Australia’s largest gold miner Newcrest Mining has made a $2.2 billion full year net loss on the back of previously flagged write-downs.

The result includes $2.4 billion in asset impairments, the bulk of which is related to its Lihir operations in Papua New Guinea.

It is an improvement on last year’s $5.8 billion loss.

The company is predicting a better fiscal 2015, in which it will be cash flow positive with an average predicted gold price of $US1,250 an ounce.

Newcrest said last month it expected to announce write-downs of $1.5 billion to $2.5 billion at Lihir, its Telfer mine in Western Australia, Bonriko mine in Ivory Coast and Hidden Valley in PNG.

The company’s operating performance improved in fiscal 2014, with progress in productivity improvements and cost reductions, said Newcrest chief executive Officer Sandeep Biswas.

All-in costs of $A976 an ounce was 24 per cent lower than 2012-13, he said.

“These initial improvements enabled the company to maintain its underlying profit and profit margins notwithstanding a lower gold price, and deliver free cash flow of $133 million for the year,” he said.

The underlying profit of $432 million compared to $446 million in 2012/13.

No dividend has been declared for shareholders.

Newcrest is forecasting gold production of 2.2 to 2.4 million ounces in fiscal 2015, compared to 2.4 million in fiscal 2014.

Total capital expenditure is expected to be $660 to $740 million and exploration expenditure is expected to be $60 to $70 million.