Newcrest Mining cuts dividend, posts profit drop amid lower output

Cadia mine in Australia is one of the lowest cost gold producers. Credit: Newcrest Mining.

Newcrest Mining on Friday reported a nearly 25% slide in full-year profit and halved its dividend from a year ago, hit by rising costs and lower output at its Lihir and Cadia mines.

The country’s biggest gold miner said underlying profit came in at $872 million for the year ended June 30 compared with $1.16 billion a year earlier, but above analysts’ estimate of $861.2 million, according to Refinitiv data.

The company’s first-half profit had nearly halved due to lower output following maintenance activity at its Lihir project in Papua New Guinea and Cadia mine in New South Wales, which continued into the second half.

The Melbourne-based company declared a final dividend of 20 Australian cents per share, compared with 40 Australian cents paid a year earlier.

Newcrest incurred a higher all-in sustaining cost (AISC) of $1,043 for every ounce of gold it produced in fiscal 2022, compared with $911 per ounce a year earlier.

It said robust copper prices, helped partly offset the impact from higher shipping and labour costs, and acute inflationary pressures globally.

Newcrest expects to produce between 2.1 million ounces (oz) and 2.4 million oz of gold in fiscal 2023, higher than 2 million oz reported at 2022-end, it said.

(By Upasana Singh and Savyata Mishra; Editing by Shailesh Kuber)

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