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Newcrest Mining

ASX:NCM
Snowflake Description

Excellent balance sheet with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NCM
ASX
A$19B
Market Cap
  1. Home
  2. AU
  3. Materials
Company description

Newcrest Mining Limited, together with its subsidiaries, engages in the exploration, mine development, mine operation, and sale of gold and gold/copper concentrates. The last earnings update was 68 days ago. More info.


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NCM Share Price and Events
7 Day Returns
1.4%
ASX:NCM
-3.2%
AU Metals and Mining
-0%
AU Market
1 Year Returns
22.8%
ASX:NCM
10.6%
AU Metals and Mining
4.9%
AU Market
NCM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Newcrest Mining (NCM) 1.4% -0.6% 9.5% 22.8% 41% 135%
AU Metals and Mining -3.2% 0.5% 12.6% 10.6% 72.3% 7.8%
AU Market -0% 1% 6.3% 4.9% 18.2% 4.8%
1 Year Return vs Industry and Market
  • NCM outperformed the Metals and Mining industry which returned 10.6% over the past year.
  • NCM outperformed the Market in Australia which returned 4.9% over the past year.
Price Volatility
NCM
Industry
5yr Volatility vs Market

Value

 Is Newcrest Mining undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Newcrest Mining to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Newcrest Mining.

ASX:NCM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:NCM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.133 (1 + (1- 30%) (14.4%))
1.165
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.165 * 5.96%)
9.26%

Discounted Cash Flow Calculation for ASX:NCM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Newcrest Mining is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:NCM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.26%)
2019 674.34 Analyst x5 617.20
2020 922.47 Analyst x5 772.77
2021 816.87 Analyst x6 626.33
2022 536.00 Analyst x2 376.15
2023 513.27 Est @ -4.24% 329.68
2024 501.60 Est @ -2.27% 294.89
2025 497.09 Est @ -0.9% 267.48
2026 497.41 Est @ 0.06% 244.97
2027 501.09 Est @ 0.74% 225.87
2028 507.16 Est @ 1.21% 209.24
Present value of next 10 years cash flows $3,964.57
ASX:NCM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $507.16 × (1 + 2.31%) ÷ (9.26% – 2.31%)
$7,470.98
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,470.98 ÷ (1 + 9.26%)10
$3,082.29
ASX:NCM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,964.57 + $3,082.29
$7,046.87
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,046.87 / 767.14
$9.19
ASX:NCM Discount to Share Price
Calculation Result
Exchange Rate USD/AUD
(Reporting currency to currency of ASX:NCM)
1.399
Value per Share
(AUD)
= Value per Share in USD x Exchange Rate (USD/AUD)
= $9.19 x 1.399
A$12.85
Value per share (AUD) From above. A$12.85
Current discount Discount to share price of A$25.24
= -1 x (A$25.24 - A$12.85) / A$12.85
-96.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Newcrest Mining is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Newcrest Mining's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Newcrest Mining's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:NCM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.44
ASX:NCM Share Price ** ASX (2019-04-18) in AUD A$25.24
ASX:NCM Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.715 $18.05
Australia Metals and Mining Industry PE Ratio Median Figure of 78 Publicly-Listed Metals and Mining Companies 12.55x
Australia Market PE Ratio Median Figure of 544 Publicly-Listed Companies 16.14x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Newcrest Mining.

ASX:NCM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:NCM Share Price ÷ EPS (both in USD)

= 18.05 ÷ 0.44

40.65x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Newcrest Mining is overvalued based on earnings compared to the AU Metals and Mining industry average.
  • Newcrest Mining is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Newcrest Mining's expected growth come at a high price?
Raw Data
ASX:NCM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 40.65x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
-0%per year
Australia Metals and Mining Industry PEG Ratio Median Figure of 38 Publicly-Listed Metals and Mining Companies 0.65x
Australia Market PEG Ratio Median Figure of 360 Publicly-Listed Companies 1.35x

*Line of best fit is calculated by linear regression .

