NMC.TO  Newmont Mining Cp Of Canada

Exchange

TSX

Sector

Mining

Industry

Market Cap.

4.172B

Vuru Grade

22.50/100

Current Price

$26.25
+0.27 (+1.04%)

Growth Price

$15.75
Overvalued by 40.00%

Company Metrics

  • P/E 31.92
  • P/S 19.47
  • P/B 2.71
  • EPS 0.814
  • Cash ROIC 3.00%
  • Cash Ratio 0.60
  • Dividend 1.257 / 4.84%
  • Avg. Vol. 3,868.00
  • Shares 498.00M
  • Market Cap. 4.172B

Company Description

Newmont Mining Corporation of Canada Limited engages in the exploration for and production of gold properties. The company primarily operates in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. It also involves in the production of copper, principally through its Batu Hijau operation in Indonesia and Boddington operation in Australia. The company was founded i... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Canadian Mining Corp. Announces Ghana Gold Property Acquisition
GlobeNewswire (press release) - Sep 27, 2017
(“Crust”) a BC registered company, to acquire a 100% direct or indirect interest in their operating subsidiary, Care Mining Company Ltd. (“Care”), a company registered in the Republic of Ghana. Care holds a 100% interest in the ... Limited, Annual ...
Newmont Mining buys big into Colombian gold company
Denver Business Journal - May 12, 2017
Last month, Newmont said it had high expectations for its growing gold mining operation in Ghana. And also last month, Goldberg's $16 million annual compensation package came under fire, with one advocacy organization calling his pay plan "disgraceful.
Continental Gold Announces Strategic Investment by Newmont Mining and ... - Marketwired (press release)
Newmont takes 19.9% stake in Continental Gold - The Northern Miner (subscription)
Cash-rich Newmont Mining mulls boosting dividend as peers pursue debt reduction
Reuters - Aug 9, 2017
TORONTO (Reuters) - With a plump $3.1 billion pile of cash, Newmont Mining Corp is mulling a sweeter dividend to attract a broader shareholder base, a move that makes it an outlier in the still recovering gold sector.
BlueCrest Capital Management Ltd Trims Position in Newmont Mining Corporation ...
StockNewsTimes - Oct 19, 2017
BlueCrest Capital Management Ltd lessened its holdings in shares of Newmont Mining Corporation (NYSE:NEM) by 60.0% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission.
Newmont Mining Corp (NEM) Analysts See $0.29 EPS - Finance News Daily
Maxwell Technologies Inc. (MXWL) Analysts See $-0.18 EPS; Shorts at Newmont ... - Key Gazette
Goldstrike Commences District Scale Exploration Program on Plateau Property
Marketwired (press release) - Jun 12, 2017
It recently entered into a strategic alliance with a Canadian subsidiary of Newmont Mining Corporation to carry out a comprehensive, multi-year exploration program on its Plateau property, and with funding from Newmont and a Yukon YMEP grant added to ...
Ex-Dividend Reminder: Popular, Newmont Mining and Goldcorp
Nasdaq - Sep 11, 2017
Looking at the universe of stocks we cover at Dividend Channel , on 9/13/17, Popular Inc. (Symbol: BPOP), Newmont Mining Corp (Symbol: NEM), and Goldcorp Inc (Symbol: GG) will all trade ex-dividend for their respective upcoming dividends. Popular Inc.
Newmont Mining Corporation (NEM) Earning Somewhat Favorable Press Coverage ... - StockNewsTimes
Shares in Newmont Mining Corp. (NEM) Acquired by OLD Mission Capital LLC - Newburgh Gazette
Goldstrike and Newmont Mobilize for Yukon Exploration
Marketwired (press release) - May 15, 2017
... Goldstrike Resources Ltd. (TSX VENTURE:GSR)(OTC:APRAF)(FRANKFURT:KCG1) is pleased to announce that it is mobilizing to the Plateau Property in central Yukon with its new strategic partner, a Canadian subsidiary of Newmont Mining Corporation ...
Goldstrike Resources Closes Agreement With Newmont Mining; Provides C$53000000 ...
Junior Mining Network - Apr 25, 2017
... 2017) - Goldstrike Resources Ltd. (TSX VENTURE:GSR)(OTC PINK:APRAF)(FRANKFURT:KCG1) is pleased to report that it has received shareholder approval of its strategic alliance with Newmont Mining Corporation and Newmont Canada FN Holdings ...
Yukon catches more majors' eyes - The Northern Miner
Newmont Mining Corporation (NEM) Holdings Trimmed by Zurich Insurance Group Ltd FI
The Ledger Gazette - Oct 14, 2017
Newmont Mining Corporation logo Zurich Insurance Group Ltd FI reduced its stake in Newmont Mining Corporation (NYSE:NEM) by 30.7% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange ...
Newmont Mining Corporation (NEM) Shares Bought by Janus Henderson Group PLC - Dispatch Tribunal
$1.86 Billion in Sales Expected for Newmont Mining Corporation (NEM) This Quarter - TrueBlueTribune
Goldstrike Resources Forms Strategic Alliance With Newmont Mining; Provides ...
Junior Mining Network - Mar 6, 2017
... 2017) - Goldstrike Resources Ltd. (TSX VENTURE:GSR)(OTC PINK:APRAF)(FRANKFURT:KCG1) is pleased to announce that it has entered into a strategic alliance with Newmont Mining Corporation and its subsidiary, Newmont Canada FN Holdings ULC ...
Mining Dealers on the Hunt as Metal Prices Rally - Bloomberg
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for NMC.TO to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate NMC.TO's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$26.25 Current Price

