Maintenance shutdowns weigh on Newcrest quarterly output

The news: Australia’s top gold miner Newcrest has posted lower production and higher costs in the September quarter, hurt by maintenance shutdowns during the period.

The numbers: Newcrest produced 454,312 ounces of the precious metal in the three months ended 30 September, down 18.1% from the June quarter. However, it’s all-in sustaining cost (AISC) for the September quarter rose to USD1,397 per ounce, up 18% from the June quarter.

The context: Newcrest, which is in the final stages of ratifying a $26 billion takeover by Newmont, said its operations were affected by planned maintenance activities at the Cadia, Telfer, Brucejack and Red Chris projects, which resulted in a decrease in gold and copper sales volumes. Newcrest had also missed its production forecast in FY23 due to weak performance at two of its biggest mines, although this was partly offset by better prices. The Federal Court is expected to approve Newmont's takeover of Newcrest later on Tuesday, with the scheme of arrangement set to be implemented on 6 November.