The Newcrest Mining Ltd (ASX: NCM) share price is surging on Friday, gaining around 3% despite potentially disappointing dividend news.
As The Motley Fool Australia reported earlier, the company revealed it slashed its final dividend to just 20 US cents this morning – a 50% year-on-year drop.
The Newcrest share price is trading at $19.29% right now, representing a 3.3% gain.
Let's take a squiz at the S&P/ASX 200 Index (ASX: XJO) company's financial year 2022 earnings and dive into the need-to-know details of its latest dividend.
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Newcrest share price up despite 50% cut to dividend
Newcrest shares are taking off today following the release of the company's latest full-year earnings and the revelation of its final dividend.
It posted $972 million of profit for financial year 2022 – a 25% drop on that of financial year 2021. It also disclosed a 16% drop in earnings before interest, tax, depreciation, and amortisation (EBITDA), which came in at around $2 billion, and $4.2 billion of revenue, an 8% drop.
The company's gold production was also down 7% year-on-year at around 1.9 billion ounces, while its copper production fell 15% to 120,650 tonnes.
On the back of those earnings, the company posted a fully franked 20 US cent final dividend for the six months ended 30 June.
That's half of what the company offered investors at the end of financial year 2021. Though, it represents a 14% increase on that of financial year 2020, which came in at 17.5 US cents.
It also sees the company's latest full-year payout come in at 27.5 US cents – down from 55 US cents in the prior corresponding period.
Newcrest's stock will trade ex-dividend on 29 August and its final payout will begin to hit investors' accounts on 29 September.
The actual amount investors will receive in Aussie currency will be revealed on 30 August. Right now, 20 US cents is worth 29 cents Australian.
