Newcrest Mining's Gold Output Slumped 16%

SEATTLE (Scrap Monster):  Melbourne, Australia-headquartered Newcrest Mining Ltd reported signbifivcant decline in gold output during Q2. The output witnessed 16% decline, mainly due to delay in shipments from Cadia, New South Wales mine on account of bushfires and shutdowns at Lihir mine in Papua New Guinea.

According to company press statement, the total gold production in the quarter ended 31^st December, 2019 was 551,115 ounces. This compares with the production of 654,849 ounces during the same quarter a year before.

Although bushfires had no direct impact on the Cadia mine, the damage caused to train lines and other infrastructure resulted in delay in shipments. Newcrest Mining noted that additional trains have already been scheduled and that it expects to clear the concentrate stocks held up at the mine before March this year.

Newcrest Mining noted that delays caused by legal proceedings have led to Papua New Guinea withdrawing support for a memorandum of understanding (MoU) in connection with the Wafi-Golpu joint venture (WGIV). The government looks forward to work with the WGIV in releasing necessary permits for the project.

Meantime, the company maintained its fiscal 2020 gold output forecast of 2.38-2.54 million ounces.