Gold output during the three months to June 30 for Australia's largest independent gold producer dropped to 435,120 ounces compared with the same period in 2007.
Newcrest posted a 1.4 per cent drop in cash costs for the quarter at $A276 an ounce and a 6.8 per cent drop for the full year at $A261 an ounce.
"Cash costs are extremely low by world industry standards, especially when taking into account that costs would have been impacted over the last quarter by the problems at Telfer with the gas issues," Fat Prophets analyst Gavin Wendt said.
Shares in the company fell $1.72, or 5.53 per cent to close at $29.40, as gold mining companies came under pressure from a falling gold price.
Miners including, Iluka Resources Ltd and Minara Resources Ltd, were forced to seek alternative gas supplies after the incident at Apache Energy-operated Varanus Island, which supplies about 30 per cent of WA's domestic gas needs.
Newcrest, which has secured interim gas supply for Telfer from the Woodside Petroleum Ltd-operated North West Shelf venture, has estimated the gas outage will cost the company about $34.3 million.
Output from Telfer, Australia's largest gold mine, was 13 per cent lower than the same period in 2007 - at 146,101 ounces.
Gold production from Newcrest's Gosowong mine in Indonesia and the Cracow joint venture in Queensland were higher for the quarter, while output at Cadia Valley operation in New South Wales dropped by 6.3 per cent.
Gold production for the financial year was 10 per cent higher at a record 1.78 million ounces, but marginally short of the 1.8 million ounce guidance range.
Newcrest's total copper output for the quarter dropped one per cent on the same period in 2007, to 22,394 tonnes.
Newcrest said its $545 million Ridgeway Deeps development at the Cadia Valley operation, near Orang in the NSW Central West, remained on schedule and budget and was 39 per cent complete.
The company said a new approach was being considered for the Cadia East expansion, involving a larger underground panel cave that would lower waste movements and increase production levels.
Newcrest said that drilling was ongoing at the Telfer mine to define a potential mine expansion below the current operating Telfer Deeps sub-level cave mine.
A resource estimate for the new area was expected before the end of 2008, Newcrest said.
