Miner cuts gold production outlook

Newcrest Mining (ASX: NCM) has cut its 2012 gold production guidance.

Following a review, the company says gold production for the financial year will be reduced from up to 2.55 million ounces to up to 2.35 million ounces.

“The resources industry is facing continued high cost inflation in relation to energy, labour, contractors and suppliers and a reduction in labour productivity,” the company said in a statement to the ASX.

For the three months to April, Newcrest produced 532,237 ounces of gold – down from 604,791 ounces in the previous corresponding period.

Newcrest’s cash costs were $609 per ounce and cash margins were $978 per ounce.

“Newcrest’s major project expansions at Cadia Valley and Lihir remain on schedule for first commercial production, and on budget,” the company said.