NCMGY - Newcrest OKs Cadia mine expansion Lihir's recovery project

Newcrest Mining (NCMGY) says its board approved the second-stage expansion of its flagship Cadia gold mine in Australia and the front-end recovery project of its Lihir mine in Papua New Guinea.Newcrest says the projects, estimated to cost A$236M (US$169M), will improve gold production and recoveries at the two mines that reported lower output in Q4.Lihir's "long reserve life makes this improvement in gold recoveries particularly valuable to our shareholders," and the Cadia expansion should increase plant capacity to 35M mt/year from 33M and reduce all-in sustaining costs by $22/oz.As per FY 2020 guidance, Newcrest expects production of 776K gold oz. from Lihir and 843K gold oz. along with 96K tons of copper from Cadia.Newcrest posted a solid set of FY 2020 financial results, but the outlook heading into FY 2021 is "concerning," Opal Investment Research wrote in a recent analysis posted on Seeking Alpha.

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Newcrest OKs Cadia mine expansion, Lihir's recovery project