Newmont Corporation — Empowering sustainability

Newmont Corporation (TSX: NEM)

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49.02

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Research: Metals & Mining

Newmont Corporation — Empowering sustainability

Despite slightly lower production and higher costs in Q122, Newmont’s financial performance was within 6% of our prior expectations and exceeded them once adjusted for a one-off, exceptional pension settlement charge. As a result, despite a 6.5% lower prevailing gold price than at the time of our last note published on 21 April, we have only modestly reduced our adjusted net EPS forecast for the year by just 6.4%.

Lord Ashbourne

Written by

Lord Ashbourne

Director, Energy & Resources

Metals & Mining

Newmont Corporation

Empowering sustainability

Q122 results

Metals & mining

17 May 2022

Price

US$65.45

Market cap

US$51,836m

Net debt (US$m) at end-March 2022

1,938

Shares in issue

792.0m

Free float

99.8%

Code

NEM

Primary exchange

NYSE

Secondary exchange

TSX

Share price performance

%

1m

3m

12m

Abs

(22.8)

1.8

(7.5)

Rel (local)

(15.4)

13.7

(3.7)

52-week high/low

US$85.4

US$53.3

Business description

Founded in 1916, Newmont Corporation is the world’s leading gold company with a world-class portfolio of assets in North and South America, 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.

Next events

Newmont climate change report

18 May 2022

Yanacocha Sulphides decision

H222

Q222 results

July 2022

Q322 results

October 2022

Analyst

Lord Ashbourne

+44 (0)20 3077 5724

Newmont Corporation is a research client of Edison Investment Research Limited

Despite slightly lower production and higher costs in Q122, Newmont’s financial performance was within 6% of our prior expectations and exceeded them once adjusted for a one-off, exceptional pension settlement charge. As a result, despite a 6.5% lower prevailing gold price than at the time of our last note published on 21 April, we have only modestly reduced our adjusted net EPS forecast for the year by just 6.4%.

Year end

Revenue (US$m)

PBT
(US$m)

EPS*
(US$)

DPS
(US$)

P/E
(x)

Yield
(%)

12/20

11,497

3,143

2.66

1.45

24.6

2.2

12/21

12,222

1,108

2.97

2.20

22.0

3.4

12/22e

12,516

3,050

2.82

2.20

23.2

3.4

12/23e

12,207

2,869

2.32

2.20

28.2

3.4

Note: *EPS is normalised, excluding amortisation of acquired intangibles and exceptional items.

Sustainability and climate reports

In addition to its Q122 earnings report, on 14 April, Newmont published its 19th annual sustainability report as part of a suite of reports on its ESG practices in key areas that include health and safety, security, human rights, the environment, social acceptance, governance and inclusion and diversity. In a further development, on 18 May, it will unveil its second annual climate report, prepared in accordance with the standards of the Task Force on Climate-related Financial Disclosures (TCFD) and, in this case, is expected to include a detailed description of how Newmont will achieve its 2030 emissions reduction targets validated by the Science Based Targets initiative (SBTi).

Valuation: Still commanding the dividend heights

Using a real discount rate of 6.36% (cf 6.2% previously), our ‘terminal’ valuation of Newmont at end-FY27 is US$77.76/share cum-dividend (cf US$76.95/share previously). This is at a 18.8% premium to Newmont’s current share price of US$65.45. However, note that this valuation is based on the inherently conservative assumption of zero growth in (real) cash flows beyond FY27. The valuation increases to US$111.51/share in FY27 in the event that the growth in real cash flows thereafter amounts to just 2.0% per annum (ie the minimum that might reasonably be expected given the average historical annual increase in the real gold price of 2.0% pa) and to US$84.82/share as at the start of FY22. This valuation is also conservative in that it assumes that the long-term price of gold will decline from current levels to US$1,524/oz in real terms by FY27 (before levelling out). If the gold price instead remains at current levels in real terms (US$1,823/oz at the time of writing), our valuation increases to US$91.45/share cum-dividend in FY27 and to US$72.37/share in FY22. In the meantime, in both historical and relative terms, Newmont remains materially cheap with respect to its dividend yield. Based on consensus forecasts, we calculate that its share price would have to rise by an average of 19.8% for its dividend yield to match those of its peer group. Based on our forecasts, we estimate its share price would have to rise by 19.6%.

Q122 summary

Attributable gold production at Newmont decreased by 8% in Q122 to 1,344koz from the prior year quarter primarily due to lower mill throughput at CC&V, Tanami, Porcupine and Nevada Gold Mines, lower ore grades milled at Peñasquito, Pueblo Viejo, Éléonore and Porcupine, and a build-up of in-circuit inventory. These decreases were partially offset by higher grade ore milled at Boddington and higher production at Yanacocha owing to Newmont’s buyout of the minority shareholders during the quarter, which we estimate added 21koz gold to attributable production.

