Newcrest Mining Posted Significant Dip in Half-Yearly Profits

SEATTLE (Scrap Monster): Newcrest Mining reported significant fall in first-half profits, primarily on account of reduced output at its Lihir and Cadia mines, following maintenance downtimes.

According to company press release, the production from Lihir mine in Papua New Guinea was impacted by heavy rains and major maintenance activity. Meantime, the production at its flagship Cadia project in Australia was affected by the planned upgrade of one of the mill motors. The earnings for gold produced witnessed sharp decline. The profits were also hit by escalating labour as well as freight costs.

Newcrest Mining reported underlying profit of $298 million for the six-month period ended 31^st December, 2021, upon comparison with $553 million a year before. The cash flows from operating activities halved from $992 million to $423 million. Also, the earnings per diluted share during the six-month period dropped significantly from 67.5 cents to 36.3 cents over the year, it noted.

The company reiterated its production outlook for the full year. It now expects the pandemic-related costs for the full year to range between $50 million and $60 million, compared with the earlier forecast of $35-$45 million.

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