Newcrest reports 44% decline in Q1 production
Tuesday, April 26 2016 - 11:25 AM WIB
ASX-listed Newcrest Mining Ltd reported on Tuesday that gold production at the Gosowong mine on Halmahera Island, North Maluku province, in the first quarter 2016 declined by 44 percent to 38,865 ounces from 68,702 ounces in the previous quarter.
Gold production was lower at Gosowong in the quarter due to the suspension of mining following the previously announced geotechnical event at the Kencana mine on Feb. 8, 2016. Production for the quarter represented underground mine production to Feb. 7, 2016, the processing of low grade stockpiles and trial milling of 4kt of mineralised waste from Toguraci in March. As announced on 12 April 2016, mining has recommenced at the Toguraci mine and work continues on resumption plans at Kencana. Mining is unlikely to resume at the Kencana mine before the end of 2016 fiscal year. During the suspension, the opportunity was taken to progress technical studies and rehabilitation activities in both mines.
The increase in AISC per ounce was principally driven by the suspension of mining activity resulting in lower production and sales than the prior quarter and higher sustaining capital (mainly due to the purchase of two boggers and a full quarter of activity on the extension of the tailings storage facility).
Editing by Johannes Simbolon