Papua New Guinea’s largest gold miner, Newcrest Mining, has announced their profit for the 12 months ending 30 June, to be a record of K4.07 billion (US$1.164 billion).
This shows 55% higher than the previous financial year thanks to higher gold and copper prices and lower operating costs.
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| Managing Director and Chief Executive Officer, Sandeep Biswas |
Newcrest’s revenue from gold was up 9% in spite of slightly lower gold production, while its copper revenue was up by 46% and its silver revenue up by 63% however, its operating costs were down by 11%.
“Newcrest has delivered a strong operational and financial performance for the 2021 financial year, producing 2.1 million ounces of gold at an AISC [All-In Sustaining Cost] of US$911 per ounce.
“Together with the benefit of higher gold and copper prices, this translated into a record statutory and underlying profit of US$1.2 billion and a record free cash flow of US$1.1 billion,’ said Newcrest’s Managing Director and Chief Executive Officer, Sandeep Biswas told Business Advantage PNG.
Shareholders in the company will benefit from the bonanza, receiving a dividend per share of US$0.40 (K1.40) – 129% higher dividend than last year.
Newcrest’s gold mine on Lihir Island in New Ireland Province produced 737,000 ounces of gold over this period – about 35 percent of the PNGX- and ASX-listed company’s global production for the year – and 38,000 ounces of silver.
Revenue from the mine was US$1.425 billion (K5.02 billion) – about 31 percent of the company’s global revenue for the year.
Operations in PNG have not been without challenge, however, while the company says cases of COVID-19 on Lihir Island are at ‘low levels,’ it is maintaining ‘extensive contact tracing and isolation procedures’ and charter flights to the island are at restricted capacity.
Source: The Exeprenuer Magazine