Newcrest Mining has delivered a record full-year profit and is bullish about the continuing strength of the soaring gold price.
Australia’s biggest gold miner also said that it was pressing ahead with a dual listing in Canada, as it seeks a more than 50 per cent increase in production by 2015-16.
The company posted a profit for the 12 months to June 30 of $908 million, up 63 per cent on the previous year.
Underlying profit, which excludes the effect of one-off items, was 36 per cent higher at $1.058 billion.
Newcrest said the results were due to the successful integration of mines acquired through the $10 billion takeover of Lihir Gold last year, increased gold sales, and higher gold prices.
Analysts said the result was in line with expectations.
Chief executive Greg Robinson said Newcrest remained ‘‘very positive’’ on the gold price, which was more than $US1740 a fine ounce.
A year ago, the gold price was about $US1215 per fine ounce.
‘‘The world economic and political issues are supporting a very strong gold price ... in the medium term,’’ Mr Robinson told a teleconference.
Newcrest is targeting full-year production of four million ounces (Moz) within five years.This will be driven by increased output at its Cadia operations in NSW near Orange and Lihir Island mine in Papua New Guinea (PNG).
Production in 2010-11 totalled 2.527 Moz, reflecting the integration of the Lihir assets and increased output from new mines at Ridgeway Deeps in NSW and Hidden Valley in PNG.
Output is forecast to rise to up to 2.925 Moz this financial year.
Mr Robinson said Newcrest planned to spend as much as $9 billion on new and existing projects until 2015-16.
He said Newcrest was focused on expanding its largest assets and had accordingly reduced its expectations for Hidden Valley and the Telfer mine in Western Australia due to labour and energy cost pressures.
Beyond 2015-16, production growth will be underpinned by the Wafi-Golpu joint venture with South Africa’s Harmony Gold Mining Company in PNG.
Stock Resource managing director Grant Craighead said that Wafi-Golpu had some logistical and technical challenges ‘‘but once it gets going, it will be huge’’.
Mr Robinson said Newcrest was willing to buy Harmony’s stake if its joint venture partner wanted to sell but no talks had been held on the matter.
He said Newcrest expected to complete a dual listing on the Toronto Stock Exchange (TSX) within the next six months.
Lihir Gold had been listed on the Toronto bourse, which was a key destination for Australian miners and explorers during the 2007 boom.
Mr Robinson said the TSX listing would broaden Newcrest’s shareholder base and provide appeal to US and European investors.
‘‘It’s putting ourselves in the major gold market of North America against our competitors more directly,’’ he told reporters.
The TSX is home to the world’s largest pure-play gold miner, Barrick Gold Corporation.
Newcrest declared a final unfranked dividend of 20 cents per share and a special unfranked dividend of 20 cents per share.
Added to the February interim dividend of 10 cents per share, the total dividend for the year is 50 cents.
This represents double the total dividend paid last financial year.
‘‘In the 2013 year, we have an expectation that we will start to frank our dividends as our tax losses roll off,’’ Mr Robinson said.
Newcrest's shares lost 33 cents, or 0.8 per cent, to $40.40.
AAP