In general, production was slightly below our prior expectations and costs slightly above, as lingering coronavirus-related constraints on production in North America were exacerbated by an upsurge of the omicron strain of the virus in Australia and Africa. The main exception to this pattern was South America, which had previously been seriously disrupted by the virus, where production was ahead of our expectations at all three mines (but Yanacocha in particular, where tonnes stacked increased by more than 50% relative to Q421) at lower costs. Production at Nevada Gold Mines and Pueblo Viejo had been pre-released by Barrick and was therefore almost exactly in line with our prior forecasts. A summary of the operational highlights of the quarter relative to our prior expectations is provided in Exhibit 1.

Exhibit 1: Newmont Q122 operational results, actual compared to prior forecasts

Region

Production (koz)

Costs applicable to sales (US$/oz)

Q121

Q221

Q321

Q421

Q122e

Q122

Variance
(%)

Q121

Q221

Q321

Q421

Q122e

Q122

Variance
(%)

North America

413

397

384

404

346

309

-10.7

736

769

800

883

865

995

+15.0

South America

174

189

188

182

166

198

+19.3

791

721

958

860

989

921

-6.9

Australia

269

299

274

339

319

282

-11.6

750

764

788

724

771

764

-0.9

Africa

205

202

210

245

248

198

-20.2

758

763

886

786

866

871

+0.6

Nevada

303

284

308

377

287

288

+0.3

745

753

768

753

898

899

+0.1

Sub-total

1,364

1,371

1,364

1,547

1,367

1,275

-6.7

752

755

830

802

868

890

+2.5

Pueblo Viejo (40%)

91

78

85

71

69

69

-

Total (attributable) gold

1,455

1,449

1,449

1,618

1,436

1,344

-6.4

Source: Newmont Corporation, Edison Investment Research. Note: Totals may not add up owing to rounding.

Notwithstanding lower production and higher costs, generally, relative to our prior expectations, basic EPS was within 6% of our forecasts, though it also included a one-off, exceptional US$130m charge for pension settlements (included in ‘other income’, below) which, when stripped out, resulted in Newmont’s adjusted net EPS exceeding our forecast by a material 19.0%.

A full analysis of Newmont’s Q122 financial performance relative to both our prior forecasts and Q421 results is provided in the exhibit below.

Exhibit 2: Newmont quarterly income statement, Q121–Q122 cf prior Edison forecast

US$m
(unless otherwise indicated)

Q121

Q221

Q321*

Q321**

Q421*

Q421**

Q122e

Q122a

Change***
(%)

Variation****
(%)

Sales

2,872

3,065

2,895

2,895

3,390

3,390

2,898

3,023

-10.8

4.3

Costs and expenses

 

 

– Costs applicable to sales

1,247

1,281

1,367

1,367

1,540

1,540

1,388

1,435

-6.8

3.4

– Depreciation and amortisation

553

561

570

570

639

639

561

547

-14.4

-2.5

– Reclamation and remediation

46

57

117

38

1,626

752

43

61

-91.9

41.9

– Exploration

35

52

60

60

62

62

70

38

-38.7

-45.7

– Advanced projects, research and development

31

37

40

40

46

46

43

44

-4.3

2.3

– General and administrative

65

64

61

61

69

69

65

64

-7.2

-1.5

– Impairment of long-lived assets

0

0

0

0

0

0

0

0

N/A

N/A

– Care and maintenance

0

2

6

0

0

0

0

0

N/A

N/A

– Loss on assets held for sale

571

0

0

N/A

N/A

– Other expense, net

39

50

37

36

34

10

18

35

250.0

94.4

Total

2,016

2,104

2,829

2,172

4,016

3,118

2,186

2,224

-28.7

1.7

Other income/(expenses)

 

 

– Gain on formation of Nevada Gold Mines

0

 

 

– Gain on asset and investment sales, net

43

0

3

0

166

0

 

 

– Other income, net

(82)

50

(74)

23

19

(26)

0

(109)

319.2

N/A

– Interest expense, net of capitalised interest

(74)

(68)

(66)

(66)

(66)

(66)

(60)

(62)

-6.1

3.3

(113)

(18)

(137)

(43)

119

(92)

(60)

(171)

85.9

185.0

Income/(loss) before income and mining tax

743

943

(71)

680

(507)

180

652

628

248.9

-3.7

Income and mining tax benefit/(expense)

(235)

(341)

(222)

(283)

(300)

(302)

(209)

(214)

-29.1

2.4

Effective tax rate (%)

31.6

36.2

(312.7)

41.6

(59.2)

167.8

32.0

34.1

-79.7

6.6

Profit after tax

508

602

(293)

397

(807)

(122)

443

414

-439.3

-6.5

Equity income/(loss) of affiliates

50

49

39

39

28

28

30

39

39.3

30.0

Net income/(loss) from continuing operations

558

651

(254)

436

(779)

(94)

473

453

-581.9

-4.2

Net income/(loss) from discontinued operations

21

10

11

11

15

15

16

6.7

N/A

Net income/(loss)

579

661

(243)

447

(764)

(79)

473

469

-693.7

-0.8

Minority interest

20

11

(246)

(47)

(718)

(718)

11

21

-102.9

90.9

Minority interest (%)

3.5

1.7

(101.2)

(10.5)

94.0

908.9

2.3

4.5

-99.5

95.7

Net income/(loss) attributable to stockholders

559

650

3

494

(46)

