Newcrest Mining Limited

From IntFX

See also: NCM for realtime information.

Newcrest Mining is engaged in exploration, development and production of gold and copper. The Company primarily focuses on low-cost, long-life and small, high-margin gold and copper mines. Newcrest’s operations include two large long-life sites at Telfer and Cadia Valley, and high-grade epithermal deposits at Cracow and Gosowong.

With strong commitment to exploration and development, the Company has evolved from a domestic gold sector to a international gold and copper producer in the last ten years. The Company has experience in operating large open cut mines and bulk and underground mines.

Since its incorporation, Newcrest has discovered more than 65 million ounces of gold and 5 million tones of copper. The Company’s current mineral resources base includes 55.2 million ounces of gold and 5.65 million tons of copper.

[edit] History

Newcrest Mining Limited was created in 1990 from the merger of Newmont Australia Limited and BHP Gold Limited. Newmont Australia Limited was established in Australia in 1966.

[edit] Strategy

Newcrest focuses on developing large, long life operations, or small high margin projects, which have low operating costs. The Company primarily focuses on gold projects of substantial scale or margin however this has also resulted in a large copper endowment which is becoming an increasingly important element of the Company.

[edit] Financial and operational performance

Newcrest’s revenues increased 21.5% to A$1,706 million in 2007 from A$1,404 million in 2006. During the same period, The Company’s EBITDA declined 2.2% to A$436.1 million and net profit to shareholders from continuing operations declined 45.0% to A$72 million. The Company witnessed reduction in its margins with EBITDA margin declining to 25.6% from 31.8% in 2006 and net profit margin declining to 4.2% from 9.3% in 2006.