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Highlights
- Newcrest Mining’s underlying profit surged to $1.16 billion for the year ending 30 June 2021 compared to $647 million in the previous year.
- Robust profits drove Newcrest to declare a final dividend payout of 40 cents per share in 2021 compared with 25 cents in the previous year.
Newcrest Mining Ltd (ASX:NCM), the largest listed gold miner in Australia, reported its record high annual profit on Thursday due to soaring precious metal prices. The pandemic created uncertainty resulted in gold prices rise by over 20% in 2020. As a result, the company fetched $1,796 per ounce of gold sold in fiscal 2021 compared to $1,530 in 2020. Its underlying profit rose to $1.16 billion for the year ending 30 June 2021 compared to $647 million in the previous year.
Robust profits drove Newcrest to declare a final dividend payout of 40 cents per share in 2021 compared to 25 cents in the previous year. However, Newcrest expects a low gold output for fiscal 2022 due to the weakening of production at its Cadia mine.
Rising commodity prices are likely to have windfall for London listed companies as well. Here we take a look at 3 AIM-listed mining stocks to buy.
Eurasia Mining Plc (LON: EUA)
Eurasia Mining is a producer of gold, palladium, rhodium, platinum, and iridium. In August 2021, the company announced the commissioning of three plants at West Kytlim. Earlier, in March 2021, Eurasia Mining entered into an agreement to establish a joint venture with Rosgeo. The JV would produce PGM and battery metals.
For the full year ended 31 December 2020, sales of Eurasia stood at £937,962 compared to £ 1,128,970 in 2019. At the same time, the Group recorded a cash balance of £5,404,101 (2019: £920,013). The Group’s debt primarily comprised lease agreements established to purchase mining machinery totalling £558,614 (no debt on 31 December 2019). As of 4 June 2021, the cash balance of the company rose to $23 million.
The shares of Eurasia Mining are trading at GBX 17.75, up by 0.85% at 8:01 AM, and the market cap of the company stood at £494.91 million as of 19 August 2021.
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Amur Minerals Corp (LON:AMC)
Amur Minerals Corporation is engaged in the exploration of nickel-copper sulphide minerals. In July 2021, Amur Minerals announced the sale of Carlo Holdings Limited, a wholly-owned subsidiary of Amur Minerals, to Hamilton Investments, for a cash consideration of US$6,137,019.
In June 2021, Amur Minerals recorded a 12% rise in JORC-resource estimate at its Kun-Manie nickel-copper sulphide project located in Russia. The total ore tonnage rose by 19.2 million tonnes to 174.3 million tonnes.
The company announced an increase in cash reserve by 600% from US$398,000 (1 January 2020) to US$2,800,000 (31 December 2020).
The shares of Amur Minerals gave year-to-date (YTD) return of 26.94% to shareholders, and the market cap stood at £29.01 million as of 19 August 2021.
Greatland Gold Plc (LON: GGP)
Greatland Gold is engaged in the development and exploration of tier-one gold-copper deposits. In August 2021, Newcrest Mining announced a $182 million JV project with Greatland Gold to shore up long-term production at the Telfer gold mine in Western Australia.
The shares of Greatland Gold have given a return of 35.45% to the shareholders in one year, and the market cap of the stood at £644.06 million as of 19 August 2021.
CONCLUSION:
The surge in metal prices, particularly precious metals led by the pandemic, is driving profits for mining and exploration companies globally. Consequently, the mining companies may share the profits with shareholders in the form of dividend payouts and special dividends.