639

463

448

-29.9

-3.2

Adjustments to net income*****

35

20

480

11

670

(15)

0

98

-753.3

N/A

Adjusted net income

594

670

483

483

624

624

463

546

-12.5

17.9

Net income/(loss) per common share (US$)

 

 

Basic

 

 

– Continuing operations

0.672

0.799

(0.010)

0.605

(0.077)

0.785

0.579

0.545

-30.6

-5.9

– Discontinued operations

0.026

0.012

0.010

0.014

0.019

0.019

0.000

0.020

5.3

N/A

– Total

0.698

0.811

0.000

0.618

(0.058)

0.804

0.579

0.565

-29.7

-2.4

Diluted

 

 

 

– Continuing operations

0.671

0.797

(0.010)

0.604

(0.077)

0.783

0.575

0.544

-30.5

-5.4

– Discontinued operations

0.026

0.012

0.010

0.014

0.019

0.019

0.000

0.020

5.3

N/A

– Total

0.697

0.809

0.000

0.618

(0.058)

0.802

0.575

0.564

-29.7

-1.9

Basic adjusted net income per share (US$)

0.742

0.836

0.605

0.605

0.785

0.785

0.579

0.689

-12.2

19.0

Diluted adjusted net income per share (US$)

0.741

0.834

0.604

0.604

0.783

0.783

0.575

0.688

-12.1

19.7

DPS (US$/share)

0.550

0.550

0.550

0.550

0.550

0.550

0.550

0.550

0.000

0.000

Source: Newmont Corporation, Edison Investment Research. Note: *As reported. **Estimated underlying excluding exceptional items. ***Q122 vs Q421. ****Q122a vs Q122e. *****Adjustments to net income include income attributable to Newmont shareholders from discontinued operations, losses on assets held for sale, gains on asset and investment sales, changes in the fair value of investments, impairments of investments, reclamation and remediation charges, pension settlement expenses, losses on debt extinction, COVID-19 specific costs, settlement costs, impairments on long-lived and other assets, restructuring and severance costs, the tax effect of the adjustments and valuation allowances.

FY22 forecasts by quarter

As in FY21, Newmont expects both (higher) production and (lower) costs to be weighted towards the second half of the year in FY22 – approximately in the ratio 47:53 – mainly due to ongoing disruptions relating to worker mobility and supply chains in North America, Australia and Africa.

In the light of Newmont’s Q122 results, we have revised our production and cost estimates for the remainder of the year to the following (by geographical region):

Exhibit 3: Newmont Q122–Q422e operational estimates

Region

Production (koz)

Costs applicable to sales (US$/oz)

Q122

Q222e

Q322e

Q422e

FY22e

FY22e

(prior)

Q122

Q222e

Q322e

Q422e

FY22e

FY22e

(prior)

North America

309

343

418

374

1,444

1,500

995

870

770

864

866

836

South America

198

194

220

220

832

820

921

920

819

819

868

867

Australia

282

319

380

380

1,361

1,400

764

773

650

650

703

705

Africa

198

236

261

280

975

1,050

871

962

871

810

876

818

Nevada

288

307

307

307

1,210

1,225

899

848

849

849

860

842

Sub-total

1,275

1,399

1,586

1,561

5,822

5,995

890

867

781

793

829

809

Pueblo Viejo (40%)

69

71

71

71

282

283

Total (attributable) gold

1,344

1,470

1,657

1,632

6,103

6,278

Source: Newmont Corporation, Edison Investment Research. Note: Totals may not add up owing to rounding.

Assuming a gold price of US$1,823/oz for the remainder of the year (cf US$1,950/oz previously) and an effective tax rate for the year of 30–34%, this operational performance translates into financial forecasts for Newmont for FY22 as follows:

Exhibit 4: Newmont quarterly income statement, Q121–Q422e

US$m (unless otherwise indicated)

Q121

Q221

Q321

Q421

Q122

Q222e

Q322e

Q422e

FY22e

FY22e

(prior)

Sales

2,872

3,065

2,895

3,390

3,023

3,000

3,246

3,246

12,516

12,962

Costs and expenses

– Costs applicable to sales

1,247

1,281

1,367

1,540

1,435

1,409

1,430

1,430

5,704

5,629

– Depreciation and amortisation

553

561

570

639

547

593

666

668

2,474

2,473

– Reclamation and remediation

46

57

117

1,626

61

42

42

42

188

172

– Exploration

35

52

60

62

38

70

70

70

248

280

– Advanced projects, research and development

31

37

40

46

44

43

43

43

171.5

170

– General and administrative

65

64

61

69

64

65

65

65

259

260

– Impairment of long-lived assets

0

0

0

0

0

0

0

0

0

0

– Care and maintenance

0

2

6

0

0

0

0

0

0

0

– Loss on assets held for sale

571

0

– Other expense, net

39

50

37

34

35

18

18

18

87.5

70

Total

2,016

2,104

2,829

4,016

2,224

2,239

2,333

2,336

9,131

9,054

Other income/(expenses)

– Gain on formation of Nevada Gold Mines

0

0

0

– Gain on asset and investment sales, net

43

0

3

166

0

0

– Other income, net

(82)

50

(74)

