(figures are unaudited and in US$ except where stated)
Q1 in line with expectations as shareholder growth pursued in
the Americas
- September quarter in line with expectations and on track for
meeting annual guidance following completion of major planned
maintenance in the quarter:
-
- Group gold production of 503koz(1) and copper
production of 35kt
- Group AISC of $980(1) per
ounce, delivering a robust AISC margin of 46% or $847(2) per ounce
- Cadia records lowest ever quarterly AISC at $113 per ounce
- Gold and copper production expected to increase in the December
quarter
- Successful secondary listing on the Toronto Stock exchange
supports Newcrest's growth strategy in the Americas and broadens
its access to the large North American capital pool
- Cadia and Lihir growth projects moved into execution phase with
attractive rates of return and short payback
- Lihir clay management studies improve confidence in production
plan deliverability; mine optimisation study on track for
completion by end December 2020
- Havieron potential continues to grow as drill results return
best intercepts to date; Initial Inferred Mineral Resource expected
in December 2020 quarter (see
Quarterly Exploration Report released today)
- Industry-leading TRIFR steady at 2.6 and no interruption to
operations due to COVID-19
MELBOURNE, Australia,
Oct. 28, 2020 /CNW/ - Newcrest
Managing Director and Chief Executive Officer, Sandeep Biswas, said "Consistent with prior
years we executed a number of planned shutdown events across our
operations in the September quarter, which is reflected in our
production and All-In Sustaining Cost per ounce. We expect
production to be higher in the December quarter and the Company is
on track to meet its FY21 production guidance. Our world-class
Cadia asset continues to impress, reporting its lowest ever
quarterly All-In Sustaining Cost of $113 per ounce, equating to an AISC margin of
$1,724 per ounce for the quarter.
This showcases the strength of Newcrest's unique technical
capability as one of the few mining companies globally able to do
block cave mining, which underpins Cadia's performance."
"In line with our strategy of pursuing growth in the Americas,
we listed on the Toronto Stock Exchange in October. We believe that
this secondary listing will improve the global visibility of the
Company and broaden our access to the large North American capital
pool following our acquisition of 70% of the Red Chris mine in
Canada, our equity investments in
Ecuador and our expanding
portfolio of exciting exploration and early stage entry prospects
in the Americas."
"In October, the Board approved Stage 2 of the Cadia Expansion
Project and the Lihir Front End Recovery Project to the execution
phase. The Cadia expansion is expected to increase plant capacity
to 35mtpa, enabling an increase in gold and copper recoveries, an
increase in production and a reduction in unit costs. The Lihir
Front End Recovery Project is expected to deliver additional
production through an improvement in life of mine gold
recoveries."
"It's evident that the difficult near-term operating conditions
we highlighted at Lihir earlier this year adversely impacted our
recent share price performance, so I'm pleased to report that the
ongoing Lihir studies have improved our confidence in production
plan deliverability and our first quarter performance across the
Group is in line with expectations. Lihir is a uniquely large,
long-life asset and I remain confident we are on track to realise
its full potential."
"Newcrest has uniquely long-life, low-cost
production and an exciting pipeline of expansion and exploration
projects. Our Quarterly Exploration Report, also released
today, further highlights the potential of the Havieron
project as it continues to expand its mineralisation and reports
its best high-grade intercept to date."
"As we continue to deliver against the
strongly value-accretive opportunities across our portfolio,
including production growth to come from Havieron and Red Chris, I
believe the considerable upside we see will
be more broadly recognised" said Mr Biswas.
Overview(3)
Gold production was 12% lower than the prior period across all
operations. In line with prior years, a series of planned shutdown
events reduced throughput rates at Cadia, Lihir and Telfer.
Additionally, production was also impacted by lower grades at
Cadia, Lihir and Red Chris, the impact of unplanned outages and
autoclave availability at Lihir and lower recovery rates at Telfer,
Red Chris and Lihir. These impacts were partially mitigated by an
improvement in gold head grades at Telfer. Included within gold
production for the September 2020
quarter is 30koz relating to Newcrest's 32% equity interest in
Lundin Gold Inc which owns the Fruta del Norte mine.
Newcrest's AISC for the September
2020 quarter of $980(1) per
ounce was $102 per ounce higher than
the prior period. The 12% increase in AISC per ounce was primarily
driven by the impact of a strengthening Australian dollar and
Canadian dollar on the operating costs of Cadia, Telfer and
Red Chris, lower gold production, an increase in stripping activity
at Lihir and lower copper sales volumes. These impacts were
partially offset by a higher realised copper price and the timing
of sustaining capital expenditure.
Production
Highlights
|
Metric
|
Sep
2020 Qtr
|
Jun 2020
Qtr
|
FY20
|
FY21
Guidance(4)
|
Group(1)
- gold
|
oz
|
503,089
|
573,175
|
2,171,118
|
1,950-2,150koz
|
- copper
|
t
|
34,763
|
40,196
|
137,623
|
135-155kt
|
- silver
|
oz
|
214,412
|
252,205
|
983,431
|
|
Cadia
- gold
|
oz
|
196,504
|
236,705
|
843,338
|
680-760koz
|
- copper
|
t
|
25,329
|
27,634
|
96,042
|
95-105kt
|
Lihir
- gold
|
oz
|
177,337
|
207,233
|
775,978
|
720-820koz
|
Telfer
- gold
|
oz
|
86,452
|
113,797
|
393,164
|
360-420koz
|
- copper
|
t
|
2,384
|
4,162
|
16,278
|
10-20kt
|
Red
Chris(5) - gold
|
oz
|
12,636
|
15,440
|
38,933
|
45-55koz
|
- copper
|
t
|
7,050
|
8,401
|
25,302
|
25-30kt
|
Gosowong(6)- gold
|
oz
|
-
|
-
|
103,282
|
|
Fruta del
Norte(1),(7) - gold
|
oz
|
30,160
|
0
|
16,422
|
95-110koz
|
|
|
|
|
|
|
Fatalities
|
Number
|
0
|
0
|
0
|
|
TRIFR(8)
|
mhrs
|
2.6
|
2.6
|
2.6
|
|
All-In Sustaining
Cost(1),(9)
|
$/oz
|
980
|
878
|
862
|
|
All-In
Cost(10)
|
$/oz
|
1,275
|
1,108
|
1,044
|
|
All-In Sustaining
Cost margin(2)
|
$/oz
|
847
|
768
|
668
|
|
Realised gold
price(11)
|
$/oz
|
1,837
|
1,646
|
1,530
|
|
Realised copper
price(11)
|
$/lb
|
2.97
|
2.47
|
2.57
|
|
Realised copper
price(11)
|
$/t
|
6,548
|
5,445
|
5,666
|
|
Average exchange
rate
|
AUD:USD
|
0.7147
|
0.6557
|
0.6715
|
|
Average exchange
rate
|
PGK:USD
|
0.2872
|
0.2898
|
0.2927
|
|
Average exchange
rate
|
CAD:USD
|
0.7504
|
0.7210
|
0.7452
|
|
All figures are shown at 100% unless stated otherwise.
