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.
Importantly, NCM is working on bringing a few massive projects on stream. It already has six operating mines and five significant development projects.
NCM achieved its first gold production at its Hidden Valley gold mine in PNG, and delivered initial production ore at Ridgeway Deeps, a resource below its Ridgeway mine in central New South Wales.
In contrast to most miners, NCM mostly focuses on exploration-led production increases rather than acquisitions.
However, NCM reversed this trend when it decided to takeover Lihir Gold (LGL).
Newcrest Mining this week downgraded its production guidance for FY11 as a result of a production interruption at its Lihir mine and minor production delays at other sites.
Australia’s biggest gold miner is now expecting to produce 2.7 million ounces of gold this year, down approximately 3.5% from its previous guidance of 2.75 – 2.85 million ounces.
NCM should continue to receive support from surging gold prices.