19

(109)

0

0

0

(109)

0

– Interest expense, net of capitalised interest

(74)

(68)

(66)

(66)

(62)

(57)

(57)

(49)

(225)

(225)

(113)

(18)

(137)

119

(171)

(57)

(57)

(49)

(334)

(225)

Income/(loss) before income and mining tax

743

943

(71)

(507)

628

704

857

862

3,050

3,682

Income and mining tax benefit/(expense)

(235)

(341)

(222)

(300)

(214)

(225)

(274)

(276)

(989)

(1,342)

Effective tax rate (%)

31.6

36.2

(312.7)

(59.2)

34.1

32.0

32.0

32.0

32.4

36.5

Profit after tax

508

602

(293)

(807)

414

478

583

586

2,061

2,340

Equity income/(loss) of affiliates

50

49

39

28

39

31

29

28

126

130

Net income/(loss) from continuing operations

558

651

(254)

(779)

453

509

611

614

2,187

2,470

Net income/(loss) from discontinued operations

21

10

11

15

16

16

0

Net income/(loss)

579

661

(243)

(764)

469

509

611

614

2,203

2,470

Minority interest

20

11

(246)

(718)

21

14

16

16

67

65

Ditto (%)

3.5

1.7

(101.2)

94.0

4.5

2.7

2.6

2.6

3.0

2.6

Net income/(loss) attributable to stockholders

559

650

3

(46)

448

495

596

598

2,137

2,405

Adjustments to net income

35

20

480

670

98

0

0

0

98

0

Adjusted net income

594

670

483

624

546

495

596

598

2,235

2,405

Net income/(loss) per common share (US$)

Basic

– Continuing operations

0.672

0.799

(0.010)

(0.077)

0.545

0.625

0.751

0.754

2.674

3.011

– Discontinued operations

0.026

0.012

0.010

0.019

0.020

0.000

0.000

0.000

0.020

0.000

– Total

0.698

0.811

0.000

(0.058)

0.565

0.625

0.751

0.754

2.695

3.011

Diluted

– Continuing operations

0.671

0.797

(0.010)

(0.077)

0.544

0.624

0.750

0.753

2.671

2.990

– Discontinued operations

0.026

0.012

0.010

0.019

0.020

0.000

0.000

0.000

0.020

0.000

– Total

0.697

0.809

0.000

(0.058)

0.564

0.624

0.750

0.753

2.691

2.990

Basic adjusted net income per share (US$)

0.742

0.836

0.605

0.785

0.689

0.625

0.751

0.754

2.818

3.011

Diluted adjusted net income per share (US$)

0.741

0.834

0.604

0.783

0.688

0.624

0.750

0.753

2.815

2.990

DPS (US$/share)

0.550

0.550

0.550

0.550

0.550

0.550

0.550

0.550

2.200

2.200

Source: Newmont Corporation, Edison Investment Research

This basic adjusted EPS forecast of US$2.818/share (vs US$3.011/share previously) for FY22 compares to the market consensus, by quarter, as follows:

Exhibit 5: FY22 basic adjusted EPS forecast, Edison versus consensus (US$/share)

Q122

Q222e

Q322e

Q422e

Sum Q1–Q422e

FY22e

Edison forecast

0.689

0.625

0.751

0.754

2.819

2.818

Consensus forecast

0.689

0.831

0.915

0.957

3.392

3.249

High

0.689

1.125

1.167

1.651

4.632

4.100

Low

0.689

0.578

0.715

0.736

2.718

2.597

Source: Edison Investment Research, Refinitiv (12 May 2022)

Dividend

Newmont’s dividend for Q421 was maintained at US$0.55/share. At the time of its Q320 results in October 2020, Newmont unveiled a new dividend framework whereby it formally rebased its dividend to a ‘base’ payout of US$1.00/share (or US$0.25/share per quarter) at a gold price of US$1,200/oz, but also stated explicitly that it would return 40–60% of incremental attributable free cash flow that it generated above a gold price of US$1,200/oz to shareholders. Under the new framework, Newmont will augment the ‘base’ payout in increments of US$0.60–0.90/share per year (or US$0.15–0.225/share per quarter), evaluated in gold price increments of US$300/oz for gold prices above US$1,200/oz, with the goal of targeting 40–60% of incremental free cash flow above a gold price of US$1,200/oz returned to shareholders. Thus, a (sustainable) gold price at US$1,800/oz should (on this basis) result in a quarterly dividend of US$0.55/share, whereas a gold price below that level could result in one of US$0.40/share. However, it is worth noting that Newmont affords itself a degree of latitude in the level of the ultimate payout in that, should it decide to pay out nearer 60% of incremental attributable free cash flow to shareholders that it generates above a US$1,200/oz gold price, rather than 40%, then there is scope for the quarterly dividend to remain at the higher level (ie US$0.55/share) even if the gold price dips below the US$1,800/oz level.

FY21 sustainability report

Newmont regards its ESG practices as being ‘woven into the fabric of [the] company’ and, on 14 April 2022, consistent with its tradition of setting and reporting against publicly recognised targets, it published its 19th annual sustainability report for 2021 as part of a suite of reports on the company’s ESG practices in key areas that include health, safety and security, human rights, the environment, social acceptance, governance and inclusion and diversity.

