The Newcrest Mining Limited (ASX: NCM) share price will be one to watch on Thursday after the release of the gold miner’s fourth quarter and full year production update.
How did Newcrest perform in the fourth quarter?
Newcrest Mining had a very strong finish to the financial year and achieved its production guidance for FY 2020.
According to the release, Newcrest delivered group gold production of 573,000 ounces during the fourth quarter, up 7% on the prior quarter. This compares to the consensus estimates of 542,000 ounces.
This strong production was driven by its Cadia operation, which exceeded the top end of its guidance range. Cadia achieved record annualised mined ore and mill throughput for the quarter.
Newcrest achieved this with a quarterly all-in sustaining cost (AISC) of US$878 per ounce, resulting in an AISC margin of US$768 per ounce. The former compares to the consensus estimate of an AISC of US$887 an ounce.
FY 2020 production.
For FY 2020, Newcrest’s total gold production came to 2,171,118 ounces. While this was down 12.7% year on year, it was at the high end of its guidance range of 2,100,000 ounces to 2,200,000 ounces.
Newcrest’s full year AISC was US$1,044 an ounce, which led to a margin of US$668 an ounce for FY 2020.
Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, was pleased with the company’s finish to FY 2020.
He said: “Newcrest has safely delivered a strong fourth quarter enabling us to meet our Group gold production guidance for the year, notwithstanding the challenges of addressing the risks associated with the COVID-19 pandemic. Cadia exceeded the top end of its production guidance range and achieved record annualised mine and mill throughput rates in the quarter, further highlighting the strength of this world-class asset.”
No guidance was given for FY 2021. Investors will need to wait until its results release in August for further details on that.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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