18 August 2009

Newcrest posts 85% profit jump on higher prices

JOHANNESBURG (miningweekly.com) – Australian gold and copper producer Newcrest Mining has continued to deliver a strong operational and financial performance, despite the “turbulent” market conditions in the past year, the company said on Monday.

Newcrest posted an 85% increase in profit, increasing to A$248,1-million in the year ended June 30, 2009, compared with A$134,3-million in 2008.

The group’s sales revenues increased by 7% to A$2,5-billion in the year, compared with A$2,4-billion the year before, as the realised gold price increased by 28% to A$1 169/oz and copper sales volumes increased by 11% to 93 077 t.

This was partially offset by a 26% decline in the realised copper price to A$2,89/lb and a 7% decline in gold sales volumes to 1,64-million ounces, the company said in a statement.

Gold production was down by 8,4% to 1,6-million ounces, compared with the 1,78-million ounces produced the year before, in line with the company’s forecasts.

The decline in production was caused by lower planned grades and associated recoveries from the Cadia Valley mines.

Copper production had, however, exceeded the group’s expectations, increasing by 3% to 89 877 t, compared with the 87 458 t produced in the 2008 financial year.

Newcrest was aiming to increase gold production to between 1,81-million and 1,91-million ounces in the 2010 financial year while its copper production was forecast to fall to between 83 000 t and 87 000 t in the same financial year.

The group was planning to spend between $808-million and $855-million in capital expenditure in the 2010 financial year, down from the $1,27-billion spent in the 2009 financial year.

http://www.miningweekly.com/article/newcrest-posts-85-profit-jump-on-higher-prices-2009-08-17

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