Newcrest Mining has lifted full-year underlying profit by 16 per cent thanks to higher gold and copper prices but the miner's statutory result has been hit by writedowns and impairments.
In results released after the close of ASX trading on Wednesday, Newcrest reported a 34 per cent fall in full-year statutory profit to $US202 million ($275 million) for the year to June 30 as a result of $US257 million in significant items.
Sales revenue rose two per cent to $3.56 billion and the company declared a final dividend of 11 US cents, fully franked.
Newcrest’s underlying profit was up $US65 million to $459 million thanks to higher gold and copper prices and earnings before interest, tax, depreciation and amortisation were 11 per cent higher at $1.57 billion.
The group’s gold production for the year was down one per cent to 2.346 million ounces at a realised price of $US1,308 per ounce, up four per cent on the previous year.
Copper production slipped seven per cent to 77,975 tonnes and claimed a realised price of $US3.09 per pound, up 27 per cent.
Newcrest’s statutory result was hit by $US257 million in significant items, including a $US188 million asset impairment at its Telfer gold mine in Western Australia.
The Telfer impairment results from lower ore and higher waste levels than anticipated.
Newcrest also wrote down plant and equipment at its Namosi mine in Fiji and Bonikro mine in Cote d’Ivoire, which was sold in December.
Full-year results were also impacted by an April, 2017 earthquake that affected first-half production at the Cadia gold mine in NSW