The report was written in accordance with the GRI 2016 Universal Standards Core option, the GRI Mining and Metals Sector Supplement, the Sustainability Accounting Standards Board’s Metals and Mining standards and is externally assured by an independent third party. In addition, it aligns with ICMM’s Mining Principles: Performance Expectations and the World Gold Council’s Responsible Gold Mining Principles. The full report is available on Newmont’s website. However, a summary of the highlights of the report is as follows:

Commitment to health and safety: Newmont achieved zero work-related fatalities for the third year in a row in 2021 (and to date in 2022) and further embedded its Fatality Risk Management programme with a focus on verifying the critical controls that prevent fatalities and coaching frontline staff to provide visible and recognisable leadership.

Response to COVID-19: in 2021, Newmont continued to put the health, safety and wellbeing of its workforce and host communities at the heart of every decision that management made. It strongly supported COVID-19 vaccines as they became available and adopted a position of requiring all employees and third-party workers to be fully vaccinated. With contributions made available via its Global Community Support Fund, the company supported COVID-19 testing facilities, vaccine awareness campaigns and vaccine rollouts in areas near and around its operations.

Sustainability-linked financial performance: in December, Newmont established the gold mining industry’s first sustainability-linked bond, linking the interest rate payout to its performance on key certain ESG initiatives and thereby holding it to account for meeting its 2030 targets of a 32% reduction in Scope 1 and Scope 2 emissions, a 30% reduction in Scope 3 emissions and achieving gender parity in senior leadership roles by 2030.

Value sharing: Newmont recently made a new commitment to paying a living wage to its employees, contractors and suppliers and it is currently in the process of working through a living wage methodology to systematically deliver on its commitment. This will be the subject of future reports. In the meantime however, 2022 will be the first year in which it will publish a tax transparency report (anticipated in Q3) detailing taxes paid and how these have benefitted local communities. In 2021, Newmont contributed US$10.8bn to its workforce, host communities and jurisdictions in the form of wages and benefits, operating costs, capital spend, royalties and taxes. This included expenditure of US$1.4bn with local and indigenous suppliers and US$21.9m in community investments, plus with a further US$3.5m from Newmont’s Global Community Support Fund.

The environment: Newmont is progressing work on its water management and tailings storage facilities according to the codes and standards of the Global Industry Standard on Tailings Management. To this end, it is seeking to develop a forward-looking policy on its water management protocols and biodiversity and is looking to create firm targets for both and to align these with its climate targets.

As a consequence, Newmont’s sustainability efforts continue to be recognised by a number of independent organisations, including:

Being recognised as a leading gold miner for the seventh consecutive year in the Dow Jones Sustainability Index while continuing to be ranked as the top mining company on Fortune’s list of the world’s Most Admired Companies;

Earning an AA rating from MSCI, thereby putting it in the top quartile for precious metals and mining;

Being listed as the top mining company (and sixth overall) in 3BL’s 100 Best Corporate Citizens;

Being included in Bloomberg’s Gender-Equality Index for its efforts to advance women in the workplace for the fourth successive year;

Being named Industry Leader for 2022 and being nominated to the JUST 100 list (ranked at number 43) as one of America’s most JUST companies by JUST Capital and CNBC; and

According to Bloomberg’s ESG Disclosure score, being one of the most transparent companies in the S&P 500.

FY21 climate change report

In addition to its sustainability report, on Wednesday 18 May, Newmont will unveil only its second annual climate report (the maiden report having been published last year). The report has been prepared according to the standards of the TCFD and, in this case, is expected to include a detailed pathway as to how Newmont will achieve its 2030 emissions reduction targets validated by the SBTi, which is a partnership between CDP (an international non-profit organisation based in the UK, Japan, India, China, Germany and the US that helps companies and cities disclose their environmental impacts), the United Nations Global Compact, the World Resources Institute and the World Wide Fund for Nature. Among other functions, the SBTi provides guidance across sectors and industries as to how climate targets may be met. In addition to its emissions reduction targets and policies being scientifically validated as feasible and achievable, the climate report will also align Newmont with the Paris Agreement, which is a landmark in the multilateral climate change process in that, for the first time, it brings together all nations in a common cause to undertake ambitious efforts to combat climate change and adapt to its effects. It is a legally binding international treaty that was adopted by 196 parties at COP 21 in Paris, on 12 December 2015, and entered into force on 4 November 2016. Its goal is to limit global warming to well below 2°C (preferably to 1.5°C) compared with pre-industrial levels by requiring countries to aim to reach a goal of peaking greenhouse gas emissions as soon as possible in order to achieve a climate-neutral world by mid-century.

In Newmont’s case, its pathway to achieving its emissions reduction targets has two principal parts:

Embedding renewable power into major projects (in Newmont’s case, initially Boddington, Tanami and Yanacocha) either in the form of its own stand-alone wind and/or solar power plants or via power purchase agreements with local, renewable energy suppliers. NB Newmont estimates that this initiative alone will reduce emissions by one million tonnes of carbon dioxide per annum over decades’ long timeframes.

