Newcrest Mining Limited

FY2023 reported underlying profit was $778 million, free cash flow was $404 million, and all-in sustaining cost was $1,093 per ounce, generating a $680 per ounce margin. The company produced 2.1 million ounces of gold and 133,000 tonnes of copper in FY2023. Management also cited a leverage ratio of 0.7x, gearing of 11.1%, coverage of $2.3 billion, and a low weighted average bond coupon rate of 4.3%. For FY2024, Newcrest expects to produce over 2 million ounces of gold and between 120,000 and 140,000 tonnes of copper, with total capital expenditure slightly higher than FY2023. The final fully franked dividend is $0.20 per share, bringing FY2023 total dividends to $0.55 per share; a franked special dividend of US$1.10 per share is expected prior to implementation of the Newmont transaction.

Sherry Duhe framed FY2023 as a transformational year, pointing to major strategy milestones across Cadia, Lihir, Red Chris, Wafi-Golpu, Brucejack, and Telfer. Her tone was upbeat but disciplined: she repeatedly emphasized safety, sustainability, and continuing to run the business normally until the merger completes. She also highlighted the strategic value of the portfolio and said the Newmont offer recognizes Newcrest’s long-life assets, copper exposure, and growth pipeline.

Dan O'Connell emphasized that the company delivered $778 million of underlying profit and $404 million of free cash flow despite major disruptions, including extreme weather at Lihir, the Brucejack suspension after the fatality, and the Telfer shutdown from Cyclone Aila. He said the balance sheet remains in excellent shape and within policy targets, citing leverage of 0.7x, gearing of 11.1%, and $2.3 billion of coverage, with the next corporate bond repayment not due until 2030 and an average bond coupon of 4.3%. He also noted nearly $660 million of capital spent on growth and exploration, plus $173 million received from Lundin Gold for early prepayment of the gold prepaid credit facility.

Analysts focused heavily on why FY2024 guidance was given only at the group level, and management said that was deliberate because of the pending transaction and near-term timetable. Management also confirmed the special dividend is expected to be franked, but timing and franking remain subject to transaction timing, foreign exchange, and tax matters. On operations, management said Cadia’s ramp-up includes additional scrubbers and stockpiles are adequate, while Lihir’s underlying improvement remains on track despite heavy rain; Red Chris’s feasibility study is targeted for later this calendar year but may be pre- or post-transaction.