Firm’s financial position improves

 NEWCREST’s overall financial performance was a major improvement compared with recent years, PNG country manager Peter Aitsi says. 

The company’s underlying profit was A$15 million (K31m), A$83 million (K169m) higher than the corresponding period representing a 19 per cent increase.

“Newcrest’s overall operating and financial performance was a major improvement compared to recent years, however two fatalities at Hidden Valley and one at our Telfer operations in Western Australia overshadowed that positive outcome,” Aitsi said in a statement.  

“While both Lihir (New Ireland) and Hidden Valley (Morobe) achieved their annual production targets, operating costs at both sites are still too high. 

“With the gold price remaining low, our priority is on reducing costs to safely maximise cash flow. 

“At Hidden Valley this means a reduction in open pit pre-stripping in the short term to remain cash flow positive in the current gold price environment. 

“At Lihir we are working hard to improve the performance of the processing plant and reduce overall site costs.

“We continue to progress studies on Golpu with a feasibility study for stage one of the project expected by December 2015.”