Operations
Cadia, Australia
Highlights
|
Metric
|
Sep 2020
Qtr
|
Jun 2020
Qtr
|
FY20
|
FY21
Guidance
|
TRIFR
|
mhrs
|
3.6
|
6.1
|
4.9
|
|
Total production
- gold
|
oz
|
196,504
|
236,705
|
843,338
|
680-760koz
|
-
copper
|
t
|
25,329
|
27,634
|
96,042
|
95-105kt
|
Head
Grade -
gold
|
g/t
|
1.02
|
1.09
|
1.14
|
|
-
copper
|
%
|
0.40
|
0.39
|
0.39
|
|
Sales -
gold
|
oz
|
195,146
|
236,980
|
848,959
|
|
-
copper
|
t
|
24,596
|
26,924
|
96,437
|
|
All-In Sustaining
Cost
|
$/oz
|
113
|
170
|
160
|
|
All-In Sustaining
Cost margin
|
$/oz
|
1,724
|
1,476
|
1,370
|
|
Cadia's gold production of 197koz was 17% lower than the prior
period driven by a 10% reduction in throughput and a 6% reduction
in gold head grade. The lower throughput in the period was
primarily due to planned maintenance shutdown events in July and
September. The lower gold grade in the period was in line with
expectations.
Cadia's AISC of $113 per ounce is
its lowest on record, primarily driven by a higher realised copper
price and timing of sustaining capital expenditure. These benefits
were partially offset by lower gold production, an increase in
operating costs associated with the planned shutdowns, the impact
on operating costs from the strengthening of the Australian dollar
against the US dollar and lower copper sales volumes.
As previously announced on 9 October
2020, the Board approved Stage 2 of the Cadia Expansion
Project to the execution phase. Stage 2 of the Expansion Project is
expected to increase plant capacity to 35mtpa, enable higher gold
and copper recoveries, drive an increase in production and reduce
unit costs. The estimated capital cost is expected to be
$175 million(12), which is
$5 million lower than the estimate
announced in October 2019. The
project is expected to be completed in late FY22.
Engineering and geotechnical verification work for the
Pre-Feasibility Study (PFS) for the repair of the Northern Tailings
Storage Facility (NTSF) was concluded in the quarter. Prior to
finalisation, the PFS is undergoing a Competent Independent Review
(CIR) process. Subject to the outcomes of that review process,
commencement of the Feasibility Study is expected in the first half
of calendar 2021. The estimated cost of the preferred 'go-forward'
option remains below A$100 million,
though the estimated time to complete the repair has been extended
to the second half of 2023 (prior to any contingency in timing for
approvals, weather and technical delays) primarily as a result of
changes in volumes of material to be moved to effect the
repair.
To date, Cadia has not experienced any COVID-19 related
disruptions to the supply of goods or services or to its workforce.
Cadia is primarily a residential workforce and otherwise largely
draws on resources from within the State
of New South Wales.
Lihir, Papua New
Guinea
Highlights
|
Metric
|
Sep 2020
Qtr
|
Jun 2020
Qtr
|
FY20
|
FY21
Guidance
|
TRIFR
|
mhrs
|
0.5
|
0.8
|
0.6
|
|
Production -
gold
|
oz
|
177,337
|
207,233
|
775,978
|
720-820koz
|
Head
Grade -
gold
|
g/t
|
2.34
|
2.46
|
2.38
|
|
Sales
- gold
|
oz
|
210,831
|
193,851
|
760,724
|
|
All-In Sustaining
Cost
|
$/oz
|
1,283
|
1,352
|
1,206
|
|
All-In Sustaining
Cost margin
|
$/oz
|
554
|
294
|
324
|
|
Gold production of 177koz was 14% lower than the prior period
primarily due to lower throughput, grade and recovery. Mill
throughput was 9% lower than the prior period reflecting the impact
of the planned maintenance shutdowns and unplanned downtime due to
crusher outages. Gold head grades were 5% lower than the prior
period reflecting a lower proportion of higher grade ex-pit ore
feed. Gold recovery of 72.6% was 1% lower than the prior period
driven by lower feed grade and an increase in flotation due to a
reduction in autoclave availability following planned and unplanned
downtime.
Clay management studies have allowed an increased understanding
of the argillic ores within the overall distribution of argillic
ores that have recently unfavourably impacted plant performance.
Importantly, these studies also identified reduced quantities of
these argillic ores which has informed ore scheduling and process
plant upgrade studies and has improved confidence in FY21
production plan deliverability. Additionally, conveyor and chute
modifications were completed during the September 2020 smart shutdown to improve the
handling of these ores.
The mine optimisation study remains on-track to be completed in
December 2020. The study is focused
on improving ore presentation to the processing plant, accounting
for clay management study outcomes and optimising the integration
sequence of the seepage barrier project with the mine schedule.
Lihir's AISC was $69 per ounce
lower than the prior period primarily driven by timing of
sustaining capital expenditure and higher gold sales in the period
from the sale of lower cost inventory on hand. This was partially
offset by an increase in stripping activities in Phases 15 and 16
and higher royalties associated with the higher gold sales and
higher gold price.
As previously announced on 9 October
2020 the Board approved Lihir's Front End Recovery Project
to the execution phase. This project is expected to deliver
additional production through an improvement in gold recoveries
over the life of the mine.
In August 2020, Newcrest confirmed
that it was managing its first positive case of COVID-19 in its
isolation and treatment facility at Lihir Island. The individual, a
PNG national, tested positive whilst in quarantine following his
arrival on the island. Though asymptomatic, he was further
quarantined in a separate isolation facility at Lihir until he made
a full recovery. Lihir's early detection and controls effectively
detected the virus and prevented a potential spread to others at
Lihir.
To date, Lihir has not experienced any COVID-19 related
disruptions to the supply of goods or services or disruption to
operations. To manage the potential impacts of COVID-19 to
production, Lihir has increased its key inventory holdings to
mitigate against disruptions to the supply chain, implemented
longer rosters and regularly engages with key service providers.
