Newcrest Dec 2014 Quarterly Report

Newcrest Mining Limited the operator of the Lihir Gold Mine has released its Dec 2014 Quartely Report.

The managing director and chief executive officer (CEO), Sandeep Biswas indicated that Lihir’s gold production was higher than the prior quarter but lower than expected.

 

Lihir’s AUD All-In Sustaining Cost (AISC) increased in the quarter primarily as a result of the deterioration of the exchange rate. "While Lihir continues to under perform against its potential, I’m confident that we now have the right strategy and people in place, having recruited some of the best people externally and from our other operations. December was the first month the entire new management and technical team were fully in place and I was pleased to see an immediate positive impact on our key focus areas of uptime and intensity," said Sandeep.

Lihir’s December 2014 quarter production increased by 4% over the September quarter but was below expectations principally due to unplanned maintenance issues. Higher production quarter on quarter was attributable to a higher percentage of ore feed being sourced ex-pit, a higher percentage of ore being fed directly to the auto claves and a marginal increase in head grade.

This was partially offset by lower recoveries and unplanned maintenance in the conveying circuit, grinding circuit and Autoclaves 1 and 4. Lihir’s AUD AISC per ounce was 4% higher than the September 2014 quarter primarily due to the deterior ation in the AUD/USD exchange rate. Lihir’s AISC decreased 1% in USD terms primarily due to higher production and a favourable inventory charge movement, offset by an unfavourable finished goods adjustment due to shipment timing. The Edge programme continues to focus on identifying and delivering improvements in productivity. The new site management and technical team are intensifying efforts on reducing operating costs.

Source: Newcrest Mining Limited Website

Read the full report here:

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