- Shares traded in Sydney rise to highest in three-months
- Al-in sustaining costs improve 3.6% to $757/oz in quarter
Newcrest Mining Ltd., Australia’s biggest gold producer, reported second-quarter output rose 6.3 percent, beating analysts’ estimates, driven mainly by increases at its Lihir and Telfer mines. The stock rose to a three-month high.
Gold production was 620,691 ounces in the three months ended Dec. 31, compared to 583,745 ounces in the previous three months, the Melbourne-based company said Thursday in a statement. That beat a median forecast of 606,000 ounces of three analysts surveyed by Bloomberg. Costs dropped 3.6 percent.
Gold has rebounded this year amid turmoil in global financial markets triggered by concerns about China’s slowdown and a slump in crude prices. Newcrest’s output gain was partially offset by lower production from its Cadia Valley site following a previously announced five-week outage, the company said.
“We have had a good quarter in which we maintained our strong focus on safe production and delivered an increase in gold production and lowered our all-in sustaining cost, despite operational challenges at our two largest mines, Cadia and Lihir,” Chief Executive Officer Sandeep Biswas said in the statement.
Newcrest rose 2.4 percent to A$13.84 in Sydney trading, bringing its advance this year to 6.7 percent. An index of 22 Australian gold producers has advanced 8.9 percent this year.
Newcrest said its full-year gold output guidance remained unchanged. It earlier forecast production of between 2.4 million and 2.6 million ounces in the 12 months through June 30. The producer’s all-in sustaining costs, a measure that includes spending on production, administration, capital and exploration, fell to $757 an ounce, from $785 an ounce in the previous quarter, the company said in the statement.