Newcrest Mining Posts Drop in Gold Production, Lowers Guidance

Strategic Insights -

Newcrest Mining Ltd. (NCM.AU) reported a decrease in third quarter gold production, stating 416,651 ounces, down 14% from the same period last year and 6% from the second quarter. Copper output also declined by 12% to 20,598 tons. The company attributed the drop to commissioning issues at its Hidden Valley operation in Papua New Guinea. As a result, Newcrest lowered its full-year output guidance for Hidden Valley to 65,000-75,000 ounces from the previous range of 75,000-85,000 ounces, which was a further reduction from the initial guidance of 110,000-125,000 ounces. The company now expects overall guidance for the year to be at the lower end of the previous range of 1.81 million-1.91 million ounces, with possible outcomes of 1% above or 3% below 1.18 million ounces.

Key Takeaways:

  • Newcrest Mining Ltd. reported a 14% decrease in third quarter gold production compared to the same period last year, producing 416,651 ounces.
  • Copper output fell 12% to 20,598 tons during the third quarter.
  • The company attributed the drop in production to commissioning issues at its Hidden Valley operation in Papua New Guinea.
  • Newcrest lowered its full-year output guidance for Hidden Valley to 65,000-75,000 ounces, a further reduction from the previous range of 75,000-85,000 ounces and initial guidance of 110,000-125,000 ounces.
  • The company now expects overall guidance for the year to be at the lower end of the previous range of 1.81 million-1.91 million ounces, with possible outcomes of 1% above or 3% below 1.18 million ounces.