NCM.AX - Newcrest Mining Limited

ASX - ASX Delayed Price. Currency in AUD
28.24
+0.07 (+0.25%)
As of 12:15PM AEDT. Market open.
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Previous Close28.17
Open28.31
Bid28.21 x 0
Ask28.22 x 0
Day's Range28.19 - 28.54
52 Week Range23.53 - 38.87
Volume988,415
Avg. Volume3,235,669
Market Cap21.712B
Beta (5Y Monthly)-0.09
PE Ratio (TTM)38.90
EPS (TTM)0.73
Earnings DateFeb 14, 2020
Forward Dividend & Yield0.33 (1.17%)
Ex-Dividend DateFeb 20, 2020
1y Target Est15.81
  • Gold Diggers Resist the Rally’s Lure
    Bloomberg

    Gold Diggers Resist the Rally’s Lure

    (Bloomberg Opinion) -- Bullion prices are at their highest in seven years, closing in on $1,600 an ounce. Gold held by exchange-traded funds is at all-time records and rising, thanks to worries over the economic damage inflicted by the coronavirus outbreak. Reserves, meanwhile, are depleting. It’s a heady mixture for miners, but perhaps not yet an intoxicating one.Take Polyus PJSC, Russia’s largest gold digger. The $17 billion company said last week that it would pay down debt before beginning to spend seriously on its $2.5 billion Sukhoi Log project, set to add 1.6 million ounces a year to supply. That’s quite a statement. This is one of the world’s lowest-cost producers, generating plenty of cash, holding one of most impressive untapped resources globally, at a time of rising prices. The mine promises significant extra output for a company that aims to produce 2.8 million ounces this year.  Even so, Polyus is resisting the urge to fast-track, with a roughly two-year  “transitional period” of planning before it begins in 2023.Granted, there are circumstances peculiar to Polyus that suggest conservative timing and financing is necessary. The miner is controlled by the son of Suleiman Kerimov, one of a handful of tycoons included in Washington’s 2018 sanctions list. A planned $900 million equity sale to Chinese conglomerate Fosun Group fell apart earlier that year, too. The project itself, meanwhile, is vast, and deep inside Russia, hardly a popular jurisdiction with foreign mining investors.Polyus’s conservative approach is noteworthy, nonetheless. This is an industry that has in general become far more cautious with big-bang projects after a string of boom-time efforts a decade ago, begun in haste and regretted at leisure. Barrick Gold Corp.’s Pascua Lama in South America started in 2000 as a $1.2 billion project; by the time it was shelved in 2013, the estimated cost had soared to $8.5 billion. Polyus learned its own lessons at its Natalka mine. It was trapped by falling prices in 2013 and construction eventually paused, before resuming in 2016. Certainly Sukhoi Log, first studied by Soviet geologists in the 1970s, comes with history and plenty of challenges. The size, at some 63 million ounces and as much of a quarter of Russia’s gold reserves, means it is the largest project on the industry’s horizon, by some way. For Polyus, it adds the equivalent of the annual output of its nearest rival, Polymetal International Plc. That gargantuan scale that leaves plenty of room for costs to spill over. There is processing to resolve, all on site, and transport logistics will be complex given the mine’s location. When I visited in 2012, the airport in the nearest settlement closed if it rained.But the geology isn’t unfamiliar to Polyus, already operating nearby. It will use conventional processing. And the miner’s overall expenses are low by global standards. Its all-in sustaining cost was $594 per ounce in 2019, against Barrick’s $894. That’s a substantial margin even if bullion prices sink to the $1,050 used in Polyus’s Sukhoi Log calculations. It’s all a far cry from the mood of the 2000s bull run, when gold shot up to $1,900 an ounce from $300 in just over a decade, and miners raced behind. The resulting value destruction was immense: Billions were spent on terrible projects and worse companies. A full 80% of the transaction value of the eight largest deals between 2001 and 2011 was impaired, according to a McKinsey & Co. study published last year. The industry’s return on capital between 2010 and 2016 was a pathetic 2.6%.With the gold price trending higher after a couple of years around $1,200 to $1,300, deals have come back, and cashflows are helping exploration budgets rise. It’s notable that M&A discussions are beginning to build in prices closer to $1,500 than the $1,200 or so of recent years. It’s exuberance that hasn’t quite fed through to mega projects.Polyus’s muddy knoll in bleak eastern Siberia has enough gold beneath it to rival behemoths like Grasberg, in Indonesia. As prices climb and buccaneering projects like Newcrest Mining Ltd. and Harmony Gold Mining Co.’s Wafi-Golpu in Papua New Guinea are  back in discussion, the question is whether Polyus sets a trend, or becomes the judicious exception. To contact the author of this story: Clara Ferreira Marques at cferreirama@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Is Newcrest Mining Limited’s (ASX:NCM) Return On Capital Employed Any Good?
    Simply Wall St.

    Is Newcrest Mining Limited’s (ASX:NCM) Return On Capital Employed Any Good?

    Today we'll look at Newcrest Mining Limited (ASX:NCM) and reflect on its potential as an investment. Specifically...

