Newcrest Mining Limited - Quarterly Report for the three months ending 31
MELBOURNE, Australia, Jan. 24, 2013 /CNW/ - Newcrest Mining Limited
("Newcrest" or "the Company") (ASX: NCM) (TSX: NM) is pleased to announce its
quarterly report for the period ended 31 December 2012.
Major project milestones achieved
Newcrest's two major expansion projects, comprising the Cadia East development
and the Lihir Million Ounce Plant Upgrade ("MOPU"), both achieved major
milestones during the quarter. Production volume from Cadia East continued to
ramp up and commercial production milestones were achieved by the end of
December 2012; first commercial production commenced from 1 January 2013. The
Lihir MOPU project is in the final stages of commissioning which is expected
to be complete by the end of January 2013, after which production ramp up
commences. Both projects have a forecast final cost within 8% of their budget.
The successful completion of these two major projects represents a significant
milestone for Newcrest. Together, Lihir MOPU and Cadia East establish the
platform to enable delivery of significant production growth in both gold and
copper over the next five years at lower unit cash costs.
Production for the December 2012 quarter was 492,906 ounces of gold and 19,926
tonnes of copper. Gold and copper production increased 7% over the September
2012 quarter. The Company's gold and copper production is expected to
progressively increase over the remainder of the financial year.
Cash costs were A$727 per ounce and cash margins were A$924 per ounce in the
quarter. Total production cost was A$1,031 per ounce. Unit costs were
marginally higher in the quarter primarily due to increased mining and milling
activity, the effects of reduced grade at Gosowong and Lihir, and a larger
production contribution from the higher cost Telfer operation. Cash costs
are expected to reduce over the next two quarters as Cadia East and Lihir MOPU
volumes make a larger contribution to total production.
Exploration drilling activities achieved promising results in West Africa and
Fiji. In PNG, appraisal drilling results at Golpu indicate improved gold and
copper grades in the proposed first lift of the block cave and have enhanced
the understanding of the orebody structure.
During the December 2012 quarter, Newcrest completed the sale of a 7.5%
interest in PT Nusa Halmahera Minerals (PTNHM), the incorporated joint venture
company that owns the Gosowong operation. The sale was to our existing joint
venture partner, PT Aneka Tambang (Antam). New enterprise agreements for
Telfer and Cadia Valley employees, each with four year duration, were
successfully completed during the December 2012 quarter.
Financial year 2013 group guidance ranges for gold and copper production and
site costs remain unchanged. Newcrest's total gold production is expected to
be at the low end of the 2.3 to 2.5Moz guidance range.
-- Quarterly gold production 492,906oz (460,425oz in the September
-- Quarterly copper production 19,926t (18,598t)
-- Quarterly cash cost A$727/oz (A$703/oz) and gross cash margin
-- Cadia East project achieved first commercial production
milestones by the end of December 2012
-- Lihir MOPU project in final stages of commissioning; expected
project completion by end January 2013
-- High grade mineralisation identified at Hiré and Bouaflé in
-- Promising drill results in the Waivaka corridor in Fiji
-- Higher gold and copper grades identified at Golpu Lift 1
-- Sale of 7.5% interest in PTNHM to Antam
-- New four-year enterprise agreements in place for employees at
Telfer and Cadia Valley
Copies of the full Quarterly Release and presentation can be found on
Newcrest's website www.newcrest.com.au and on www.sedar.com.
Forward Looking Statements
These materials include forward looking statements. Often, but not always,
forward looking statements can generally be identified by the use of forward
looking words such as "may", "will", "expect", "intend", "plan", "estimate",
"anticipate", "continue", and "guidance", or other similar words and may
include, without limitation, statements regarding plans, strategies and
objectives of management, anticipated production or construction commencement
dates and expected costs or production outputs.
Forward looking statements inherently involve known and unknown risks,
uncertainties and other factors that may cause the company's actual results,
performance and achievements to differ materially from any future results,
performance or achievements. 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 licenses and permits and diminishing quantities or
grades of reserves, political and social risks, changes to the regulatory
framework within which the company operates or may in the future operate,
environmental conditions including extreme weather conditions, recruitment and
retention of personnel, industrial relations issues and litigation.
