Newcrest Mining, which is set to be taken over by Newmont, announced a rise in gold and copper production for the fiscal fourth quarter.
In the three months through June, Newcrest produced 556,187 troy ounces of gold, up from 509,637 ounces in the previous quarter. Copper production also saw an increase, with Newcrest producing 34,978 metric tons compared to 31,148 tons in the third quarter.
However, along with the rise in production, costs also increased. Newcrest reported an all-in sustaining cost of $1,196 per ounce for the fourth quarter, up from $999 per ounce in the previous three months. This increase can be attributed to higher capital expenditure at key mining sites such as Lihir, Cadia, and Red Chris, as well as a lower realized copper price.
Despite this, Interim Chief Executive Sherry Duhe expressed satisfaction in achieving the company’s FY 2023 group guidance for gold production and all-in sustaining costs due to improved operational performance in the June quarter.
Fiscal-year copper output fell slightly short of Newcrest’s guidance range of 135,000-155,000 tons, coming in at 133,149 tons.
Newcrest Mining is currently in the process of a binding takeover agreement with Newmont, which is expected to be finalized by the end of 2023. If completed, this will be the largest-ever M&A deal in the gold-mining industry.
