Financial strength result of operation discipline: Hay


NEWCREST chairman Peter Hay says the improvement in the company’s financial strength is the result of the operation discipline and energy applied by employees in the past two year.
Hay said in the company’s 2016 annual report that significant progress had been made over the past year to strengthen Newcrest’s safety and operational performance and financial position.
Hay said Newcrest operations at Lihir in  New Ireland had generated a free cash-flow before tax in the 2016 financial year.
“These efforts have delivered a statutory profit of US$332 million (K1035.39m) and an underlying profit of US$323m (K 1007.32m) ,” he said.
He said this was achieved against the backdrop of average realised prices for gold and copper being lower than the prior year.
This is despite unplanned interruptions at the Gosowong (Australia) and Cadia (Australia) operations.
He said Newcrest leverage and gearing ratios at the end of the financial year had been within the target ranges specified at the start of the financial year.
“Subject to market and operating conditions, we will continue to use our free cash-flow to reduce net debt to provide greater financial strength, fund profitable growth opportunities and provide returns to our shareholders. Newcrest’s improvement in financial strength is the result of the operational discipline, energy and efforts applied by our employees and contractors.”

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