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Currency in USD
Last close As at 25/03/2023
USD46.64
▲ 0.04 (0.09%)
Market capitalisation
USD37,024m
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.
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 has been delayed until H224. Newmont will update guidance for 2023 when it releases Q4 results on 23 February 2023; we anticipate a strong close to 2022 (production up 6% q-o-q and costs down 13% in Q4).
Director, Energy & Resources
Gregory Boyce
Chairman
Nancy Buese
EVP and CFO
Tom Palmer
President and CEO
Forecast net cash (US$m)
1363.5
Forecast gearing ratio (%)
N/A
| % | 1M | 3M | 12M |
|---|---|---|---|
| Actual | 5.4 | (1.8) | (38.7) |
| Relative | 6.9 | (4.7) | (29.7) |
| 52 week high/low | US$85.4/US$37.8 |
Newmont’s Q4/FY22 results, released on 23 February, exhibited stronger production than we had anticipated, albeit accompanied by costs that failed to decline as much as we had hoped. Nevertheless, both production and costs for the full year met the company’s guidance to within its usual tolerance range of ±5%. In addition to its Q4/FY22 results, Newmont also provided updated medium-term guidance for production, costs and capex to FY27 to reflect recent inflationary pressures within the industry, and this note updates both our forecasts and valuation to reflect the company’s updated guidance. In the meantime, Newmont’s potential merger with Newcrest clearly remains alive, with the potential to transform the company if it is successfully brought to fruition.
| Y/E Dec | Revenue (US$m) | EBITDA (US$m) | PBT (US$m) | EPS (fd) (c) | P/E (x) | P/CF (x) |
|---|---|---|---|---|---|---|
| 2021A | 12222.0 | 5963.0 | 3366.0 | 296.4 | 16.1 | 163.9 |
| 2022A | 11915.0 | 4550.0 | 2138.0 | 184.7 | 25.9 | N/A |
| 2023E | 12372.0 | 4968.0 | 2381.0 | 212.7 | 22.5 | 21.8 |
| 2024E | 11827.0 | 4963.0 | 1727.0 | 150.3 | 31.8 | 30.3 |
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