MELBOURNE Jan 25 (Reuters) -
Australia's Newcrest Mining said on Wednesday gold
production fell 2.8% in the second quarter from the first,
missing analyst expectations, after operations were suspended at
its Brucejack operations in Canada following a fatality.
In late October, the gold miner confirmed the death of a
worker at its Brucejack mine. The resulting three week
operational suspension during a safety review led to a 38% drop
in production on the quarter before to 52,000 ounces.
Australia's largest gold miner also said drought
conditions due to the La Niña weather pattern kept limiting
water supply to the Lihir mine in Papua New Guinea, hurting gold
production for the second straight quarter. Unplanned downtime
at the plant also hit output.
"We remain confident in delivering a stronger operating
performance through the second half of FY23," Interim Chief
Executive Officer, Sherry Duhe said.
Duhe, formerly Newcrest's chief financial officer,
stepped in after Sandeep Biswas announced his retirement in late
Newcrest maintained full-year guidance of 2.1-2.4
million ounces, with healthy gold and copper pricing, favourable
exchange rates and production growth expected to drive a better
performance in the second half of the financial year.
The miner produced 512,130 ounces (oz) of the precious
metal in the three months to Dec. 31, compared with 527,115 oz
in the September quarter, coming in well below Citi estimate of
Al-in sustaining costs fell 1% for the quarter to
$1,082/oz as production costs eased at the Cadia mine in New
Gold miners had a volatile 2022, as bullion prices were
swayed by a global rise in interest rates, and fears of an
impending recession. Spot gold rose nearly 10% in the
The company's quarterly copper output rose to 34,564
tonnes from 32,459 tonnes in September quarter. Shares eased
0.4% to A$23.30.
(Reporting by Navya Mittal and Echha Jain in Bengaluru; Editing
by Maju Samuel and David Gregorio)