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The miner’s ore reserves are climbing, so how is the Newcrest (ASX:NCM) share price responding?

Published 03/03/2022, 11:42 am
Updated 03/03/2022, 12:00 pm
© Reuters.  The miner’s ore reserves are climbing, so how is the Newcrest (ASX:NCM) share price responding?

The Newcrest Mining Ltd (ASX: NCM) share price has been rising in recent weeks amid an increase in gold and copper ore reserves.

Newcrest shares are currently down 0.7% at $25.42. However, they have surged 12% in the past month.

Let’s take a look at what this miner has been reporting lately.

Gold and copper reserves increase The Newcrest share price has gained nearly 8% since market close on 16 February. On 17 February, the company reported its gold ore reserves had soared by 10% to 54 million ounces.

Following a review of all production resources, Newcrest updated its mineral resource and ore reserve estimates for the 12-month period ending 31 December 2021.

Measured and indicated resources increased 7% to 104 million ounces of gold, while copper soared 12% to 19 million tonnes.

Meanwhile, inferred resources surged to 39% to 16 million ounces of gold, while copper surged 50% to 3.5 million tonnes.

The company also revealed its half-year results on 17 February.

In the H1 FY22, Newcrest statutory profit fell 46% on the previous corresponding period, while gold production was down 20%. The company declared a fully franked interim dividend of 7.5 US cents (10.4 AU cents). This will be paid to shareholders on 31 March.

On 28 February, Newcrest advised it had received final approval to acquire the remaining stake in Canadian company Pretivm Resources. Currently, Newcrest currently holds a 4.8% stake in its Canadian counterpart.

Gold prices edging higher The surging gold price could also be having an impact on the Newcrest share price. As my Foolish colleague Bernd Struben reported yesterday, gold prices have been soaring amid inflation concerns and Russia’s invasion of Ukraine.

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The gold price has surged by nearly 7% in a month from $1804.40 on 3 February to US$1928.59 per troy ounce at the time of writing.

Newcrest share price snapshot The Newcrest share price has climbed 4% in the past year, while it is up more than 3% this year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 5.5% over the past year.

Newcrest has a market capitalisation of roughly $20.9 billion based on today’s share price.

The post The miner’s ore reserves are climbing, so how is the Newcrest (ASX:NCM) share price responding? appeared first on The Motley Fool Australia.

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 Bruce Jackson.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2022

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