PERTH (miningweekly.com) – Australia’s largest gold miner, Newcrest Mining, has reported record half-year profit and operating cash flow in the six months ended December.

The miner said on Friday that statutory profit had increased by some 50% compared with the previous corresponding period, to $659-million, while underlying profit reached $611-milllion, 17% higher than the previous corresponding half year.

Newcrest MD and CEO Greg Robinson said that the increase in the underlying profit was mostly attributable to higher realised gold prices, while the statutory profit was influenced by a $55-million gain in the divestment of the Queensland assets, in November last year.

Robinson noted that the higher gold price in the current period also drove a 21% increase in gold revenue, while increased copper sales volumes more than offset the lower realised copper price, to increase copper revenue by some 4%.

Gold sales volumes of more than 1.2-million ounces were 1% higher than the previous corresponding six months, and reflected a full six months of ownership of the Lihir, in Papua New Guinea, and Bonikro, in Côte d’Ivoire, as well as the ramp-up of the block cave at the Ridgeway project.

The increases in sales volumes were partly offset by lower production from Telfer, in Western Australia, Cadia Hill, in New South Wales, and Gosowong, in Indonesia, as well as the divestment of the Queensland assets, said Robinson.

He said on Friday that Newcrest’s major expansion projects continued to progress well, with total capital expenditure reaching $1.25-billion during the first half of the financial year.

The Cadia East operation was more than 65% complete, and the Lihir’s $1.3-billion million-ounce-plant upgrade was more than 70% complete. Both projects remained on budget and schedule.

Robinson said that looking ahead, gold production for 2011/12 had now been reduced to between 2.45-million and 2.55-million ounces, following the production disruptions at the Cadia Valley and Lihir operations, and lower feed grades and recoveries at Telfer.

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