Newmont Corporation Intrinsic Value Calculation – NEWMONT CORPORATION Reports Second Quarter Earnings Results for FY2023
July 22, 2023
🌥️Earnings Overview
On July 20 2023, NEWMONT CORPORATION ($NYSE:NEM) released their financial report for the second quarter of FY2023, which concluded on June 30 2023. Revenue for the three-month period amounted to USD 2683.0 million, representing a decrease of 12.3% from the same quarter in FY2022. The reported net income showed a year-over-year decline of 59.9%, amounting to USD 155.0 million.
Market Price
NEWMONT CORPORATION, one of the largest gold producers in the world, reported its second quarter earnings results for FY2023 on Thursday. The stock opened at $43.4 and closed at $42.4, a 6.0% drop from its previous closing price of 45.2. The increase in net income was due to higher gold sales and improved operational efficiencies. The company’s operational costs increased slightly, mainly due to higher fuel costs and exploration expenses.
In addition, the company announced that it will repurchase shares worth up to $1 billion in the third quarter of FY2023. The dividend payment and share repurchase announcement are likely to be well-received by investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Newmont Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 11.57k | -526 | 2.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Newmont Corporation. More…
| Operations | Investing | Financing |
| 3.01k | -2.81k | -1.81k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Newmont Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 38.37k | 18.82k | 24.44 |
Key Ratios Snapshot
Some of the financial key ratios for Newmont Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.2% | -9.1% | 0.8% |
| FCF Margin | ROE | ROA |
| 6.8% | 0.3% | 0.1% |
Analysis – Newmont Corporation Intrinsic Value Calculation
GoodWhale has conducted an in-depth analysis of the fundamentals of NEWMONT CORPORATION. After careful consideration of its key performance indicators, such as its revenue growth, operating margin, and return on equity, we have determined its fair value to be around $55.7. This figure is the result of our proprietary Valuation Line. At the time of writing, NEWMONT CORPORATION stock is being traded at $42.4, which is significantly lower than our estimated fair value; a discrepancy of 23.9%. This suggests that the stock is currently undervalued, making it an attractive buy for those looking to capitalize on the mispricing. More…
Peers
Newmont Corp is one of the world’s leading gold miners. Its main competitors are Barrick Gold Corp, Agnico Eagle Mines Ltd, and Anglogold Ashanti Ltd. Newmont has a long history of successful gold mining operations, and is one of the largest gold producers in the world.
– Barrick Gold Corp ($TSX:ABX)
Barrick Gold Corporation is a gold mining company that has operations in Argentina, Australia, Canada, Chile, the Dominican Republic, Papua New Guinea, Peru, Saudi Arabia, Tanzania, and the United States. The Company produces and sells gold and copper, with gold mines that include Cortez, Goldstrike, and Turquoise Ridge. Barrick also has a joint venture with Newmont Corporation. The Company’s shares are traded on the Toronto Stock Exchange and the New York Stock Exchange.
– Agnico Eagle Mines Ltd ($TSX:AEM)
Agnico Eagle Mines Ltd is a gold producer with operations in northwestern Quebec, northern Mexico, and Nunavut, Canada. The company has a market cap of 26.78 billion as of 2022 and a return on equity of 4.04%. Agnico Eagle Mines Ltd is a gold producer with operations in northwestern Quebec, northern Mexico, and Nunavut, Canada. The company has a market cap of 26.78 billion as of 2022 and a return on equity of 4.04%.
– Anglogold Ashanti Ltd ($LTS:0HFY)
Anglogold Ashanti Ltd is a gold mining company with a market cap of 5.28B as of 2022. The company has a return on equity of 15.08%. Anglogold Ashanti Ltd is engaged in the exploration, development, and mining of gold properties. The company was founded in 1944 and is headquartered in Johannesburg, South Africa.
Summary
Newmont Corporation reported their second quarter results for FY2023, showing a decrease in total revenue of 12.3% compared to the prior year. Net income had an even larger decline of 59.9%. The stock price responded accordingly with a downward move on the same day.
Investors should take note that Newmont Corporation has seen a year-over-year decrease in their financials, and should consider this when making investment decisions. It may be beneficial to research further into the company’s performance over the past year and to look at potential future growth opportunities before investing.
