- FY22 gold production guidance achieved, with record Cadia All-In Sustaining Cost performance1
o June quarter gold production of 637koz2
and copper production of 39kt, resulting in FY22 gold production
of 1,956koz and copper production of 121kt
o June quarter All-In Sustaining Cost (AISC) of $896/oz2
, delivering an AISC margin of $958/oz3
o FY22 AISC of $1,044/oz, delivering an AISC margin of 41% or $732/oz3
for the financial year
o Cadia achieved its lowest ever annual AISC of negative $124/oz
- Advancing multiple organic growth options
o Brucejack transformation program progressing well; uplift road map update expected in August 20224
o Two-stage Cadia Expansion Project and Lihir Front End Recovery Project on track for completion by the
end of September 20224
o Cadia PC1-2 Feasibility Study is expected to be released in the September 2022 quarter4
o Red Chris Block Cave and Havieron Stage 1 Feasibility Studies on track, with works advancing on both
projects
o Strong drilling results at Brucejack, Red Chris and Havieron continue to expand the high grade footprints
- Creating a brighter future for people through safe and responsible mining
o Newcrest Sustainability Fund of A$10 million has been established, driving social investments in support
of the United Nations Sustainable Development Goals
o Respect@Work program continues with a dedicated team focused on actions to prevent and eliminate any form of sexual assault and sexual harassment in the workplace
Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said, “Newcrest delivered a strong fourth quarter to achieve our group gold production for the year. Over the last four quarters we have steadily increased our
gold and copper production, driving lower group All-In Sustaining Costs and delivering a record breaking annual cost performance at Cadia. We were particularly pleased to record a fourth consecutive quarter of lower group costs during this challenging inflationary environment.”
“The three phase transformation program at Brucejack continues to progress well and we have a range of initiatives underway to maximise the long-term potential of this asset and district. We are on track to provide an update on our
Brucejack uplift road map, together with the outcomes of the Cadia PC1-2 Feasibility Study, later this quarter.”
“Our Respect@Work program continued to progress during the quarter with Newcrest focused on creating a workplace where everyone feels safe, respected and valued. We also established our Newcrest Sustainability Fund this month,
highlighting our commitment to achieving a better and more sustainable future for all our people, and the wider communities in which we operate.”
“As we move into FY23, we will continue to progress our exciting pipeline of organic growth projects, remaining focused on superior operational performance with an unwavering commitment to the health and safety of our people.” said Mr Biswas.
Overview
Newcrest achieved gold production guidance for FY22, with copper production 3% lower than FY22 guidance, predominantly driven by lower mill throughput at Red Chris and Telfer. Full year AISC was 2% higher than FY22 guidance due to lower copper production and a lower realised copper price, timing of Cadia copper sales and higher production stripping at Lihir and Telfer. Market guidance for FY23 will be released with the Full Year results on 19 August 2022 and will outline Newcrest’s views of the risk of cost inflation on AISC and capital expenditure, and the associated mitigation strategies underway.
Gold production was 31% higher than the prior period5
driven by higher mill throughput and gold head grade at both
Lihir and Cadia, and the addition of a full quarter of production from Brucejack. Gold production was also higher at Red Chris and Telfer compared to the prior period.
Newcrest’s AISC for the June 2022 quarter of $896/oz2
was 10% lower than the prior period, driven by higher gold
and copper sales volumes, and lower site operating costs on a dollar per ounce basis with higher production. There was also an additional benefit of a weakening Australian dollar against the US dollar on Australian dollar denominated operating costs. These benefits were partly offset by a lower realised copper price compared to the prior period.
Injury rates were higher than the prior period at Cadia, Telfer and Red Chris. The Safe Hands intervention program continues to focus on reducing the risk of hand injuries across Newcrest sites. Injury rates were reviewed during the
quarter with previously reported frequency rates at Lihir, Cadia, Red Chris and the Group restated following an update to working hours in FY22 at Lihir, and an internal review of injury classifications at Cadia and Red Chris.
Metric Jun
2022 Qtr Mar 2022 Qtr Dec 2021 Qtr Sep 2021 Qtr FY22 FY21 FY22 Guidance6
Group2 - gold oz 637,032 486,8517 436,085 396,214 1,956,182 2,093,322 1,925-2,025koz
see & read more on
https://www.newcrest.com/sites/default/files/2022-07/220721_Newcrest%20Jun%202022%20Quarterly%20Report.pdf |
