Newcrest Mining posts 12 pc fall in profit

Monday, 15 Aug 2016 09:34:38 | Thuy Ong

Newcrest Mining's gold production rose 1 per cent to 2.4 million ounces. (Newcrest Mining: Newcrest Mining)

Bellwether gold miner Newcrest Mining has posted a 12 per cent drop in full-year statutory profit to $US332 million.

Gold prices are approaching record highs in Australian dollar terms, but Newcrest hedged a significant portion of its gold until June 2018 at lower prices.

The company has also switched to reporting in US dollars, further reducing the benefit of the Australian dollar gold price surge.

Gold production, increased 1 per cent to 2.4 million ounces, within the company's guidance range despite challenges at some of its mining sites.

Operating costs declined by 11 per cent to $US1.9 billion, while net debt fell 27 per cent over the year to $US2.1 billion.

"Newcrest's financial performance in the 2016 financial year was solid, with all sites contributing positive free cash flow and the group achieving a 27 per cent reduction in net debt," said chief executive Sandeep Biswas.

Copper revenue came in at $US403 million, 35 per cent lower than in the previous period, driven by a 24 per cent reduction in the average copper price.

The company had previously reported a decline in production in the June quarter.

Newcrest said it would pay a final dividend of 7.5 US cents per share.

Investors were not impressed by the company's performance, pushing its share price down 3.2 per cent to $24.71 by 11:26am (AEST).

AustraliaPlus

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Newcrest Mining posts 12 pc fall in profit

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