Australia's Newcrest Mining the world's third largest gold producer on Monday cut its full year output guidance by around 6%citing disruptions and lower grade ore at mines in Papua New Guinea and Australia.

Newcrest said it now expects to produce 2.43 million to 2.55 million ounces of gold in the 2011/12 financial year versus higher guidance in August. It also said that output in the quarter to December 31 was likely to be between 575,000 and 585,000 ounces.

Newcrest in a statement said that the yield from the company's flagship Lihir Island mine in Papua New Guinea would fall 100,000 ounces under budget in part because of heavy rains at the mine site.

Newcrest said that "It is unlikely this production will be recovered during the remainder of this financial year.”

According to the company, production at its Telfer mine one of the biggest in Australia would fall short by about 50,000 tonnes because the ore contained less gold than originally believed. It said that another Australian mine, Cadia Valley, will lose 30,000 ounces because of ground slippage at the mine, made worse by rains.

(Sourced from Thomson Reuters)