ASX:NCM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 40.65x ÷ -0%

-1136.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Newcrest Mining earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Newcrest Mining's assets?
Raw Data
ASX:NCM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $9.57
ASX:NCM Share Price * ASX (2019-04-18) in AUD A$25.24
ASX:NCM Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.715 $18.05
Australia Metals and Mining Industry PB Ratio Median Figure of 584 Publicly-Listed Metals and Mining Companies 1.52x
Australia Market PB Ratio Median Figure of 1,676 Publicly-Listed Companies 1.67x
ASX:NCM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:NCM Share Price ÷ Book Value per Share (both in USD)

= 18.05 ÷ 9.57

1.89x

* Primary Listing of Newcrest Mining.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Newcrest Mining is overvalued based on assets compared to the AU Metals and Mining industry average.
X
Value checks
We assess Newcrest Mining's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Newcrest Mining has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Newcrest Mining expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Newcrest Mining expected to grow at an attractive rate?
  • Newcrest Mining's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Newcrest Mining's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.
  • Newcrest Mining's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:NCM Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:NCM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts -0%
ASX:NCM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts -0.9%
Australia Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 1.2%
Australia Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 0.5%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.6%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:NCM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:NCM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 3,593 1,378 423 1
2022-06-30 3,542 1,328 522 3
2021-06-30 3,833 1,475 686 10
2020-06-30 4,095 1,485 685 12
2019-06-30 3,762 1,232 581 11
ASX:NCM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 3,575 1,445 341
2018-09-30 3,569 1,440 272
2018-06-30 3,562 1,434 202
2018-03-31 3,475 1,377 211
2017-12-31 3,387 1,319 219
2017-09-30 3,432 1,393 264
2017-06-30 3,477 1,467 308
2017-03-31 3,517 1,471 373
2016-12-31 3,556 1,475 438
2016-09-30 3,426 1,358 385
2016-06-30 3,295 1,241 332
2016-03-31 3,332 1,204 305

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Newcrest Mining's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Newcrest Mining's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:NCM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Newcrest Mining Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:NCM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 0.55 0.55 0.55 1.00
2022-06-30 0.68 0.87 0.52 3.00
2021-06-30 0.92 1.29 0.74 6.00
2020-06-30 0.92 1.10 0.72 9.00
2019-06-30 0.75 0.85 0.65 8.00
ASX:NCM Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.44
2018-09-30 0.35
2018-06-30 0.26
2018-03-31 0.27
2017-12-31 0.29
2017-09-30 0.34
2017-06-30 0.40
2017-03-31 0.49
2016-12-31 0.57
2016-09-30 0.50
2016-06-30 0.43
2016-03-31 0.40

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Newcrest Mining is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Newcrest Mining's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Newcrest Mining has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Newcrest Mining performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Newcrest Mining's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Newcrest Mining has delivered over 20% year on year earnings growth in the past 5 years.
  • Newcrest Mining's 1-year earnings growth is less than its 5-year average (55.7% vs 77.8%)
  • Newcrest Mining's earnings growth has exceeded the AU Metals and Mining industry average in the past year (55.7% vs 14%).
Earnings and Revenue History
Newcrest Mining's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Newcrest Mining Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:NCM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,575.00 341.00 111.00
2018-09-30 3,568.50 271.50 107.50
2018-06-30 3,562.00 202.00 104.00
2018-03-31 3,474.50 210.50 106.50
2017-12-31 3,387.00 219.00 109.00
2017-09-30 3,432.00 263.50 96.50
2017-06-30 3,477.00 308.00 84.00
2017-03-31 3,516.50 373.00 83.00
2016-12-31 3,556.00 438.00 82.00
2016-09-30 3,425.50 385.00 80.50
2016-06-30 3,295.00 332.00 79.00
2016-03-31 3,332.00 304.50 88.50
2015-12-31 3,369.00 277.00 98.00
2015-09-30 3,486.50 326.50 97.00
2015-06-30 3,604.00 376.00 96.00
2015-03-31 3,195.29 -577.74 86.18
2014-12-31 3,437.23 -1,670.17 101.37
2014-09-30 3,542.82 -1,870.37 111.10
2014-06-30 3,810.06 -2,094.59 126.37
2014-03-31 3,720.74 -3,841.73 108.48
2013-12-31 3,564.82 -5,425.03 89.43
2013-09-30 3,627.14 -5,537.69 108.43
2013-06-30 3,455.85 -5,294.09 120.84
2013-03-31 3,983.35 -2,599.01 143.12
2012-12-31 4,027.41 810.88 148.47
2012-09-30 4,303.50 984.70 146.82
2012-06-30 4,520.19 1,143.35 143.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Newcrest Mining has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Newcrest Mining used its assets less efficiently than the AU Metals and Mining industry average last year based on Return on Assets.
  • Newcrest Mining's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Newcrest Mining's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Newcrest Mining has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Newcrest Mining's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Newcrest Mining's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Newcrest Mining is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Newcrest Mining's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Newcrest Mining's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Newcrest Mining Company Filings, last reported 3 months ago.

