Western Australia's gold miners have dodged a proposed increase to gold royalties which would have cost the industry hundreds of millions of dollars.
The State's Liberal opposition has agreed to block the Labour government's plan to increase the gold royalty rate from 2.5% to 3.7%.
The Newcrest Mining (ASX: NCM) share price has been dropping since the State Government announced its budget plan in September, despite recent increases on the back of the rising price of gold.
Newcrest, with a market cap of $16.7 billion and operator of the Telfer gold and copper mines in north Western Australia, saw its shares drop from $23.49 on September 6 to close on Tuesday at $21.99.
Similarly, the share price of Regis Resources (ASX: RRL), which has gold mining interests in Western Australia, dropped from $4.30 in early September to close on Tuesday at $3.87.
And the operator of the Frog's Leg and White Foil mines in West Australia, Evolution Mining Limited (ASX: EVN), saw its share price drop from $2.66 to $2.28 over that period.
If successful, the royalty hike was to be implemented from January.
It was part of State Government's plan to address a projected deficit of $2.3 billion this financial year.
But gold miners were fiercely opposed, claiming it would damage the industry.
The price of gold has risen over the past week as global tensions increased amid reports of North Korea planning to launch another missile.
Although, it's likely the rising price of gold was tempered as traders bet on a US rate hike in December.
Amid the conflicting data and its impact on the gold price, analysts have demonstrated mixed feelings about the Newcrest share price.
A 12-month price target for Newcrest shares can range from below $14 to above $30.
