|Newcrest Mining. Photo credit: miningnews.com|
THE Golpu mining project in Morobe Province, PNG looks promising for Newcrest, the company said in its financial year report ending June.
Newcrest managing director and chief executive officer Sandeep Biswas said: “Lihir and Cadia (Australia) provide near term growth, Golpu is an attractive project for the medium term, and our exploration and participation in early stage projects underpin our longer term growth.” According to the report, Newcrest was seeking value creation through exploration and project entry in Wamum, adjacent to Wafi-Golpu.
There was potential for discovery of high grade porphyry mineralisation at depth.
The company’s underlying profit was A$515 million (K1.06bn), A$83 million (K169m) higher than the corresponding period representing a 19 per cent increase.
The report noted that the increase primarily reflected increased contribution from the ramp-up of higher margin production at Cadia East, Australia, together with positive net impact on Australian dollar revenue of the weakening Australian dollar against the US dollar during the current period.
The operating costs of Newcrest’s operations outside Australia with USD functional currencies were adversely impacted by the weaker Australian dollar.
Biswas said: “The Group’s FY15 financial performance was good, with improved profitability, increased free cash flow and substantial reduction in our US dollar denominated debt.
“Newcrest remains focussed on further strengthening its balance sheet through safely maximising cash flow from operations and capital discipline, driven by our successful Edge programme.
“Newcrest’s improved financial position provides a platform for future growth.
“Our studies are highlighting the value in our asset portfolio.”