Batu Hijau?s copper output, cash costs down in third quarter
Thursday, October 30 2003 - 12:18 AM WIB
Newmont also reported that equity copper sales of 103.2 million pounds for the third quarter were 10 percent lower than the year ago quarter as tons processed decreased by 15 percent compared to the year ago quarter when softer ores were processed.
The company said improvement in net cash costs was made during the quarter. ?Net cash costs for the third quarter were a record $0.10 per pound, a 58% reduction from the year ago quarter, driven by significantly higher ore grades, higher gold by-product credits and lower treatment and refining charges,? Newmont said. ?Higher ore grades in the third quarter are generally a function of the long-term mine plan, which accesses higher grade ores during the dry season.?
Batu Hijau?s total copper production in the third quarter of 2003 was 184.15 million pounds, versus 219.64 million pounds in the same quarter last year.
Newmont expects that in 2003, net cash cost will drop 15 percent to around $0.22-0.24, with equity copper sales and equity gold sales predicted to reach 340-350 million punds and 290,000-315,000 ounces, respectively.
Newmont operates the Batu Hijau through its 56.25 percent-owned unit, PT Newmont Nusa Tenggara.
Meanwhile, the company also said third quarter gold production at its Minahasa mine in North Sulawesi was 22,200 ounces, versus 33,400 ounces in a year ago corresponding period. Newmont has stopped mining operations in Minahasa and only process ore from stockpile. Newmont plans to completely close operations next year.(robert)
Batu Hijau Operations Statistic Summary
Batu Hijau | Three months ended September 30 | Nine months ended September 30 | ||
| 2003 | 2002 | 2003 | 2002 | |
| Total tons mined (000) | 60,928 | 67,634 | 174,275 | 185,261 |
| Total dry tons processed (000) | 12,300 | 14,226 | 36,951 | 39,026 |
| Average copper grade | 0.82% | 0.86% | 0.74% | 0.73% |
| Average recovery rate | 90.7% | 90.4% | 89.2% | 89.3% |
| Copper pounds produced (000) | 184,154 | 219,645 | 488,168 | 505,375 |
| Equity copper pounds produced (000) | 103,587 | 123,550 | 274,595 | 284,273 |
| Equity copper pounds sold (000) | 103,246 | 114,487 | 264,290 | 271,427 |
| Copper price per pound | $0.84 | $0.62 | $0.80 | $0.70 |
| Equity ounces of gold sold (000) | 116.5 | 96.9 | 262.7 | 200.2 |
| Equity net cash cost per pound | $0.10 | $0.24 | $0.19 | $0.31 |
| Equity non-cash cost per pound | 0.17 | 0.14 | 0.19 | 0.18 |
| Equity total production cost per pound | $0.27 | $0.38 | $0.38 | $0.49 |
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