Handing down its March quarterly report, Newcrest said gold production was 364,794 ounces, down from 382,584oz in the December quarter.

Despite the reduced gold output for the quarter, Newcrest believes full-year production guidance is maintained at 1.63-1.70 million ounces of gold.

Copper production for the quarter was 23,436t, a 10% increase on the December quarter.

Newcrest’s gross cash margin increased by 36% to $A845 per ounce, while the achieved gold price of $1352/oz was 13% up on the December quarter.

Gross cash costs fell 12% to $507/oz while net cash costs fell 7% to $516/oz due to higher copper production and improved performance at Telfer.

Telfer reported a 6.7% on-quarter increase in gold production to 162,035oz due to an increase in the mill throughput rate at the mine, while gross cash costs fell 24% to $690/oz due to lower site costs and higher copper production and associated by-product credits.

Meantime, Cadia Valley gold production fell 18% from the previous quarter to 107,406oz, while copper production gained 4% to 14,667t.

Cadia Hill gold production of 51,680oz was in line with plan, reflecting lower grades and associated recoveries, while copper production of 7734t was up due to higher throughput levels, grades and associated recoveries.

Ridgeway’s March quarter performance was 55,726oz of gold, down from 60,322oz in the December quarter, while copper production was 6933t, down from 7525t in the previous quarter.

Newcrest said Ridgeway’s gold and copper output continued to decline as planned due to mining of the final sub-level cave horizons which contain lower grade ore.

At its Gosowong operations, gold production in the March quarter fell 4% to 79,878oz due to lower throughput and recoveries, while gross cash costs fell from $440/oz in the December quarter to $422/oz.

During the March quarter, the Newcrest board approved the pre-feasibility study, as well as its funding, for Cadia East.

Newcrest said Hidden Valley and Ridgeway Deeps remained on schedule for initial production in mid-2009 and the Gosowong expansion project was progressing on schedule.

Shares in Newcrest have gained 44c to $28.84 in morning trade.