Newcrest Records K4.07 Billion in Profit

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.

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 

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