Australia’s Newcrest Mining Ltd reported a 46% fall in first-half profit on Thursday, as output declined at its Lihir and Cadia mines following maintenance activity.
The company earned less for the gold it produced and was also hit with higher labour and freight costs due to a tight sea freight market.
Newcrest’s Lihir project in Papua New Guinea was affected by heavy rains and major maintenance activity, while production at its flagship Cadia project in Australia was impacted by the planned upgrade of a mill motor.
The miner reported an underlying profit of $298 million for the six months ended Dec. 31, compared with $553 million a year earlier.
Newcrest declared an interim dividend of 7.5 cents per share, down from 15 cents per share a year earlier.
The company said it expects pandemic-related costs between $50 million and $60 million for the full year, compared with its previous forecast of $35 million to $45 million. Newcrest reiterated its annual production outlook.
(By Harshita Swaminathan and Yamini C S; Editing by Shounak Dasgupta)
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