What’s the outlook for Newcrest Mining shares in FY23?

A girl looks through a microscope at money.A girl looks through a microscope at money.

Shares of Newcrest Mining Ltd (ASX: NCM) are rangebound today and trade less than 1% in the red.

At the time of writing, the gold miner is fetching $19.23, following a 17% slip into the red over the past month of trade.

Meanwhile, the price of gold is still bottom-heavy at US$1,722 per ounce.

What’s in store for Newcrest shares?

The gold price has been a challenge for Newcrest in CY2022. It has tumbled from previous highs and now trades at key long-term support levels, as seen below.

Newcrest shares and the gold price tend to track each other closely. Gold has been drifting lower as the opportunity cost of holding the yellow metal increases amid rising yields. Recall, gold pays no interest.

TradingView Chart

Newcrest released its operational update and exploration overview for the June quarter. The company reported sound results, with gold production in line with forecasts, and copper production slightly lower than guidance.

It also reported higher injury rates than the prior period at its Cadia, Telfer and Red Chris operations.

Investors can expect FY23 full-year guidance in Newcrest’s annual report due for presentation on 19 August.

It did note, however, that it is progressing its “exciting pipeline of organic growth projects,” and remains “focused on superior operational performance”.

Meanwhile, 47% of brokers presently advocate buying Newcrest shares, while the remaining 53% is shared to hold, according to Refinitiv Eikon data.

The consensus price target from this list is $25.62, suggesting there could be more upside yet for the miner if this group is correct.

In the last 12 months, Newcrest shares have slipped more than 26% into the red.

The post What’s the outlook for Newcrest Mining shares in FY23? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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.

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