Gold and copper producer Newcrest Mining Ltd (ASX:NCM) said second-half profit increased more than threefold to the highest level since 2003 thanks to higher prices and production.

Australia's gold mining giant posted a net income of A$380.7 million ($340 million) in the six months to June 30, compared with A$105.7 million the previous period.

Prasad Patkar, who helps manage about $1.6 billion at Platypus Asset Management Pty in Sydney, said the outcome looked solid with a very strong balance sheet.

Newcrest hit a record-level full-year net income of A$556.9 million. The figure is more than double the A$248.1 million the prior year and exceeded analysts' forecasts.

Total cash balance surpassed borrowings by A$216.5 million at the end of June 30, a turnabout from a net debt of A$84.1 million the previous equivalent period, the company said.

Newcrest, which has made a $9.5 billion takeover bid Papua New Guinea-base Lihir Gold Ltd, declared a final unfranked dividend of 20 cents per share.

The Melbourne-based company aims to create the world's fifth-biggest gold company as prices of the bullion looks set for a 10th straight annual advance.

The price of gold sold during 2009/10 averaged at $1252 per ounce, an increase of 7.1 per cent compared with the prior year. The average copper price was up 17.6 per cent to $3.40 per pound. Production cash costs were $US306 per ounce.

Newcrest plans to complete the Lihir deal in mid-September and said gold production this year may climb by as much as 11 percent.

Shares in the company rose 0.9 percent to A$35.02 on the Australian stock exchange at 10.10 a.m.