Ratings agency Moody's has raised its ratings outlook on Newcrest Mining to stable from negative to reflect the company's improved cost profile and credit metrics.
"The improvements in Newcrest's unit costs has strengthened margins and the company's ability to maintain appropriate credit metrics in the weaker gold price environment," Moody's senior credit officer Matthew Moore said.
While the agency's outlook on all of Newcrest's ratings was improved, Moody's maintained its Baa3 issuer rating.
Australia's largest gold miner returned to profit in 2014/15, helped by lower costs, greater gold and copper production and a weaker Australian dollar.
Newcrest made a net profit of $546 million in the year, a turnaround on the $2.2 billion loss made in the prior year after massive asset impairments related to its Lihir mine in Papua New Guinea.
Moody's said it expects Newcrest's financial leverage to remain around 2.5 times earnings before interest, tax, depreciation and amortisation, for the next 12 to 18 months.
The ratings reflect Newcrest's position as a large, low cost, diversified gold miner, with solid gold production volumes and very large reserve base of gold reserves, Moody's said.
Newcrest shares gained 10 cents to $12.65, and have risen by almost 20 per cent since mid-August.
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