Newcrest share price on watch amid results and takeover rejection

Newcrest saw both gold and copper production ramp up during the first half of the 2023 financial year, and management believes the company is worth more than Newmont is offering.

| More on:
Woman looking at her smartphone and analysing share price.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Newcrest Mining Ltd (ASX: NCM) share price is on watch this morning.

This comes after the S&P/ASX 200 Index (ASX: XJO) gold miner rejected the takeover offer from US gold giant Newmont and released its half-year results for the six months ending 31 December.

First, the takeover offer…

Newcrest share price in focus as takeover offer rebuffed

On 6 February, the Newcrest share price leapt 14% following news of Newmont's conditional, non-binding, and indicative proposal to acquire 100% of Newcrest by way of a scheme of arrangement.

Newmont offered 0.380 Newmont shares for each Newcrest share held.

At that time, the offer represented a 22% upside to the Newcrest share price.

Today the Newcrest board announced it had unanimously rejected the offer, saying it doesn't "represent sufficient value" for Newcrest shareholders.

The board said it considers "Newcrest to be uniquely positioned with a portfolio of long-life Tier 1 gold and copper assets, with increasing copper exposure and a high-quality development pipeline".

Management said they're happy to consider an improved proposal from Newmont but stressed there's no certainty one will be forthcoming.

What did the ASX 200 gold miner report for the half year

The Newcrest share prise is also on watch today after the ASX 200 gold miner reported its half-year results (1H FY23).

Highlights include:

  • Gold production of 1.04 million ounces, up 25% from 1H FY22
  • Copper production of 67,023 tonnes, up 32%
  • Revenue of $2.12 billion, up 24%
  • Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $919 million, up 24%
  • Statutory and underlying profit of $293 million, down 2% from 1H FY22
  • All-In Sustaining Cost (AISC) of $1,089 per ounce, delivering an AISC margin of $585/oz
  • Interim dividend of US 15 cents per share (cps) and special dividend of US 20 cps, both fully franked

What did management say

Commenting on the results that have the Newcrest share price on watch this morning, CEO Sherry Duhe said:

We made significant progress on the execution of our growth strategy during the first half. We were very pleased to progress the Cadia PC1-2 and Lihir Phase 14A studies to execution, as well as completing the two-stage plant expansion at Cadia and further extending the mine life at Telfer.

Our global gold and copper portfolio is well placed for the future, with our transformation program delivering excellent progress at Brucejack, activities underway to maximise the value of our Red Chris and Havieron projects, and ongoing exploration success highlighting the potential for significant resource growth across our key target areas.

Should you invest $1,000 in Fortescue Metals Group right now?

Before you buy Fortescue Metals Group shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Fortescue Metals Group wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Earnings Results

Up 78% since April, why is the Webjet share price taking off again today?

Webjet shares have soared 78% since 4 April and are lifting off again today. But why?

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Industrials Shares

Guess which ASX 200 stock is crashing 24% on results day

Investors were not impressed with this result. But why?

Read more »

A man in full American NFL playing kit crouches over with his arms across his chest in a defensive stance against a dark background.
Technology Shares

ASX 300 tech stock charges 7% higher to record high on stellar results

This tech stock delivered another impressive result this morning.

Read more »

a group of people sit around a computer in an office environment.
Earnings Results

Guess which ASX 200 tech stock is rocketing 12% on record results

Another half, another record result from this high-quality company.

Read more »

A young man sitting at an outside table uses a card to pay for his online shopping.
Consumer Staples & Discretionary Shares

Why is the Kogan share price crashing 12%?

Profits are down at this ecommerce company during the second half.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Resources Shares

Guess which ASX 200 mining stock is sinking 7% following its quarterly update

Let's see how this miner performed during the third quarter.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

Up 50% in a year, are Xero shares a buy after Thursday's earnings results?

ASX investors reacted positively to Xero’s full-year earnings results on Thursday. Now what?

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Earnings Results

Xero share price higher despite FY25 earnings miss

The cloud accounting platform provider reported strong top line growth but its earnings fell short of expectations.

Read more »