Newcrest Mining Ltd. entered into a five-year extension of its electricity contract for the Cadia gold mine in New South Wales, Australia, with EnergyAustralia at an about 20%-lower base price than the previous contract for fiscal 2018.
The contract covers the period from July 1, 2017, to June 30, 2023, according to the company's Dec. 5 statement.
The company said Cadia's operating costs are now expected to increase about A$30/oz to A$35/oz in fiscal 2018 over 2017 prices.
Under the previously contracted prices for fiscal 2018, the operating costs increase was estimated to be A$55/oz to A$60/oz for Cadia.
The Cadia mine's total all-in sustaining costs in fiscal 2018 are now expected near the lower end of its guidance range of A$255 million to A$295 million, Newcrest said.
