By Rhiannon Hoyle
SYDNEY--Newcrest Mining Ltd. (NCM.AU) said its annual profit more than doubled on a year ago when its bottom line was marred by disruptions to one of its largest gold mines and writedowns against other assets.
Newcrest, one of the world's largest listed gold producers, said Friday its net profit totaled US$561 million in the 12 months through June, having also benefited from higher production and lower costs.
That compared to a profit of US$202 million in the same period a year earlier when profits were weighed by higher costs and softer production, after a seismic event and dam wall collapse at its Cadia mine in eastern Australia, and writedowns on assets including its Telfer mining operation in the country's west.
Newcrest said it will pay a final dividend of 14.5 U.S. cents a share, up from 11 cents a year ago.
The miner recorded a 22% rise in underlying profit linked to higher output and lower costs.
In July, Newcrest reported gold output of 2.49 million troy ounces for the 12 months through June, up 6% on a year earlier. That was around the midpoint an earlier forecast of between 2.35 million-2.6 million ounces.
Newcrest produced 106,000 metric tons of copper, which was up 36% on the same period a year ago but also around the middle of an earlier 100,000-110,000-ton projection.
The company also logged a 12% decline in all-in sustaining costs, to US$738 an ounce, an annual record.
Higher output and lower costs were underpinned by records at its large Cadia operation in Australia.
"Our strong operating and financial performance allowed us to further reduce our net debt and strengthen the balance sheet as well as increasing dividends to shareholders, with the full year dividend being 19% higher than last year," said Chief Executive Sandeep Biswas.
The miner said its margin on earnings before interest and tax increased to 24.7%, up from 21.7% in the year-earlier period.
Newcrest forecast steady gold production, and slightly higher copper output, in its current fiscal year.
It expects to produce between 2.35-2.50 million ounces of gold and 110,000-120,000 tons of copper.
- Write to Rhiannon Hoyle at email@example.com