Dollar’s golden pay- off
GOLD miner Newcrest is expected to post its best earnings figures in years after lifting its profit margins thanks to lower production costs and a weaker Australian dollar. The company cut its production costs 4 per cent during the 2014- 15 financial year, while the falling Aussie dollar meant the price received for its gold increased, despite a global slide in the price of the commodity. That pushed the company’s profit margins to $ 533 per ounce of gold, up from $ 432 an ounce the previous year.
IG market strategist Evan Lucas said the company was on track for its best full year result in years, after posting multi- billion dollar full year losses of $ 2.2 billion in 2013- 14 and $ 5.8 billion in 2012- 13.
“On the numbers they’ve shown, they’ve obviously done relatively well,” Mr Lucas said.