Newcrest (ASX:NCM) gold production jumps 31% in fourth quarter

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Newcrest (ASX:NCM) gold production jumps 31% in fourth quarter

 Newcrest (ASX:NCM) gold production jumps 31% in fourth quarter
Image source: Image source: © Timonschneider | Megapixl.com

Highlights: 

  • Newcrest released its FY22 production report on the ASX today. 
  • The company successfully achieved its gold production guidance in FY22. 
  • The shares of Newcrest opened in the green territory on the ASX today (21 July). 

Australian gold mining giant Newcrest Mining Limited (ASX:NCM) shares its operational update for FY22 on the ASX today. As a result, Newcrest’s shares opened trading in green today and gained marginally 0.735% during the morning trading hours. Newcrest’s share price stood at AU$19.180 per share at 11:45 AM AEST on the ASX today (21 July).  

Newcrest’s operational report stated that the company successfully achieved its gold production guidance in FY22. However, the company’s copper production was down by 3% from the FY22 guidance. 

Details of Newcrest’s operational update in FY22: 

ASX-listed explorer, miner, producer, and seller of gold shared its production report for FY22 on the ASX today.  

Newcrest’s gold production update: 

  • The company managed to achieve its gold production guidance in FY22 with a gain of 31% in gold production rate compared to the previous corresponding period. 
  • Newcrest produced 637koz of gold in the June quarter (Q4 FY22) and 1,956koz of gold in FY22. 
  • In the June quarter, the All-In-Sustaining Cost (AISC) was AU$896/oz and delivered an ASIC margin of AU$958/oz. 
  • In FY22, Newcrest’s AISC was AU$1,044 per oz. The AISC margin was 41% or AU$732 per oz in the given period. 

Image source: © Bendicks | Megapixl.com

Newcrest’s gold production was supported by higher mill throughput and gold head grade at Lihir and Cadia. The company’s gold production was also pushed by an additional full quarter of production from Brucejack. The company reported that its gold production at Red Chris and Telfer was also higher compared to the prior corresponding period.

On the other hand, Newcrest’s copper production was lower by 3% from the FY22 guidance, driven by lower mill throughput at Red Chris and Telfer. Meanwhile, the AISC was higher by 2% than the FY22 due to low copper production and lower realized copper price, the timing of Cadia copper sales and higher production stripping at Lihir and Telfer.

The company is expected to release its FY23 guidance with FY22 results on 19 August 2022. 

Additionally, the company also developed a sustainability fund worth AU$10 million in FY22, which is expected to drive social investments by supporting the United Nations Sustainable Development Goals.

Share price overview of Newcrest on the ASX:

Newcrest’s share price has declined almost by 26% on the ASX during last one year. On Y-T-D basis, the share price has fallen by 21% (as of 10:48 AM AEST on the ASX today, 21 July).

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