17/8/2016 — Gold Lower profit but debt slashed for Newcrest By...

17/8/2016 — Gold
Lower profit but debt slashed for Newcrest
By Ross Louthean

Australian gold mining giant and copper by-product producer Newcrest Mining Ltd (ASX: NCM) produced a lower profit line but was able to significantly hone debt in fiscal 2016.

The company had a statutory profit of $US322 million and an underlying profit of $US323 M ($NZ448.16 M) but reduced debt by 27% over the year to $US2.1 billion at June 30.

The company that has mines in Australia, Papua New Guinea, Indonesia and on Africa’s Ivory Coast, also in the past year moved into the North Island of New Zealand with two joint ventures in the Hauraki goldfield – with Laneway Resources Ltd (ASX: LNY) and New Talisman Gold Mines Ltd (NZX & ASX: NTL).

Newcrest finished the year with free cash flow of $US814 M ($NZ1.129 billion) and will pay a final dividend of US7.5 cents per share.
Group all-in sustaining costs (AISC) decreased 2% for the year to $US762 per ounce, while the AISC margin dropped 8% to $US404/oz.

Managing director Sandeep Biswas described the financial performance as sold, with all sits contributing positive free cash flow.
Group gold production was 2.439 M oz and copper production was 83,000 tonnes. A key performer was the Lihir mine in PNG which produced 900,034 oz for the year, while at Cadia in New South Wales the Cadia East mine became the sole feed source at the plant after the Ridgeway underground mine was mothballed in March.

PDF File Newcrest FY 2016 results. (1.7 megabytes)
PDF File Newcrest full year results and update. (284.7 kilobytes)

Companies mentioned in article
Laneway Resources Ltd
New Talisman Gold Mines Ltd
Newcrest Mining Ltd

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