ASX:NCM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 7,408.00 1,994.00 1,035.00
2018-09-30 7,408.00 1,994.00 1,035.00
2018-06-30 7,462.00 1,993.00 953.00
2018-03-31 7,462.00 1,993.00 953.00
2017-12-31 7,610.00 1,992.00 566.00
2017-09-30 7,610.00 1,992.00 566.00
2017-06-30 7,534.00 1,991.00 492.00
2017-03-31 7,534.00 1,991.00 492.00
2016-12-31 7,293.00 2,116.00 248.00
2016-09-30 7,293.00 2,116.00 248.00
2016-06-30 7,120.00 2,160.00 53.00
2016-03-31 7,120.00 2,160.00 53.00
2015-12-31 6,807.00 2,759.00 105.00
2015-09-30 6,807.00 2,759.00 105.00
2015-06-30 6,957.00 3,087.00 198.00
2015-03-31 6,909.20 3,065.25 196.77
2014-12-31 6,851.60 3,616.05 104.74
2014-09-30 7,324.50 3,865.63 111.97
2014-06-30 7,268.35 3,844.01 132.97
2014-03-31 7,145.70 3,779.15 130.73
2013-12-31 9,188.39 4,147.92 108.21
2013-09-30 9,603.22 4,335.19 113.10
2013-06-30 9,156.41 3,854.99 63.17
2013-03-31 10,497.01 4,383.03 71.82
2012-12-31 15,801.28 3,325.55 100.71
2012-09-30 15,791.44 3,323.48 100.65
2012-06-30 15,450.13 2,464.81 247.71
  • Newcrest Mining's level of debt (26.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (45.2% vs 26.9% today).
  • Debt is well covered by operating cash flow (72.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.2x coverage).
X
Financial health checks
We assess Newcrest Mining's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Newcrest Mining has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Newcrest Mining's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.03%
Current annual income from Newcrest Mining dividends. Estimated to be 1.23% next year.
If you bought A$2,000 of Newcrest Mining shares you are expected to receive A$21 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Newcrest Mining's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.52%).
  • Newcrest Mining's dividend is below the markets top 25% of dividend payers in Australia (5.81%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:NCM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Australia Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 3.7%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:NCM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30 0.24 3.00
2021-06-30 0.23 12.00
2020-06-30 0.23 14.00
2019-06-30 0.20 14.00
ASX:NCM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-13 0.185 1.039
2018-08-22 0.220 1.458
2018-02-15 0.150 0.948
2017-09-22 0.150 0.856
2017-04-03 0.150 0.911
2016-08-15 0.075 0.463
2014-08-18 0.000 0.000
2014-02-13 0.000 0.000
2013-09-09 0.000 0.000
2013-08-12 0.000 0.000
2013-03-14 0.312 2.516
2012-09-20 0.356 1.434
2012-08-13 0.357 1.331
2011-08-15 0.283 1.002
2011-02-11 0.295 0.771
2010-08-16 0.220 0.635
2010-02-12 0.082 0.299
2009-08-17 0.123 0.442
2009-04-23 0.071 0.326

