Newcrest Mining Ltd., Australia’s biggest gold producer, may lose as much as 30,000 ounces of output after a landslide halted mining at its Cadia mine in New South Wales state, Deutsche Bank AG said.
The ground slip midway up the pit wall of the open-cut mine, which occurred on Nov. 22, may result in the loss of “20,000 to 30,000 ounces of output,” Levi Spry, resources analyst at Deutsche Bank in Sydney, said by phone.
Production is continuing using stockpiles and ore from the Ridgeway Deep operation, Newcrest said Nov. 23. Cadia is currently conducting a planned shutdown, company spokeswoman Kerrina Watson said by phone. The company said last month a shutdown was planned for December as part of the A$1.9 billion ($1.9 billion) Cadia East expansion.
Cadia’s full-year output may be cut by 25,000 ounces to 250,000 ounces on two months of processing lower grades, trimming earnings expectations by about 1.5 percent, according to a Bank of America Corp. report on Nov. 24.
Newcrest fell 1.3 percent to A$34.60 at the close of trading in Sydney. The stock has declined 13 percent over the past year, compared with a 10 percent drop in the benchmark S&P/ASX 200 Index.