Newcrest posts A$2.2bn loss after asset writedown
PERTH (miningweekly.com) – Australian gold major Newcrest Mining reported a statutory loss of A$2.2-billion in the year ended June 30, after asset impairments of A$2.4-billion, mainly relating to the Lihir operation, in Papua New Guinea.
The loss compares with the statutory loss of A$5.8-billion in the previous financial year, when Lihir reported a A$6.2-billion writedown.
CEO Sandeep Biswas on Monday promised a company-wide improvement programme, which includes a major review at Lihir.
During 2014, Newcrest had managed some initial operating improvements, which enabled the company to maintain its underlying profit and profit margins, notwithstanding a lower gold price, and deliver free cash flow of A$133-million for the year.
Revenue during the year increased to A$4-billion, compared with A$3.7-billion reported in 2013, on the back of increased gold sales of 2.4-million ounces, compared with the 2-million ounces sold in the previous financial year.
Gold production for the year reached 2.39-million ounces, compared with 2.11-million ounces produced in 2013. Full-year copper production reached 86 000 t, which exceeded the guidance of between 75 000 t and 85 000 t.
All-in sustaining costs for the full year declined to A$976/oz, compared with A$1 283/oz in the previous financial year.
“While we have realised some initial operating improvements, I am not satisfied with either the current operating performance or the cash generation of the business,” Biswas said.
He noted that the company would be firmly focused on realising the potential of its assets in the period ahead.
“We expect group production this year to be similar to that in 2014 as we ramp up Cadia East and make improvements at Lihir, which will lay the foundation for future production growth.”
Group gold production for the full 2015 would be between 2.2-million and 2.4-million ounces, while copper production was expected to be between 75 000 t and 85 000 t.
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