However, suspension of operations at Telfer in Western Australia’s Pilbara region resulted in an abnormal loss before tax of $92.8 million due to writedowns to inventory, plan and equipment, mine development, deferred mining and provisions against closure costs.

Newcrest decided to suspend both open cut and underground mining at Telfer in July due to ongoing high costs. Gold production in the June quarter fell to 54,663 ounces and total cash and production costs deteriorated.

But with an income tax credit for the year of $7.1 million, Newcrest finished with a net profit after tax of $5.3 million, against $20.4 million last year, allowing it to pay a 5c fully franked dividend.

The tax credit comprised an expense of $29.2 million relating to pre-abnormal operating profit, a credit due to the Telfer suspension of $33.4 million and a reduction to deferred tax of $2.9 million.

Boding well for the future, Newcrest reserves and resources increased during the year – ore reserves rose 58% to 11 million oz while ore resources rose 30% to 31Moz.

Newcrest shares were down 1c to $4.29 at the time of writing.