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NCM - Newcrest Mining News Story

A$25.64 0.0  0.1%

Last Trade - 7:10am

Sector
Basic Materials
Size
Large Cap
Market Cap £9.82bn
Enterprise Value £10.97bn
Revenue £3.08bn
Position in Universe 22nd / 1835

UPDATE 1-Newcrest Mining underlying profit rises, boosted by higher realised gold prices

Wed 12th February, 2020 10:21pm
(Adds details on results, background)
    Feb 13 (Reuters) - Australia's Newcrest Mining Ltd  NCM.AX 
posted an 18% rise in underlying half-year profit, getting a
boost from higher realised gold prices and a weaker Australian
dollar.
    Realised gold prices for the six months ended Dec. 31
was$1,446 per ounce, higher than $1,228 a year ago, the company
said in a statement.
    The rise in underlying profit was despite a drop in gold
production for the half-year by 11.7% to about 1.1 million
ounces.
    Last month, Newcrest said production at Cadia could be hit
this year if a drought continues in New South Wales state, while
the bushfires that have scorched Australia have damaged train
lines and associated infrastructure, delaying shipments.
    This comes after a $685 million first-stage expansion of the
mine was given the go-ahead by the board in October. The company
had said the expansion is expected to boost production from the
2023 financial year.  urn:newsml:reuters.com:*:nL3N26Z3V8
    Meanwhile, earlier this week, the Melbourne-based company
said that Papua New Guinea's national court dismissed a stay
order on work relating to the Wafi-Golpu gold-copper project
allowing negotiations to continue.  urn:newsml:reuters.com:*:nL4N2AB0Q9
    The co-owners of the project - Newcrest Mining and Harmony
Gold  HARJ.J  - had been hoping to secure a mining lease over
the major gold and copper deposit early last year, before a
change in PNG's leadership and a shift in minerals policy led to
delays.
    The country's largest listed gold miner also recorded a
marginal drop in statutory profit for the first half, hurt by a
$44 million writedown following the sale of its entire stake in
Gosowong.  urn:newsml:reuters.com:*:nFWN29Z1GK
    Underlying profit for the half-year ended Dec. 31 was $280
million, up from $237 million reported last year. 
    The company also declared an interim dividend of 7.5 cents
per share. 

 (Reporting by Shreya Mariam Job in Bengaluru; Editing by
Bernard Orr)
 ((ShreyaMariam.Job@thomsonreuters.com;))
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