Photo Credit: The Australian
Newcrest Mining, Papua New Guinea's largest gold miner, has posted a profit of K4.07 billion (US$1.164 billion) for the 12 months ending 30 June, a new high.
Due to greater gold and copper prices as well as decreased operating costs, this is 55 per cent higher than the previous financial year.
Newcrest's gold revenue increased by 9% despite somewhat lower gold production, while its copper revenue increased by 46% and its silver revenue increased by 63%. However, its operating costs decreased 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.
The company's shareholders will benefit from the windfall, with a payout per share of US$0.40 (K1.40) — a 129 per cent increase over last year's dividend.
During this time, Newcrest's gold mine on Lihir Island in New Ireland Province produced 737,000 ounces of gold and 38,000 ounces of silver, accounting for about 35% of the PNGX and ASX-listed company's global production for the year.
The mine brought in US$1.425 billion (K5.02 billion) in sales, accounting for around 31% of the company's total revenue for the year.
While the firm claims incidences of COVID-19 on Lihir Island are at "low levels," it is maintaining "extensive contact tracing and isolation protocols," and charter flights to the island are limited.
Reference: Pacific Mining Watch (31 August 2021). “Newcrest Records K4.07 Billion in Profit”.
