Sandeep Biswas, Managing Director/CEO Newcrest Mining Limited (ASX:NCM) said he was not satisfied with the current company performance and has initiated a company-wide improvement program. He was speaking at the Denver Gold Forum in Denver, Colorado.
Australia-based Newcrest Mining had a statutory loss of $2.2B AU after a post-tax asset impairments of $2.4B AU. Its EBITDA was $1.514M AU (37% margin) and EBIT of $821M AU (20% margin). Newcrest had an underlying profit of $432M AU, Biswas said. It has operations in Australia, Southeast Asia and West Africa.
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The company’s cash flow from operating activities was $1,037M on an investment expenditure of $904M, with a group free cash flow of $133M AU, Biswas said.
Biswas said gold production was up 14% on a year-to-year basis to 2.4 Moz., with copper production increasing 7% to 86kt. The company was 24% lower on all-in sustaining costs of $976 oz. AU.
The company’s focus for 2014 is removing high-cost production, reducing exploration and capital expenditure, and reducing operating costs. Capital and exploration expenditure was $1.7B AU lower than FY 2013, Biswas said, and headcount was reduced 15% in its permanent workforce, with contractor/project hires down 45%.
For 2015, three key areas were highlighted by Biswas: operating discipline, cash focus, and profitable growth. The goal is creating a culture of accountability and personal ownership, generating a higher return on invested capital, and reducing overall debt, return to paying dividends, and progress growth opportunities, Biswas said.
The company expects to be free cash flow positive in fiscal year 2015, Biswas said.
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