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Quake cuts Newcrest H1 profit 48pc to $98m

AAP  |  16 Feb 2018Text size  Decrease  Increase  |  
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SYDNEY - [AAP] Gold miner Newcrest's (NCM) first-half profit has been halved to $98 million as a result of an earthquake that halted production at its Cadia mine last April.

Newcrest, announcing its results after the close of trading on Thursday, said gold production for the six months to December 31 was down eight per cent to 1.14 million ounces and copper dropped 20 per cent to 39,002 tonnes, with the seismic event at the Cadia mine, in inland NSW, affecting output.

The April 14 earthquake shut down production at Cadia until mid-July, when a partial return to production began, with remediation work and a gradual ramp-up in output affecting the first half of the financial year.

Sales revenue for the half-year was down five per cent at $1.72 billion and free cash flow of $134 million was almost half the previous corresponding period, with the company citing lower copper and gold sales, higher depreciation and adverse currency affects.

The $98 million statutory net profit was weighed down by $12 million in writedowns associated with the Bonikro gold mine.

Newcrest sold its 90 per cent stake in the Cote d'Ivoire operation in December for $81 million.

A further $6 million in writedowns was taken after an adverse tax ruling related to the Gosowong mine in Indonesia.

Newcrest maintained its full-year production guidance at 2.4 to 2.7 million ounces of gold and 80,000 to 90,000 tonnes of copper.

QUAKE HITS NEWCREST HALF YEAR PROFIT

* Net profit down 48pc to $98m

* Revenue down 5.0pc to $1.72bn

* Interim dividend unchanged at 7.5 US cents per share, fully franked

 

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© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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