The Newcrest Mining Ltd (ASX: NCM) share price is higher today, currently 2.73% in the green at $25.96.
The gain extends Newcrest's rally that's been underway since late January after the company's shares took a plunge to a 3-month low of $21.50.
Now the miner has adopted new technology to digitalise the performance of its flagship Cadia mine in New South Wales, reports say. That involves building a digital goldmine.
But what could this mean for the gold mining juggernaut? Let's take a look and find out.
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Newcrest to build digital goldmine?
The miner has announced it will be utilising digital twin technology to bolster output and efficiency at the Cadia site, located near Orange, NSW.
This involves building an exact digital replica of the Cadia gold mine with the aim of improving ore output and return on the site, The Australian Financial Review reports.
After scheduled maintenance on a key piece of machinery held up production, management is understood to have made the decision to 'go digital' in a bid to make maintenance more efficient as well.
Many industries are now incorporating digital twin technology to optimise operations and "the reliability of all forms of assets and equipment," Gartner analyst Kristian Steenstrup told the AFR.
According to Gartner, around 50% of digital twins were being used for cost optimisation. "For example by improving equipment maintenance or through the more complex prediction of future maintenance needs," the report said.
The goal of creating the digital twin is to replicate the asset — in this case, a mine — drawing on information from a real-world environment. It aims to provide valuable insights that would otherwise be missed in the business continuum.
Not only that, but it allows companies to perform a broader scenario analysis without having to take on unnecessary costs or risks.
For Cadia, this would mean a better understanding of assets like crushed ore bins that rest underground, a move the company is now trialling.
Newcrest's chief information officer Gavin Wood said the move has "led to greater levels of cash flow coming out of the Cadia operation", the AFR noted.
With the price of gold just recently bouncing off its near-record highs in March, the Newcrest share price had followed suit, albeit without the same frenzy.
It peaked at $28.20 on 9 March – not too far under its 52-week high of $28.79 in May 2021. It has since reverted back towards the longer-term average.
Quick summary of Newcrest shares
In the last 12 months, the Newcrest share price has climbed 4.7% and is now 5.6% in the green since trading restarted on 4 January.
Over the previous month of trade, the Newcrest share price is 5.3% higher.
At its current share price, the company has a market capitalisation of around $23 billion.
