Newcrest delivers strong profits

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Newcrest Mining, the world’s third largest gold miner, has reported a 50 per cent jump in net profit on the back of rising gold prices and higher gold, silver, and copper sales.

Net profit for the company came in at $659 million for the six months to December 31, a big rise on the previous $438 million.

The company recorded a five per cent rise in gold production, six per cent rise in copper, and massive 22 per cent jump in silver production.

It said its two major expansion projects, the $1.9 billion Cadia East upgrade in New South Wales and $1.3 billion plant upgrade in Papua New Guinea remained on schedule and on budget.

The company said the cost of its sales had risen 22 per cent, partially reflecting problems in the wider industry with the skills shortage.

Silver sales were up 26 per cent, copper 8 per cent, and gold 20 per cent.

The results were in line with a wider industry tend of good results, with Newcrest joining BHP Billiton in delivering strong results.

Rio Tinto recorded a 59 per cent slump in profits after diminishing returns in the aluminum sector.

Image: Finders Keepers Gold

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