By Rhiannon Hoyle


Newcrest Mining Ltd. said full-year gold production met its target but was weaker than the previous year. Costs increased more than anticipated despite recent quarter-on-quarter improvements.

The Australia-based miner on Thursday reported gold output of nearly 1.96 million troy ounces in the year through June, down from more than 2.09 million the year prior. Newcrest had previously estimated it would produce between about 1.93 million and 2.03 million ounces.

The company reported all-in sustaining costs, a measure intended to reflect the full cost of gold mining, of $1,044 an ounce. That was up from $911 an ounce the year prior.

Full-year costs were 2.0% higher than company guidance, mostly because of lower-than-expected copper output and a falling copper price, Newcrest said.

Still, its fourth-quarter costs of $896 an ounce were materially lower than the $1,269 an ounce recorded in its first fiscal quarter. Newcrest said the improvement was underpinned by rising gold and copper sales volumes and a weakening Australian dollar versus the greenback.

"We were particularly pleased to record a fourth consecutive quarter of lower group costs during this challenging inflationary environment," said Chief Executive Sandeep Biswas.

Newcrest plans to publish guidance for this fiscal year alongside full-year earnings next month, when it will also release more information on cost inflation pressures and mitigation strategies, the company said.

Mr. Biswas said work to improve Newcrest's Brucejack operation in Canada, acquired in March, was progressing well and that an update would also be provided to investors next month.

"We have a range of initiatives underway to maximize the long-term potential of this asset and district," he said.

An expansion project at its Cadia mine and an improvement project at its Lihir operations are meantime on track for completion by the end of September, the miner said.


Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com 


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07-20-22 2021ET