UPDATE 1-Newcrest Mining H1 operating profit jumps

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SYDNEY, Feb 19 (Reuters) - Australia's Newcrest Mining Ltd (NCM.AX: Quote, Profile, Research, Stock Buzz) said its first-half profit almost tripled, driven by higher gold and copper prices, though it also warned that costs were higher across the board.

Newcrest said profit after tax for the six months to Dec. 31, stripping out the cost of closing out its gold hedge book, was A$207.9 million ($190.7 million), up from A$73.1 million in the previous corresponding period.

The company reported a loss after tax and minority interests of A$8.1 million, reflecting A$216 million in costs from closing out its hedge positions to give it greater exposure to rising metals prices.

Newcrest in September was forced to dilute its stock and offer A$2 billion in new deeply discounted shares to pay for closing out 4 million ounces of hedge contracts assembled a decade ago when gold was much lower and no one believed prices would rise to current levels.

All of its gold hedging and gold loan contracts were closed out in early October 2007, the company said.

Newcrest continued to warn of rising cost pressures at its giant Telfer gold mine in the Australian outback.

The warning over Telfer, once Australia's largest gold mine which Newcrest has spent more than A$1 billion redeveloping, comes as the company struggles for a clear picture of exactly how much gold it is sitting on at the site in the far west of Australia.

Newcrest, which had already reported an overall 2 percent rise in second-quarter gold production from its five mines versus the previous quarter, expects to yield between 1.81 million and 1.89 million ounces of gold in fiscal 2008.

Soaring bullion prices have helped cushion Newcrest from the impact of higher costs. It said it achieved an average spot price of A$843 per ounce during the half, up 3 percent from A$815 per ounce in the previous year. ($1=A$1.09) (Reporting by James Regan)