Officials at top Australian gold miner Newcrest Mining have reported that after a $6.1-billion write-down, underlying profits stood at $412 million in the 12 months through the end of Q2. This is less than 50% of the $900-million profit posted year-on-year.
But after delivery completions culminating in commercial production at Cadia East and Lihir—both in line with expectations of $875 million in undrawn cash—Newcrest representatives expect to be cash flow positive by the end of 2014.
The Q2 2012-Q2 2013 profit discrepancy reflected transitions of lower-than-planned production at Lihir and Gosowong, as well as commodity price declines, according to officials. Nonetheless, the company said operating cash flow will enhance progression of the Cadia East Panel Cave 2 in the 2014 financial year.
In addition to Lihir and Gosowong in Papua New Guinea and Indonesia, Newcrest also owns mines in the Ivory Coast in West Africa and Australia.