Newcrest Mining Delivers Higher Production At Lower Cost In June Quarter

Industry News

& Articles

Newcrest Mining Delivers Higher Gold Production At Lower Cost In June Quarter

  • Total FY22 gold production of 1,956koz compares to revised FY22 guidance of 1,925koz - 2,025koz
  • FY22 copper production of 121kt, was 3 percent lower than market guidance
  • Lower June quarter All-in Sustaining Cost (AISC) was $896/oz, and $1,044/oz for the financial year
  • Lower June quarter AISC supported by weakening AUD against the USD on AUD denominated operating costs
  • Ongoing drilling success continues to advance multiple organic growth options across its portfolio
  • Steadily increasing gold and copper production, lower AISC and existing pipeline of organic growth projects, are positive for long-term outlook.

Newcrest Mining Limited (Newcrest or the Company) is Australia’s largest gold miner and is an explorer and operator of large-scale, long-life, gold mining operations. Newcrest is backed by an extensive pipeline of brownfield and greenfield exploration projects. Current gold reserves are equivalent to more than 24 years of production, at current rates. The Company’s gold mining operations are located in Australia, Canada and Papua New Guinea.

Strong June quarterly report

Higher gold production in the June quarter of 637koz has seen a continuation of rising gold production throughout FY22. This strong June quarter result follows quarterly production volumes of 487koz in the March quarter, 436koz in the December quarter and 396koz in the 3 months to September 2021. Total FY22 gold production of 1,956koz compares to revised FY22 guidance of 1,925koz - 2,025koz. Copper production for the June quarter was 39kt, resulting in FY22 copper production of 121kt, which was 3 percent lower than market guidance.

June quarter All-in Sustaining Cost (AISC) was $896/oz, and $1,044/oz for the financial year. The AISC margin for FY22 was 41 percent, which is equivalent to $732/oz for the financial year. The lower June quarter AISC was driven by a record-breaking annual cost performance at the Cadia mine and the benefit of a weakening AUD against the USD on AUD denominated operating costs. The AUD was trading above 76 cents in April 2022 compared to 69 cents today. Cadia achieved an annual AISC of negative $124/oz when its net cash operating costs are adjusted for finished goods inventory movements, divided by ounces sold.

Exploration Report

Newcrest continues to advance multiple organic growth options across its portfolio. The Brucejack transformation program is progressing well, and drilling continues to confirm the potential for resource growth at the Valley of the Kings deposit and the surrounding area.

The two-stage Cadia Expansion project and the Lihir Front End recovery Project are on track for completion by the end of September 2022. Cadia’s gold production at 187koz in the June quarter was 25 percent higher than the March quarter.

Strong drilling results at Brucejack, Red Chris and Havieron mine sites continue to expand the high-grade footprints and confirm continuity and extensions of higher grade mineraliastion.

FY22 was a highly successful year in terms of drilling success and Newcrest is well placed to progress its extensive drilling programs in the new financial year.

Looking Ahead

Newcrest’s conservatively geared balance sheet and high cash on hand balance supports its targeted annual dividend pay-out ratio of 30 to 60 percent of free cash flow.

The outlook for the Company’s mined commodities of gold and copper is positive at a time when the Company’s growth production profile for these commodities is growing strongly.

Newcrest’s steadily increasing gold and copper production is driving lower Company All-in Sustaining Costs. This fourth consecutive quarter of lower Company costs during the current challenging inflationary environment and the benefit of a weaker AUD and the existing pipeline of organic growth projects is shaping a positive long-term outlook for Newcrest shareholders.

Louis Mosmann

Louis Mosmann is a Private Wealth Client and Research Assistant at KOSEC- Kodari Securities. Louis covers macroeconomic events, global markets and ASX300 company announcements, allowing clients to make more informed investment decisions. Email Louis at

