Firm’s operation improving


NEWCREST says it continues to realise operational improvement in the business through the Group-wide programme known as Edge.
It focuses on safe production and processes, cash generation and profitable growth.
The company said in its 2016 annual report that the results were most evident in the improved operational performance at Lihir during the year, and cost reductions and efficiency gains across the group.
Newcrest has operations in Australia, Papua New Guinea, Fiji, Indonesia and West Africa.
“These operational improvements have reduced the adverse impacts of lower commodity prices and higher depreciation charges in the current period,” the report said.
It said statutory profit of US$332 million (K102 million) was US$44 million (K137 million) lower than the prior period.
“The current period’s statutory profit included significant items with a net benefit of US$9 million, K28 million) comprising a US$18 million (K56 million profit on sale of a financial asset partially offset by a US$9 million net expense associated with the settlement and costs of a shareholder class action.”
It said underlying profit in the current period of US$323 million (K1006.10 million) was US$101 million (K314.6 million lower than the prior period primarily reflecting lower realised US dollar gold and copper prices, the suspension of operations at Gosowong (Indonesia) following a geotechnical event in February 2016, higher depreciation and lower copper volumes from Cadia (Australia) and Telfer (Australia).
It has a proud history of exploration, discovery, development and operation of gold mines and is listed on the Australian Stock Exchange.

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