market likes the results, page-2

Looks like good news to me, bring on 30+


Record annual profit and strong operating cash flow


Newcrest delivered a record statutory profit* of A$1,117 million for the year ended 30 June 2012. This was 23% higher than the previous year and was primarily driven by a higher realised gold price.

Newcrest remains in a strong financial position as at year end with low gearing and undrawn bilateral debt facilities of US$780 million. This balance sheet strength combined with strong operating cash flow of A$1,726 million will enable us to continue funding sustaining capital, growth projects and ongoing exploration activities.

There was significant investment in growth in 2012 with total capital expenditure of A$2,556 million. Significant progress was made on our two major growth projects: the US$1.3 billion Lihir Million Ounce Plant Upgrade (MOPU) and the A$1.9 billion Cadia East project.

The successful delivery of these two projects underpins Newcrest’s future production growth profile and both projects remain on schedule for completion in the December 2012 quarter. The Wafi-Golpu pre-feasibility study is nearing completion and, subject to joint venture partner approval, an updated ore reserve estimate is likely to be provided on 29 August 2012.

A final ordinary dividend of 23 cents per share (15% franked) will be paid to shareholders lifting total ordinary dividends for the 2012 financial year to 35 cents per share, 17% higher than the ordinary dividends in the prior financial year.

Gold production in the 2013 financial year is expected to increase to a range of 2.3 to 2.5 million ounces and copper production is estimated to be in a range of 75,000 to 85,000 tonnes. Gold production for the year ended 30 June 2012 was 2,285,917 ounces and copper production was 76,015 tonnes.

*Profit after tax and non-controlling interest