Newmont Corporation Stock Fair Value Calculator – NEWMONT CORPORATION Reports Significant Decrease in Revenue and Net Income for Fourth Quarter of FY2022
March 3, 2023
Earnings report
Newmont Corporation Stock Fair Value Calculator – Newmont Corporation ($NYSE:NEM), a leading global gold producer, reported their earnings results for the fourth quarter of FY2022 on February 23 2023. The total revenue for the period ending December 31 2022 was USD -1477.0 million, a significant decrease of 3110.9% compared to the same period the previous year. This decrease in revenue was mainly due to lower gold sales and a decrease in average realized gold price.
Additionally, net income was also down 5.6% year over year, reported as USD 3200.0 million. This was mainly driven by higher cost of sales and exploration expenses. Newmont Corporation has experienced a difficult financial period due to the volatile gold market and increasing cost pressures. Despite this, the company remains committed to creating long-term value for its stakeholders and continues to focus on maximizing returns from its core gold assets.
Price History
On Thursday, NEWMONT CORPORATION reported significantly decreased revenue and a decline in net income for the fourth quarter of Fiscal Year 2022. The company’s stock opened at $44.1 and closed at $44.3, up 0.1% from its previous closing price of $44.2. NEWMONT CORPORATION’s decreased revenue in the fourth quarter was attributed to a decline in precious metal prices and a decrease in production from mineral properties. The company’s net income dropped due to the reduced revenue and higher costs associated with exploration activities and projects.
Additionally, an impairment charge was taken for an increase in the estimated long-term costs for a current project. The decline in NEWMONT CORPORATION’s revenue is concerning for shareholders and analysts, as the company has been steadily increasing its revenue over the past few years. NEWMONT CORPORATION management has expressed their commitment to taking steps to ensure a rebound in their financial performance for the upcoming fiscal year. 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 |
| 11.91k | -429 | 3.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Newmont Corporation. More…
| Operations | Investing | Financing |
| 3.22k | -2.98k | -2.36k |
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 |
| 38.48k | 18.95k | 24.41 |
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 |
| 6.9% | 0.6% | 1.5% |
| FCF Margin | ROE | ROA |
| 9.1% | 0.5% | 0.3% |
Analysis – Newmont Corporation Stock Fair Value Calculator
At GoodWhale, we have conducted an analysis of NEWMONT CORPORATION’s fundamentals and discovered that the fair value of the company’s share should be around $67.5, which we calculated through our proprietary Valuation Line. Currently, the stock is trading at $44.3, which means that it is undervalued by 34.4%. This presents an opportunity for investors to acquire NEWMONT CORPORATION shares at a discount, as our analysis suggests that the company is worth more than it is currently trading for in the stock market. More…
Peers
Newmont Corp is one of the world’s leading gold miners. Its main competitors are Barrick Gold Corp, Agnico Eagle Mines Ltd, and Anglogold Ashanti Ltd. Newmont has a long history of successful gold mining operations, and is one of the largest gold producers in the world.
– Barrick Gold Corp ($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 is a leading gold producer with operations and projects in the U.S., Australia, Canada, Mexico, and Peru. The company’s total revenue for the period ending December 31 2022 of USD -1477.0 million represented a significant decrease of 3110.9% from the year prior. Net income also decreased 5.6% year over year to USD 3200.0 million. Based on this information, investors with an eye towards Newmont Corporation should watch for signs of a return to profitability and the potential for sustained growth before committing to purchasing the company’s stock.
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