Newcrest Mining has posted a 13 per cent drop in fourth-quarter gold output, hurt by lower contributions from both its flagship Cadia mine in New South Wales and the Lihir mine in Papua New Guinea.
Australia’s biggest listed gold miner said production fell to 573,175 ounces in the quarter ended June 30, beating analyst estimates but down from the 661,414 ounces a year earlier.
The decline was partly due to the sale of the Gosowong mine in Indonesia.
However, Newcrest’s total gold production of 2.17 million ounces for the 2020 financial year was within an already lowered forecast range of 2.1 million ounces to 2.2 million ounces.
The miner’s stock has gained about 13 per cent so far this year, driven by a surge in gold prices as the coronavirus pandemic spurred safe-haven demand.
Overnight, gold prices surged to a nine-year peak of $US1,870.01 per ounce as an escalation in US-China tensions stoked demand for the safe-haven asset.
Newcrest said despite the risks from the pandemic, annual production from the Cadia mine exceeded the top end of its forecast range.
All-in sustaining costs for the group in the quarter were $US878 per ounce, up from $US720 a year earlier.