MELBOURNE, Australia,
July 24, 2014 /CNW/ - Newcrest Mining
Limited (ASX: NCM) - Quarterly Report for the three months ending
30 June 2014 (these figures are
unaudited).
Key points
Quarterly:
- Gold production of 636,736 ounces (85,146 ounces or 15% higher
than the March 2014 quarter)
- Copper production of 22,871 tonnes (1,859 tonnes or 9% higher
than the March 2014 quarter)
- Group All-In Sustaining Cost1 of A$913/oz (US$851/oz2) (8% lower than the
March 2014 quarter)
- Group All-In Sustaining Cost margin of A$469/oz on average realised gold price of
A$1,382/oz
Full year:
- Gold production of 2,396,023 ounces (a 14% increase on
2,109,784 ounces in the 2013 financial year)
- Copper production of 86,118 tonnes (a 7% increase on 80,366
tonnes in the 2013 financial year)
- Group All-In Sustaining Cost1 of A$976/oz (US$897/oz2) was 24% lower than the
2013 financial year
- Group All-In Sustaining Cost1 margin of A$434/oz was A$167/oz higher than the 2013 financial year,
notwithstanding the average realised gold price in the 2014
financial year of A$1,410/oz was
A$140/oz lower
- Group free cash flow for the year is estimated to be
approximately A$130 million (subject
to finalisation of audited financial statements)
- Expected asset impairment of A$1.5 to
A$2.5 billion
Overview
Newcrest Managing Director and Chief Executive Officer,
Sandeep Biswas, described the
improved operational results for the June
2014 quarter and full financial year as reflective of the
Company's focus on safety, cost reduction and cash generation.
"Newcrest is firmly focused on realising the full potential of
each of the Company's assets, prioritising operating discipline and
maximising cash across all sites. All sites achieved production and
cost guidance for the year, with some performing significantly
better," Mr Biswas said. "Looking ahead, the main focus will
continue to be on the improvement of operational and safety
performance. The sustainable generation of strong free cash flow
will produce a higher return on invested capital and enable the
Company to reduce debt and progressively return to paying
dividends. Growth will be focused on profitable, high return
projects."
Gold production for the 2014 financial year of 2,396,023 ounces
exceeded the top end of the guidance range (of 2.3 million ounces)
and was 14% higher than the prior year. Full year copper production
of 86,118 tonnes also exceeded the top end of the guidance range
(of 85,000 tonnes) and was 7% higher than the prior year. The AISC
for the 2014 financial year was A$976
(US$ 897) per ounce, 24% lower than
the 2013 financial year of A$1,283
per ounce. The AISC margin in the 2014 financial year was
A$434 (US$397) per ounce, A$167 per ounce higher than the prior year
notwithstanding the average realised gold price in the 2014
financial year of A$1,410 was
A$140 per ounce lower.
In the June 2014 quarter the
Company produced 636,736 ounces of gold and 22,871 tonnes of copper
with an AISC of A$913 (US$851) per ounce. This represents a 15%
increase in gold production and 8% reduction in AISC compared to
the March 2014 quarter. Safety
performance also improved in the June quarter with a total
recordable injury frequency rate (TRIFR) of 2.1 compared to a TRIFR
of 3.1 over the last twelve months.
Gold production for the June quarter increased at all sites
except Bonikro. The key drivers of increased quarterly production
were higher gold grades and plant throughput at Gosowong, increased
mining rates at Ridgeway,
continued ramp up at Cadia East and higher gold recoveries at
Lihir.
The expansion of the Cadia East Panel Cave 2 footprint continued
during the June quarter and the project is expected to achieve
commercial production around the middle of the 2015 financial
year.
Newcrest Group AISC of A$913 per
ounce was 8% lower than the March
2014 quarter. This was primarily due to a reduction in site
operating costs per ounce, which were lower than the previous
quarter at all sites except Telfer, and lower production stripping
activity.
In the context of the unit cost improvement achieved elsewhere
in the Group, the unit cost performance of Lihir in the June
quarter and the 2014 financial year was disappointing. The Company
has a major review underway to identify and accelerate initiatives
to improve Lihir's operating and financial performance.
1 All references to All-In Sustaining Cost (AISC)
throughout this report are references to metrics as per World Gold
Council Guidance Note on Non-GAAP Metrics, released 27 June 2013. Newcrest Group All-In Sustaining
Cost will vary from quarter to quarter as a result of various
factors including production performance, timing of sales, the
level of sustaining capital and the relative contribution of each
asset.
2 All references to AISC, cash costs and total costs in
US dollars throughout this report are converted to USD at an
average A$:US$ exchange rate for the period, being $0.93 for the June
2014 quarter,$0.92 for the
2014 financial year and A$0.90 for
the March 2014 quarter.
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 andachievements 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 licenses 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 2012 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. Newcrest ceased its listing on the Toronto Stock Exchange
("TSX") on 4 September 2013, but will
remain subject to certain Canadian disclosure requirements and
standards until it ceases to be an Ontario Securities Commission
registrant. Prior to that, Newcrest will continue, in accordance
with the requirements of National Instrument 43-101 - Standards of
Disclosure for Mineral Projects of the Canadian Securities
Administrators, to report its ore reserves and mineral resources
estimates in compliance with the JORC Code, along with a
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 2013
Resources and Reserves Statement, released to the ASX on
14 February 2014, the reconciliation
is set out in Newcrest's Canadian News Release dated 14 February 2014, 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 report that relates to Exploration Targets,
Exploration Results, Mineral Resources and Ore Reserves and other
scientific and technical information, is based on information
compiled by Mr C. Moorhead. Mr
Moorhead is the Executive General Manager Minerals and a full-time
employee of Newcrest Mining Limited. He is a shareholder in
Newcrest Mining Limited and is entitled to participate in
Newcrest's executive equity long term incentive plan, details of
which are included in Newcrest's 2013 Remuneration Report. Ore
Reserves growth is one of the performance measures under that plan.
He is a Fellow of The Australasian Institute of Mining and
Metallurgy. 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 2012 and
is a Qualified Person within the meaning of National Instrument
43-101 - Standards of Disclosure for Mineral Projects of the
Canadian Securities Administrators ("NI 43-101"). Mr Moorhead
consents to the the inclusion in this report of the matters based
on his information in the form and context in which it appears
including sampling, analytical and test data underlying the
results.
A copy of the release and presentation be found on
Newcrest's website: www.newcrest.com.au and on SEDAR:
www.sedar.com.
SOURCE Newcrest Mining Limited