Newcrest reaffirms FY production guidance

Miner tells NSW investment conference forecasts for gold, copper unchanged.

Newcrest Mining Ltd has reaffirmed its full-year production guidance for both gold and copper as well as flagging a series of shifts in the macro environment for gold.

In a presentation to the New South Wales Mining and Investment Conference, Newcrest said it still expected its full-year gold production to come in between 2 million ounces and 2.15 million ounces.

The miner expects copper production for the year to be between 75 kilotonnes and 85 kilotonnes.

Newcrest also flagged a challenging gold macro environment for higher cost miners but said it had has reacted decisively to these challenges. 

Most notably, Newcrest noted the recent relief from the period of sustained Australian dollar strength.

The miner noted the "sharp decline in metal prices since peak in September 2011" with gold declining by 35% and copper falling by 26%.

However, Newcrest said industry costs were shifting to a more favourable environment (see our video What should investors do about Newcrest?).