Newmont Corporation

TSX: NEM

Market Cap$37,679m

Last Close $47.47

Newmont Corporation is the world’s leading gold company with a world-class portfolio of assets in the Americas, Australia and Africa. It is the only gold producer in the S&P 500 Index and is widely recognised for its ESG practices and as a leader in value creation, safety and mine execution.

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Investment summary

Newmont is the world’s largest gold mining company with a medium-term production target of 6.2–6.8Moz Au plus 1.4–1.6Moz AuE in co- and by-products from attributable reserves of 95.5Moz Au and reserves and resources of 205.8Moz (excluding Agua Rica) in top tier jurisdictions. It aims to distinguish itself via its high ESG standards (eg its climate change report in May), its management strength and experience, its operating model, its capital discipline, its track record of returns (eg a market leading dividend), its methodical approach to project development and its conservatism (eg reserves calculated at US$1,200/oz).

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2020A 11497.0 5537.0 2929.0 265.5 17.9 13.7
2021A 12222.0 5963.0 3366.0 296.4 16.0 162.8
2022E 11793.0 4588.0 2066.0 181.9 26.1 26.1
2023E 11959.0 5318.0 2665.0 208.6 22.8 22.1
Industry outlook

Newmont has a number of sources of organic growth plus three major new projects (Tanami Expansion 2, Ahafo North and Yanacocha Sulphides), albeit a full funds decision on the latter is delayed until H224. Following this, we have updated our FY22 valuation to US$64.30/share (assuming long-term, real cash-flow per share growth of 2% pa, in line with the gold price).

Last updated on 30/11/2022
Content on Newmont Corporation
Newmont Corporation – In line with expectations
Metals & mining | research Flash note | 2 November 2022
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Newmont Corporation – Q3 forecasts refined
Metals & mining | research Update | 14 October 2022
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Newmont Corporation – A high-dividend safe haven
Metals & mining | research Update | 19 July 2022
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Sector
Metals & mining
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Share price graph
Balance sheet
Forecast net cash (US$m) 1742.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 12.2 14.8 (13.6)
Relative* 6.4 11.3 (3.3)
52-week high/low US$85.4/US$37.8
*% relative to local index
Key management
Gregory Boyce Chairman
Nancy Buese EVP and CFO
Tom Palmer President and CEO