National travel restrictions to reduce the risk of COVID-19 have
been in place since March 2020.
Having obtained the necessary approvals, Lihir received its first
incoming flight allowing a change of workforce on 13 June 2020. All incoming passengers are
screened using health declarations and a new thermal imaging camera
installed at the airport. Passengers are then transported to a
dedicated isolation camp and tested before undergoing a compulsory
14-day isolation period, which includes COVID-19 Polymerase Chain
Reaction (PCR) testing on days 0, 5 and 14.
Lihir – Material Movements
Ore
Source
|
Metric
|
Sep 2020
Qtr
|
Jun 2020
Qtr
|
FY20
|
Ex-pit crushed
tonnes
|
kt
|
1,236
|
1,468
|
5,445
|
Ex-pit to
stockpile
|
kt
|
1,610
|
1,162
|
6,585
|
Waste
|
kt
|
6,269
|
3,965
|
18,055
|
Total
Ex-pit
|
kt
|
9,115
|
6,595
|
30,085
|
Stockpile
reclaim
|
kt
|
2,192
|
2,133
|
8,250
|
Stockpile
relocation
|
kt
|
3,306
|
2,860
|
13,599
|
Total
Other
|
kt
|
5,498
|
4,993
|
21,850
|
Total Material
Moved
|
kt
|
14,613
|
11,588
|
51,935
|
Lihir – Processing
Equipment
|
Metric
|
Sep 2020
Qtr
|
Jun 2020
Qtr
|
FY20
|
Crushing
|
kt
|
3,426
|
3,601
|
13,696
|
Milling
|
kt
|
3,255
|
3,580
|
13,798
|
Flotation
|
kt
|
2,780
|
2,773
|
10,414
|
Total
Autoclave
|
kt
|
1,592
|
1,951
|
7,319
|
Telfer, Australia
Highlights
|
Metric
|
Sep 2020
Qtr
|
Jun 2020
Qtr
|
FY20
|
FY21
Guidance
|
TRIFR
|
mhrs
|
4.6
|
2.9
|
4.9
|
|
Production -
gold
|
oz
|
86,452
|
113,797
|
393,164
|
360-420koz
|
-
copper
|
t
|
2,384
|
4,162
|
16,278
|
10-20kt
|
Head
Grade
- gold
|
g/t
|
0.86
|
0.83
|
0.90
|
|
-
copper
|
%
|
0.09
|
0.11
|
0.14
|
|
Sales -
gold
|
oz
|
85,096
|
115,747
|
391,339
|
|
- copper
|
t
|
2,311
|
4,831
|
16,283
|
|
All-In Sustaining
Cost
|
$/oz
|
1,797
|
1,215
|
1,281
|
|
All-In Sustaining
Cost margin(13)
|
$/oz
|
40
|
431
|
249
|
|
Telfer's gold production was 27koz lower than the prior period
driven by the impact of planned maintenance shutdowns reducing mill
throughput and higher sulphur grades from the West Dome pit
lowering gold recovery. This was partially mitigated by a 4%
improvement in gold head grades which was due to the realisation of
higher grade blocks in the Open Pit following completion of waste
stripping activity together with grade control drilling in the
Underground converting development material to ore.
AISC per ounce was higher than the prior period primarily driven
by the impact of lower gold production, an increase in site
operating costs associated with the planned shutdowns, the
impact on operating costs from the strengthening of the Australian
dollar against the US dollar, the timing of sustaining capital
expenditure and lower copper sales volumes. These impacts were
partially offset by lower production stripping costs as waste
stripping activities near completion and the benefit of a higher
realised copper price.
To date, Telfer has not experienced any COVID-19 related
disruptions to the supply of goods or services, to its workforce or
to its operation. The Telfer workforce is primarily from
Western Australia and all
interstate employees and contractors continue to be required to
complete a 14-day isolation period when entering Western Australia as required by the Western
Australian Government. In response to the COVID-19 pandemic
Newcrest has implemented rostering and flight amendments, as well
as pre-flight screening protocols which include rapid blood tests.
Telfer has recently reintroduced the availability of 8/6 rosters
for its Western Australian workforce.
At the Havieron Project, located 45km east of Telfer, permitting
activities for the exploration decline are currently underway.
Newcrest expects to commence construction of the exploration
decline by the end of calendar year 2020 or in early 2021.
Red Chris, Canada
Highlights(14)
|
Metric
|
Sep 2020
Qtr
|
Jun 2020
Qtr
|
FY20
|
FY21
Guidance
|
TRIFR
|
mhrs
|
11.1
|
10.5
|
12.7
|
|
Production
- gold
|
oz
|
12,636
|
15,440
|
38,933
|
45-55koz
|
- copper
|
t
|
7,050
|
8,401
|
25,302
|
25-30kt
|
Head
Grade
- gold
|
g/t
|
0.40
|
0.50
|
0.39
|
|
-
copper
|
%
|
0.46
|
0.61
|
0.54
|
|
Sales -
gold
|
oz
|
11,834
|
15,607
|
37,271
|
|
-
copper
|
t
|
6,642
|
8,736
|
24,432
|
|
All-In Sustaining
Cost
|
$/oz
|
2,621
|
1,536
|
1,703
|
|
All-In Sustaining
Cost margin
|
$/oz
|
(784)
|
110
|
(173)
|
|
The Newcrest Safety Transformation plan continues to yield
benefits at Red Chris. Despite the 6% increase in TRIFR in the
quarter the severity of injuries decreased, demonstrating the
ongoing improvements in Red Chris'
safety performance. Red Chris continues to build on its safety
reporting culture and incident investigation.
Gold production was 3koz lower than the prior period reflecting
a higher proportion of lower grade stockpile material being fed to
the mill due to unseasonal rainfall impacting the availability of
higher grade ex-pit material. This lower grade mill feed adversely
impacted recovery rates. These impacts were partially offset by a
13% increase in mill throughput as a result of process control
improvements and a higher proportion of stockpile material with
characteristics that enabled increased processing rates.
Red Chris' AISC of $2,621 per ounce was higher than the prior period
driven by increased sustaining capital expenditure, higher
operating costs due to seasonal benefits allowing increased
activities to be scheduled, together with the impact of a
strengthening Canadian dollar against the US dollar and lower
copper sales volumes. These impacts were partially offset by the
benefit of a higher realised copper price.
Over the course of FY21, Red Chris is planning to implement a
number of additional improvement initiatives across the site
including a new fleet management system, the replacement of the
conventional CAT793 truck tubs with high performance trays to
realise payload benefits and a number of throughput and recovery
related projects.
