Gold miner Newcrest's first-half profit has been halved to $98 million as a result of an earthquake that halted production at its Cadia mine last April.
Newcrest, announcing its results after the close of trading on Thursday, said gold production for the six months to December 31 was down eight per cent to 1.14 million ounces and copper dropped 20 per cent to 39,002 tonnes, with the seismic event at the Cadia mine, in inland NSW, affecting output.
The April 14 earthquake shut down production at Cadia until mid-July, when a partial return to production began, with remediation work and a gradual ramp-up in output affecting the first half of the financial year.
Sales revenue for the half-year was down five per cent at $1.72 billion and free cash flow of $134 million was almost half the previous corresponding period, with the company citing lower copper and gold sales, higher depreciation and adverse currency affects.
The $98 million statutory net profit was weighed down by $12 million in writedowns associated with the Bonikro gold mine.
Newcrest sold its 90 per cent stake in the Cote d'Ivoire operation in December for $81 million.
A further $6 million in writedowns was taken after an adverse tax ruling related to the Gosowong mine in Indonesia.
Newcrest maintained its full-year production guidance at 2.4 to 2.7 million ounces of gold and 80,000 to 90,000 tonnes of copper.
QUAKE HITS NEWCREST HALF YEAR PROFIT
* Net profit down 48 pct to $98m
* Revenue down 5.0pct to $1.72b
* Interim dividend unchanged at 7.5 US cents per share, fully franked