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Newcrest Mining is not paying a notable dividend for Australia, therefore no need to check if the payments are stable.
  • Newcrest Mining is not paying a notable dividend for Australia, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Newcrest Mining's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Newcrest Mining's dividends as it is not paying a notable one for Australia.
Future Payout to shareholders
  • No need to calculate the sustainability of Newcrest Mining's dividends in 3 years as they are not expected to pay a notable one for Australia.
X
Income/ dividend checks
We assess Newcrest Mining's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Newcrest Mining afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Newcrest Mining has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Newcrest Mining's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sandeep Biswas
COMPENSATION $6,414,000
AGE 56
TENURE AS CEO 4.8 years
CEO Bio

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. Mr. Biswas was Chief Operating Officer at Newcrest since January 2014. He was previously Chief Executive Officer of Pacific Aluminium, a wholly owned subsidiary within the Rio Tinto group, which incorporated the bauxite, alumina, refining and smelting operations in Australia and New Zealand. He served as Head of Business Development Function at Rio Tinto Alcan Inc. since October 2007. He joined Newcrest in January 2014, as Executive Director and Chief Operating Officer. He began his career with Mount Isa Mines, working in both Australia and Europe. Sandeep has also worked for Western Mining Corporation in Australia and Rio Tinto in Canada and Australia. He served as Chief Executive Officer and Managing Director at MMG Exploration Pty Ltd. until July 6, 2015. He has experience in research, operations, business development and projects, across commodities including aluminum, copper, lead, zinc and nickel. He has been a Director of the Minerals Council of Australia since May 28, 2014 and is its Vice Chairman. He is a Director of the World Gold Council and Member of ICMM Council. He holds BEng (Chem) (Hons) and FAusIMM.

CEO Compensation
  • Sandeep's compensation has been consistent with company performance over the past year.
  • Sandeep's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure and age of the Newcrest Mining management team in years:

4.7
Average Tenure
56
Average Age
  • The tenure for the Newcrest Mining management team is about average.
Management Team

Sandeep Biswas

TITLE
MD, CEO & Director
COMPENSATION
$6M
AGE
56
TENURE
4.8 yrs

Gerard Bond

TITLE
Finance Director
COMPENSATION
$2M
AGE
50
TENURE
7.3 yrs

Francesca Lee

TITLE
Executive GM
COMPENSATION
$1M
AGE
62
TENURE
5.1 yrs

Ian Kemish

TITLE
Executive General Manager of People & External Relations
COMPENSATION
$1M
TENURE
0.5 yrs

Michael P. Nossal

TITLE
Chief Development Officer
COMPENSATION
$2M
AGE
59
TENURE
3.8 yrs

Craig Jones

TITLE
Executive General Manager Wafi-Golpu
COMPENSATION
$2M
AGE
47
TENURE
6.8 yrs

Phil Stephenson

TITLE
Executive General Manager of Gosowong
COMPENSATION
$1M
TENURE
4.7 yrs

Craig Jetson

TITLE
Executive General Manager of Cadia & Lihir
COMPENSATION
$1M
TENURE
3.8 yrs

Chris Maitland

TITLE
Head of Investor Relations

nee Badrick Kerr

TITLE
Treasurer & Head of Insurance
Board of Directors Tenure

Average tenure and age of the Newcrest Mining board of directors in years:

4.4
Average Tenure
61
Average Age
  • The tenure for the Newcrest Mining board of directors is about average.
Board of Directors

Peter Algernon Hay

TITLE
Independent Non-Executive Chairman
COMPENSATION
$466K
AGE
68
TENURE
5.3 yrs

