https://www.miningweekly.com
Exploration|Financial|Gold|Mining|Drilling
Exploration|Financial|Gold|Mining|Drilling
exploration|financial|gold|mining|drilling

Newcrest sees profits rise on higher gold price

Newcrest sees profits rise on higher gold price

Photo by Bloomberg

14th August 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Higher realised gold prices have seen major Newcrest Mining report a 5% increase in revenue for the full year ended June, despite a 13% drop in gold production.

The miner on Friday reported that gold production for the full year reached 2.1-million ounces, down from the 2.4-million delivered in 2019, however, a 21% increase in the realised gold price has resulted in revenues increasing from $3.7-billion to $3.9-billion.

Earnings before interest, tax, depreciation and amortisation for the full year also increased by 10%, from $1.6-billion to $1.8-billion, while underlying profit was up by 34%, from $561-million to $750-million.

“The 2020 financial year was a year in which we invested in the future. We invested $1.3-billion to acquire Red Chris and increase our exposure to Fruta del Norte, and a further $400-million to progress our organic growth options and on exploration,” said MD and CEO Sandeep Biswas.

“We further strengthened our balance sheet to ensure we are well positioned to deliver our near-term growth options of Havieron, Red Chris and Wafi-Golpu,” Biswas said.

He noted that drilling results from both Havieron and Red Chris continued to expand the known mineralisation with high-grade intercepts.

“Our ownership of Havieron over the year increased to 40% as we track towards 70%, underpinning the future of Telfer. We are in the unique position of having three outstanding growth options from which we expect to add new production ounces to our portfolio in due course.

“Our operational and financial performance, strong balance sheet and outlook have allowed us to increase our dividends to shareholders for the fifth consecutive year, with the full year dividend being 14% higher than last year,” Biswas added.

Looking ahead at 2021, group gold production is expected to reach between 1.9-million and 2.1-million ounces.

Edited by Creamer Media Reporter

Comments

Showroom

Multotec
Multotec

Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...

VISIT SHOWROOM 
Condra Cranes
Condra Cranes

ISO-certified Condra manufactures overhead cranes, portal cranes, cantilever cranes and crane components: hoists, drives, end-carriages, brakes and...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

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?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.122 0.155s - 90pq - 2rq
Subscribe Now