As the merger with Lihir Gold inches closer, Newcrest Mining yesterday reported a solid end to the 2010 financial year across its mines.
The first court hearing in Papua New Guinea to approve the merger was held yesterday.
Newcrest told the ASX that fourth-quarter production climbed 32%, boosted by record output at mines in Australia and Indonesia and a new operation in Papua New Guinea.
Output was 526,131 ounces in the three months ended June 30, compared with 397,826 ounces a year ago.
Copper production dropped 12% to 20,827 tonnes.
Newcrest said that for the year to June, gold and copper production finished within previous guidance issued in April for production to be within the range of 1.81 million to 1.91 million.
"Group full year gold production of 1,762,200 oz was within the guidance range provided at the end of the March quarter," Newcrest said.
"Copper production of 86,574 tonnes was also within the annual guidance range."
Gold for immediate delivery averaged about $1,197 during the quarter, compared with about $924 the year before.
The 8% rise in annual output came after record quarterly production at its Telfer mine in Western Australia and the Gosowong mine in Indonesia.
The Hidden Valley mine in Papua New Guinea produced 18,785 ounces of gold in the quarter compared with 17,680 ounces the quarter before, the company said.
Newcrest also welcomed the release by Lihir of the scheme of arrangement booklet.
Newcrest said, "The Scheme Booklet has been approved for despatch to LGL shareholders by the National Court of Papua New Guinea, which has fixed 23 August 2010 as the date for the Scheme Meeting of LGL shareholders to vote on the scheme.
"Newcrest is pleased that the Scheme Meeting date has been set for LGL shareholders to vote on the scheme and has been working closely with LGL on planning the integration process.
"LGL has lodged a copy of the Scheme Booklet with ASX and will be despatching it to its shareholders early next week," Newcrest said.
In the report the independent expert gave the merger deal the greenlight. What else would you expect him to do?
Newcrest shares eased 39c to $32.92 yesterday.
Santos says despite operations in the Cooper Basin being impacted by flooding in the June quarter, sales rose 20% to $580 million from the $484 million reported in the second quarter of 2009. Santos said production fell 11% in the three months to June 2010, compared with the prior corresponding period.
But sales volume rose 2% and higher prices mean revenue was up 20%.
Sales revenue was also up 13% from the March quarter of this year when it totalled $511 million.
First half revenue rose 7% to $1.091 billion, from the $1.024 billion in the same period of last year.
Santos chief executive, David Knox, said the recovery from the flooding in Central Australia was well underway and all drilling rigs were back in full operation.
But Mr Knox said the company’s operations in the Cooper Basin would continue to be impacted for several months.
"Gas and liquids production from the Cooper Basin improved in the June quarter and will continue to increase in the coming months as recovery from the flood events continues," Mr Knox said in yesterday’s second quarter production review.
Despite the lower output, Santos has maintained 2010 production guidance at between 49 and 52 million barrels of oil equivalent.
But production cost guidance was increased to a range between $560 and $580 million, from $540 to $560 million previously.
"Production cost guidance has been increased primarily due to higher production from John Brookes and flood related impacts in Central Australia," Santos said.
There was no change to depreciation, depletion and amortisation expense guidance at $11.70 per boe, but royalty-related taxation expense was lowered to $70 to $90 million after tax, from $90 to $110 million after tax.
Capital expenditure guidance was lowered by $300 million to $2.3 billion.
"Capital expenditure guidance has been lowered primarily due to timing of expenditures on the GLNG project," Santos said (In Queensland).
Mr Knox said the GLNG project continued to make "significant progress towards a final investment decision later in 2010".
"Engineering design works are nearing completion and environmental approval has been received from the Queensland government," Mr Knox said.
"GLNG remains in detailed discussions with a number of parties in relation to potential LNG sales, equity in the project and collaboration between projects."
Santos said 2010 Cooper Basin sales were being met from a combination of current production and storage.
Quarterly natural gas, ethane and LNG production was down 9% from the previous corresponding period due to lower Cooper Basin production and a planned shutdown at Darwin LNG.
Santos shares eased 20c to $13.55.
