News: Newcrest Mining boosts FY15 output forecast, page-2

Newcrest Mining sets higher output targets but Lihir project remains a drag

Jan 30 2015, 15:45 ET | About: Newcrest Mining Ltd. (NCMGF) | By: Carl Surran, SA News Editor

• Australia's Newcrest Mining (OTCPK:NCMGF, OTCPK:NCMGY) surprises investors by setting a higher annual production target, saying it expects to produce 2.3M-2.5M oz. of gold in the year through June, compared with an earlier forecast for 2.2M-2.4M oz.
• Newcrest also reports a 2.7% increase in gold output in last year's final quarter, and raises its estimate for copper output in the current fiscal year by up to 20%.
• The main concern is about the outlook for the Lihir mine in Papua New Guinea, which the company says "continues to underperform against its potential,” as gold output at the facility was below expectations and costs rose.
• UBS analyst Jo Battershill says "the key asset that needs to be turned around is Lihir, and we've seen no signs of that... We think they have got major problems on Lihir and they still haven't enunciated a strategy to the market."