Newcrest sees profits rise on higher gold price

PERTH ( – 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.Advertisement

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.Advertisement

“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.

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