Via its US$100m partnership with Caterpillar (which was a part of its US$500m commitment towards sustainability over five years announced in December 2020). Initially, the partnership has been tasked with embedding autonomous haulage fleets (AHFs) at those Newmont operations where it is appropriate. In the first instance, having been achieved at Boddington, autonomous haulage will be rolled out at both Tanami and CC&V. It will then be tasked with transitioning those AHFs from internal combustion to battery electric power by 2026. In contrast to some other areas of the industry, which have attempted to achieve the same goal in one step, but which were subsequently required to retrospectively refit their fleets to internal combustion engines owing to technical difficulties, Newmont believes that its experience in taking a two-step approach at Boddington has been invaluable as part of the process of learning the transition to autonomous battery powered electromotive force. Within this context, Newmont also believes that its size and scale is a major influence in catalysing the necessary change at the relevant original equipment manufacturers.

In addition to its greenhouse gas and emissions reduction targets, Newmont’s 2021 climate change report is also expected to assess its biodiversity and water management targets and to align these with its climate policies and targets.

Valuation

Our approach to the valuation of Newmont has remained unchanged since our initiation note (see The sustainable leader, published on 9 February 2021) and readers are directed to this note for a fuller explanation of the methodologies involved. The following is an update of our valuation in light of Q122 financial results and our updated forecasts for FY22.

Absolute valuation and sensitivities

Newmont is a multi-asset company that has shown a willingness and desire to trade assets in the past to maintain production, reduce costs and maximise shareholder returns. As a result, rather than our customary method of discounting maximum potential dividends over the life of operations back to FY22, in the case of Newmont, we have opted to discount forecast dividends back over six years from the start of FY22, then apply an ex-growth terminal multiple to forecast cash flows in that year (ie FY27) based on the appropriate discount rate. In the normal course of events, we would exclude exploration expenditure from such a calculation on the basis that it is a discretionary investment. In the case of Newmont, however, we have included it in our estimate of future cash flows on the grounds that it will be a critical component of ongoing business performance in its ability to continually expand and extend the lives of the company’s assets via exploration.

In this case, in the wake of Q122 results, our estimate of Newmont’s ‘terminal’ pre-financing cash flow in FY27 has increased by a modest 2.6%, from US$4.28/share previously, to US$4.39/share. On this basis, applying a (real) discount rate of 6.36% (calculated from a nominal expected equity return of 9% and decreased long-term inflation expectations of 2.4867% cf 2.6162% previously, as defined by the US 30-year break-even inflation rate – source: Bloomberg, 12 May), our terminal valuation of the company at end-FY27 is US$77.76/share cum-dividend (cf US$76.95/share previously). This is at a 18.8% premium to Newmont’s current share price of US$65.45. However, note that this valuation is based on the inherently conservative assumption of zero growth in (real) cash flows beyond FY27. The valuation increases to US$111.51/share in the event that growth in real cash flows after FY27 amounts of 2.0% per annum (ie the minimum that might be expected from the average historical annual increase in the real price of gold of 2.0% pa) and to US$84.82/share as at the start of FY22. It should also be noted that our valuation is inherently conservative in that it assumes that the long-term price of gold will decline from current levels to US$1,524/oz in real terms by FY27 (before levelling out). If the gold price instead remains at current levels in real terms (US$1,823/oz at the time of writing), our valuation increases to US$91.45/share cum-dividend in FY27 and to US$72.37/share currently in FY22 (with the added assumption that mining at NGM does not then revert to the reserve grade in that year on account of the relatively high sustained level of the gold price).

Note that this (absolute) analysis inherently excludes any value to Newmont from its other development assets, such as Coffee, Galore Creek, Conga, Norte Abierto and Nueva Union, which together represent combined reserves and resources of 53.94Moz attributable to Newmont.

Relative Newmont valuation

Newmont’s valuation on a series of commonly used measures, relative to its peer group of the 10 largest publicly quoted senior gold producers, is as follows.

Exhibit 6: Newmont valuation relative to peers

Company

Ticker

P/E (x)

P/cash flow (x)

EV/EBITDA (x)

Yield (%)

Year 1

Year 2

Year 3

Year 1

Year 2

Year 3

Year 1

Year 2

Year 3

Year 1

Year 2

Year 3

Newmont (Edison)

NEM

23.2

28.2

30.5

11.9

11.4

10.5

9.0

9.4

8.8

3.4

3.4

2.4

Newmont (consensus)

NEM

21.1

21.3

22.5

10.8

10.6

10.2

8.7

8.8

8.6

3.2

3.1

2.8

Barrick

ABX

18.2

17.4

17.8

8.1

7.6

7.7

7.3

6.7

6.9

2.9

4.3

4.6

AngloGold

ANGJ

6.6

6.0

6.1

5.7

4.8

4.6

4.1

3.4

3.8

2.7

5.4

7.7

Polyus

PLZL MM

10.6

10.7

8.3

7.9

6.8

6.9

7.2

7.0

6.5

3.0

4.7

4.0

Gold Fields

GFI

10.5

9.8

9.7

5.9

5.7

5.1

4.9

4.6

4.5

3.1

3.4

3.6

Kinross

K

9.2

8.9

11.3

3.9

3.7

4.1

4.5

4.0

4.5

2.8

2.7

2.7

Agnico-Eagle

AEM

23.0

22.9

23.5

9.3

9.2

9.2

8.0

7.7

7.9

3.0

3.0

3.0

Newcrest

NCM AU

16.8

13.1

16.6

11.9

7.6

8.2

7.9

5.9

6.8

1.4

2.1

2.0

Harmony

HARJ

9.1

6.7

8.2

5.0

3.4

4.0

4.1

3.3

4.5

0.8

1.4

2.8

Endeavour (consensus)

