Record gold prices paper over Newcrest's weak output
Record gold prices have allowed Newcrest Mining to match last year's half year profit despite a 12 per cent slump in gold production volumes...
14th February 2020
Resources Rising Stars
Record gold prices have allowed Newcrest Mining to match last year's half year profit despite a 12 per cent slump in gold production volumes (reports The Australian Financial Review).
A weakening Australian dollar has combined with a flight to the traditional safe haven metal to create boom conditions for Australian gold miners like Newcrest, which has mines in New South Wales, Western Australia and Papua New Guinea.
The $US236 million half year profit was better than the $US215 million forecast by UBS, despite being weighed down by a $US44 million impairment against the carrying value of the Gosowong mine in Indonesia.
Newcrest's majority stake in Gosowong was sold in January.
Dividends will also match those paid out in February 2019, with shareholders set to receive US7.5¢.
Newcrest's gold production was hampered over the past six months by lower grade material at several mines and scheduled maintenance.
The company will need to significantly increase gold production in the six months to June 30 if it is to achieve its full year target of between 2.37 million and 2.53 million ounces.
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