Newcrest reports 17% increase in revenue for 2021 Australian financial year

Newcrest Mining boss Sandeep Biswas has attributed the firm’s strong 2021 financial performance to high gold and copper prices, along with its low all-in sustaining costs of production.

Australia’s largest gold producer released its latest annual financial results today, with total revenue rising by 17% to just short of US$4.6 billion, compared to $3.9 billion over the 2020 financial year.

Gold sales contributed $3.58 billion to Newcrest’s bottom line, while copper revenue came in at just over $1.1 billion and silver sales brought in $26 million.

Total EBITDA increased by 33% to $1.77 billion, with earnings per share up 71% on the previous financial year to US$1.425. The result was a 55% increase in year-on-year underlying profit to $1.16 billion.

On the back of these positive figures, Newcrest increased its final dividend to 40 cents per share, taking its total shareholder pay out to a record $450 million for the 2021 financial year.

However, Newcrest’s total gold production decreased for the second year in a row, with 2.09 million ounces produced over the past year, compared to 2.171 million ounces in 2020 and 2.487 million ounces in 2019 when its flagship Cadia mine in New South Wales hit peak production.

The company’s development pipeline includes Western Australia’s Havieron, Canada’s Red Chris and Papua New Guinea’s Wafi-Golpu assets, although none will be producing gold in the next two years.

Following Newcrest’s secondary listing on the Toronto Stock Exchange last October, managing director and CEO Biswas said the listing provides an extra funding mechanism.

“It is behaving as expected, which is very low turnover and liquidity,” he said. “That gives us the ability to expand our presence in the market perspective when the time comes.”

@RGNonline