Newcrest Mining Reports Jump in Production

The takeover of Lihir Gold by Newcrest Mining has resulted in a jump in its quarterly gold production. Newcrest Mining is already the largest gold producer in Australia and the acquisition of Lihir Gold has boosted that status.

In the quarter ending September 2010 Newcrest Mining said that it had produced 674,219 ounces of gold. This was 28.1 % more than in the previous quarter. The production of gold in the corresponding quarter in 2010 was 78.8 % more than in the year 2009.

The gold production guidance for 2010 - 2011 was given at 2.85 to 3 million ounces. The stock markets rewarded the statement with a 64 cents rise per share this morning.

The production of copper however fell by 16.9% this quarter as compared to the same period in 2009. It was 15% less than the previous quarter this year. The company said that the low copper output was a result of lower feed grade and mill throughput.

Net cash costs also rose from $436 per ounce in the September 2009 quarter to $488 per ounce in the September 2010 quarter.