The Newcrest Mining Ltd (ASX: NCM) share price opened 0.45% higher on Tuesday at $26.60 after the gold miner released its Q4 FY23 report.
Newcrest also released a detailed quarterly exploratory report.
Let's check out the details.
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Newcrest share price lifts as FY23 gold guidance met
Here are the highlights of the Q4 FY23 report:
- FY23 gold production and all-in sustaining costs (AISC) guidance achieved
- Gold production of 556 koz in Q4, resulting in FY23 gold production of 2.1 Moz — 9% higher than the prior period
- Copper production of 35 kt in Q4, resulting in FY23 copper production of 133kt — 1% below the guidance range
- Q4 AISC of US$1,196/oz — 20% higher than the prior period due to higher capital expenditure and a lower realised copper price — delivering an AISC margin of US$706/oz
- FY23 AISC of US$1,094/oz, delivering an AISC margin of US$678/oz
What else happened during the quarter?
Newcrest said it advanced "multiple gold and copper growth options" during the quarter.
This included signing the Wafi-Golpu Framework memorandum of understanding, with all parties working to progress the mining development contract.
The Red Chris Block Cave feasibility study is on track for completion in H2 CY23.
The Brucejack transformation program "continued to progress multiple value enhancing opportunities" and strong drilling results at Red Chris and Brucejack indicated further upside potential.
Of course, the big news during the quarter was the binding agreement for United States gold miner Newmont Corporation (NYSE: NEM) to acquire 100% of the issued shares of Newcrest.
Investors appeared happy with the deal amid the Newcrest share price rising 1.5% on the day of the announcement in May.
The takeover offer is subject to shareholder approval on both sides. The Newcrest board unanimously recommends that shareholders vote in favour of the deal.
Newcrest said the takeover would "establish a clear global leader in gold production by combining two of the world's largest producers, with a significant and growing exposure to copper".
Newcrest is not the only ASX mining company looking to grow its copper exposure. The red metal is expected to play a pivotal role in global decarbonisation.
If the Newmont takeover goes ahead, Newcrest will pay a pre-completion franked special dividend of up to US$1.10 per share.
On completion, Newcrest shareholders will hold a 31% ownership of the combined group.
What did management say?
Newcrest interim CEO Sherry Duhe, said:
We were pleased to achieve our FY23 Group guidance for gold production and All-In Sustaining Costs following an improved operational performance in the June quarter.
We also made further progress on our growth strategy, with the Wafi-Golpu Framework MOU signed in early April, marking a pivotal milestone towards development of this world class copper-gold deposit.
Newcrest share price snapshot
The Newcrest share price has ascended 27% in 2023, helped by a rising gold price to near-record levels.
Gold is trading for US$1954 per ounce this morning, down 0.3% for the session but up 13.7% over the past 12 months.