Forward looking statements are based on the company and its management's good
faith assumptions relating to the financial, market, regulatory and other
relevant environments that will exist and affect the company's business and
operations in the future. The company does not give any assurance that the
assumptions on which forward looking statements are based will prove to be
correct, or that the company's business or operations will not be affected in
any material manner by these or other factors not foreseen or foreseeable by
the company or management or beyond the company's control.
Although the company attempts and has attempted to identify factors that would
cause actual actions, events or results to differ materially from those
disclosed in forward looking statements, there may be other factors that could
cause actual results, performance, achievements or events not to be as
anticipated, estimated or intended, and many events are beyond the reasonable
control of the company. Accordingly, readers are cautioned not to place
undue reliance on forward looking statements. Forward looking statements in
these materials speak only at the date of issue. Subject to any continuing
obligations under applicable law or any relevant stock exchange listing rules,
in providing this information the company does not undertake any obligation to
publicly update or revise any of the forward looking statements or to advise
of any change in events, conditions or circumstances on which any such
statement is based.
Ore Reserves and Mineral Resources Reporting Requirements
As an Australian company with securities listed on the Australian Securities
Exchange ("ASX"), Newcrest is subject to Australian disclosure requirements
and standards, including the requirements of the Corporations Act and the ASX.
Investors should note that it is a requirement of the ASX listing rules that
the reporting of ore reserves and mineral resources in Australia comply with
the 2004 Edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (the "JORC Code") and that
Newcrest's ore reserve and mineral resource estimates comply with the JORC
Code. As a company listed on the Toronto Stock Exchange ("TSX"), Newcrest is
subject to certain Canadian disclosure requirements and standards, including
the requirements of National Instrument 43-101 - Standards of Disclosure for
Mineral Projects of the Canadian Securities Administrators ("NI 43-101"). In
accordance with NI 43-101, Newcrest reports its ore reserves and mineral
resources estimates in compliance with the JORC Code, along with
reconciliation to the material differences between the JORC Code and the
applicable definitions adopted by the Canadian Institute of Mining, Metallurgy
and Petroleum (CIM Definition Standards). There are no material differences
between the definitions of Measured, Indicated and Inferred Mineral Resources,
and Proven and Probable Reserves, under the CIM Definition Standards and the
equivalent or corresponding definitions in the JORC Code.
Competent Person's Statement
The information in this quarterly report that relates to Exploration Results
and other scientific and technical information is based on information
compiled by C. Moorhead, EGM Minerals for Newcrest Mining Limited who is a
Fellow of The Australasian Institute of Mining and Metallurgy, and a full-time
employee of Newcrest Mining Limited. Mr Moorhead has sufficient experience
which is relevant to the styles of mineralisation and types of deposits under
consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the JORC Code and is a Qualified Person within
the meaning of NI 43-101. Mr Moorhead consents to and has approved the
inclusion in this quarterly report of the matters based on this information in
the form and context in which it appears including sampling, analytical and
test data underlying the results. For details of exploration reports refer
to the Newcrest website at www.newcrest.com.au.
The potential quantity and grade related to any Exploration Target identified
in this report is conceptual in nature as there has been insufficient
exploration to define a Mineral Resource. It is uncertain if further
exploration will result in the determination of a Mineral Resource. Refer to
Newcrest's detailed exploration summary on our website at www.newcrest.com.au
and on www.sedar.com.
Investor Enquiries - North America/Europe Steve Warner T: +1 212 351
5064 E:firstname.lastname@example.org Investor Enquiries -
Australia/Asia Spencer Cole T: +61 3 9522 5316
E:email@example.com Media Enquiries Kerrina Watson T: +61 3
9522 5593 E:firstname.lastname@example.org This information isavailable on
our website atwww.newcrest.com.au andwww.sedar.com
SOURCE: Newcrest Mining Limited
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CO: Newcrest Mining Limited
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