REPORTING SEASON: Newcrest Mining (NCM)

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Figure 1: Newcrest Mining Ltd 12 month chart

Newcrest Mining (NCM) is involved with exploration, mine stgelopment, operations and the sale of gold and copper concentrate.

The miner reported an underlying profit for the six months ended 31 December 2013 of $207 million compared to the prior corresponding period of $323 million.

A 26% increase in gold sales volume was offset by a 13% reduction in the average realised gold price compared to the same time last year.

This impacted cash flow from operating activities which fell by $200 million to $228 million.

Gold producti on over the period increased by 27% to 1,207,697 ounces At the same time the total cost of producing an ounce of gold fell by 18% to A$1,003 per ounce.

Increased production was primarily the result of the commencement of commercial production at Cadia East and completion of the Lihir plant expansion in early calendar 2013.

Capital expenditure for the six month period to the end of December 2013 was $419 million, a reduction of 66% or $822 million.

The reduction in capital expenditure primarily reflects the completion of Newcrest’s two major expansion projects at Cadia Valley and Lihir, the completion of major production stripping activity at Telfer and Bonikron and lower sustaining capital expenditure in the current period.

No dividend was declared for the period.

 

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Tom Piotrowski, Market Analyst,