Newcrest Mining (ASX:NCM) is Australia’s largest gold producer, with mining and exploration projects in Australia, Papua New Guinea (PNG), Indonesia and the US. The miner also has a smaller exposure to copper, mostly as a by-product of its gold production.
The company is also considered among the market’s blue chip stocks by virtue of its size and performance. Furthermore, due to its leverage to rising gold prices, NCM has been one of the hot stocks over the past month.
NCM reported its latest quarterly production numbers yesterday. The results showed a 16% decline in gold output from the previous quarter.
Gold output was hit by wet weather events in eastern Australia, low rainfall which hurt production at Lihir, and civil unrest in the Ivory Coast leading to the suspension of operations at Bonriko.
As a result, NCM said cash costs for the quarter rose from $440 to $497 per ounce. Newcrest Mining also downgraded full year gold production guidance to 2.82 million ounces (plus or minus 35,000 ounces).
This compares to previous guidance of between 2.85 million and 2.95 million ounces.
Copper production guidance was left unchanged at 75,000 – 80,000 tonnes, with cash cost guidance also remaining the same.