Newcrest quarterly gold output jumps 10% as Cadia production soars

div classBodysc17zpet90 cdBBJodivpReuters – Australias Newcrest Mining Ltd posted a 10 sequential rise in thirdquarter gold output on Thursday, helped by higher mill throughput rates at its Cadia mine and the addition of the Brucejack project after its acquisition of Pretium Resources.p

pGold miners have benefited from a near 6 jump in prices of the safehaven commodity in the March quarter as geopolitical tensions due to the RussiaUkraine war boosted demand for the yellow metal.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pNewcrest, the country‘s largest gold miner, said output was 479,839 ounces for the three months ended March 31, compared with 436,085 ounces in the previous quarter, but missed brokerage Citi’s estimate of 535,000 ounces.p

pProduction at Newcrests flagship Cadia gold mine in New South Wales soared 30 sequentially, due to improved mill capacity following the planned replacement and upgrade of its semiautogenous grinding SAG mill motor. p

pNewcrest slightly raised its annual gold production forecast to between 1.93 million ounces and 2.03 million ounces from 1.8 million ounces to 2 million ounces, on the back of additional output it can extract from Brucejack and the Fruta del Norte mine in Ecuador.p

pThe company also cut its capital expenditure forecast to between 1.44 billion and 1.52 billion from 1.55 billion to 1.73 billion, due to disruptions to projects from COVID19 and expected reduced activity at its Lihir mine.