  • Australia’s Crippling Drought Posing Bigger Risks to Gold Mines
    Bloomberg

    Australia’s Crippling Drought Posing Bigger Risks to Gold Mines

    (Bloomberg) -- A drought in parts of Australia that’s delivered record low rainfall is posing potential risks to output at key gold mines in the world’s second-largest producer.Rainfall in New South Wales state has been at one-in-100 year lows for the past two years, Newcrest Mining Ltd. said Thursday, flagging that production at its flagship Cadia operation could be impacted by the end of this year if the conditions persist.The mine is Newcrest’s most profitable and accounted for more than two-thirds of earnings in the last fiscal year, according to filings by the nation’s top producer of the metal. Its shares fell as much as 5.1% in Sydney.Australia experienced the lowest December rainfall total on record last month, the Bureau of Meteorology said in a Jan. 7 statement. Arid conditions in parts of the Murray-Darling Basin region, which covers several states and key mining districts, have persisted since early 2017 and are severely limiting water resources.Low rainfall totals over the past 36 months in parts of the Murray–Darling Basin region have broken records set during Australia’s Federation Drought between 1900 and 1902, the bureau said Thursday in an email.New South Wales “remains impacted by a severe drought,” Newcrest said in its statement. “Cadia has implemented significant water saving efficiency measures and continues to pursue further water saving initiatives.” The operation would escape any hit to output if rainfall reverted to more typical historical levels, the company said.Crop producers to wine makers are also among industry sectors that have been grappling with the impact of restricted water supply in Australia’s east. GrainCorp Ltd. in August lowered its earnings estimate, citing issues including the drought, while Treasury Wine Estates Ltd. said Tuesday its 2020 Australian vintage would experience an impact.Evolution Mining Ltd., which operates the Cowal mine in NSW on the edge of a lake about 350 kilometers (217 miles) west of Sydney, said Wednesday it had spent the past 12 months seeking to curb the operation’s reliance on surface water and comply with state-wide restrictions.“Due to the sustained drought conditions there is potential for these water restrictions to increase,” the producer said in a statement.China Molybdenum Co., which controls the Northparkes copper and gold mine in central NSW has also previously said that it is exploring options to boost water conservation.Gold miners require vast quantities of water to process excavated ore into precious metals, typically using more than 250 megaliters to produce a ton of gold, according to Australia’s national science agency. The mining sector’s approach to water stewardship is under increasing scrutiny as investors focus more on environmental performance.To contact the reporter on this story: David Stringer in Melbourne at dstringer3@bloomberg.netTo contact the editors responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net, Keith Gosman, Jake Lloyd-SmithFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Lundin Gold CEO Looking for Acquisitions, Open to a Takeover
    Bloomberg

    Lundin Gold CEO Looking for Acquisitions, Open to a Takeover

    (Bloomberg) -- With its first commercial production around the corner, Lundin Gold Inc. is looking at options to grow -- including acquisitions.The gold miner, whose only asset is expected to reach commercial production in the second quarter, is considering expansion at a time when bullion prices are hovering near a seven-year high. The rally has bolstered the case for acquisitions in an industry that has seen years of underinvestment, resulting in declining global production outlook.The company’s largest shareholder, Melbourne-based Newcrest Mining Ltd., is supportive of a potential acquisition, as is the Lundin family, also a major owner, Lundin Gold Chief Executive Officer Ron Hochstein said Thursday in an interview at Bloomberg’s Toronto office. “The challenge for us is going to be finding something that’s accretive for our shareholders.”The company has marked out a “concentric circle” of geographic targets in which a “bulls-eye” would be a pure-play gold asset in Latin America, outside Ecuador. Beyond that, the Vancouver-based miner would look at the rest of the Americas and then the world, excluding Russia, China and the “Stans.” Meanwhile, it will focus on organic growth through additional land holdings in Ecuador, he said.Funding an acquisition would likely not be difficult, he said, noting that the company works with seven banks and also has private equity investment through Orion Mine Finance. “Everyone seems very happy and I think if we were to do something, we’ve got the resources,” Hochstein said. “If it’s right and it’s accretive, we’ll spend what we have to spend to get it.”The company’s Fruta del Norte mine in Ecuador is expected to produce more than 300,000 ounces of gold this year, and average 325,000 ounces over its expected 14-year mine life.Asked about the potential that Lundin Gold could be a takeover target, given a wave of M&A in the sector, Hochstein said the company would welcome a buyer if the price was good.“That’s partly why a lot of investors invest with the Lundins; because they know if the value is right for the family, they sell,” he said. “There’s no sacred cows.”Newcrest would be the most logical buyer, he confirmed. “But the family’s going to have to be happy with the price. We can’t have the thing where Newcrest could just continue to creep and kind of own it, and the next thing you know we’re a subsidiary of Newcrest.”Newcrest said it doesn’t comment on M&A speculation but “we are very happy with our holding in Lundin Gold,” according to a company spokesperson.Newcrest recently increased its holdings in Lundin to 32%, while companies associated with the Lundin Family Trust also increased their stake.(Adds trend in gold prices and acquisitions in the second paragraph.)\--With assistance from Ranjeetha Pakiam and David Stringer.To contact the reporter on this story: Danielle Bochove in Toronto at dbochove1@bloomberg.netTo contact the editors responsible for this story: Luzi Ann Javier at ljavier@bloomberg.net, