Newcrest Mining Limited

Newcrest reported FY2023 underlying profit of $778 million, free cash flow of $404 million, and all-in sustaining cost of $1,093 per ounce, implying a healthy margin of $680 per ounce. Gold production was 2.1 million ounces and copper production was 133,000 tonnes; the company also said injuries fell 26% year over year. Dan O'Connell said the balance sheet remains in excellent shape, with leverage at 0.7x, gearing at 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 capex expected to be slightly higher than FY2023.

Sherry Duhe framed FY2023 as a transformational year, emphasizing major execution milestones across Cadia, Lihir, Red Chris and Wafi-Golpu, along with a strong safety and sustainability focus. She repeatedly stressed that the business will keep running normally until the transaction closes, while the board remains unanimously supportive of the Newmont deal absent a superior proposal. Her tone was confident but disciplined, with a clear message that the team is still focused on operating performance, approvals, and shareholder value.

Dan O'Connell highlighted the strength of the financial results despite operational disruptions at Lihir, Brucejack and Telfer, citing $778 million of underlying profit, $404 million of free cash flow, and $1,093 per ounce AISC. He noted nearly $660 million of spend on major capital projects and exploration, plus $173 million received from Lundin Gold in January and $480 million of cash flows from the FDN financing facilities. He also pointed to a strong balance sheet with leverage of 0.7x, gearing of 11.1%, coverage of $2.3 billion, and investment-grade credit rating, while flagging FY2024 capex slightly above FY2023 and group-level production guidance.

Analysts focused on why FY2024 guidance was only provided at group level, and management said this was due to the pending Newmont transaction and the short timetable before the expected October vote and November completion. Questions also covered Cadia ramp-up and stockpile sufficiency, Lihir recovery after weather impacts, and the timing of Red Chris feasibility decisions; management said Cadia has added scrubbers and expects to ramp back while staying compliant, and that Lihir’s underlying improvement remains on track despite heavy rain. On deal approvals, management said PNG and Canadian approvals are in hand, U.S. HSR filings are not required, and FIRB plus a few other country approvals remain outstanding but are not expected to be material issues.