Executive Summary
Newcrest Mining Limited, together with its subsidiaries, engages in the exploration, mine development, mine operation, and sale of gold and gold/copper concentrates.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -18% per year for the next 3 years
Snowflake Analysis
Solid track record with excellent balance sheet.
Similar Companies
Share Price & News
How has Newcrest Mining's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NCM has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.1%
NCM
-6.0%
AU Metals and Mining
-6.2%
AU Market
1 Year Return
14.8%
NCM
-0.4%
AU Metals and Mining
7.9%
AU Market
Return vs Industry: NCM exceeded the Australian Metals and Mining industry which returned 1.9% over the past year.
Return vs Market: NCM exceeded the Australian Market which returned 10.9% over the past year.
Shareholder returns
| NCM | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.1% | -6.0% | -6.2% |
| 30 Day | -11.7% | -10.0% | -5.9% |
| 90 Day | -9.1% | -3.5% | -2.7% |
| 1 Year | 16.0%14.8% | 4.6%-0.4% | 12.6%7.9% |
| 3 Year | 34.1%29.4% | 51.4%32.7% | 31.3%13.8% |
| 5 Year | 113.5%105.1% | 75.8%34.4% | 42.6%10.6% |
Price Volatility Vs. Market
How volatile is Newcrest Mining's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
We Think Newcrest Mining (ASX:NCM) Can Manage Its Debt With Ease3 weeks ago | Simply Wall St
Can Newcrest Mining Limited (ASX:NCM) Improve Its Returns?1 month ago | Simply Wall St
What Does Newcrest Mining Limited’s (ASX:NCM) 8.2% ROCE Say About The Business?Valuation
Is Newcrest Mining undervalued compared to its fair value and its price relative to the market?
25.61x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NCM (A$28.24) is trading above our estimate of fair value (A$14.61)
Significantly Below Fair Value: NCM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NCM is poor value based on its PE Ratio (25.6x) compared to the Metals and Mining industry average (11.6x).
PE vs Market: NCM is poor value based on its PE Ratio (25.6x) compared to the Australian market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: NCM's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: NCM is overvalued based on its PB Ratio (1.9x) compared to the AU Metals and Mining industry average (1.3x).
Next Steps
Future Growth
How is Newcrest Mining forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
-18.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NCM's earnings are forecast to decline over the next 3 years (-18% per year).
Earnings vs Market: NCM's earnings are forecast to decline over the next 3 years (-18% per year).
High Growth Earnings: NCM's earnings are forecast to decline over the next 3 years.
Revenue vs Market: NCM's revenue is expected to decline over the next 3 years (-5% per year).
High Growth Revenue: NCM's revenue is forecast to decline over the next 3 years (-5% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NCM's Return on Equity is forecast to be low in 3 years time (4.7%).
Next Steps
Past Performance
How has Newcrest Mining performed over the past 5 years?
40.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NCM has high quality earnings.
Growing Profit Margin: NCM's current net profit margins (14.7%) are higher than last year (9.5%).
Past Earnings Growth Analysis
Earnings Trend: NCM has become profitable over the past 5 years, growing earnings by 40.6% per year.
Accelerating Growth: NCM's earnings growth over the past year (64.2%) exceeds its 5-year average (40.6% per year).
Earnings vs Industry: NCM earnings growth over the past year (64.2%) exceeded the Metals and Mining industry 24.1%.
Return on Equity
High ROE: NCM's Return on Equity (7.1%) is considered low.
Next Steps
Financial Health
How is Newcrest Mining's financial position?
Financial Position Analysis
Short Term Liabilities: NCM's short term assets ($1.6B) exceed its short term liabilities ($750.0M).
Long Term Liabilities: NCM's short term assets ($1.6B) do not cover its long term liabilities ($3.5B).
Debt to Equity History and Analysis
Debt Level: NCM's debt to equity ratio (26%) is considered satisfactory.
Reducing Debt: NCM's debt to equity ratio has reduced from 52.6% to 26% over the past 5 years.
Balance Sheet
Inventory Level: NCM has a high level of physical assets or inventory.
Debt Coverage by Assets: NCM's debt is not covered by short term assets (assets are 0.8x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: NCM is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: NCM is profitable, therefore cash runway is not a concern.
