(Bloomberg) -- Newcrest Mining Ltd., Australia’s biggest gold producer, posted a 11% decline in full-year earnings as it prepares to be acquired by sector leader Newmont Corp. in the industry’s largest ever deal.
Underlying profit fell to $778 million in the year to June 30 on higher costs, weaker copper prices and the impact of higher interest rates, the company said Friday in a statement. The result beat an average analyst estimate of $702 million, according to forecasts compiled by Bloomberg.
The producer will pay a final dividend of 20 cents a share, bringing the total for the fiscal year to 55 cents. “This is equal to the highest total annual dividend Newcrest has ever determined,” Interim Chief Executive Officer Sherry Duhe said in a statement.
Newcrest earlier this year agreed to a $19 billion takeover offer which will see Newmont consolidate its position as the world’s biggest bullion producer with mines across the Americas, Africa, Australia and Papua New Guinea. The firms are continuing to target implementation of the deal by November, the Melbourne-based producer said.
Read more: Newcrest Leftovers Don’t Appeal to Australia’s Top Gold Miners
“The combined company will set a new benchmark in gold production,” Duhe said. The new producer will have “increased diversification across a premier portfolio of gold and copper assets, as well as additional flexibility in project sequencing and growth optionality,” she said.
Newcrest saw gold output jump 8% to 2.1 million ounces in the fiscal year as copper production rose 10%, the supplier said. All-in sustaining costs, a measure that includes spending on production, administration, capital and exploration, increased 5%.
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