Gold giant Newcrest Mining (ASX: NCM), which produces 2 million ounces a year, may test its position as Northern Star (ASX: NST) tries to move closer to its title as Australia’s largest.
But NCM has a trump card up its sleeve – the impact of copper.
Newcrest released a series of expansion studies this morning, including the highly anticipated PFS on its Havieron gold-copper project in Paterson, Washington.
One of the key takeaways is his plan to increase copper production by 37% by 2030 to almost 175,000 tonnes per annum, which will also help the gold mining company reduce all maintenance costs to an incredible $ 500 per ounce in copper production and prices include loans for by-products.
Newcrest says boosting its copper production from around 130,000 tonnes in 2022 will help meet ESG’s goals and enable it to participate in decarbonization opportunities.
Javieron’s development figures
PFS results announced today show that Havieron, a 70-30 joint venture with an AIM-listed Greatland Gold explorer, will produce 1.4 million ounces of gold in 9 years at a cost of $ 397 million, with a return on capital of 4 year, with a net present value of $ 228 million and an IRR of 16%.
It will generate an average of 160,000 ounces per annum at an operating cost of $ 743 per ounce and copper by-products of about 100,000 tonnes over the life of the mine, with ore being processed in a modified version of the existing Telfer mill.
Newcrest says growth potential remains with new discoveries in Javierona and open pit or collapse expansion from 2024 after the WDS5 cut, approved in August, extends to 2023.
Meanwhile, a new expansion of the Lihir mine in Papua New Guinea could turn it into producer 1Mozpa for 10 years from fiscal 24.
The Phase 14A cut will provide an additional 400,000 ounces per year for the first five years at a capital cost of just $ 179 million and an IRR of 37%.
The study added 1 Moz of high and medium grade reserves to the mine plan to offset processing of lower grade reserves.
Early work on Lihir is due to start in December, with the first ore delivered by mid-2022.
Red Chris, Long Life, Level 1 Mine
The development of a block cave at the Red Chris mine in Canada is more challenging as Newcrest plans to spend more than $ 2 billion to develop a giant facility that will produce 4.9 million ounces of gold and 1.5 million tonnes of copper over 31 years.
It is important to note that this copper will help generate by-products that will provide an average AISC of negative $ 144 per ounce…
In the second half of 2023, a feasibility study for the development will be prepared, which includes initial ore reserves of 8.1 Moz of gold and 2.2 Mt of copper.
The first ore is expected in FY2027.
Newcrest Mining share price today:
Commodity prices drive market growth
Inventories of iron ore, aluminum, lithium and gold boosted the materials sector as prices rose overnight.
Steel prices rose after the Dalian and Singapore Futures Exchanges saw active buying to $ 135 / t, a level that had not been seen for several weeks and 45% above the recent low of $ 93 / t.
Aluminum, which has risen significantly recently amid supply chain shortages caused by the shutdown of smelters in China, rose 3.3% to a 13-year high of $ 3,045 per tonne.
Alumina (ASX: AWC), which owns 40% of Alcoa World Alumina and Chemicals, rose 3.26% to a 12-month high at $ 2.22.
Alumina share price today: