Newmont Corporation

US: NEM

$56415.7m market cap

$70.25 last close

Newmont has interests in 14 mines in North America, South America, Australia and West Africa, including eight world-class assets (three within the Nevada Gold Mines jv plus Pueblo Viejo, Penasquito, Ahafo, Boddington and Tanami) and two emerging world-class assets (Merian and Yanacocha).

Investment summary

Notwithstanding COVID-19, Newmont’s underlying Q220 results were nothing if not solid. Unsurprisingly, gold production was down 220koz or 14.9% cf Q120; however, the realised gold price was 8.4% higher, such that sales were down just 8.4% and largely balanced by an 8.9% reduction in costs and expenses (despite an additional US$125m in COVID-19 related care and maintenance costs). Results in Q2 did not have the benefit of a net US$404m in (effectively) exceptional gains in Q1. In addition, the tax rate swung from a net benefit to a 29.8% charge on pre-tax profits. Nevertheless, on an underlying basis, adjusted net income declined just 19.9% q-o-q to US$261m, or US$0.32/share. Including lease obligations, net debt improved from US$3.03bn to US$2.87bn after US$388m in free cash flow generation in the three-month period.

Share price graph
Price performance
%
1m
3m
12m
Actual 15.2 12.0 90.3
Relative* 9.1 (3.7) 68.8
52-week high/low US$70.2/US$36.6
*% relative to local index
Key management
Noreen Doyle Chairman
Nancy Buese EVP and CFO
Tom Palmer President and CEO