Leading Australian gold producer Newcrest Mining Limited (ASX: NCM) released its half year financial report on Thursday after the ASX closed.
Newcrest Mining is one of the world’s largest pure gold and copper producers with operations in Australia, Asia and throughout the world. According to its website, Newcrest has current gold reserves equal to more than 25 years of production at current rates.
Here are the key news stories from Newcrest’s half-year report:
- Revenue down 5% to $US1.7 billion
- Profit down 48% to $US98 million
- Free cash flow of $US134 million
- Interim dividends of 7.5 US cents, fully franked
“The commitment of Newcrest’s people to safety and operational discipline has delivered solid results for the half year,” CEO Sandeep Biswas.
Newcrest produced 1.13 million ounces of gold and 39,002 tonnes of copper, down 8% and 20%, respectively, over the prior corresponding period.
“We remain on track to achieve our annual guidance, with production expected to be stronger in the second half of the year and AISC spend potentially being below the guidance range,” Biswas added.
AISC stands for all-in sustaining costs which represent the total cost to produce gold. During the half, Newcrest had an AISC of $860 per ounce, which compares to its average selling price of $US1,295 per ounce.
“The strong balance sheet and outlook for production, capital investment and cashflow generation has underpinned the determination of an interim dividend of US 7.5 cents per share.” – Newcrest
Strong cash flow performance allowed the $18 billion mining company to reduce its net debt position to $US 1.4 billion, it said.
Join Rask’s Investor Club Newsletter Today
You can join Rask’s FREE investor’s club newsletter today for all of the latest news and education on investing. Join today – it doesn’t cost a thing. BUT, you’ll need a good sense of humour and a willingness to learn.
Keep Reading
Disclaimer: This article contains general information only. It is no substitute for licensed financial advice and should not be relied upon. By using our website you agree to our Disclaimer & Terms of Use and Privacy Policy.
