By Rhiannon Hoyle

Newcrest Mining Ltd. recorded a 46% slump in first-half profit, as it produced less gold and copper while grappling with global challenges including supply-chain disruptions and cost inflation.

Australia's largest listed gold miner on Thursday said it made a net profit of $298 million for its July-December first half, down from $553 million a year earlier.

Earnings before interest, tax, depreciation and amortization was down 35% on the year-earlier period, at $740 million. Directors of the company declared an interim dividend of 7.5 U.S. cents a share.

Newcrest said its profits were weighed by weaker gold and copper sales, in big part due to a planned mill upgrade at its Cadia operations in Australia and falling grades at its Lihir mine in Papua New Guinea. Heavy rainfall affected mining operations too, as did maintenance work, Newcrest said.

The miner reported 20% weaker gold output for the half versus a year earlier, and 27% weaker copper production.

"Operating costs were also impacted by labor and consumable cost pressures due to rising demand, constrained supply and underlying commodity price increases," said the company. "Newcrest continues to collaborate with its suppliers to identify ways to manage these cost pressures."

It said logistics costs climbed due to the challenges in the sea freight market, while a strengthening of the Australian dollar against the U.S. dollar had a negative impact on its operating expenses. The company generates the bulk of its earnings at mines it runs in Australia, but reports its financial results in U.S. dollars.

Chief Executive Sandeep Biswas said the company had "taken a big step forward in our profitable growth agenda" during the half, including progressing studies on several projects.

"Strategic, value-adding M&A has been a feature of our growth in recent years and we are also looking forward to completing the Pretium Resources transaction this quarter and adding the world class Brucejack mine to our unrivalled portfolio of assets," he said.


Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com


(END) Dow Jones Newswires

02-16-22 1758ET