Newcrest Mining's full year profit is up 23% due to rising gold prices and the company expects gold production to rise in the current financial year.

Newcrest posted a net profit of USD 1.12 billion for the year to June 30th 2012 up from USD 908 million in the previous corresponding period. Revenue of USD 4.4 billion in the year to June was an 8% increase on the previous year's USD 4.1 billion.

Newcrest produced 2.29 million ounces of gold in the year to June a drop of 10% on the previous year. It expected production in the 2012 to 2013 financial year to be in a range of 2.3 million to 2.5 million ounces. Copper production in the year to June of 76,015 tonnes was up 1% on the previous year.

Newcrest said that it expected copper production in 2012 to 2013 to be in the range of 75,000 tonnes to 85,000 tonnes. The statutory profit was a record for Newcrest. Its underlying profit of USD 1.1 billion up 2% from last year was also a record. The difference between the headline and underlying profits related to USD 46 million gained from the sale of two Queensland projects to Evolution Mining during the year.

Newcrest benefited from a higher realized gold price for the year of USD 1,609 per ounce which was 17% or USD 231 per ounce higher than the previous year. Elsewhere, cost of sales increased by nine per cent to USD 2.601 billion its gold sales fell by 6% to 2.3 million ounces and production was down 10%. The company blamed the cost hikes on increased mining activity pushing up the cost of labor fuel and energy and negative currency exchange factors.

Source - Heraldsun.com

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