Australian miner Newcrest reports golden profits

Feb 10, 2012, 7:32 GMT

Sydney - Shares in Newcrest Mining Ltd shone brightly Friday after Australia's biggest gold miner reported a 50-per-cent year-on-year lift in first-half profits to a record 659 million Australian dollars (464 million US dollars).

While the weight of its gold sold was only marginally higher, a 20-per-cent lift in the price of the precious metal made the difference to the bottom line for the six months that ended December 31, the Melbourne-based company said.

Newcrest, which operates in four countries, said it averaged a sale price of 1,687 US dollars an ounce over the six-month period.

'Currencies and economic conditions are vulnerable, so I think gold will play its role and prices will remain strong in the medium term,' chief executive Greg Robinson said. 'It will remain volatile, but we think it will remain strong.'

Its stock gained 57 Australian cents Friday to close the week at 43.01 Australian dollars.

Newcrest has four mines in Australia, two in Papua New Guinea and one each in Indonesia and the Ivory Coast.

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