Sandeep Biswas

TITLE
MD, CEO & Director
COMPENSATION
$6M
AGE
56
TENURE
5.3 yrs

Gerard Bond

TITLE
Finance Director
COMPENSATION
$2M
AGE
50
TENURE
7.2 yrs

Phil Aiken

TITLE
Independent Non-Executive Director
COMPENSATION
$203K
AGE
69
TENURE
6 yrs

Roger Higgins

TITLE
Independent Non-Executive Director
COMPENSATION
$171K
AGE
67
TENURE
3.5 yrs

Vickki McFadden

TITLE
Independent Non-Executive Director
COMPENSATION
$197K
AGE
59
TENURE
2.5 yrs

Xiaoling Liu

TITLE
Independent Non-Executive Director
COMPENSATION
$191K
AGE
62
TENURE
3.6 yrs

Peter Tomsett

TITLE
Independent Non-Executive Director
AGE
60
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
05. Mar 19 Sell Realindex Investments Pty Limited Company 07. Dec 18 04. Mar 19 -245,645 A$22.45 A$-5,514,031
05. Mar 19 Buy Realindex Investments Pty Limited Company 26. Nov 18 01. Mar 19 175,246 A$22.30 A$3,908,750
05. Mar 19 Sell First State Investments International Limited Company 24. Dec 18 04. Mar 19 -339,516 A$24.37 A$-8,275,561
05. Mar 19 Buy First State Investments International Limited Company 23. Nov 18 29. Nov 18 77,503 A$20.26 A$1,570,143
05. Mar 19 Sell Colonial First State Asset Management (Australia) Limited Company 26. Nov 18 04. Mar 19 -2,474,787 A$24.86 A$-60,479,339
05. Mar 19 Buy Colonial First State Asset Management (Australia) Limited Company 23. Nov 18 04. Mar 19 2,948,980 A$24.77 A$69,502,524
28. Feb 19 Sell SailingStone Capital Partners LLC Company 19. Dec 18 21. Dec 18 -9,484 A$21.53 A$-204,144
28. Feb 19 Buy SailingStone Capital Partners LLC Company 07. Nov 18 05. Feb 19 260 A$22.56 A$5,865
28. Feb 19 Sell Lockheed Martin Corporation Master Retirement Trust Company 27. Sep 18 27. Sep 18 -13,400 A$19.37 A$-259,535
28. Feb 19 Sell Van Eck Associates Corporation Company 27. Sep 18 13. Feb 19 -7,756,915 A$21.75 A$-165,723,154
28. Feb 19 Buy Van Eck Associates Corporation Company 25. Sep 18 25. Feb 19 549,122 A$24.95 A$12,933,102
21. Dec 18 Sell Sandeep Biswas Individual 21. Dec 18 21. Dec 18 -120,266 A$21.45 A$-2,579,477
21. Dec 18 Sell Gerard Bond Individual 21. Dec 18 21. Dec 18 -32,018 A$21.45 A$-686,725
26. Nov 18 Buy Realindex Investments Pty Limited Company 30. Oct 18 22. Nov 18 342,973 A$20.48 A$7,023,983
26. Nov 18 Buy First State Investments International Limited Company 22. Nov 18 22. Nov 18 148,867 A$21.04 A$3,132,712
26. Nov 18 Buy Colonial First State Asset Management (Australia) Limited Company 26. Oct 18 22. Nov 18 672,812 A$21.04 A$14,156,981
12. Nov 18 Buy Orbis SICAV - Global Cautious Fund Company 18. Oct 18 02. Nov 18 13,399 A$20.81 A$278,819
12. Nov 18 Buy Orbis Oeic - Global Cautious Fund Company 18. Oct 18 02. Nov 18 13,395 A$20.81 A$278,735
12. Nov 18 Sell Orbis Investment Management Limited Company 02. Jul 18 08. Nov 18 -1,585,110 A$28.99 A$-31,020,044
12. Nov 18 Buy Orbis Investment Management Limited Company 28. Jun 18 08. Nov 18 9,391,447 A$21.65 A$186,003,912
01. Nov 18 Sell Sandeep Biswas Individual 29. Oct 18 29. Oct 18 -33,719 A$21.18 A$-714,259
01. Nov 18 Sell Gerard Bond Individual 29. Oct 18 29. Oct 18 -11,292 A$21.18 A$-239,195
26. Oct 18 Sell First State Investments International Limited Company 16. May 17 23. Oct 18 -592,486 A$21.69 A$-12,850,017
26. Oct 18 Buy Realindex Investments Pty Limited Company 04. May 17 19. Oct 18 2,259,291 A$21.01 A$47,470,324
26. Oct 18 Sell First State Investment Management (UK) Limited Company 07. Jun 17 24. Oct 18 -1,272,867 A$20.95 A$-26,668,439
26. Oct 18 Sell Realindex Investments Pty Limited Company 18. May 17 19. Oct 18 -1,037,366 A$21.19 A$-21,981,626
26. Oct 18 Buy First State Investments International Limited Company 17. May 17 19. Oct 18 2,282,427 A$21.03 A$47,997,051
26. Oct 18 Buy First State Investment Management (UK) Limited Company 17. May 17 05. Oct 18 1,039,106 A$21.17 A$21,997,663
26. Oct 18 Sell Commonwealth Bank Officers Superannuation Corporation Pty Limited Company 14. Jun 17 24. Oct 18 -106,156 A$20.89 A$-2,217,868
26. Oct 18 Buy Commonwealth Bank Officers Superannuation Corporation Pty Limited Company 01. Sep 17 18. Oct 18 151,309 A$20.56 A$3,111,495
26. Oct 18 Sell Colonial First State Asset Management (Australia) Limited Company 02. May 17 24. Oct 18 -14,959,001 A$21.20 A$-315,138,753
26. Oct 18 Buy Colonial First State Asset Management (Australia) Limited Company 02. May 17 24. Oct 18 8,944,751 A$21.34 A$187,834,932
25. Sep 18 Buy SailingStone Capital Partners LLC Company 21. Sep 18 21. Sep 18 6,895 A$19.78 A$136,410
25. Sep 18 Sell Van Eck Associates Corporation Company 18. Sep 18 21. Sep 18 -8,433 A$19.83 A$-166,447
25. Sep 18 Buy Van Eck Associates Corporation Company 30. Aug 18 21. Sep 18 4,908,552 A$19.84 A$97,094,014
30. Aug 18 Sell Van Eck Associates Corporation Company 16. Jun 17 01. Aug 18 -702,910 A$22.66 A$-15,618,493
30. Aug 18 Buy Van Eck Associates Corporation Company 13. Jun 17 27. Aug 18 424,101 A$21.90 A$8,985,126
28. Aug 18 Sell BlackRock, Inc. Company 19. Oct 16 27. Aug 18 -34,733,815 A$25.35 A$-184,988
28. Aug 18 Buy BlackRock, Inc. Company 19. Oct 16 27. Aug 18 25,886,890 A$25.35 A$0
20. Aug 18 Sell The Vanguard Group, Inc. Company 16. Aug 18 16. Aug 18 -18,949 A$20.34 A$-385,423
20. Aug 18 Sell The Vanguard Group, Inc. Company 19. Apr 18 15. Aug 18 -293,790 A$22.25 A$-6,443,813
20. Aug 18 Buy The Vanguard Group, Inc. Company 13. Apr 18 15. Aug 18 1,421,936 A$22.19 A$31,552,761
29. Jun 18 Sell Orbis Investment Management Limited Company 24. Jul 17 08. Jun 18 -1,689,527 A$21.91 A$-36,886,275
29. Jun 18 Buy Orbis Investment Management Limited Company 11. May 17 27. Jun 18 5,391,568 A$25.38 A$115,983,098
X
Management checks
We assess Newcrest Mining's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Newcrest Mining has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Be Tempted To Sell Newcrest Mining Limited (ASX:NCM) Because Of Its P/E Ratio?