Next Steps
Dividend
What is Newcrest Mining's current dividend yield, its reliability and sustainability?
1.18%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: NCM's dividend (1.18%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.44%).
High Dividend: NCM's dividend (1.18%) is low compared to the top 25% of dividend payers in the Australian market (5.53%).
Stability and Growth of Payments
Stable Dividend: NCM is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.
Growing Dividend: NCM is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: NCM is not paying a notable dividend for the Australian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of NCM's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Sandeep Biswas (56yo)
5.6yrs
Tenure
US$6,305,000
Compensation
Mr. Sandeep Biswas, B.E., has been the Managing Director and Chief Executive Officer of Newcrest Mining Limited since July 4, 2014 and has been its Executive Director since joining it on January 01, 2014. ...
CEO Compensation Analysis
Compensation vs Market: Sandeep's total compensation ($USD6.31M) is above average for companies of similar size in the Australian market ($USD3.69M).
Compensation vs Earnings: Sandeep's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 5.6yrs | US$6.31m | 0.068% $14.8m | |
| Finance Director | 8yrs | US$2.03m | 0.020% $4.4m | |
| Chief Operating Officer (Australia | 1.1yrs | US$1.48m | 0.0097% $2.1m | |
| Chief Development Officer | 4.6yrs | US$2.02m | 0.022% $4.7m | |
| Acting Chief Technical & Projects Officer | 0.5yrs | no data | no data | |
| Head of Investor Relations & Media | 0yrs | no data | no data | |
| Chief Legal | 5.9yrs | US$1.28m | no data | |
| Chief People & Sustainability Officer | 1.3yrs | US$1.26m | no data | |
| Chief Operating Officer (Papua New Guinea) | 1.1yrs | US$1.62m | no data | |
| Treasurer & Head of Insurance | 0yrs | no data | no data |
3.0yrs
Average Tenure
56yo
Average Age
Experienced Management: NCM's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Director | 5.6yrs | US$6.31m | 0.068% $14.8m | |
| Finance Director | 8yrs | US$2.03m | 0.020% $4.4m | |
| Independent Non-Executive Director | 6.8yrs | US$190.00k | 0.0024% $517.8k | |
| Independent Non-Executive Director | 1.4yrs | US$149.00k | 0.0026% $565.4k | |
| Independent Non-Executive Chairman | 6.1yrs | US$437.00k | 0.0072% $1.6m | |
| Independent Non-Executive Director | 4.3yrs | US$180.00k | 0.0016% $353.1k | |
| Independent Non-Executive Director | 3.3yrs | US$198.00k | 0.0013% $283.8k | |
| Independent Non-Executive Director | 4.4yrs | US$178.00k | 0.0017% $366.1k |
5.3yrs
Average Tenure
62yo
Average Age
Experienced Board: NCM's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Newcrest Mining Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Newcrest Mining Limited
- Ticker: NCM
- Exchange: ASX
- Founded: 1966
- Industry: Gold
- Sector: Materials
- Market Cap: AU$21.664b
- Shares outstanding: 767.15m
- Website: https://www.newcrest.com.au
Number of Employees
Location
- Newcrest Mining Limited
- 600 St. Kilda Road
- Level 8
- Melbourne
- Victoria
- 3004
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NCMG.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| NCM | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
| NMA | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| NCM | SWX (SIX Swiss Exchange) | Yes | Ordinary Shares | CH | CHF | Jan 1992 |
| NCM | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Jan 1992 |
| NCMG.Y | OTCPK (Pink Sheets LLC) | ADR-EACH CNV INTO 1 ORD NPV | US | USD | Sep 1995 | |
| NMAA | DB (Deutsche Boerse AG) | ADR-EACH CNV INTO 1 ORD NPV | DE | EUR | Sep 1995 |
Biography
Newcrest Mining Limited, together with its subsidiaries, engages in the exploration, mine development, mine operation, and sale of gold and gold/copper concentrates. It is also involved in the exploration of silver deposits. The company primarily owns and operates mines and projects located in Cadia and Telfer, Australia; Lihir, Papua New Guinea; Gosowong, Indonesia; British Columbia, Canada; and other projects. Newcrest Mining Limited was founded in 1966 and is headquartered in Melbourne, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/26 10:31 |
| End of Day Share Price | 2020/02/26 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.