Newmont Corporation Valuation

 

Newmont Corporation, the American gold mining company is undervalued, according to Wolfteam Ltd.'s projections and estimates.

With 11.81 billion USD in revenue declining with 0.86 % and negative net profit margin of - 21.11 % for the calendar 2023, Newmont Corporation's intrinsic value is 55 billion USD, compared with Newmont's market capitalization of 46.54 billion USD, in Wolfteam Ltd.'s view.

Here is an excerpt from Newmont Mining 1st quarter 2024 results:

 

Q1 2024 Results¹

• Delivered $288 million in dividends to shareholders; declared a dividend of $0.25 per share of common stock for the first quarter of 2024²
• Announced sale of the Lundin Gold stream credit facility and offtake agreement ("Lundin Gold Financing Facilities") for $330 million, further monetizing Newmont’s non-core assets while maintaining its equity interest in Lundin Gold
• Produced 1.7 million attributable gold ounces and 489 thousand gold equivalent ounces (GEOs)³ from copper, silver, lead and zinc; primarily driven by production of 1.4 million gold ounces from Newmont's Tier 1 Portfolio⁴
• Reported gold Costs Applicable to Sales (CAS) per ounce of $1,057 and gold All-In Sustaining Costs (AISC) per ounce of $1,439; Newmont's Tier 1 Portfolio reported CAS of $1,000 per ounce and AISC of $1,378 per ounce⁵
• Generated $776 million of cash from operating activities, net of working capital changes of $(666) million; reported $(74) million in Free Cash Flow net of working capital changes and $850 million of capital reinvestment to sustain current operations and advance high-return projects; excluding the stamp duty payment in connection with the Newcrest transaction, Newmont generated Free Cash Flow of $217 million⁵
• Reported Net Income of $179 million, Adjusted Net Income (ANI) of $0.55 per share and Adjusted EBITDA of $1.7 billion for the quarter⁵
• Delivered $105 million in synergies to date from the Newcrest acquisition; on track to realize $500 million in annual synergies by the end of 2025⁶
• Firmly on track to deliver 2024 guidance for production, costs and capital spend; full-year production expected to be second-half weighted as previously indicated⁷
• Classified six non-core assets and one project as held for sale, resulting in a non-cash impairment of $485 million
• Refinanced approximately $2 billion of debt acquired from the Newcrest acquisition; targeting a $1 billion debt reduction
• Published 20^th Annual Sustainability Report and 3^rd Annual Taxes and Royalties Contribution Report, providing a transparent review of Newmont's ESG performance, tax strategy and economic contributions