Comment on this company

Latest Stories

OZ Minerals Share Price Jumps 33 Percent On $25 BHP Takeover Bid

The OZ Minerals (OZL) board have quickly and firmly rejected BHP’s……

Orica Raises A$650M At $16 A Share For $350M Axis Mining Acquisition

Orica has raised A$650 million by way of a share placement of 40.6 million……

Appen Drops 28% on 69% Decline In Underlying EBITDA For First Half

Weaker than anticipated digital advertising demand and a slowdown in spending……

More for you

Evolution Mining Announces Significant Increase In Mineral Resource, Up 2%

Evolution has announced a 28 percent increase in the Mineral Resource……

US Fed & Jerome Powell Announce A 0.75% Increase In Fed Funds Rate

In a brief 313-word statement The Federal Reserve Chairman……

Westpac Goes Digital With Plans For A 10-Minute Mortgage Approval

In a market update today, Westpac will offer homeowners a……

Perseus Mining Falls Despite Posting Record Gold Production In June Qtr

Perseus’s three operating gold mines combined to produce……

OZ Minerals See’s Higher Costs On Staff Absenteeism & Lower Copper Output

Oz Minerals has reported that the impact of COVID absenteeism, flooding……

Iluka Jumps 7% On Higher Mineral Sands Production & Sales In June Quarter

Iluka has released details of increased production volumes and higher sales……

KOSEC Terms & Conditions

Kodari Securities Pty Ltd (CAR 399556) trading as KOSEC is regulated by the Australian Securities and Investment Commission (ASIC). KOSEC is a financial services company and any information provided by its platforms, portals, reports and documents is protected by copyright. Any unauthorised production of this information is prohibited.
KOSEC reserves the right to change or remove any information provided on our website, reports or any documents including these terms and conditions at any time without notice. The change or modification to the terms and conditions will be effective immediately upon posting an updated version on our website, necessary platforms and documents. It is recommended that you review the information provided on our website, including these terms and conditions frequently for any changes.

KOSEC provides general advice only. The information provided is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. KOSEC recommends that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances. Please make sure you read our Financial Services Guide (FSG).

KOSEC does not guarantee any returns. Past performance of any product discussed is not indicative of future performance. (We urge that caution should be exercised in assessing past performance. All financial products are subject to market forces and unpredictable events that may adversely affect their future performance). Investing in the stock market can incur huge losses. Please also be aware that fees will incur on every transaction regardless of the performance of your investments or returns generated. Employees and or associates of KOSEC may hold one or more of the stocks, securities or investments reviewed by the company.

Your use of information from our website, reports, documents and from talking to our representatives/associates is at your risk. Under no circumstance should the investment be based solely on KOSEC information and general advice. You should seek professional financial planning advice.
KOSEC aims to maintain the accuracy of the data and information provided on this website, by using information prepared from a wide variety of sources, which KOSEC to the best of its knowledge and belief, considers accurate and does not make any representations or warranties of any kind, expressed or implied, about the completeness, accuracy, reliability, suitability or availability of the information provided.

We may at times refer to third parties, which the details of these third parties have been provided solely for you to obtain further information about other relevant products and entities in the market. KOSEC has no control over the information third parties have, or the products or services offered, and therefore make no representations regarding the accuracy or suitability of such information, products or services. You are advised to make your own enquiries in relation to third parties. Our inclusion of any third party content is not an endorsement of that content or the third party.

As a client you will be charged a yearly service fee and a set brokerage fee per transaction. Your service fee will automatically renew at the end of your agreed 12 month period at the same rate advertised at the time. Your credit card or bank account will be charged for a further year following which will again auto renew until you cancel your yearly service fee. You can cancel the auto renewal at any time in advance of the renewal date by contacting us. KOSEC is aware of the need to ensure the security of your credit card details and our payment systems are compliant with the Payment Card Industry (PCI) Data Security Standard.

You consent to receiving email correspondence from KOSEC, as well as companies KOSEC has an association with. These emails will be sent by KOSEC and third party companies. You can opt out of receiving any category of emails at any time by contacting us. We may from time to time inform you of special offers, or even ask your opinion of the services we provide, but your involvement is optional. Should you request us to do so, we will archive your details.

Indemnity and Liability
You indemnify KOSEC from all claims or threatened claims, suits, demands, damages, costs as well as including legal costs incurred in dealing with any threatened claim, expenses made by any person or corporation against KOSEC and any other amounts which is caused by KOSEC providing information, execution and General Advice.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from a decision made by you on the basis of information obtained through the use of our portal, reports, documents or any General Advice given and any transaction taken place.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from delays in executing orders for the client and acknowledges KOSEC makes no guarantees about the time taken to execute an order on behalf of the client. You acknowledge that KOSEC relies on third parties in providing technology and release KOSEC from any harm, loss or damage you may suffer as a result of the failure of such information technology.

Cookies and Links
KOSEC website, and its portal uses cookies, which lets us identify your browser while you are using the site or our portal. Cookies do not identify you personally. They simply allow us to track your usage patterns. If you prefer not to receive cookies, you can configure your browser to reject them or to notify you when they are being used. The functionality of the KOSEC website may be impacted if you restrict the use of cookies.

Fill up the form below and we will get back to you as soon as possible.



KOSEC’s CEO, Michael Kodari’s new book, “Stock Market Success” valued at $39.95, available at Dymocks book stores with all the proceeds going to Dymocks Children’s Charities.


Latest TV Commercial