Alex Barkley, an analyst at the Royal Bank of Canada, said a number of ongoing environmental issues at Cadia loomed as a “concern for the site” in the 2024 financial year and beyond.

“Environmental issues at Cadia continue,” Barkley said on Tuesday.

“Overall we expect the stock to trade weaker on the soft quarter and lingering questions heading into the release of financial year 2024 guidance.”

In its operational update for the three months to June 30, Newcrest chief executive Sherry Duhe reported quarterly gold production had risen 9 per cent from the prior quarter – a result that was slightly below market expectations, but in line with the company’s targets.

“We were pleased to achieve our financial year 2023 group guidance for gold production and all-in sustaining costs following an improved operational performance in the June quarter,” Duhe said.

Production of copper was 1 per cent lower than the company’s guidance range.

US-based Newmont’s proposed takeover of ASX-listed Newcrest, if it succeeds, would be the biggest in the history of the gold mining industry. It would consolidate Newmont’s position as the world’s largest producer of the precious metal with mines spanning the Americas, Africa, Australia and Papua New Guinea.

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Based in Denver, Colorado, Newmont has mining operations across the globe spanning gold, copper, silver, zinc and lead. It has two major Australian gold mines – Boddington in Western Australia and Tanami in the Northern Territory.

Melbourne-based Newcrest owns gold and copper mines in NSW, Western Australia, PNG and Canada, and holds equity interests in gold assets in Ecuador.

Newcrest on Tuesday reiterated the board’s unanimous recommendation for investors to support the deal, under which Newcrest shareholders will receive 0.4 Newmont shares for each share they hold, implying a value of $29.27 a share.

“The combined group will create a clear global leader in gold production, with increased flexibility in project sequencing and growth optionality, and a market leading position in safety and sustainability,” Duhe said.

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