Gold News

Newcrest posts 17 percent gold output decline

The largest gold mining company in Australia has confirmed that its output fell by 17 percent over the course of the third quarter of the 2009 financial year.

Newcrest Mining revealed that gold production was 364,794 ounces for the three months to March 31st, in comparison to the figure of 441,341 recorded 12 months earlier.

The Melbourne-based company has largely attributed the decline to lower ore grade and increased waste removal at its Cadia Hill, where output fell by 45 percent.

"There is lower grade coming out of Cadia Hill pit as part of the cutback three area that we are currently mining," said chief executive officer Ian Smith.

"We're also right at the bottom of the sub-level cave zone at Ridgeway, which brings with it commensurate drops in grades of both copper and gold."

However, the news will undoubtedly be welcomed by anyone with a Gold Investment, as lower production on a large scale will eventually lead to higher Gold Prices.

The news comes after South African firm Harmony Gold Mining, the world's fifth-largest producer of the yellow metal, revealed last week that it also experienced a decline in output in the third quarter of 2009.

For the very best Gold Prices - live online - plus secure storage of your physical property in Zurich, Switzerland for one-third the cost of an exchange-traded gold fund, click through and register with BullionVault now...


See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals