PERTH (miningweekly.com) – Gold miner Newcrest Mining has reported a 142% surge in profits for the first half of 2019, while underlying profits increased by 104% on the previous corresponding period.

Newcrest on Thursday reported a statutory profit of $237-million and an underlying profit of $237-million, while cash flow from operations was up by 2% on the first half of 2019, to $464-million.

The company has now achieved ten consecutive halves of positive free cash flow, to cumulatively generate over $3.5-billion in free cash flow since the start of 2014.

“We safely increased production, lowered unit costs, doubled profit and significantly increased free cash flow to further reduce net debt, all in a period when gold and copper prices were lower,” said Newcrest MD and CEO Sandeep Biswas.

“This is a pleasing, strong result reflecting our commitment to safety, operational discipline and cash maximization, which shows the value being delivered to shareholders and the platform for growth we have established.”

Gold production was up 6% on the first half of 2018, to 1.2-million ounces, resulting in a 1% increase in revenues, to $1.7-billion. Earnings before interest, taxes, depreciation and amortisation also increased by 18%, to $739-million tonnes, while all-in sustaining costs fell by 13%, to $747/oz.

The Cadia operation achieved a record half-year gold and copper production, producing 453 000 oz of gold and 44 000 t of copper, with the 51% increase in gold production driven by an increase in the volume of material milled and an increased head grade.

Gold production from Lihir was also 5% higher, at 433 000 oz, driven by a 12% increase in gold head grade.

Gold production from Telfer declined by 1%, to 215 000 oz, while the Gosowong mine’s production was also 20% lower than the previous corresponding period, to 102 000 oz, driven by lower head grades.