Profit hit by quake

NEWCREST Mining has posted a lower-than-expected full-year profit after an earthquake affected production earlier in the year, but the gold miner is promising higher payouts to shareholders in future.

Newcrest’s net profit for the year to June of $US308 million (A$390 million), is a 7 per cent decline from a year earlier.

Revenue rose 6 per cent to $4.4 billion.

Underlying profit, which strips out the effect of significant items, rose 22 per cent to $500 million but was still short of market expectations of about $571 million.

Newcrest in July outlined a 2.4 per cent drop in full-year gold production to 2.38 million ounces, after operations at Cadia in NSW — its biggest and lowest-cost mine — were hit by a magnitude 4.3 earthquake in early April.

Production has partly resumed at Cadia, with repair works due to be completed this quarter. Newcrest shares closed down 1.1 per cent to $21.62.