Newcrest Mining sees profits soar by 50%

10 February, 2012 The company's half-year net profits reach A$659 million.

One of the largest producers of gold, Newcrest Mining, has seen its first-half profits increase by 50 per cent.

The Australian company saw its revenues hit A$659 million (£445 million) and highlighted the strengthening of the bullion price as the main reason for its surge in profits.

Gold prices currently stand at £1,086.27 and the popularity of the substance has led the mining business to record high profits. Newcrest has seen its sales rise 19 per cent from the previous year's total of A$438 million.

The increase has added to the company's overall value of A$2.34 billion which was also helped by the sale of two mines within the southern hemisphere country for A$55 million and bosses hope the increase continues.

Analysts at Macquarie said: "We believe with production levels forecast to improve over the coming quarters and expansion projects getting closer to completion, the momentum in the stock is to the upside."

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