Newcrest Mining, Australia’s largest-listed gold miner, saw its annual profit drop by 11% due to various factors, including a lower copper price and increased operating costs. In the fiscal year ending June, the company recorded a net profit of $778 million, compared to $872 million the previous year.
The company’s directors have declared a final dividend of 20 U.S. cents per share. This brings the total payout for fiscal 2023 to 55 cents, which is the highest annual dividend ever declared by Newcrest. Sherry Duhe, Interim Chief Executive, made this announcement.
Newcrest’s proposed takeover by Newmont, a U.S.-based company, is expected to be the largest-ever M&A deal in the gold-mining industry. The takeover is scheduled to be completed in November, pending regulatory approvals and endorsement from both Newcrest and Newmont shareholders.
Before the completion of the deal, Newcrest plans to pay a special dividend of $1.10 per share.
In the past fiscal year, Newcrest increased its gold and copper production. However, the company’s profits were affected by the decline in the price of copper, which was 14% lower than the previous year.
Additionally, Newcrest faced inflationary pressures, leading to a 5% increase in its all-in sustaining cost for the fiscal year.
Despite these challenges, Newcrest benefited from the acquisition of the Brucejack mine in 2022 and a higher contribution of low-cost production from its Cadia operation. The weakening of the Australian and Canadian dollars against the U.S. dollar also had a positive impact.
Sherry Duhe stated, “Our balance sheet remains strong and aligns with our financial policy targets as we continue to invest in our organic portfolio of value-generating projects.”