Newcrest posts $778M profit in FY23; increases gold and copper production
Newcrest, one of the world’s largest gold miners, has reported annual gold production of 2.1 million ounces (up 8% y-o-y) and copper production of 133 thousand tonnes (up 10% y-o-y) for the twelve months ended 30 June 2023 (FY23).
In a press release, Newcrest said it achieved its gold production and all-in sustaining cost (AISC) guidance for FY23, with copper production 1% below the guidance range, driven primarily by lower mill throughput at Cadia and Telfer.
The company added that gold production was 8% higher than the prior period driven by higher production at Cadia, Brucejack and Fruta del Norte (Newcrest has a 32% equity interest in Lundin Gold).
Newcrest said its FY23 underlying profit of $778 million was $94 million lower than the prior period, primarily due to a lower realized copper price, higher depreciation, higher operating costs, a decrease in Newcrest’s share of profits from its associates and an increase in finance costs.
The company also announced a final dividend of 20 cents per share, which exceeds the minimum payout targeted by the company’s dividend policy and brings its total dividends for the 2023 financial year to 55 cents per share.
“This is equal to the highest total annual dividend Newcrest has ever determined, reflecting our ongoing commitment to providing strong shareholder returns,” Newcrest said.
In May 2023, Newcrest entered into a binding scheme implementation deed with Newmont, the world’s largest gold producer, in relation to a proposal for Newmont to acquire 100% of the issued shares in Newcrest by way of a scheme of arrangement.
Under the terms of the Newmont transaction, Newcrest shareholders will be entitled to receive 0.400 Newmont shares for each Newcrest share held. In addition, Newcrest will be permitted to pay a franked special dividend of up to US$1.10 per share on or around the implementation of the scheme of arrangement.
“The transaction will bring forward significant value to Newcrest shareholders through the recognition of our outstanding portfolio of long-life assets, our material and increasing exposure to copper, and our well-established organic growth pipeline. The combined group will create a clear global leader in gold production, with increased flexibility in project sequencing and growth optionality, and a market leading position in safety and sustainability,” the company said.
Newcrest is the largest gold producer listed on the Australian Securities Exchange and one of the world’s largest gold mining companies. Newcrest owns and operates a portfolio of operating mines and exploration projects located in Australia, Canada and Papua New Guinea.
