Newcrest Mining Profits Soar

17 August 2010 (Last Updated August 17th, 2010 18:30)

Newcrest Mining's second-half profits climbed more than threefold due to increased prices and production. The company's net income for the six months ended 30 June stood at A$340m, compared with A$105.7m ($94.4m) last year. Underlying profit rose 58% to A$681.9m for the year to Ju

Newcrest Mining's second-half profits climbed more than threefold due to increased prices and production.

The company's net income for the six months ended 30 June stood at A$340m, compared with A$105.7m ($94.4m) last year.

Underlying profit rose 58% to A$681.9m for the year to June 2010 from A$483.1m ($431.9m) a year earlier, bolstered by higher gold prices and volumes and lower costs.

Newcrest's full-year net income has been recorded at A$556.9m ($497.8m), more than doubling from A$248.1m ($221.8) a year earlier.

Newcrest said it expects to produce between 1.85 million and 1.95 million ounces of gold in financial year 2011, up 5-11% from the year just ended.

The company will spend between A$1.32bn ($1.1bn) and A$1.45bn ($1.2bn) this year on capital spending, up 76% from last year, to develop the Cadia East gold and copper mine in the state of New South Wales.