Big loss for Newcrest
Source:
The National, Wednesday September 18th, 2013
NEWCREST Mining Ltd has reported its largest annual loss ever, with a collapsing gold price pushing total write-downs to A$5.73 billion (K12.3 billion).
Last year’s result for the same period showed a profit of A$1.117 billion.
Disruptions at a handful of Newcrest’s mines has also decimated earnings for the gold miner over the past 12 months.
Annual gold production was down 8% to 2.11 million ounces during the same 12-month period.
Citing cost concerns and the production issues, credit rating agency Moody’s downgraded Newcrest in July.
Key points from Newcrest’s 12-month financial results ended June 30, 2013:
- Asset impairment and asset write-down A$6.23 billion (K13.34 billion) resulting in statutory loss of A$5.78 billion (K12.38 billion);
- Underlying profit A$451 million (K966.3 million);
- Operating cash flow A$707 million (K1.5 billion);
- Major project delivery at Cadia East and Lihir; both operating in line with the Company’s expectations;
- A$958 million (K2 billion) in cash and undrawn, committed bank facilities, and gearing of 29.1%, at 30 June 2013;
- Company expected to be free cash flow positive in FY14 at a gold price of A$1,450 (K3,106.92) per ounce with all capital expenditure, exploration programs and corporate overheads funded from operating cash flow; and
- Each asset is being managed to be free cash flow neutral or positive in FY14 at gold price of A$1,450 (K3,106.92)/oz
The following dividends of the company had been paid:
- Final (15% franked) dividend for the year ended 30 June 2012 of A$0.23 per share, amounting to A$176 million (K377 million), was paid on Oct 19, 2012; and
- Interim unfranked dividend for the year ended June 30, 2013 of A$0.12 per share, amounting to A$92 million (K197 million), was paid on April 16, 2013.