To date, Red Chris has not experienced any COVID-19 related
disruptions to the supply of goods or services, to its workforce or
to its operations.
Red Chris drilling results are included in the September 2020 Quarterly Exploration Report which
is also released today. Permitting activities for the exploration
decline are currently underway. Newcrest expects to commence
construction of the exploration decline in early 2021.
Fruta Del Norte, Ecuador
As announced on 30 April 2020,
Newcrest acquired the gold prepay and stream facilities and an
offtake agreement in respect of Lundin Gold Inc's Fruta del Norte
mine for $460 million. Newcrest
received net cash flows of ~$9
million from the stream facility and offtake agreement in
the September 2020 quarter.
Repayments under the gold prepay facility commence on 31 December 2020.
Included within Newcrest's gold production for the September 2020 quarter is 30koz relating to
Newcrest's 32% equity interest in Lundin Gold Inc which owns the
Fruta del Norte mine.
Project Development
Wafi-Golpu, Papua New
Guinea
Newcrest, together with its WGJV partner Harmony, looks forward
to re-engaging with the State of Papua
New Guinea (PNG) and progressing discussions on the Special
Mining Lease for the Wafi-Golpu Project. Newcrest is encouraged by
the Prime Minister of PNG stating that Wafi-Golpu is a priority
project and that it will be advanced within the existing legal
parameters of PNG.
Exploration
See the separately released "Quarterly Exploration Report" for
an exploration update for the September
2020 quarter.
Corporate
Toronto Stock Exchange Listing
On 13 October 2020, Newcrest
listed its common shares on the Toronto Stock Exchange (TSX) under
the symbol "NCM". Newcrest retains its primary listing on the
Australian Securities Exchange and its secondary listing on PNGX
Markets.
Newcrest's listing on the TSX supports its pursuit of growth in
the Americas following the 70% acquisition of the Red Chris mine in
Canada, its investments in
Ecuador and its expanding
portfolio of exciting exploration and early stage entry prospects
in the Americas.
Community Support Fund
As announced on 7 April 2020,
Newcrest established a A$20 million
Community Support Fund to help host communities in Papua New Guinea, Australia, Canada (British
Columbia) and Ecuador cope
with the challenges associated with COVID-19.
A number of initiatives, ranging from immediate health
assistance to livelihood restoration and economic recovery, have
been funded to date. Notable initiatives in the period included the
provision of emergency humanitarian relief to host communities in
Ecuador and Papua New Guinea. Newcrest was proud to
contribute to funding the first refuge centre for victims of
domestic violence in Orange, located near its Cadia operation. In
recognition of the mental health impact of the pandemic, Newcrest
supported the "Gotcha4Life Program" which focuses on building
mental health fitness and is expected to benefit around 10,000
people in the Central West region of New
South Wales, Australia.
Newcrest continues to work with its partners, host governments,
communities and Indigenous Peoples to prioritise and deliver
programs under the Fund in the most effective manner.
Interactive Analyst CentreTM
Newcrest's financial and operational information can now be
viewed via the Interactive Analyst CentreTM which is
located under the Investor tab on Newcrest's website
(www.newcrest.com). This interactive tool allows users to
chart and export Newcrest's current and historical results for
further analysis.
Sandeep Biswas
Managing Director and Chief Executive Officer
Gold Production Summary
September
2020
Quarter
|
Mine Production
Tonnes
(000's)(15)
|
Tonnes
Treated
(000's)
|
Head
Grade
(g/t
Au)
|
Gold
Recovery
(%)
|
Gold Production
(oz)
|
Gold Sales
(oz)
|
All-In Sustaining
Cost
($/oz)(1)
|
Cadia East Panel Cave
1
|
633
|
|
|
|
|
|
|
Cadia East Panel Cave
2
|
6,724
|
|
|
|
|
|
|
Cadia East Panel Cave
2-3
|
286
|
|
|
|
|
|
|
Cadia(16)
|
7,643
|
7,701
|
1.02
|
78.8
|
196,504
|
195,146
|
113
|
Telfer Open
Pit
|
13,637
|
3,620
|
0.77
|
74.9
|
67,574
|
|
|
Telfer
Underground
|
344
|
309
|
1.92
|
83.2
|
15,883
|
|
|
Telfer Dump
Leach
|
|
|
|
|
2,995
|
|
|
Total
Telfer
|
13,982
|
3,929
|
0.86
|
76.4
|
86,452
|
85,096
|
1,797
|
Lihir
|
9,115
|
3,255
|
2.34
|
72.6
|
177,337
|
210,831
|
1,283
|
Red
Chris
|
5,467
|
1,944
|
0.40
|
50.8
|
12,636
|
11,834
|
2,621
|
Fruta del
Norte(17)
|
|
|
|
|
30,160
|
30,160
|
810
|
Total
|
36,206
|
16,829
|
1.16
|
74.9
|
503,089
|
533,067
|
980
|
All figures are shown at 100%, except for Red Chris which is
shown at Newcrest's 70% share and Fruta del Norte which is shown at
Newcrest's 32% attributable share through its 32% equity interest
in Lundin Gold Inc.
Copper Production Summary
September 2020
Quarter
|
Copper
Grade
(%)
|
Copper
Recovery
(%)
|
Concentrate
Produced
(tonnes)
|
Metal
Production
(tonnes)
|
Cadia
|
0.40
|
83.1
|
102,830
|
25,329
|
Telfer Open
Pit
|
0.07
|
61.4
|
17,963
|
1,586
|
Telfer
Underground
|
0.28
|
92.0
|
7,112
|
798
|
Total
Telfer
|
0.09
|
69.1
|
25,076
|
2,384
|
Red
Chris
|
0.46
|
78.8
|
31,314
|
7,050
|
Total
|
0.29
|
81.1
|
159,220
|
34,763
|
All figures are shown at 100%, except for Red Chris which is
shown at Newcrest's 70% share.
Silver Production Summary
September 2020
Quarter
|
Tonnes
Treated
(000's)
|
Silver
Production
(oz)
|
Cadia
|
7,701
|
150,666
|
Telfer
|
3,929
|
23,607
|
Lihir
|
3,255
|
8,000
|
Red Chris
|
1,944
|
32,140
|
Total
|
16,829
|
214,412
|
All figures are shown at 100%, except for Red Chris which is
shown at Newcrest 70% share.
