Deep sea mining puts $560 billion in land extraction at risk — report
Even in optimal scenarios, the activity would generate only $6.25 million in tax revenue for countries involved, says Planet Tracker.
Australia’s Newcrest Mining Ltd, which has received a A$26.2 billion takeover offer from Newmont Corp, posted a near 11% fall in annual profit on Friday, hurt by lower realized prices for copper and a rise in operating and finance costs.
The country’s largest listed gold miner said its underlying profit was $778 million for the year ended June 30, compared with $872 million a year earlier and analysts’ estimates of $689.7 million, according to Refinitiv data.
Newcrest expects its 2024 gold production to be in the range of 2.0 million to 2.3 million ounces. The lower end of the guidance is below the 2023 fiscal year’s production of 2.1 million ounces.
Shares of the Melbourne-headquartered miner were down 0.4% after rising nearly 0.2% in early trade.
Newcrest said it expected the scheme meeting with Newmont would be held in October, with implementation targeted for November 2023.
If Newmont assumes the management control of Newcrest, the guidance will not apply, it added.
“Shareholders are currently not looking at Newcrest’s results but towards its deal with Newmont,” said Henry Jennings, senior analyst and portfolio manager at Marcustoday Financial Newsletter.
“(Shareholders) are happy as long as Newcrest continues with the scheme and the merger, and the guidance or results doesn’t freak them out completely.”
Newcrest’s all-in sustaining cost, a key industry metric that reflects total expenses associated with production, was $1,093 per ounce for the 2023 fiscal year, compared with $1,043 per ounce a year earlier.
The company also declared a final dividend of 20 cents per share, same as last year.
(By Nausheen Thusoo and Himanshi Akhand; Editing by Shilpi Majumdar and Subhranshu Sahu)
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