Higher prices lift Newcrest revenue as FY gold output dips

PERTH (miningweekly.com) – Gold miner Newcrest Mining on Monday reported a 6% increase in revenue for the 2017 financial year, despite slightly lower gold production.

Revenue for the 12 months to June 30 increased from A$3.2-million to A$3.4-million, as the company benefited from an 8% higher realised gold price and a 10% higher realised copper price.

Underlying profit increased from A$323-million to A$394-million, and earnings before interest, taxes, depreciation and amortisation increased from A$1.2-million to A$1.4-million. After-tax profit, however, fell by 7% to $308-million.

Gold production during the full year decreased by 2% to 2.38-million ounces, while copper production for the same period increased by 1% to 83 941 t.

MD and CEO Sandeep Biswas said notwithstanding the seismic event that impacted on the Cadia operation, in Indonesia, the company achieved a small increase in production from all operations, while also achieving group production guidance for the fourth year in a row.

He reported that Lihir mine, in Papua New Guinea, achieved record mill throughput and gold production.

“All operations contributed to the free cash flow generation of the group, which has been applied to both further reducing the net debt and strengthening the balance sheet as well as increasing dividends to shareholders.”

Looking ahead, Newcrest expected 2018 gold production to reach between 2.4-million and 2.7-million ounces, while copper production has been targeted at between 80 000 t and 90 000 t.

The company stated that gold production would be lower in the September quarter, than in the June quarter, owing to a higher level of planned shutdown activity.