July 24, 2019 / 10:52 PM / a month ago

Australia's Newcrest Mining fourth-quarter gold output rises, Cadia mine hits record

(Reuters) - Gold miner Newcrest Mining Ltd said on Thursday its gold output rose 4.2% in the fourth quarter, boosted by record gold production at its flagship Cadia mine.

Australia’s largest listed gold miner said production for the June quarter rose to 661,414 ounces from 634,950 ounces reported last year. UBS had estimated gold production of 650,000 ounces for the latest period.

Cadia’s gold production for the quarter as well as the full year was a record, Newcrest Managing Director and Chief Executive Officer Sandeep Biswas said in a statement.

The miner’s total gold production for the 2019 fiscal year rose 6% to 2.5 million ounces - the mid-point of its production target of between 2.4 million ounces to 2.6 million ounces.

Newcrest also said that with the help of certain water management improvements it does not expect the severe drought impacting the state of New South Wales to affect 2020 production at Cadia.

All-in sustaining costs were down to $720 per ounce in the quarter, from $795 per ounce a year ago.

Newcrest said favourable exchange rates and lower costs at its Telfer mine combined with reduced capital expenses at Lihir had helped bring down overall costs for the year.

The miner’s stock has risen about 54.9% this year as of the last close, with a corresponding jump in gold prices of around 10.5%.

Gold stocks have been supported by firm demand for the safe-haven metal this year, amid mounting worries about a cooling global economy and damage from the prolonged Sino-U.S. trade war.

Reporting by Rashmi Ashok in Bengaluru; Editing by Bernard Orr

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