Gosowong gold ore sets Newcrest back

Lower ore grades at the Gosowong mine in Indonesia and higher operating and administration costs sent Newcrest Mining's profit sharply lower in the December half.

The Melbourne-based gold producer reported net profit after tax for the period of $29 million, down from $36.6 million in the previous corresponding period.

The fall in grade at Gosowong from the super-high levels of the past, along with the suspension of mining at Telfer in Western Australia, resulted in gold sales for the December half falling by 16 per cent to 405,627 ounces. (*)