Newcrest Mining says its gold output rose 4.2 per cent in the fourth quarter as production at its Cadia and Lihir mines ramped up.
The ASX-listed gold miner – the largest in the country – said production for the June quarter rose to 661,414 ounces from 634,950 ounces reported last year.
UBS had estimated gold production of 650,000 ounces for the latest period.
Cadia’s gold production for the quarter as well as the full year was a record, Newcrest chief executive and managing director Sandeep Biswas said in a statement.
The miner’s total gold production for the 2019 fiscal year rose 6.0 per cent to 2.5 million ounces – the mid-point of its production target of between 2.4 million ounces to 2.6 million ounces.
Newcrest also said that with the help of certain water management improvements it does not expect the severe drought impacting the state of New South Wales to affect 2020 production at Cadia.
All-in sustaining costs were down to $US720 per ounce in the quarter, from $US795 per ounce a year ago.
Newcrest said favourable exchange rates and lower costs at its Telfer mine combined with reduced capital expenses at Lihir ad helped bring down overall costs for the year.
The miner’s stock has risen about 54.9 per cent this year as of the last close, with a corresponding jump in gold prices of around 10.5 per cent.
Gold stocks have been supported by firm demand for the safe-haven metal this year, amid mounting worries about a cooling global economy and damage from the prolonged Sino-US trade war.