NCMGF - Newcrest Mining's Q4 production and costs both climb; RBC says results disappoint
2023-07-25 15:35:08 ET
Newcrest Mining ( OTCPK:NCMGF ) ( OTCPK:NCMGY ) reported its FQ4 gold and copper production increased from Q3, while costs also rose.
Newcrest ( OTCPK:NCMGF ) ( OTCPK:NCMGY ) said Q4 gold production rose 9.1% Q/Q to 556,187 oz and copper output climbed 12.3% to 34,978 metric tons, but all-in sustaining cost rose to $1,196/oz from $999/oz in the prior quarter, which the company attributed to higher capital spending, mostly at its Lihir, Cadia and Red Chris sites, and a lower realized copper price.
Q4 gold production at Lihir in Papua New Guinea climbed 8.2% Q/Q to 182K oz, but Newcrest ( OTCPK:NCMGF ) ( OTCPK:NCMGY ) said the result was below expectations, as mining and milling operations were hurt by extreme rainfall which followed a prolonged drought.
The miner said Q4 gold output at Cadia in Australia rose nearly 14% Q/Q to 152K oz, bouncing back after a decline in Q3, as lower planned and unplanned maintenance boosted mill throughput.
For the full year, Newcrest ( OTCPK:NCMGF ) ( OTCPK:NCMGY ) said it met guidance for gold production and all-in sustaining costs, citing an improved operational performance in the June quarter, but full-year copper output of 133,149 tons came in short of guidance of 135K-155K tons.
RBC Capital analyst Alex Barkley said the Q4 results were disappointing, with costs well above expectations and gold output slightly below, adding that problems at the Lihir and Cadia sites could linger in FY 2024.
"Another weak quarter at Lihir saw the site miss annual guidance again" due to "issues of mining flexibility paired with insufficient autoclave capacity," Barkley said.
Newcrest ( OTCPK:NCMGF ) ( OTCPK:NCMGY ) said it expects Newmont's takeover of the company will be finalized by year-end 2023.
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Newcrest Mining's Q4 production and costs both climb; RBC says results disappoint