Newcrest Mining Trimmed Fiscal 2021 Gold Production Forecast

SEATTLE (Scrap Monster): Newcrest Mining- Australia’s biggest gold producer lowered its gold output forecast for fiscal 2021, primarily on account of the ongoing disputes in connection with Papua New Guinea gold project.

The output for the year is predicted to range between 1.95 million ounces and 2.15 million ounces next year. It must be noted that the fiscal 2020 gold production had totalled 2.2 million ounces. The company foresees total capital expenditure of around $1.06 billion and $1.24 billion for 2021, much higher than 2020.

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The full year financial results indicate that statutory profit totalled $647 million, higher by 15% from the prior year. The underlying profit of $750 million was significantly higher by 34%, mainly driven by higher realized gold price. Newcrest Mining reported all-in sustaining cost of $862 per ounce. The company reported operating cash flow of $1.5 billion from an average realized gold price of $1,530 per ounce. The Board of Directors decided that a final fully franked dividend of $17.5 cents per share will be paid on 25^th September, 2020.

The Cadia, Australia gold production of 843,338 ounces edged lower by 8% from the prior period. The gold production from Lihir, Paua New Guinea registered 17% year-on-year decline to 775,978 ounces. The Tefler, Australia gold production too was down by 13% over the previous year to 393,164 ounces.