The company’s gold production for the March quarter increased by 2.6% to 637,000 ounces, smashing UBS’ estimate of 593,000oz.

Copper production jumped by 30.4% to 23,000 tonnes.

All-in sustaining costs dropped by 4.5% to $US723 per ounce, and the AISC margin increased by 33% to $458/oz.

Cadia in New South Wales helped pick up the slack of Gosowong in Indonesia, which was suspended for much of the quarter due to a geotechnical event.

Newcrest said Lihir achieved a grinding throughput rate of 12.9 million tonnes per annum, with AISC steady at $804/oz.

“It was a quarter with a number of challenges, although it is pleasing to have increased our production and lowered our all-in sustaining cost per ounce in the quarter,” Newcrest managing director and CEO Sandeep Biswas said.

“We increased the level of throughput at Cadia as planned, and Lihir continued its improvement journey with another lift in throughput rates.”

The company left its full-year guidance unchanged at 2.4-2.6 million ounces of gold, despite individual asset guidance increases at Lihir and Cadia.

Newcrest’s AISC guidance was lowered to $1.87-1.97 billion from $1.9-2.05 billion due to a decrease in costs at Telfer and Gosowong.

Full-year capital expenditure guidance was lowered to $440-540 million from $480-575 million.

Newcrest conducted brownfields exploration across all of its sites during the quarter, as well as inking three new greenfields deals in West Africa.

 

The company has signed 11 farm-in and joint venture exploration deals over the past year, as part of a “portfolio rebuild”.

Newcrest shares opened 2% higher at $A18.27.