Newcrest Mining Posts A $2.2 Billion Loss As Cost Cutting Continues

Loading gold and copper concentrate in Western Australia. Image: Newcrest Mining.

Gold miner Newcrest Mining posted a $2.2 billion net loss for the year to June 30 after asset write downs.

However, Australia’s biggest gold miner is forecasting a better year ahead.

CEO Sandeep Biswas said the company’s improved operating performance shows progress in productivity improvements and cost reductions.

These initial improvements enabled the company to maintain its underlying profit of $432 million and profit margins despite a lower gold price, and deliver free cash flow of $133 million for the year.

“Asset value impairments of $2.4 billion after tax were the major drivers of a statutory loss for the year of $2.2 billion” he said.

The most significant component of the write downs related to Lihir in Papua New Guinea.

“While we have realised some initial operating improvements, I am not satisfied with either the current operating performance or the cash generation of the business,” he said.

“Looking ahead, the company is firmly focused on realising the potential of its assets.

“A company-wide improvement program has been initiated, which includes a major review at Lihir.”

Production this year is expected to be similar to that in financial year 2014.

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