Monday, August 13, 2012
Gold Prices Boost Newcrest Profit
NEWCREST Mining's full year profit is up 23 per cent due to rising gold prices and the company expects gold production to rise in the current financial year.
Newcrest today posted a net profit of $1.12 billion for the year to June 30, up from $908 million in the previous corresponding period.
Revenue of $4.4 billion in the year to June was an eight per cent increase on the previous year's $4.1 billion.
Newcrest produced 2.29 million ounces of gold in the year to June, a drop of 10 per cent on the previous year.
The company said it expected production in the 2012/13 financial year to be in a range of 2.3 million to 2.5 million ounces.
Copper production in the year to June of 76,015 tonnes was up one per cent on the previous year.
Newcrest said it expected copper production in 2012/13 to be in the range of 75 thousand tonnes to 85 thousand tonnes.
The statutory profit was a record for Newcrest.
Its underlying profit of $1.1 billion, up two per cent from last year, was also a record.
The difference between the headline and underlying profits related to $46 million gained from the sale of two Queensland projects to Evolution Mining during the year.
Newcrest benefited from a higher realised gold price for the year of $1,609 per ounce, which was 17 per cent or $231 per ounce higher than the previous year.
Elsewhere, cost of sales increased by nine per cent to $2.601 billion, its gold sales fell by six per cent to 2.3 million ounces and production was down 10 per cent.
The company blamed the cost hikes on increased mining activity pushing up the cost of labour, fuel and energy, and negative currency exchange factors.
Newcrest says it plans to pay a final ordinary dividend of 23 cents per share (15 per cent franked), bringing the total to 35 cents per share, 17 per cent higher than the prior year.
It's interim distribution of 12 cents was unfranked.
Posted by Joseph Gale at 8:14 PM