Newcrest first-quarter gold output falls; on track to meet 2021 guidance

Adds details on outlook

Oct 29 (Reuters) - Newcrest Mining Ltd NCM.AX, Australia's top gold producer, on Thursday posted a 1.7% fall in first-quarter output but said it is on track to meet its 2021 production guidance.

The company also said it expects both gold and copper production to increase in the second quarter.

Newcrest's gold production fell to 503,089 ounces in the three months ended Sept. 30, from 511,636 ounces a year ago, hurt by lower output from its Lihir and Cadia mines. However, the figure came slightly ahead of brokerage UBS's production estimate of 501,000 ounces.

The company said it expects to re-engage with Papua New Guinea (PNG) and progress discussions on a special mining lease for the Wafi-Golpu Project.

Earlier this month, the miner approved the second-stage expansion of its flagship Cadia gold mine as well as the Lihir mine's front-end recovery project, aimed at boosting gold production while it remains entangled in a tiff surrounding royalty division for Wafi-Golpu.

Newcrest added that its successful secondary listing on the Toronto Stock Exchange on Oct. 13 supports its growth strategy in the Americas and broadens its access to fresh institutional investment markets, at a time when high bullion prices aid its fortunes.

All-in sustaining costs for the group in the quarter stood at $980 per ounce, compared with $899 a year ago.

(Reporting by Shruti Sonal and Soumyajit Saha in Bengaluru; Editing by Maju Samuel)

((; Twitter: @shrutisonal26;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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