Newcrest's high hopes for Telfer

DESPITE high costs and declining grades at Newcrest Mining’s Telfer operation in Western Australia, the company is not walking away.

Newcrest's high hopes for Telfer Newcrest's high hopes for Telfer Newcrest's high hopes for Telfer Newcrest's high hopes for Telfer Newcrest's high hopes for Telfer

Newcrest's Telfer operation in the Pilbara

In fact, CEO Sandeep Biswas told the company's biennial investor day this morning that there was a "lot of excitement and motivation" building at the operation.

Telfer is the most challenged of Newcrest's operations with a reserve grade well below 1 gram per tonne gold and declining.

"It's an operation that's usually on the edge," Newcrest executive general manager Gosowong, Telfer and HSES Philip Stephenson said.

"But it survives because we bring an edge to the way we operate."

At FY18 all-in sustaining costs of US$1262 an ounce, Telfer was only just cashflow positive for the year.

September quarter production was 105,499oz at AISC of $1545/oz due to unplanned shutdowns.

"Every year we get more productive - it helps keep Telfer in the ...