Newcrest Mining has a price to earnings ratio of 40.65, based on the last twelve months. … How Do I Calculate Newcrest Mining's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

Can You Imagine How Chuffed Newcrest Mining's (ASX:NCM) Shareholders Feel About Its 133% Share Price Gain?

One great example is Newcrest Mining Limited (ASX:NCM) which saw its share price drive 133% higher over five years. … During the five years of share price growth, Newcrest Mining moved from a loss to profitability. … We can see that the Newcrest Mining share price is up 38% in the last three years.

Simply Wall St -

Newcrest Mining Limited (ASX:NCM): What Does The Future Look Like?

In December 2018, Newcrest Mining Limited (ASX:NCM) announced its earnings update. … with profits predicted to ramp up by an impressive 77% next year, … in-line with the past five-year average earnings growth of 78% per year

Simply Wall St -

Newcrest Mining Limited (ASX:NCM) Delivered A Weaker ROE Than Its Industry

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every A$1 worth of shareholders' equity, it generated A$0.047 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Newcrest Mining Limited's (ASX:NCM) CEO Paid Enough Relative To Peers?

How Does Sandeep Biswas's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Newcrest Mining Limited has a market cap of AU$18b, and is paying total annual CEO compensation of US$6.4m. … While we always look at total compensation first, we note that the salary component is less, at US$1.8m.

Simply Wall St -

Here’s why Newcrest Mining Limited’s (ASX:NCM) Returns On Capital Matters So Much

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Has Newcrest Mining Limited (ASX:NCM) Got Enough Cash?

With a market capitalization of AU$19b, Newcrest Mining Limited (ASX:NCM) is a large-cap stock, which is considered by most investors as a safe bet. … Common characteristics for these big stocks are their strong balance sheet and high liquidity, which means there's plenty of stocks available to the public for trading. … In times of low liquidity in the market, these firms won’t be left high and dry.

Simply Wall St -

Have Insiders Been Selling Newcrest Mining Limited (ASX:NCM) Shares This Year?

So shareholders might well want to know whether insiders have been buying or selling shares in Newcrest Mining Limited (ASX:NCM). … In the last twelve months, the biggest single sale by an insider was when MD, CEO & Director Sandeep Biswas sold AU$2.6m worth of shares at a price of AU$21.45 per share. … We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price

Simply Wall St -

Is Newcrest Mining Limited's (ASX:NCM) High P/E Ratio A Problem For Investors?

How Do I Calculate Newcrest Mining's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS) … P/E of 63.49 = $16.71 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.26

Simply Wall St -

Should You Buy Newcrest Mining Limited (ASX:NCM) For Its 1.4% Dividend?

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Historically, Newcrest Mining Limited (ASX:NCM) has paid dividends to shareholders, and these days it yields 1.4%. … Let's take a look at Newcrest Mining in more detail.

Simply Wall St -

Company Info

Description

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; Bonikro, Cote d’Ivoire; and other projects. Newcrest Mining Limited was founded in 1966 and is headquartered in Melbourne, Australia.

Details
Name: Newcrest Mining Limited
NCM
Exchange: ASX
Founded: 1966
A$19,362,662,868
767,141,952
Website: http://www.newcrest.com.au
Address: Newcrest Mining Limited
600 St. Kilda Road,
Level 8,
Melbourne,
Victoria, 3004,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX NCM Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1992
OTCPK NCMG.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB NMA Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
SWX NCM Ordinary Shares SIX Swiss Exchange CH CHF 02. Jan 1992
CHIA NCM Ordinary Shares Chi-X Australia AU AUD 02. Jan 1992
OTCPK NCMG.Y ADR-EACH CNV INTO 1 ORD NPV Pink Sheets LLC US USD 28. Sep 1995
DB NMAA ADR-EACH CNV INTO 1 ORD NPV Deutsche Boerse AG DE EUR 28. Sep 1995
Number of employees
Current staff
Staff numbers
0
Newcrest Mining employees.
Industry
Gold
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/22 10:30
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/02/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.