$15.75 Growth Price (DCF)

Overvalued by 40.00%


Growth Rate Assumed by Market: 500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


NMC.TO's most recent year of (normalized) free cash flow is negative. This is the base number for forward projections. This means that if you increase the growth rate, the amount of negative FCF grows, thereby decreasing the price.

Show Free Cash Flow numbers

$49.89 Book Price

Undervalued by 90.06%


Poor Cash Return on Invested Capital over the past 5 years

NMC.TO has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

NMC.TO has only created $3.00 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20092010201120122013
Free Cash Flow 1.12B 1.77B 797.00M -838.00M -357.00M
divided by
Invested Capital 15.94B 18.75B 21.68B 24.86B 20.39B
Cash ROIC 7.05% 9.41% 3.68% -3.37% -1.75%

Poor Return on Equity over the past 5 years

NMC.TO has shown an inability to deliver strong results for shareholders. This could be due to poor management, NMC.TO operating in a highly competitive industry, or having a weak business in general.

NMC.TO has only generated $7.81 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20092010201120122013
Net Income 2.00B 3.12B 972.00M 2.12B -2.72B
divided by
Stockholders' Equity 10.21B 13.35B 12.90B 13.77B 10.14B
Return on Equity 19.56% 23.35% 7.54% 15.38% -26.78%

Mediocre Business Performance over the past 10 years

NMC.TO isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

NMC.TO has been unable to consistently create value for shareholders.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Free Cash Flow 838.79M 16.34M -1.01B -1.01B -583.00M 1.12B 1.77B 797.00M -838.00M -357.00M

