Higher Gold Prices Boosts Fullyear Profit of Newcrest Mining, Shareholders to be Rewarded
Shareholders of Newcrest Mining Ltd are in for good news after the gold miner reported on Monday achieving a $1.12 billion profit for the year to June 30, its second year in a row.
Based on Bloomberg calculations, an underlying profit of $1.08 billion already compares with market consensus for a $1.05 billion profit. While UBS and Merrill Lynch sought $1.06 billion and $1.04 billion, respectively.
Nonetheless, the final dividend of 23 cents will take annual dividend to soar to 35 cents, up 17 per cent, compared to market expectations of 24 cents a share total payment.
This also meant more cash on hand that can be used to finance capital expenditure. Australia's biggest listed goldminer had said it expects to spend $5 billion over the next five years to boost gold output by 1 million ounces.
According to Managing Director Greg Robinson, Newcrest Mining Ltd expects to see production rise to as much as 3.5 million ounces annually by 2017, compared a target of 2.3 million to 2.5 million ounces for fiscal 2013.
Immediately, shares of Newcrest Mining Ltd jumped 82 cents, or 3.4 per cent, in early trade to $25.15.
The world's No.3 gold miner attributed its favourable performance on the high gold price, which likewise pumped revenues to jump 8 per cent to $4.4 billion even as sales volumes dropped by 6 per cent.
The gold price, which reached its record high in September 2011 of just over $US1900 per ounce, was 6.5 per cent higher to the end of June.