PRECIOUS METALS

Telfer write-down ahead for gold major

Gold heavyweight Newcrest Mining has flagged free cash flow for the recently completed financial year totaled about A$600 million but has warned of write downs totaling about $190 million after tax for the Telfer gold project and $70 million for its potential Namosi development in Fiji.

Telfer in Western Australia

Telfer in Western Australia

Newcrest said the latest life of mine plan at Telfer "indicates lower levels of ore mined and higher levels of waste from West Dome, lower gold recoveries, higher estimated closure costs and higher operating costs than previously forecast".

It also said there has been a reduction in the value attributed to a potential future block cave.

At Namosi, the gold miner pointed to an assessment of the potential project configurations that "has prompted a reassessment of the appropriateness to continue to carry forward previous study costs".

Meanwhile the cash flow result is inclusive of $48 million received in respect of the sale of the Bonikro project in Cote d'Ivoire, and $251 million spent buying a 27% stake in Lundin Gold.

With $460 million of the free cash flow being used to pay back debt, Newcrest's net debt as of June 30 is expected to be formalised at about $1 billion.

Newcrest will report its full audited accounts later this month.

Shares in Newcrest were up slightly to A$21.11 in morning trade, capitalising the company at $16 billion.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.