PERTH (miningweekly.com) - Australia’s largest gold miner Newcrest Mining has reported a near 50% decline in its profit for the six months to December, as finances were impacted by lower sales revenues.
For the six months to December, Newcrest reported a profit of A$320-million, which was a A$339-million decline from the A$659-million reported in the previous corresponding period.
Earnings before interest, tax, depreciation and amortisation were also down by 37%, from A$1.1-billion to A$740-million, while underlying profit was down 48% to A$320-million.
Newcrest said on Friday that the reduced underlying profit was driven by a 23% decrease in sales revenue, which reached A$1.8-billion during the period under review. This was partially offset by a A$135-million, or 10% reduction, in the cost of sales.
Total gold revenue for the six months to December was also down 24% to A$1.5-billion, while the realised gold price for the period was 1% lower than in the previous corresponding six months.
Gold production for the interim period was also 18% lower, reaching 953 331 oz, compared with the previous corresponding period. The decline in gold production was attributed to lower gold grades, which, in turn, resulted in lower production.
The lower grades and production were primarily driven by the planned processing of stockpiles at the Cadia Valley operation, and poor ground conditions impacting on high-grade stope access at the Gosowong project.
However, with the completion of the Cadia East operation, and the Lihir million-ounce plant upgrade, Newcrest was expecting production capacity to increase in the second half of the year.
The company had also completed the crusher refurbishment at its Bonikro operation, which would restore the processing plant to its full capacity.