Newcrest says it is on track to hit its gold production targets for a second consecutive year.
Shares in the gold miner, Australia's largest, rose after it said it expects to reach its full-year production target of between 2.2 million and 2.4 million ounces.
Newcrest has a history of missing production targets and its last couple of years have been marred by billions of dollars in write-downs, financial losses, reputational damage and a $1.2 million fine for breaching market disclosure rules.
The company revealed a 12 per cent slump in output during the September quarter to 562,000 ounces of gold, down from nearly 637,000 ounces in the June quarter.
That was blamed on lower grades at its Gosowong, Cadia Valley and troubled Lihir mines, and a planned shutdown at its Lihir mill.
Newcrest shares closed four cents higher at $10.
Chief executive Sandeep Biswas told investors on Tuesday that cash flow and debt reduction were immediate priorities.
Net debt is currently about $4 billion with gearing 34 per cent.
The company is under pressure from a falling gold price, which is hovering around $US1200 an ounce, and calls for a capital raising that Mr Biswas has so far resisted.
Mr Biswas expects the company to become cash-flow positive during the 2014/15 financial year, following losses of $A2.2 billion in 2013/14 and a $A5.8 billion in 2012/13.
Newcrest's all-in sustaining cost fell to $US801 per ounce during the quarter, down from $US851 in the June quarter and $US1,001 a year ago.
The company achieved an average realised gold price of $A1,393 an ounce during the quarter, up from $A1,373 in the previous quarter.
Share
