Gold and copper production increases as Newcrest ramps up its activity
NEWCREST Mining has raised its full-year production targets for its gold and copper mining operations due to stronger than expected mining output in the December 2014 quarter.
In the three months to the end of December, Newcrest (NCM – an Australian listed company) produced a total of 577,110 ounces of gold, from their Cadia and Telfer site; surprising management by beating their top-end production expectations.
The figure could have been higher but weaker performing mines at the Gosowong, Lihir and Hidden Valley caused a reduced total to come in below the 621,125 ounces produced in the previous quarter in 2013.
Despite this, Newcrest and its Australian gold and copper mining operations is expected to produce around 2.3 million ounces and 2.5 million ounces, slightly higher than the previous expectations of 2.2 million ounces to 2.4 million ounces.
Newcrest produced 25,508 tonnes of copper in the 2014 December quarter, much higher than the 22,603 tonnes produced in the December quarter of 2013.
Copper production for Newcrest for the 2014 year is seen at 90,000 tonnes to 100,000 tonnes, much higher than the previous guidance range of 75,000 tonnes to 85,000 tonnes.
Newcrest has also lowered its full year all-in sustaining cost guidance range to between $2.3 billion and $2.5bn, which is down from between $2.3bn and $2.6bn previously.
So what’s next?
Despite a weaker gold price in 2014, Australian gold mining companies are still producing more and more of the precious metal as expectations rise for an uplift in gold prices.
With the collapsing iron ore price and the volatility of global coal prices, once again, gold is being seen as a good investment. Not only as a financial investment, but also a career investment.
Looking at the cost of extracting gold compared to the price rise of the last 3-4 months, production costs really have not risen, yet the price of gold per ounce has risen from $1400 an ounce in Oct 2014 to $1600 in January. More profits for Australian gold mining companies mean more jobs and a more stable future in terms of employment longevity.
For people looking for gold mining jobs in Australia, start your research with www.newcrest.com.au where you will find a wealth of information on the company and its gold mining operations.
Newcrest is one of the world`s largest gold mining companies and operates substantial mines in four countries, with a global workforce of around 10,000.
In terms of gold availability, Australia is ranked third in the world (after the USA and Africa), with about 10% of the world’s gold resources. About 60% of all gold mined in Australia comes from mines in Western Australia.
Researching Australian gold mining companies
Just by going to their websites you will learn about who they are, what they do, what jobs are on offer, who runs the company and where they are headed. This is valuable information when deciding on targeting which mining company you want to apply to for a job.
iMINCO also recommends researching the company’s performance, to gain further insights into their mining activity and how they are travelling from a business perspective. A quick look at Newcrest’s share price (because they are a listed company with shareholders), reveals in the last month or so, they are looking good with a share price increase of around 38%. This can often happen off the back of press releases related to mining performance.
We can see from the previous comments above that Newcrest have been working hard at producing more and more gold and copper from their mines and although there are other mines in the group, they are still seen by investors as a positive company to sink investment capital into.