All-In Sustaining Cost – September
2020 Quarter
|
|
3 Months to 30
September 2020
|
|
Units
|
Cadia
|
Telfer
|
Lihir
|
Red
Chris
|
Corp/
Other
|
Group(18)
|
|
Gold
Produced
|
oz
|
196,504
|
86,452
|
177,337
|
12,636
|
-
|
472,929
|
|
Mining
|
$/oz prod.
|
179
|
927
|
260
|
1,351
|
-
|
377
|
|
Milling
|
$/oz prod.
|
317
|
498
|
645
|
976
|
-
|
491
|
|
Administration and
other
|
$/oz prod.
|
94
|
211
|
236
|
1,117
|
-
|
196
|
|
Lease
Adjustments
|
$/oz prod
|
(3)
|
(32)
|
(5)
|
-
|
-
|
(9)
|
|
Third party smelting,
refining and transporting costs(19)
|
$/oz prod.
|
149
|
128
|
3
|
575
|
-
|
102
|
|
Royalties
|
$/oz prod.
|
92
|
51
|
51
|
61
|
-
|
68
|
|
By-product
credits
|
$/oz prod.
|
(842)
|
(177)
|
(1)
|
(3,468)
|
-
|
(475)
|
|
Ore inventory
adjustments(20)
|
$/oz prod.
|
-
|
8
|
75
|
99
|
-
|
32
|
|
Production stripping
adjustments(20)
|
$/oz prod.
|
-
|
-
|
(173)
|
(1,124)
|
-
|
(95)
|
|
AOD
adjustments(20)
|
$/oz prod.
|
-
|
(2)
|
-
|
-
|
-
|
-
|
|
Net Cash
Costs
|
$/oz
prod.
|
(14)
|
1,612
|
1,091
|
(413)
|
-
|
687
|
|
Gold
Sold
|
oz
|
195,146
|
85,096
|
210,831
|
11,834
|
-
|
502,907
|
|
Adjusted operating
costs(21)
|
$/oz
sold
|
(27)
|
1,605
|
1,028
|
(778)
|
-
|
674
|
|
Corporate general
& administrative costs(22),(23)
|
$/oz sold
|
-
|
-
|
-
|
-
|
36
|
36
|
|
Reclamation and
remediation costs
|
$/oz sold
|
5
|
5
|
9
|
73
|
-
|
8
|
|
Production
stripping
|
$/oz sold
|
-
|
-
|
146
|
1,200
|
-
|
90
|
|
Advanced operating
development
|
$/oz sold
|
-
|
2
|
-
|
-
|
-
|
-
|
|
Capital expenditure
(sustaining)
|
$/oz sold
|
129
|
129
|
96
|
2,053
|
6
|
166
|
|
Exploration
(sustaining)
|
$/oz sold
|
3
|
9
|
-
|
52
|
-
|
4
|
|
Leases
(sustaining)
|
$/oz sold
|
3
|
47
|
4
|
21
|
-
|
12
|
|
All-In Sustaining
Cost
|
$/oz
sold
|
113
|
1,797
|
1,283
|
2,621
|
42
|
990
|
|
Growth and
development costs(23)
|
$/oz sold
|
-
|
-
|
-
|
-
|
6
|
6
|
|
Capital expenditure
(non-sustaining)(24)
|
$/oz sold
|
481
|
-
|
49
|
277
|
6
|
220
|
|
Exploration
(non-sustaining)
|
$/oz sold
|
-
|
3
|
-
|
355
|
48
|
57
|
|
Leases
(non-sustaining)
|
$/oz sold
|
6
|
-
|
-
|
-
|
-
|
2
|
|
All-In
Cost
|
$/oz
sold
|
600
|
1,800
|
1,332
|
3,253
|
102
|
1,275
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortisation(25)
|
$/oz
sold
|
246
|
256
|
354
|
1,147
|
11
|
325
|
|
All figures are shown at 100%, except for Red Chris which is
shown at 70%. AISC and AIC may not calculate based on amounts
presented in these tables due to rounding.
All-In Sustaining Cost – Twelve months to 30 June 2020
|
|
|
|
12 Months to 30
June 2020
|
|
|
Units
|
Cadia
|
Telfer
|
Lihir
|
Red
Chris
|
Goso-wong(26)
|
Corp/
Other
|
Group
|
Gold
Produced(27)
|
oz
|
843,338
|
393,164
|
775,978
|
38,933
|
103,282
|
-
|
2,154,696
|
Mining
|
$/oz prod.
|
145
|
703
|
243
|
1,522
|
520
|
-
|
325
|
Milling
|
$/oz prod.
|
265
|
380
|
545
|
1,200
|
166
|
-
|
399
|
Administration and
other
|
$/oz prod.
|
90
|
172
|
225
|
695
|
329
|
-
|
176
|
Lease
Adjustments
|
$/oz prod
|
(2)
|
(40)
|
(4)
|
-
|
-
|
-
|
(10)
|
Third party smelting,
refining and transporting costs(28)
|
$/oz prod.
|
133
|
145
|
3
|
668
|
6
|
-
|
92
|
Royalties
|
$/oz prod.
|
72
|
47
|
37
|
68
|
89
|
-
|
55
|
By-product
credits
|
$/oz prod.
|
(660)
|
(241)
|
(1)
|
(3,602)
|
(19)
|
-
|
(368)
|
Ore inventory
adjustments(29)
|
$/oz prod.
|
(2)
|
(11)
|
36
|
(89)
|
6
|
-
|
9
|
Production stripping
adjustments(29)
|
$/oz prod.
|
-
|
(83)
|
(121)
|
(531)
|
-
|
-
|
(68)
|
AOD
adjustments(29)
|
$/oz prod.
|
-
|
18
|
-
|
-
|
-
|
-
|
3
|
Net Cash
Costs
|
$/oz
prod.
