14 Aug Australia’s biggest gold miner Newcrest makes 22% FY profit jump
Newcrest Mining (ASX:NCM) has revealed a new dividend policy after seeing its underlying profit shoot up 22% to US$394 million in its full year (FY) financial report for 2016-17.
The Australian gold miner declared a final dividend of 7.5 cents per share for a FY dividend of 15 cents, and also confirmed it would pay out at least 10-30% of that financial year’s free cash flow.
The decision to further reward its shareholders came even though Newcrest’s profit fell below analyst forecasts, with the consensus average for underlying profit around the $438 million mark.
Overall gold production was impacted by an earthquake which hit Newcrest’s Cadia operations in April, the companies biggest and lowest-cost mine, in New South Wales. Consequently, FY gold production dropped by 2.4% to 2.38 million.
However, the company was still able to record a free cash flow of $739 million, and reduced net debt by 29% to $1.5 billion.
“All operations contributed to the free cash flow generation of the group, which has been applied to both further reducing net debt and strengthening the balance sheet as well as increasing dividends to shareholders,” said managing director, Sandeep Biswas.