Newcrest share price slides amid lower gold production

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The Newcrest Mining Ltd (ASX: NCM) share price is in the red today despite the company releasing a quarterly report.

Newcrest shares are sliding 0.89% to $28.85 at the time of writing. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is rising 0.08% today. Gold meanwhile is up 0.21% to US$2,000.50, according to CNBC.

Let’s take a look at what Newcrest reported to the market.

What did Newcrest report?

Highlights of the Newcrest FY23 third quarter report include:

  • Gold production fell 0.49% to 509,637 ounces, down from 512,130 ounces in the December quarter
  • Copper production slid 9.9% to 31,148 tonnes, down from 34,564 tonnes in the previous quarter
  • Silver production lifted 3.1% from 303,537 in the previous quarter to 312,970 in the March quarter
  • Realised gold price rose 9.9% to $1,860 per ounce, up from $1,693 in the previous quarter
  • Realised copper price lifted 9.6% to $8,841 a tonne, up from 8,069 per tonne in the last quarter
  • All-In Sustaining Cost (AISC) of $1,012 per ounce, down 7%, with an AISC margin of $837 an ounce

Gold production improved at the Brucejack, Lihir and Fruta del Norte mines. However, this was offset by less production at Cadia, Telfer and Red Chris.

Underpinning the higher gold production at Lihir was higher mill throughput and rainfall, along with higher gold head grade.

Gold production at the Brucejack mine rose amid operations returning to full capacity.

Gold production at Cadia fell due to lower mill throughput compared to the previous quarter.

Newcrest said it is on track to achieve its full-year group production guidance in FY23. The company is forecasting gold and copper production will lift in the June 2023 quarter.

Injury rates at the mine fell during the quarter.

Management commentary

Commenting on the results, Newcrest interim CEO Sherry Duhe said:

We continued to deliver on our strategy in 2023, with our pipeline of high-quality organic gold and copper growth projects marking a number of important milestones.

Our third quarter performance has positioned us well to achieve our Group FY23 production guidance.

We expect gold and copper production to increase in the June quarter and remain on track to deliver a strong FY23 result, supported by continued momentum in gold and copper prices.

Newcrest share price snapshot

Newcrest shares have risen 6.93% in the last year.

This ASX 200 gold share has a market cap of about $25.8 billion based on the current share price.

The post Newcrest share price slides amid lower gold production appeared first on The Motley Fool Australia.

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More reading

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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