|
41
|
1,090
|
963
|
(69)
|
1,097
|
-
|
613
|
Gold
Sold
|
oz
|
848,959
|
391,339
|
760,724
|
37,271
|
104,449
|
-
|
2,142,741
|
Adjusted operating
costs(30)
|
$/oz
sold
|
42
|
1,088
|
961
|
(76)
|
1,087
|
-
|
608
|
Corporate general
& administrative costs(31),(32)
|
$/oz sold
|
-
|
-
|
-
|
-
|
-
|
38
|
38
|
Reclamation and
remediation costs
|
$/oz sold
|
4
|
4
|
5
|
90
|
24
|
-
|
7
|
Production
stripping
|
$/oz sold
|
-
|
83
|
124
|
555
|
-
|
-
|
68
|
Advanced operating
development
|
$/oz sold
|
-
|
(18)
|
-
|
-
|
-
|
-
|
(3)
|
Capital expenditure
(sustaining)
|
$/oz sold
|
111
|
55
|
111
|
1,075
|
125
|
8
|
126
|
Exploration
(sustaining)
|
$/oz sold
|
1
|
22
|
1
|
6
|
28
|
-
|
6
|
Leases
(sustaining)
|
$/oz sold
|
2
|
47
|
4
|
53
|
-
|
-
|
12
|
All-In Sustaining
Cost
|
$/oz
sold
|
160
|
1,281
|
1,206
|
1,703
|
1,264
|
46
|
862
|
Growth and
development costs(32)
|
$/oz sold
|
-
|
-
|
-
|
64
|
-
|
6
|
8
|
Capital expenditure
(non-sustaining) (33)
|
$/oz sold
|
236
|
-
|
73
|
22
|
-
|
6
|
127
|
Exploration
(non-sustaining)
|
$/oz sold
|
1
|
4
|
-
|
280
|
-
|
41
|
46
|
Leases
(non-sustaining)
|
$/oz sold
|
2
|
-
|
-
|
-
|
-
|
-
|
1
|
All-In
Cost
|
$/oz
sold
|
399
|
1,285
|
1,279
|
2,069
|
1,264
|
99
|
1,044
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortisation(34)
|
$/oz
sold
|
192
|
215
|
388
|
1,268
|
315
|
10
|
301
|
|
|
|
|
|
|
|
|
|
|
All figures are shown at 100%, except for Red Chris which is
shown at 70%. AISC and AIC may not calculate based on amounts
presented in these tables due to rounding.
Corporate Information
Board
Peter
Hay Non-Executive
Chairman
Sandeep
Biswas Managing
Director and CEO
Gerard
Bond Finance
Director and CFO
Philip Aiken
AM
Non-Executive Director
Roger
Higgins Non-Executive
Director
Sally-Anne Layman Non-Executive Director
(appointed 1 October 2020)
Xiaoling Liu
Non-Executive
Director (has resigned with effect immediately after Newcrest's AGM
on 11 November 2020)
Vickki McFadden Non-Executive
Director
Peter Tomsett
Non-Executive Director
Company Secretaries
Maria Sanz
Perez and Claire Hannon
Registered & Principal Office
Level 8, 600 St
Kilda Road, Melbourne,
Victoria, Australia 3004
Telephone: +61 (0)3 9522 5333
Facsimile: +61 (0)3 9522 5500
Email:
corporateaffairs@newcrest.com.au
Website: www.newcrest.com
Stock Exchange Listings
Australian Securities Exchange
(Ticker NCM)
Toronto Stock Exchange
(Ticker
NCM)
PNGX Markets
Limited
(Ticker NCM)
New York ADR's
(Ticker NCMGY)
Forward Shareholder Enquiries to:
Australia:
Link Market
Services
Tower 4, 727 Collins Street
Docklands, Victoria,
3008
Australia
Telephone: 1300 554
474
+61 (0)2 8280 7111
Facsimile: +61 (0)2 9287
0303
Email:
registrars@linkmarketservices.com.au
Website:
www.linkmarketservices.com.au
Canada:
AST Trust
Company
P.O. Box 700, Station B
Montreal, Quebec, H3B
3K3
Canada
Telephone: +1 800 387 0825
Email:
inquiries@astfinancial.com
Website:
www.astfinancial.com
Substantial Shareholder(s)(35) at 30
September 2020
BlackRock
Group
10.2%
Allan Gray / Orbis
Group
8.9%
Van Eck Associates
Corporation
5.1%
The Vanguard
Group
5.0%
Issued Share Capital
At 30
September 2020, Newcrest's issued capital was 816,071,894
ordinary shares.
Quarterly Share Price Activity
|
High
|
Low
|
Close
|
|
A$
|
A$
|
A$
|
Jul – Sep
2020
|
36.53
|
30.69
|
31.24
|
Forward Looking Statements
This document includes forward looking statements and forward
looking information within the meaning of securities laws of
applicable jurisdictions. Forward looking statements can generally
be identified by the use of words such as "may", "will", "expect",
"intend", "plan", "estimate", "anticipate", "believe", "continue",
"objectives", "targets", "outlook" and "guidance", or other similar
words and may include, without limitation, statements regarding
estimated reserves and resources, certain plans, strategies,
aspirations and objectives of management, anticipated production,
study or construction dates, expected costs, cash flow or
production outputs and anticipated productive lives of projects and
mines. Newcrest continues to distinguish between outlook and
guidance. Guidance statements relate to the current financial year.
Outlook statements relate to years subsequent to the current
financial year.
These forward looking statements involve known and unknown
risks, uncertainties and other factors that may cause Newcrest's
actual results, performance and achievements or industry results to
differ materially from any future results, performance or
achievements, or industry results, expressed or implied by these
forward-looking statements. Relevant factors may include, but are
not limited to, changes in commodity prices, foreign exchange
fluctuations and general economic conditions, increased costs and
demand for production inputs, the speculative nature of exploration
and project development, including the risks of obtaining necessary
licences and permits and diminishing quantities or grades of
reserves, political and social risks, changes to the regulatory
framework within which Newcrest operates or may in the future
operate, environmental conditions including extreme weather
conditions, recruitment and retention of personnel, industrial
relations issues and litigation. For further information as to the
risks which may impact on Newcrest's results and performance,
please see the risk factors included in the Annual Information Form
dated 13 October 2020 lodged with ASX
and SEDAR.
Forward looking statements are based on Newcrest's good faith
assumptions as to the financial, market, regulatory and other
relevant environments that will exist and affect Newcrest's
business and operations in the future. Newcrest does not give any
assurance that the assumptions will prove to be correct. There may
be other factors that could cause actual results or events not to
be as anticipated, and many events are beyond the reasonable
control of Newcrest. Readers are cautioned not to place undue
reliance on forward looking statements, particularly in the current
economic climate with the significant volatility, uncertainty and
disruption caused by the COVID-19 pandemic. Forward looking
statements in this document speak only at the date of issue. Except
as required by applicable laws or regulations, Newcrest does not
undertake any obligation to publicly update or revise any of the
forward looking statements or to advise of any change in
assumptions on which any such statement is based.
