By Barry FitzGerald
THE well-signalled stepping down of Ian Smith as chief executive of Newcrest has overshadowed the bumper $523.1 million December half profit reported by Australia's biggest gold producer.
The profit was a 96 per cent increase on the $266.6 million previously and reflected the benefits of higher gold and copper prices, and the group's acquisition in August of its long-time rival, Lihir Gold.
The interim dividend has been doubled to an unfranked 10¢ a share. It is payable on April 15.
The chairman, Don Mercer, said that with the transformation of Newcrest into a can-do company under Mr Smith over the past five years, there was a ''natural transition point in the leadership of the company''.
He said that during Mr Smith's leadership, Newcrest had developed a ''pipeline'' of growth opportunities ''you can't jump over''.
Mr Smith's exit plan became public last month when he said the worst thing a chief executive could do was stay on too long. Since joining Newcrest in July 2006 the former WMC Resources and Rio Tinto executive has been pivotal to ridding the company of its hedge book concerns and finally getting the flagship Telfer gold/copper mine in Western Australia on an even keel.
Then there was the seamless acquisition of Lihir and Mr Smith's focus on a ''no surprises'' approach to informing the market. While the march in gold prices to near record levels is the biggest factor, the rise in Newcrest's value from $US4.5 billion to $US29 billion during his reign reflects in part the market's high-rating of him.
Some have suggested Rio and BHP Billiton could do worse than appoint him to their boards.
Mr Smith said he believed the timing of his departure was ''natural''. Newcrest does not want to sever ties with him. He continues as chief executive until July 1 and will be employed in an advisory capacity until the end of the year.
The company also intends to invite him to join the board as a non-executive director after a ''reasonable period of separation''.
His replacement is a former BHP Billiton and Merrill Lynch executive, Greg Robinson, now Newcrest's executive director of finance.
Mr Robinson has been with Newcrest since 2006 and his elevation was widely tipped. His base salary will be $2 million, with both short-term incentives (up to 120 per cent of the base) and long-term incentives (100 per cent of base).