Newcrest's profit falls on lower production, sales
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Nicholas Grove is a Morningstar journalist.
Newcrest Mining (NCM) on Friday announced a 48 per cent year-on-year fall in net profit before significant items to $320 million for the first half of fiscal 2013, following lower sales revenue resulting from lower gold production.
The company declared a half-year dividend of 12 cents a share, unfranked, and unchanged on the same half in the prior year.
Cash flow from operations fell 78 per cent to $225 million for the six months to 31 December 2012, the gold miner said.
Earnings before interest, tax, depreciation and amortisation for the period fell 37 per cent to $740 million. Earnings before interest and tax fell 48 per cent to $471 million.
Earnings per share fell 51 per cent from the same period in the previous year to 42 cents a share, the company said in a statement.
Newcrest said its financial results for the half reflect the "transitional nature" of the 2013 financial year, with the completion of two major growth projects and some production challenges at existing operations.
Gold sales volumes for the half were down 22 per cent to 956,073 ounces, while copper sales volumes were 7 per cent lower.
Gold production of 953,331 ounces was 18 per cent lower than the corresponding prior period, the company said.
Newcrest said this was primarily a result of processing lower grade ore at Cadia Valley and Gosowong, lower recoveries at Telfer, plant interruptions at Lihir, and the exclusion of the Cracow and Mount Rawdon projects following their divestment in November 2011.
The company said it expects production to be higher in the second half of the 2013 financial year.
Newcrest said its financial position is strong, with gearing at 16.9 per cent and undrawn bilateral debt facilities of over US$1.4 billion as at 31 December 2012.