Newcrest records profit

Gold and copper miner Newcrest Mining has announced an 85% increase in its annual profits.

According to the company’s half year financial results for 2009, Newcrest’s net profit for the year ended 30 June was $248.1 million, up from $134.3 million the previous year.

The company’s total revenue rose to $2.53 billion from $2.36 billion in 2008, which Newcrest said was primarily driven by a 28% increase in the realised gold price and an 11% increase in the volume of copper sales.

Newcrest also said lower capital costs were a factor in the profit increase, with cash costs for the year of US$350 per ounce, compared to the recent global average of US$489 per ounce.

The company said it now expects gold production to rise from 1.63 million ounces in 2009 to between 1.81 and 1.91 million ounces in 2010, but copper production to decline to between 83 and 87 thousand tonnes from 89.9 thousand tonnes in 2009.

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