PERTH (miningweekly.com) – Australian gold major Newcrest Mining has reported an 88% decrease in profit for the six months ended December, compared with the previous corresponding period.

The miner reported on Friday that statutory profit for the half-year reached A$40-million, compared with the A$323-million reported in 2012.

The statutory profit included A$120-million in taxes relating to the company’s voluntary amendments of its Australian research and development claims and a A$47-million impairment on the West African exploration assets.

Earnings before interest, tax, depreciation and amortisation also dropped by 7% on the previous corresponding period, to A$731-million.

“Newcrest has made steady progress on producing lower cost, higher margin ounces, while reducing costs and capital expenditure across the business,” said CEO Greg Robinson.

He noted that overall, the company’s focus remained on optimising its current operations, maintaining its growth options and maximising free cash flow to ensure that Newcrest reduced gearing and return to paying dividends to shareholders.

During the period under review, Newcrest produced about 1.2-million ounces of gold, and sold 1.2-million ounces to contribute to a revenue of A$2-billion, up 12% on the A$1.8-billion reported in the corresponding period of 2012.

Gold production for the period increased by 27%, while all-in sustaining costs reduced by 18% to A$1 003/oz, after Cadia Valley, in Australia’s New South Wales, and Lihir, in Papua New Guina, came on stream in early 2013. The increased production was also supported by improved operating performances at the Western Australia-based Telfer, Lihir and Papua New Guinea-based Hidden Valley mines.

Cash flow from operating activities declined A$200-million on the six months to December 2012, to A$228-million, owing to a number of factors, including a lower average realised gold price, an increase in interest paid on higher debt levels, and a tax payment of some A$70-million.