EDV

12.5

12.2

10.8

4.9

5.3

4.8

4.6

4.8

4.5

2.6

3.0

3.3

Average (excl NEM)

12.9

12.0

12.5

6.9

6.0

6.1

5.8

5.3

5.5

2.5

3.3

3.7

Source: Edison Investment Research, Refinitiv. Note: Consensus and peers priced on 12 May 2022.

From the table above, it can also be seen that while Newmont continues to command a premium rating relative to its peer group on most valuation measures, it remains cheap with respect to its dividend yield in a majority of instances. Based on consensus forecasts, we estimate that Newmont’s share price would have to rise by an average of 19.8% for its dividend yield to match those of its peer group. Based on our forecasts, we estimate its share price would have to rise 19.6%.

As before, one further observation concerning the comparability of the above measures is merited. Given its policy of proportionately consolidating its interest in NGM and that it owns 100% interests in the majority of its remaining mining operations (with the notable exception of Merian), estimates of cash flow in particular are also close to estimates of cash flow attributable to shareholders (Newmont estimates that 99.8% of free cash flow was attributable to the company in FY21). This is in contrast to a number of its peers, where earnings and cash flow from assets not 100%-owned tend to be fully consolidated and therefore may not so easily approximate cash flow attributable to shareholders, making direct comparison using these measures either difficult or, potentially, misleading.

Historical valuation

Based on Newmont’s average historical P/E ratio of 23.9x current year earnings over the past nine years, from FY13 to FY21, and its average historical yield of 2.0% over the same timeframe, a summary of our updated valuation of the company over 16 measures of value over the next four years is as follows:

Exhibit 7: Newmont valuation summary (US$/share in years shown)

Basis of valuation

FY22e

FY23e

FY24e

FY25e

Historical

Share price implied by Edison EPS forecast (US$/share)

67.27

55.32

51.25

39.56

Historical

Share price implied by Edison DPS forecast (US$/share)

109.98

109.98

79.99

79.99

Historical

Share price implied by consensus EPS forecast (US$/share)

77.56

76.56

72.54

74.55

Historical

Share price implied by consensus DPS forecast (US$/share)

109.86

104.61

97.25

89.89

Average (US$/share)

91.17

86.62

75.26

71.00

Source: Edison Investment Research (underlying consensus data: Refinitiv, 12 May 2022).

Exhibit 8: Financial summary

Accounts: US GAAP, Yr end: December, USD: Millions

 

 

2018A

2019A

2020A

2021A

2022E

2023E

2024E

2025E

Income statement

 

 

 

 

 

 

 

 

 

 

Total revenues

 

 

7,253

9,740

11,497

12,222

12,516

12,207

12,183

11,816

Cost of sales

 

 

(4,093)

(5,195)

(5,014)

(5,435)

(5,704)

(5,593)

(5,790)

(5,799)

Gross profit

 

 

3,160

4,545

6,483

6,787

6,812

6,614

6,392

6,016

SG&A (expenses)

 

 

(244)

(313)

(269)

(259)

(259)

(260)

(260)

(260)

R&D costs

 

 

(350)

(415)

(309)

(363)

(420)

(450)

0

0

Other income/(expense)

 

 

(406)

(253)

(831)

(2,101)

(384)

(239)

(81)

(81)

Exceptionals and adjustments

 

(424)

2,220

214

(2,258)

(153)

0

0

0

Depreciation and amortisation

 

 

(1,215)

(1,960)

(2,300)

(2,323)

(2,474)

(2,690)

(3,285)

(3,502)

Reported EBIT

 

 

945

3,994

3,451

1,382

3,275

2,975

2,766

2,172

Finance income/(expense)

 

 

(207)

(301)

(308)

(274)

(225)

(106)

(97)

2

Reported PBT

 

 

738

3,693

3,143

1,108

3,050

2,869

2,669

2,175

Income tax expense (includes exceptionals)

 

 

(419)

(737)

(515)

(932)

(863)

(996)

(901)

(804)

Reported net income

 

 

380

2,884

2,791

233

2,203

1,872

1,768

1,371

Basic average number of shares, m

 

 

533

735

804

799

793

793

793

793

Basic EPS (US$/share)

 

 

0.64

3.82

3.52

1.46

2.69

2.32

2.15

1.66

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

2,584

3,734

5,537

5,963

5,902

5,665

6,051

5,675

Adjusted EBIT

 

 

1,369

1,774

3,237

3,640

3,428

2,975

2,766

2,172

Adjusted PBT

 

 

