Newcrest Mining Records 17% Increase in Q2 Fiscal 2010 Gold Production

Newcrest Mining Ltd, a leading Australian gold miner, achieved a significant milestone in the second quarter of fiscal 2010, surpassing expectations with a 17% increase in gold production. The boost in production was largely driven by record quarterly output at the Telfer operation in Western Australia, higher production at Cadia Valley in New South Wales, and the ramp-up at Hidden Valley in Papua New Guinea. Despite the increase, the company maintained its guidance for full-year production, aiming to produce between 1.81 million to 1.91 million ounces of gold.

Key Takeaways:

• Newcrest Mining recorded a 17% increase in gold production in the second quarter of fiscal 2010, producing 442,333 ounces of gold.
• Gross cash costs fell 31% to A$310 (US$279) per ounce, and net cash costs fell 29% to A$310 per ounce.
• Copper production increased 12% to 23,860 tonnes in the second quarter, driven by higher production at Telfer and Cadia Valley.
• The company reaffirmed its full-year guidance of 1.81 million to 1.91 million ounces of gold production.
• Record quarterly production at Telfer, higher production at Cadia Valley, and ramp-up at Hidden Valley were key contributors to the increased production.
• Production at Gosowong remained consistent with the previous quarter, and lower Cracow production was in line with plan.

Statistics:

• 17% increase in gold production in Q2 fiscal 2010.
• 442,333 ounces of gold produced in Q2 fiscal 2010.
• Gross cash costs: A$310 (US$279) per ounce, a 31% decrease from previous quarter.
• Net cash costs: A$310 per ounce, a 29% decrease from previous quarter.
• Copper production: 23,860 tonnes in Q2 fiscal 2010, a 12% increase from previous quarter.
• Full-year guidance: 1.81 million to 1.91 million ounces of gold production.

Sources:

• "Australia's Newcrest Mining Ltd (ASX:NCM) - Asia Pulse, Jan 28"