Newcrest profits soar in half-year

PERTH (miningweekly.com) – Gold miner Newcrest Mining has reported a 333% increase in underlying profits for the six months to December 31, as revenues increased by 17% and operating cash flow increased by 64%.

“I am please with our operational performance this half. Lihir achieved its target mill throughput rate of 13-million tonnes a year and Cadia achieved significant milestones in cave development and interaction,” said Newcrest CEO and MD Sandeep Biswas.

Underlying profits for the half-year reached A$273-million, while revenue increased to A$1.8-billion and operating cash flow to A$601-million.

The higher revenue was attributable to a 15% increase in the gold price during the six months under review, as well as a 2% increase in gold sales volumes, as a result of production from the Cadia operation, in New South Wales, increasing by 31% following higher mill throughput and the impact in the prior period of an extended production outage.

Earnings before interest, taxes, depreciation and amortisation were up 44% to A$783-million.

Newcrest produced 1.23-million ounces of gold in the six months under review, at an all-in sustaining cost of A$770/oz.

“All assets continue to be free cash flow positive before tax and we continue to work to maximise their value potential through productivity efficiencies and cost reductions,” Biswas said on Monday.

“We remain on track to achieve our annual guidance for the fourth year in a row.”

Biswas pointed out that Newcrest’s near-, medium- and longer-term growth options remained on track, pointing out a target of 14-million tonnes a year of sustainable mill throughput at the Lihir operation, in Papua New Guinea, by December this year, and an aspirational target of 17-million tonnes a year in the near future.

“At Cadia, we have achieved plant throughput in the December quarter to above its nameplate capacity and we continue with a prefeasibility study on the plant expansion. We continue to progress Golpu, brownfield exploration at Gosowong and Telfer and the expansion of our portfolio of early-entry exploration opportunities.”