Newcrest profits soar in first half
PERTH (miningweekly.com) – Gold miner Newcrest Mining has reported a 142% surge in profits for the first half of 2019, while underlying profits increased by 104% on the previous corresponding period.
Newcrest on Thursday reported a statutory profit of $237-million and an underlying profit of $237-million, while cash flow from operations was up by 2% on the first half of 2019, to $464-million.
The company has now achieved ten consecutive halves of positive free cash flow, to cumulatively generate over $3.5-billion in free cash flow since the start of 2014.
“We safely increased production, lowered unit costs, doubled profit and significantly increased free cash flow to further reduce net debt, all in a period when gold and copper prices were lower,” said Newcrest MD and CEO Sandeep Biswas.
“This is a pleasing, strong result reflecting our commitment to safety, operational discipline and cash maximization, which shows the value being delivered to shareholders and the platform for growth we have established.”
Gold production was up 6% on the first half of 2018, to 1.2-million ounces, resulting in a 1% increase in revenues, to $1.7-billion. Earnings before interest, taxes, depreciation and amortisation also increased by 18%, to $739-million tonnes, while all-in sustaining costs fell by 13%, to $747/oz.
The Cadia operation achieved a record half-year gold and copper production, producing 453 000 oz of gold and 44 000 t of copper, with the 51% increase in gold production driven by an increase in the volume of material milled and an increased head grade.
Gold production from Lihir was also 5% higher, at 433 000 oz, driven by a 12% increase in gold head grade.
Gold production from Telfer declined by 1%, to 215 000 oz, while the Gosowong mine’s production was also 20% lower than the previous corresponding period, to 102 000 oz, driven by lower head grades.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation