Newcrest Mining has posted an 18 per cent rise in underlying half-year profit, getting a boost from higher realised gold prices and a weaker Australian dollar.
Realised gold prices for the six months ended December 31 was $US1,446 per ounce, higher than $US1,228 a year ago, the company said in a statement.
The rise in underlying profit was despite a drop in gold production for the half-year by 11.7 per cent to about 1.1 million ounces.
Last month, Newcrest said production at Cadia could be hit this year if a drought continues in NSW, while the bushfires that have scorched Australia have damaged train lines and associated infrastructure, delaying shipments.
This comes after a $US685 million first-stage expansion of the mine was given the go-ahead by the board in October. The company had said the expansion is expected to boost production from the 2023 financial year.
Meanwhile, earlier this week, the Melbourne-based company said that Papua New Guinea’s national court dismissed a stay order on work relating to the Wafi-Golpu gold-copper project allowing negotiations to continue.
The co-owners of the project – Newcrest Mining and Harmony Gold – had been hoping to secure a mining lease over the major gold and copper deposit early last year, before a change in PNG’s leadership and a shift in minerals policy led to delays.
The country’s largest listed gold miner also recorded a marginal drop in statutory profit for the first half, hurt by a $US44 million writedown following the sale of its entire stake in Gosowong.
Underlying profit for the half-year ended December 31 was $US280 million, up from $US237 million reported last year.
The company also declared an interim dividend of 7.5 cents per share.