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Newcrest FY profit slips on Cadia hit

Prashant Mehra  |  14 Aug 2017Text size  Decrease  Increase  |  

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SYDNEY - [AAP] Newcrest Mining (ASX: NCM) has posted a 7 per cent decline in full-year net profit to $US308 million ($A390 million) after an earthquake at its Cadia mine in NSW affected production.

Underlying profit, which strips out the effect of significant items, rose 22 per cent to $US394 million but still came slightly below market expectations.

Newcrest chief executive Sandeep Biswas said sales revenue for the year to June 30 rose 6 per cent to $US3.48 billion.

"All operations contributed to the free cash flow generation of the group, which has been applied to both further reducing net debt and strengthening the balance sheet as well as increasing dividends to shareholders," Mr Biswas said.

Newcrest last month said its full-year gold production dropped 2.4 per cent to 2.38 million ounces, after Cadia--its biggest and lowest-cost mine--was hit by a magnitude 4.3 earthquake in central west NSW in early April, prompting suspension of operations.

Production has resumed in Cadia's panel cave 2, but repair work continues in panel cave 1, with production there expected to resume in the September quarter.

The miner has forecast gold production of between 2.4 and 2.7 million ounces and copper output between 80,000 and 90,000 tonnes for the 2018 financial year.

It said group production will likely be lower in the September quarter, compared to the June quarter as a result of a higher level of planned shutdown activity being undertaken.

"Gold production and free cash flow is expected to be higher in the second half of the financial year as Cadia East ore production ramps up and there are fewer planned shutdown events," it said.

The company declared a partially-franked final dividend of US 7.5 cents a share, taking full-year dividend to US 15 cents.

NEWCREST FULL-YEAR PROFIT SLIPS

* Net profit $US308m, down from $US332m

* Revenue up 6.0pct to $US3.48bn

* Final dividend of 7.5 US cents, partially-franked

 

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