Newcrest Mining Reports 84.7% Net Profit Growth

Strategic Insights -

Newcrest Mining Ltd. achieved a substantial increase in its full-year net profit, rising 84.7% to A$248.1 million in the fiscal year 2009. This significant growth was largely driven by a soaring gold price, despite weaker copper prices. The Melbourne-based miner also announced a 7% increase in revenue to A$2.53 billion and a final dividend of 15 Australian cents a share, up from 10 cents in the previous year.

Key Takeaways:

  • Newcrest Mining's full-year net profit rose 84.7% to A$248.1 million, surpassing market consensus of A$470 million.
  • Underlying net profit fell 2.2% to A$483.1 million, while revenue increased 7% to A$2.53 billion.
  • The company's gold production is expected to rise to between 1.81 million and 1.91 million ounces, while copper output is anticipated to fall to between 83,000 and 87,000 metric tons.
  • Newcrest's total gold resource increased 13% to 80 million ounces, and copper resource rose 56% to 14.36 million tons.
  • The miner's final dividend increased to 15 Australian cents a share, up from 10 cents in the previous year.
  • The increases in gold and copper resources were primarily due to new discoveries at Cadia East in Australia and Waisoi in Fiji.

Statistics:

  • Net profit increase: 84.7%
  • Net profit (A$): 248.1 million
  • Underlying net profit decrease: 2.2%
  • Revenue increase: 7%
  • Revenue (A$): 2.53 billion
  • Gold production (expected): 1.81 million - 1.91 million ounces
  • Copper output (expected): 83,000 - 87,000 metric tons
  • Gold resource increase: 13%
  • Copper resource increase: 56%
  • Gold resource (A$): 80 million ounces
  • Copper resource (metric tons): 14.36 million
  • Final dividend (A$ per share): 15 cents

Sources:

  • Dow Jones Commodities News via Comtex
  • Dow Jones Newswires; Alex Wilson