Newcrest Mining Ltd has posted robust financial results for the full 2023 fiscal year, with increased gold and copper production and a big boost in shareholder returns.
Statutory and underlying profit both stood at US$778 million, while free cash flow rose to US$404 million.
Doubled dividend
The company's strong performance allowed it to double its total dividend for the year, paying out 55 US cents per share, including a final fully franked dividend of 20 US cents.
Newcrest produced 2.1 million ounces of gold and 133,000 tonnes of copper during the year, reflecting an 8% increase in gold and a 10% increase in copper production compared to the previous year.
That said, the company couldn’t escape the same cost pressures faced by everyone in this climate, with its all-in-sustaining cost (AISC) rising by 5% to US$1,093 per ounce, primarily driven by inflation and higher operating overheads.
The company highlighted several key milestones achieved during the year, including the approval of feasibility studies at Cadia and Lihir, as well as the signing of the Wafi-Golpu Framework Memorandum of Understanding (MoU).
The company’s Brucejack transformation program also delivered value, with marked progress on its Red Chris Feasibility Study, which remains on track for completion in the second half of calendar year 2023.
Sustainability ‘strengthened’
The company says it has further strengthened its sustainability efforts, generating its first renewable power from the Rye Park Wind Farm in July 2023 and continuing its transition to electric vehicles across key sites, including Brucejack and Cadia.
Interim CEO Sherry Duhe put it this way: “FY23 has been a transformational year for Newcrest.
“We made significant progress across our growth strategy, and with the potential acquisition by Newmont, our shareholders are set to benefit from increased diversification and flexibility.”
Newcrest's shareholders are expected to vote on the proposed acquisition by Newmont Corporation (NYSE:NEM, TSX:NGT, ASX:NEM, ETR:NMM) soon, with implementation targeted for November.
If approved, the transaction would create one of the world’s largest gold producers.