1,162

1,473

2,929

3,366

3,203

2,869

2,669

2,175

Adjusted EPS (US$/share)

 

 

1.35

1.32

2.66

2.97

2.82

2.32

2.15

1.66

Adjusted diluted EPS (US$/share)

 

 

1.34

1.32

2.66

2.96

2.80

2.30

2.13

1.65

 

 

 

 

 

 

 

 

 

 

 

Balance sheet

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 

12,258

25,276

24,281

24,124

23,855

23,566

22,481

20,478

Goodwill

 

 

58

2,674

2,771

2,771

2,771

2,771

2,771

2,771

Other non-current assets

 

 

3,122

5,752

5,812

5,973

5,973

5,973

5,973

5,973

Total non-current assets

 

 

15,438

33,702

32,864

32,868

32,599

32,310

31,225

29,222

Cash and equivalents

 

 

3,397

2,243

5,540

4,992

4,447

4,427

5,877

7,866

Inventories

 

 

630

1,014

963

930

1,170

1,141

1,139

1,104

Trade and other receivables

 

 

254

373

449

337

377

368

367

356

Other current assets

 

 

996

2,642

1,553

1,437

1,453

1,453

1,453

1,453

Total current assets

 

 

5,277

6,272

8,505

7,696

7,446

7,389

8,835

10,780

Non-current loans and borrowings

 

 

3,608

6,734

6,045

6,109

5,617

5,203

5,203

5,203

Other non-current liabilities

 

 

3,808

8,438

8,076

9,940

9,936

9,913

9,802

9,692

Total non-current liabilities

 

 

7,416

15,172

14,121

16,049

15,553

15,116

15,005

14,895

Trade and other payables

 

 

303

539

493

518

514

504

522

523

Current loans and borrowings

 

 

653

100

657

193

193

193

193

193

Other current liabilities

 

 

831

1,746

2,219

1,943

1,943

1,943

1,943

1,943

Total current liabilities

 

 

1,787

2,385

3,369

2,654

2,650

2,640

2,658

2,659

Equity attributable to company

 

 

10,502

21,420

23,008

22,022

22,414

22,507

22,941

22,987

Non-controlling interest

 

 

1,010

997

871

(161)

(571)

(565)

(544)

(538)

 

 

 

 

 

 

 

 

 

 

 

Cashflow statement

 

 

 

 

 

 

 

 

 

 

Profit for the year

 

 

380

2,884

2,791

233

2,203

1,872

1,768

1,371

Taxation expenses

 

 

386

832

704

1,098

989

1,148

1,026

878

Net finance expenses

 

 

207

301

308

274

225

106

97

(2)

Depreciation and amortisation

 

 

1,215

1,960

2,300

2,323

2,474

2,690

3,285

3,502

Share based payments

 

 

76

97

72

72

0

0

0

0

Other adjustments

 

 

749

(2,131)

(654)

2,277

172

169

81

81

Movements in working capital

 

 

(743)

(309)

295

(541)

(476)

(164)

(171)

(145)

Interest paid / received

 

 

(207)

(301)

(308)

(274)

(225)

(106)

(97)

2

Income taxes paid

 

 

(236)

(498)

(926)

(1,207)

(989)

(1,148)

(1,026)

(878)

Cash from operations (CFO)

 

 

1,827

2,866

4,882

4,279

4,373

4,568

4,964

4,809

Capex

 

 

(1,032)

(1,463)

(1,302)

(1,653)

(2,205)

(2,400)

(2,200)

(1,500)

Acquisitions & disposals net

 

 

(98)

224

1,463

(50)

(493)

0

0

0

Other investing activities

 

 

(47)

41

65

(15)

0

0

0

0

Cash used in investing activities (CFIA)

 

 

(1,177)

(1,226)

91

(1,868)

(2,698)

(2,400)

(2,200)

(1,500)

Net proceeds from issue of shares

 

 

(98)

(479)

(521)

(525)

0

0

0

0

Movements in debt

 

 

0

(1,186)

(175)

(390)

(492)

(414)

0

0

Dividends paid

 

 

(301)

(889)

(834)

(1,757)

(1,799)

(1,777)

(1,318)

(1,324)

Other financing activities

 

 

(56)

(223)

(150)

(286)

71

4

4

4

Cash from financing activities (CFF)

 

 

(455)

(2,777)

(1,680)

(2,958)

(2,220)

(2,187)

(1,314)

(1,320)

Currency translation differences and other

 

 

(4)

(3)

6

(8)

0

0

0

0

Increase/(decrease) in cash and equivalents

 

 

191

(1,140)

3,299

(555)

(545)

(20)

1,450

1,990

Cash and equivalents at end of period

 

 

3,489

2,349

5,648

5,093

4,548

4,528

5,978

7,967

Net (debt) cash

 

 

(864)

(4,591)

(1,162)

(1,310)

(1,363)

(969)

481

2,470

Movement in net (debt) cash over period

 

 

(864)

(3,727)

3,429

(148)

(53)

394

1,450

1,990

Source: Company sources, Edison Investment Research


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Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by Newmont Corporation and prepared and issued by Edison, in consideration of a fee payable by Newmont Corporation. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2022 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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