|Company Name:||Newcrest Mining, Ltd.|
|Event Title:||2013 June Quarterly Production Results Transcript|
|Event Time:||09:00 PM ET|
Thank you for standing by and welcome to the June 2013 Quarterly Production Results Conference Call. At this time, all participants are in a listen-only mode. There will be a presentation followed by question and answer session. [Operator Instructions]. I must advise you that this conference is being recorded today, Thursday the 25th of July, 2013.
I would now like to hand the conference to your speaker today, Mr. Greg Robinson, Managing Director and CEO of Newcrest Mining. Please go ahead Mr. Robinson.
Managing Director and Chief Executive Officer
Thank you very much. Good morning everyone and welcome to Newcrest June 2013 quarterly results conference call.
If we could just turn to page two of the presentation. So before I begin, I would just like to highlight the company's disclaimer on slide two to draw your attention to the statements on the forward-looking statements or results minerals supporting in statement, excuse me if we can move now forward to slide three. Full year financial year 2013 highlights the June 2013 quarter completes the 2013 financial year for Newcrest and it has been year involving significant change, but in prevailing market conditions and within the company. Gold production for 2013 financial year was 2.11 million ounces at a cash cost of $750 per ounce.
This was within the revised guidance range that we provided to the market on 28 March, 2013 of 2 million ounces to 2.15 million ounces and it was around 8% below the lower end of the original guidance range that we provided. Copper production for the financial year was 84000 tonnes, which was within the original production guidance range provided. Due to the timing of shipments, gold revenue for the financial year is expected to be based on gold so that are 78,000 ounces lower than gold production.
And copper revenue will be based on sales 3.4000 tonnes lower than copper production. Total site cost and capital expenditure are within the original guidance for the year. During the year, Newcrest delivered two significant milestones in the context of the company's long-term future with the completion of major expansion projects at Cadia East and Lihir.
We are pleased with the performance of both expansion assets to date and they remain a key focus for the company going forward, remaining on these two operations.
As the gold price declined over the financial year Newcrest moved decisively to adjust to this lower gold price environment and accelerated a range of actions aimed at positioning each operation to be cash flow neutral or positive at a gold price of around $1,458 an ounce.
Actions have been taken to reduce exploration studies and functional claim activities. We have also continued to renegotiate our supply and labor contracts and are nearly complete with an office restructure. Newcrest will continue to manage the business with the objective of a free cash flow neutral or better position in financial year 2014 even if metal process declined from current levels. So just moving to slide four.
For the June quarter Newcrest produced 642,000 ounces of gold and nearly 23,000 tonnes of copper at a cash cost of $762 per ounce. Both gold and copper production was significantly higher than the previous quarter and it really reflected a strong operational performance. from all our assets. Gold production was 25% higher than the March 2013 quarter principally driven by the increased plant capacity at Lihir, the ongoing ramp-up of the Cadia East panel cave, and mining of high grade stopes at Gosowong. The increased plant throughput and high grade ore resulted in increased gold production from both -- and Hidden Valley during the June quarter while growth production was slightly lower than previous quarter as a result of lower plant throughput.
Turning to slide five, unit cash costs. You can see on the chart at the top of the slide that Newcrest's unit cash cost after byproduct credits reduced to $762 per ounce for the June quarter. This is around 5% lower than the previous quarter with the reduction principally as a result of higher levels of production across all operations, but especially at Gosowong, Cadia and Telfer.
Notwithstanding an increase in copper production during the June quarter of around 20% the value of byproduct credits per ounce of gold produced was lower in the June quarter as a result of the lower realized copper price and the relatively high gold production.