Non-IFRS Financial Information
Newcrest results are reported under International Financial
Reporting Standards (IFRS). This document includes non-IFRS
financial information within the meaning of ASIC Regulatory Guide
230: 'Disclosing non-IFRS financial information' published by ASIC
and within the meaning of Canadian Securities Administrators Staff
Notice 52-306 – Non-GAAP Financial Measures. Such information
includes All-In Sustaining Cost (AISC) and All-In Cost (AIC) as per
updated World Gold Council Guidance Note on Non-GAAP Metrics
released in November 2018. AISC will
vary from period to period as a result of various factors including
production performance, timing of sales and the level of sustaining
capital and the relative contribution of each asset. AISC Margin
reflects the average realised gold price less AISC per ounce
sold.
These measures are used internally by Newcrest management to
assess the performance of the business and make decisions on the
allocation of resources and are included in this document to
provide greater understanding of the underlying performance of
Newcrest's operations. The non-IFRS information has not been
subject to audit or review by Newcrest's external auditor and
should be used in addition to IFRS information. Such non-IFRS
information/non-GAAP measures do not have a standardised meaning
prescribed by IFRS and may be calculated differently by other
companies. Although Newcrest believes these non-IFRS/non-GAAP
financial measures provide useful information to investors in
measuring the financial performance and condition of its business,
investors are cautioned not to place undue reliance on any non-IFRS
financial information/non-GAAP financial measures included in this
document. When reviewing business performance, this non-IFRS
information should be used in addition to, and not as a replacement
of, measures prepared in accordance with IFRS, available on
Newcrest's website and the ASX and SEDAR platforms.
Technical and Scientific Information
The technical and scientific information contained in this
document relating to Wafi-Golpu and Lihir was reviewed and approved
by Craig Jones, Newcrest's Chief
Operating Officer PNG, FAusIMM and a Qualified Person as
defined in National Instrument 43-101 – Standards of Disclosure
for Mineral Projects (NI 43-101). The technical and scientific
information contained in this document relating to Cadia was
reviewed and approved by Philip
Stephenson, Newcrest's Chief Operating Officer Australia and
Americas, FAusIMM and a Qualified Person as defined in NI
43-101.
Authorised by the Newcrest Disclosure Committee
This information is available on our website at
www.newcrest.com
Appendix
Reconciliation of Newcrest's Operational Performance
including its 32% attributable share of Fruta del Norte through its
32% equity interest in Lundin Gold Inc
Gold
production
|
Metric
|
Sep 2020
Qtr
|
Jun 2020
Qtr(36)
|
FY20
|
Gold production -
Newcrest operations
|
oz
|
472,929
|
573,175
|
2,154,696
|
Gold production -
Fruta del Norte (32%)(37)
|
oz
|
30,160
|
-
|
16,422(38)
|
Gold
production
|
oz
|
503,089
|
573,175
|
2,171,118
|
All-In Sustaining
Cost
|
Metric
|
Sep 2020
Qtr
|
Jun 2020
Qtr(36)
|
FY20(36)
|
All-in Sustaining
Cost – Newcrest operations
|
$m
|
498
|
493
|
1,848
|
All-in Sustaining
Cost – Fruta del Norte
(32%)(37)
|
$m
|
24
|
-
|
-
|
All-In Sustaining
Cost
|
$m
|
522
|
493
|
1,848
|
|
|
|
|
|
Gold ounces sold –
Newcrest operations
|
oz
|
502,907
|
562,185
|
2,142,741
|
Gold ounces sold –
Fruta del Norte
(32%)(37)
|
oz
|
30,160
|
-
|
-
|
Total gold ounces
sold
|
oz
|
533,067
|
562,185
|
2,142,741
|
|
|
|
|
|
All-In Sustaining
Cost – Newcrest operations
|
$/oz
|
990
|
878
|
862
|
All-In Sustaining –
Fruta del Norte
(32%)(37)
|
$oz
|
810
|
N/A
|
N/A
|
All-In Sustaining
Cost
|
$/oz
|
980
|
878
|
862
|
All-In Sustaining
Margin
|
Metric
|
Sep 2020
Qtr
|
Jun 2020
Qtr
|
FY20
|
Realised gold
price(39)
|
$/oz
|
1,837
|
1,646
|
1,530
|
All-In Sustaining
Cost – Newcrest operations
|
$/oz
|
990
|
878
|
862
|
All-In Sustaining
Cost margin
|
$/oz
|
847
|
768
|
668
|
(1)
|
Includes 30koz and an
estimated reduction of $10/oz based on Newcrest's 32% attributable
share of Fruta del Norte through its 32% equity interest in Lundin
Gold Inc. Please refer to the Appendix for
calculation.
|
(2)
|
Newcrest's AISC
margin for the September quarter has been determined by deducting
the All-In Sustaining Cost attributable to Newcrest's operations of
$990/oz from Newcrest's realised gold price of
$1,837/oz.
|
(3)
|
See information under
heading "Non-IFRS Financial Information" on Page 15 of this report
for further information.
|
(4)
|
The achievement of
guidance is subject to market and operating conditions. Newcrest's
guidance for Fruta del Norte is an annualised figure based on
Lundin Gold Inc's production guidance for 1 July 2020 to 31
December 2020. See Appendix for further details.
|
(5)
|
The figures shown
represent Newcrest's 70% share of the unincorporated Red Chris
JV. Production outcomes for FY20 are reported from the date of
acquisition (15 August 2019).
|
(6)
|
The figures shown
represent 100%. Prior to the divestment on 4 March 2020, Newcrest
owned 75% of Gosowong through its holding in PT Nusa Halmahera
Minerals, an incorporated joint venture. Production and financial
outcomes for FY20 represent Newcrest's period of ownership to the
divestment date.
|
(7)
|
The figures shown
represent Newcrest's 32% attributable share, through its 32% equity
interest in Lundin Gold Inc. No production was reported in the June
2020 quarter due to the temporary suspension of operations
following concerns of a spread of COVID-19 in Ecuador. Operations
were resumed on 5 July 2020.
|
(8)
|
Total Recordable
Injury Frequency Rate (injuries per million hours). TRIFR for FY20
includes safety results for Red Chris from acquisition. Excluding
Red Chris, TRIFR for FY20 was 2.1.
|
(9)
|
Due to the negligible
impact of Fruta del Norte on Newcrest's Group AISC for FY20 it has
been excluded from the calculation.
|
(10)
|
From Newcrest's
operations only and does not include Newcrest's 32% attributable
share of Fruta del Norte through its 32% equity interest in Lundin
Gold Inc.
|
(11)
|
Realised metal prices
are the US$ spot prices at the time of sale per unit of metal sold
(net of Telfer gold production hedges), excluding deductions
related to treatment and refining charges and the impact of price
related finalisations for metals in concentrate. The
realised price for the June and September quarters and for FY20 has
been calculated using sales ounces generated by Newcrest's
operations only (i.e. excluding Fruta del Norte).
