rainfall at Lihir added to lower yield for the company.
Gross cash margin increased by 19% to A$1,029/oz, due to a higher realised gold price of A$1,623/oz during the quarter.
Cash costs of A$594 per ounce were 10% higher than the previous quarter, reflecting lower gold production and higher maintenance costs associated with processing plant shutdowns.
September quarter copper production of 19,228 tonnes was slightly lower than the previous quarter.
Output was forecast to rise to up to 2.925moz this financial year.
Production in 2010-11 was 2.527moz, reflecting the integration of the newly-acquired Lihir assets and increased output from new mines at Ridgeway Deeps in NSW and Hidden Valley in PNG.
Newcrest’s two major expansion projects – Cadia East in NSW and Lihir MOPU – were on track, the company said.
Increased output at those projects would drive Newcrest’s target of full-year production of 4moz within five years.
The sale of its Cracow and Mt Rawdon mines to Evolution Mining was on track for early next month.
In return, Newcrest will have a one-third stake in the new company, a mid-tier gold company to be formed by the merger between Catalpa Resources and Conquest Mining.
Shorter-term bilateral debt facilities had been increased from US$1.1 billion to US$2 billion with eight banks.