Weak Balance Sheet

NMC.TO's financial position is not ideal. The key is to check whether NMC.TO is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Cash 1.73B 1.90B 1.29B 1.29B 447.00M 3.12B 4.17B 1.85B 1.65B 1.63B
Current Assets 2.72B 3.04B 2.67B 2.67B 2.36B 5.55B 7.25B 5.39B 5.95B 4.87B
Total Assets 12.77B 13.99B 15.60B 15.60B 15.84B 21.27B 25.66B 27.47B 29.65B 24.76B
Current Liabilities 1.10B 1.35B 1.50B 1.50B 1.60B 2.21B 2.75B 3.94B 3.14B 2.74B
Total Liabilities 4.83B 5.62B 8.05B 8.05B 8.74B 11.06B 12.32B 14.58B 15.88B 14.62B
Stockholder' Equity 7.94B 8.38B 7.55B 7.55B 7.10B 10.21B 13.35B 12.90B 13.77B 10.14B
Current Ratio 2.47 2.25 1.78 1.78 1.48 2.51 2.64 1.37 1.89 1.78
TL-to-TA 0.38 0.40 0.52 0.52 0.55 0.52 0.48 0.53 0.54 0.59

Consistent Reinvestment of Profits over the past 10 years

NMC.TO has consistently retained profits. This may put NMC.TO in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, NMC.TO can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Retained Earnings 610.81M 754.15M -800.93M -800.52M 7.00M 1.10B 3.18B 3.05B 4.17B 1.09B
Retained Earnings Growth - 23.47% -206.20% 0.05% 100.87% 15,557.26% 190.14% -4.03% 36.50% -73.76%

Highly Competitive Industry over the past 10 years

It's likely that NMC.TO is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely NMC.TO invests heavily in R&D and Sales, General & Administrative expenses.

Only $2.18 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Net Income 490.47M 322.47M -1.88B -1.89B 853.00M 2.00B 3.12B 972.00M 2.12B -2.72B
divided by
Revenue 4.52B 4.41B 5.53B 5.53B 6.20B 7.35B 9.54B 10.36B 9.87B 8.32B
Net Profit Margin 10.84% 7.32% -34.07% -34.13% 13.76% 27.16% 32.66% 9.38% 21.46% -32.64%

Strong Pricing Power over the past 10 years

NMC.TO has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$51.90 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Gross Profit 2.22B 2.09B 2.55B 2.55B 3.06B 4.44B 6.06B 6.47B 5.63B 3.14B
divided by
Revenue 4.52B 4.41B 5.53B 5.53B 6.20B 7.35B 9.54B 10.36B 9.87B 8.32B
Gross Margin 49.09% 47.35% 46.11% 46.12% 49.28% 60.43% 63.48% 62.44% 57.05% 37.68%

High Capital Intensity over the past 10 years

NMC.TO spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

187.75% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Capital Expenditure 717.96M 1.23B 1.67B 1.67B 1.88B 1.69B 1.40B 2.79B 3.21B 1.90B
divided by
Net Income 490.47M 322.47M -1.88B -1.89B 853.00M 2.00B 3.12B 972.00M 2.12B -2.72B
Capital Expenditure Ratio 146.38% 380.27% -88.69% -88.52% 219.81% 84.52% 44.99% 286.73% 151.56% -69.96%

Very Strong Dividend History over the past 10 years

NMC.TO has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests NMC.TO is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Dividend Paid 133.30M 178.86M 180.27M 451.11M 571.00M 562.79M 708.00M 611.00M 698.00M 613.00M
divided by
Shares Outstanding 446.51M 446.00M 450.00M 452.00M 455.00M 487.00M 504.00M 504.00M 499.00M 498.00M
Dividend Paid Per Share 0.30 0.40 0.40 1.00 1.25 1.16 1.40 1.21 1.40 1.23
Price at Year End 50.17 58.50 49.94 45.98 47.08 48.92 60.07 63.98 46.27 24.58
Dividend Yield 0.60% 0.69% 0.80% 2.17% 2.67% 2.36% 2.34% 1.89% 3.02% 5.01%

History of Stock Buybacks over the past 10 years

NMC.TO has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Shares Outstanding 446.51M 446.00M 450.00M 452.00M 455.00M 487.00M 504.00M 504.00M 499.00M 498.00M
Stock Bought Back - 0.11% -0.89% -0.44% -0.66% -6.57% -3.37% - 1.00% 0.20%
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