Newcrest’s gold production misses analysts’ estimate

Consensus compiled by data provider Visible Alpha had estimated that the company would produce 568,000 oz of gold for the reported quarter, according to Sydney investment bank Barrenjoey.

Shares of the gold miner were down 0.8% at A$28.87, as at 0032 GMT.

Cadia’s drop in output came after a breakdown of concentrate filter pressers at its dewatering facility, as the operations underwent maintenance over the quarter, which kept a lid on production.

Newcrest, however, expects to meet its full-year outlook of between 2.1 million oz and 2.4 million oz, as its gold and copper production increased in the June quarter on the back of increased mill throughput across operations.

The miner now expects output from Brucejack project in Canada at about 300,000, below prior forecast of between 320,000 oz and 370,000 oz, and expects output from Lihir mine in Papua New Guinea at the lower end of the forecast range of 720,000 oz to 840,000 oz.

“We expect gold and copper production to increase in the June quarter and remain on track to deliver a strong FY23 result, supported by continued momentum in gold and copper prices,” interim chief executive officer Sherry Duhe said.

All-in sustaining costs of the miner fell to $1,012/oz for the quarter from $1,082/oz in previous quarter as Newcrest lowered by 30% its capital expenditure forecast due in part to the timing of its spending plans.

It now sees capex for the year at $1,085 million-$1,245 million from $1,420-$1,630 million.

Newcrest is currently in the middle of a takeover by Newmont Corp, which has been provided with access to the Australian miner’s books after Newmont made a best-and-final takeover offer of A$29.4 billion ($19.66 billion).

(By Harish Sridharan, Nausheen Thusoo and Melanie Burton; Editing by Maju Samuel, Arun Koyyur and Sherry Jacob-Phillips)