Gold miner Newcrest Mining has reported an 18% interest in underlying profits and a 3% increase in revenue during the six months to December, compared with the previous corresponding period, despite an 12% decline in gold production.
Underlying profits for the interim period reached $280-million, up from the $237-million in the previous corresponding period, while revenue increased from $1.73-billion to $1.79-billion.
While gold production for the half-year declined by 12%, to 1.1-million ounces, the realised gold price increased by 18%, to $1 446/oz, up from $1 228/oz in the first half of 2019.
Free cash flow for the half-year was negative $729-million, but was positive $106-million before the acquisition of Red Chris and the additional investment into TSX-listed Lundin Gold was taken into account.
“The first half of the financial year was one in which we invested for the future. We completed the acquisition of 70% of Red Chris, a mine with a potential tier one orebody in Canada, we increased our investment in Lundin Gold, the owner of Fruta del Norte, a tier one mine in Ecuador, and we delivered some excellent drill results at Havieron and Red Chris,” said Newcrest MD and CEO Sandeep Biswas.