|
(12)
|
Stage 2 of the Cadia
Expansion Feasibility Study has been prepared with the objective
that its findings are subject to an accuracy range of ±10-15%. The
findings in the Study and the implementation of the Cadia Expansion
Project are subject to all the necessary approvals, permits,
internal and regulatory requirements and further works. The
estimates are indicative only and are subject to market and
operating conditions. They should not be construed as
guidance.
|
(13)
|
AISC margin
calculated with reference to the Group average realised gold
price.
|
(14)
|
The figures
shown represent Newcrest's 70% share of the unincorporated Red
Chris JV. Production and financial outcomes for FY20 are reported
from the date of acquisition (15 August 2019).
|
(15)
|
Mine production for
open pit and underground includes ore and waste.
|
(16)
|
Includes development
tonnes from the Cadia East PC2-3 project. Costs associated
with this production were capitalised and are not included in the
AISC or AIC calculations in this report.
|
(17)
|
Due to timing of
Lundin Gold's September quarterly report, Newcrest has estimated
its 32% attributable share, through its 32% equity interest in
Lundin Gold Inc, of Fruta del Norte's All-In Sustaining Cost for
the quarter. For the purposes of All-In Sustaining Cost, Newcrest
has assumed that production is equal to sales. Refer to the
Appendix for further details.
|
(18)
|
Group AISC is for
Newcrest's operations only and does not include Newcrest's 32%
attributable share of Fruta del Norte.
|
(19)
|
Includes deductions
related to treatment and refining charges for metals in
concentrate
|
(20)
|
Represents adjustment
for ore inventory movements, removal of production stripping costs
and movement in Advanced Operating Development costs
|
(21)
|
Adjusted
operating costs represents net cash costs adjusted for finished
goods inventory movements, divided by ounces sold
|
(22)
|
Corporate general
& administrative costs includes share-based
remuneration
|
(23)
|
Costs of this nature
were previously reported within Corporate Costs. In accordance with
the updated World Gold Council guidance, growth and development
costs are now presented in AIC.
|
(24)
|
Represents
spend on major projects that are designed to increase the net
present value of the mine are not related to current production.
Significant projects in the current period include key expansion
projects at Cadia (including PC2-3 development and the
molybdenum plant).
|
(25)
|
Depreciation and
amortisation of mine site assets is determined on the basis of the
lesser of the asset's useful economic life and the life of the
mine. Life-of-mine assets are depreciated according to units
of production and the remainder on a straight line basis.
Depreciation and amortisation does not form part of All-In
Sustaining Cost or All-in Cost with the exception of amortisation
on reclamation and remediation (rehabilitation) assets
|
(26)
|
As announced on 4
March 2020, Newcrest divested its 75% interest in the Gosowong
mine. Production and financial outcomes represent Newcrest's period
of ownership to the divestment date
|
(27)
|
Due to the negligible
impact of Fruta del Norte's AISC on Newcrest's FY20 AISC, it has
been excluded from Newcrest's calculation. Accordingly, the full
year production outcome will differ to that reported on Page 2 (by
16koz, which is Newcrest's 32% attributable share through its 32%
equity interest in Lundin Gold Inc)
|
(28)
|
Includes deductions
related to treatment and refining charges for metals in
concentrate
|
(29)
|
Represents adjustment
for ore inventory movements, removal of production stripping costs
and movement in Advanced Operating Development costs
|
(30)
|
Adjusted
operating costs represents net cash costs adjusted for finished
goods inventory movements, divided by ounces sold
|
(31)
|
Corporate general
& administrative costs includes share-based
remuneration
|
(32)
|
Costs of this nature
were previously reported within Corporate Costs. In accordance with
the updated World Gold Council guidance, growth and development
costs are now presented in AIC.
|
(33)
|
Represents spend on
major projects that are designed to increase the net present value
of the mine are not related to current production. Significant
projects in the year include key expansion projects at Cadia
(including PC2-3 feasibility study and the molybdenum
plant).
|
(34)
|
Depreciation
and amortisation of mine site assets is determined on the basis of
the lesser of the asset's useful economic life and the life of the
mine. Life-of-mine assets are depreciated according to units
of production and the remainder on a straight line basis.
Depreciation and amortisation does not form part of All-In
Sustaining Cost or All-in Cost with the exception of amortisation
on reclamation and remediation (rehabilitation) assets
|
(35)
|
As notified to
Newcrest under section 671B of the Corporations Act 2001
|
(36)
|
No production was
reported for Fruta del Norte in the June quarter due to the
temporary suspension of operations following concerns of a spread
of COVID-19 in Ecuador. Operations were resumed on 5 July 2020. Due
to the negligible impact of Fruta del Norte on Newcrest's All-In
Sustaining Cost, it was not included in the calculation for the
June 2020 quarter or for FY20.
|
(37)
|
Due to timing of
Lundin Gold's September quarterly report, Newcrest has estimated
its 32% attributable share, through its 32% equity interest in
Lundin Gold Inc, of Fruta del Norte's All-In Sustaining Cost for
the quarter. The estimate for All-In Sustaining Cost was derived by
taking the mid-point of Newcrest's guidance range of $810/oz (at
Newcrest's 32% attributable share). For the purposes of AISC,
Newcrest has assumed that production is equal to sales. A true-up
will be made in the December quarter once the outcomes for the
September quarter are known. Newcrest's guidance with respect to
the gold production of Fruta del Norte is based on Lundin Gold's
July to December 2020 guidance of 150,000 – 170,000 ounces which
has been annualised on the assumption that production levels will
be same for the January to June 2021 period (presented at 32% and
rounded to nearest 5koz). With respect to Newcrest's guidance for
AISC, the dollar million range has been derived by multiplying the
low end of annualised production of Newcrest's guidance by the high
end of Lundin Gold's July – December 2020 AISC guidance of $770/oz
– $850/oz, and the high end of annualised production of Newcrest's
guidance multiplied by the low end of the same AISC guidance
range.
|
(38)
|
Newcrest's
attributable share for the quarter ended 31 March 2020.
|
(39)
|
Realised metal prices
are the US$ spot prices at the time of sale per unit of metal sold
(net of Telfer production hedges), excluding deductions related to
treatment and refining charges and the impact of price related
finalisations for metals in concentrate. The realised price for the
September 2020 quarter and for FY20 has been calculated using sales
ounces generated by Newcrest's operations only.
|
SOURCE Newcrest Mining Limited