Australian gold producer cuts 2012 production forecast

Sydney, April 24 (IANS) Australia's largest gold producer Newcrest Mining Tuesday said it would cut its production forecasts for 2012 following a major review of its operations.

Newcrest said gold production for the 2012 financial year would be reduced from 2.43-2.55 million ounces to 2.25-2.35 million ounces.

The company also lowered its copper guidance from 75,000-80,000 tonnes to 70,000-75,000 tonnes, reported Xinhua.

However, Newcrest said its production from existing assets was expected to grow over the next five years at a compounded average growth rate of 5-10 percent a year.

"Newcrest remains committed to its focus on gold, low cost position and return on capital and consequently will remain particularly disciplined in relation to operating cost and capital deployment decisions," Newcrest said in a statement.

"Although Newcrest is adjusting its short term guidance, the company's asset portfolio remains in a strong position for the long term," it said.

Newcrest's updated forecasts came as it released its March quarterly report.

Gold production for the March quarter was 532,237 ounces, down from 579,073 ounces in the December 2011 quarter, Newcrest said.

Copper production for the March quarter fell to 18,072 tonnes from 18,171 tonnes in the previous quarter.