An interesting thought exercise here… comparing 2009 Newmont at 45$ to Newmont today at 18… see if you can actually see anything different other than PERCEPTION of where gold prices were headed
Their cash margins are practically IDENTICAL at roughly 500$ per ounce of gold sold. Gold was $915 during the quarter reported July 2009. Gold was $1104 in the quarter reported October 2015. Even their net long term debt is practically identical at 2.3 billion in 2009 and slightly over 3 billion in 2015. THESE MINERS ARE NOT BROKEN COMPANIES… they are just perceived to be broken. Now let me ask… why is this company at 18 “heading to zero” today and 45 headed to 60 then????
2009 2015
Cash from operating activities in mln USD 894 813
Free cash flow 503 478
GAAP EPS .35 .38
DENVER, July 23, 2009 – Newmont Mining Corporation (NYSE: NEM) (“Newmont” or the “Company”) today announced second quarter results, with equity gold sales of 1.2 million ounces at an average realized price of $915 per ounce and costs applicable to sales of $423 per ounce, resulting in adjusted net income(1) of $213 million ($0.43 per share), compared to $221 million ($0.50 per share) for the prior year quarter. Net income from continuing operations on a GAAP basis(2) was $171 million ($0.35 per share) for the second quarter, compared to $270 million ($0.60 per share) for the year ago quarter. The 2009 decrease is primarily due to lower realized copper prices and a significantly higher tax rate, partially offset by higher sales volumes and lower operating costs.
Second Quarter 2009 Highlights:
- Equity gold sales of 1.2 million ounces at an average realized price of $915 per ounce;
- Equity copper sales of 47 million pounds at an average realized price of $2.17 per pound;
- Costs applicable to sales for gold of $423 per ounce, down 4% from $439 per ounce in the yearago quarter;
- Costs applicable to sales for copper of $0.58 per pound;
- Net cash provided from continuing operations of $503 million; and
- Adjusted net income(1) of $213 million ($0.43 per share).
Newmont Announces Third Quarter Operating and Financial Results
DENVER, October 28, 2015 – Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company) announced third quarter results, including $813 million in operating cash flow, and $758 million in adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA)1.
- Net income: Achieved GAAP net income attributable to shareholders from continuing operations of $202 million, or $0.38 per share, compared to $210 million or $0.42 per share in the prior year quarter; adjusted net income2 was $126 million, or $0.23 per share, compared to $249 million or $0.50 per share in the prior year quarter
- Consolidated Adjusted EBITDA: Delivered Adjusted EBITDA of $758 million in the third quarter, compared to $455 million in the prior year quarter
- Consolidated cash flow: Generated cash from continuing operations of $813 million compared to $328 million in the prior year quarter and free cash flow3 from continuing operations of $478 million, compared to $51 million in the prior year quarter
- All-in sustaining costs (AISC)4: Improved gold AISC to $835 per ounce compared to $995 per ounce in the prior year quarter, and copper AISC to $1.54 per pound compared to $6.61 per pound in the prior year quarter
- Costs applicable to sales (CAS): Improved gold CAS to $608 per ounce compared with $705 per ounce in the prior year quarter, and copper CAS to $1.15 per pound compared to $5.73 per pound in the prior year quarter
Sentiment. The market valued the company more back then because public sentiment toward gold was higher. Now, with sentiment low, it is perceived poorly, even though operating conditions are similar. This is a clue that the company is undervalued, and therefore, potentially a good investment.
Exactly, markets trade on sentiment alone…..herd mentality.
Cash, Excellent report on NEW. Thanks for the post.
Share prices, then vs now, are pretty much worthless apples to oranges comparisons.
One thing that REALLY bothers me about the availability of historical stock market data series, is the absence of historical data on share float.
I owned NEM at 16 from 2001 and on, into 2006 or so. Sold in low 50s.
OK, so now its back to the teens again. Is it as attractive now as in 2001?
But does a ‘share’ now represent the same equity stake in the company as back then? Or have they issued millions of new shares that are diluting the value of ‘a share’? I know that is what happens to a lot of moose pasture.
I would just like to add a share float indicator to my long term charts …. to see.
Market cap would work too.
This is easily accessible information, Pedro. Newmont is not a serial dilution machine. They have had a relatively stable share count. They had 479 million shares outstanding July 2009. They have 529 million shares outstanding as of October 2015. 29 million of that increase was used in a stock offering to buy Cripple Creek from Anglogold Ashanti when their stock price was recently in the mid-20s… their optimization of that asset hasn’t even shown up in the financials yet. I’d say in this case that a share in 2015 is pretty close to a share in 2009. In this case it is apples to apples (although this may not be the case for some other miners).
Oct. 22, 2015 529.12M
July 16, 2015 529.05M
April 15, 2015 499.85M
Feb. 11, 2015 498.86M
Dec. 31, 2014 498.67M
Oct. 22, 2014 498.80M
July 18, 2014 498.76M
April 16, 2014 498.53M
Feb. 12, 2014 493.25M
Dec. 31, 2013 492.68M
Oct. 24, 2013 493.06M
July 18, 2013 492.82M
April 22, 2013 492.32M
Feb. 14, 2013 491.84M
Dec. 31, 2012 491.72M
Oct. 25, 2012 491.54M
July 18, 2012 491.25M
April 18, 2012 490.63M
Feb. 15, 2012 490.15M
Dec. 31, 2011 494.73M
Oct. 20, 2011 488.21M
July 21, 2011 487.57M
April 12, 2011 487.09M
Feb. 18, 2011 486.56M
Dec. 31, 2010 486.73M
Oct. 25, 2010 486.20M
July 21, 2010 484.70M
April 20, 2010 483.46M
Feb. 17, 2010 483.03M
Dec. 31, 2009 481.73M
Oct. 23, 2009 480.41M
July 15, 2009 479.72M
April 22, 2009 478.97M
Feb. 11, 2009 478.51M
Oct. 24, 2008 441.45M
July 18, 2008 439.23M
June 30, 2008 439.23M
April 17, 2008 436.58M
March 31, 2008 436.58M
Dec. 31, 2007 453.29M
Sept. 30, 2007 433.04M
June 30, 2007 426.91M
March 31, 2007 425.32M
Feb. 12, 2007 450.68M
Dec. 31, 2006 416.75M
Oct. 30, 2006 422.46M
Sept. 30, 2006 422.46M
July 21, 2006 420.92M
June 30, 2006 420.92M
April 21, 2006 418.62M
Thanks for pulling those data up, Cash. That’s very interesting to see.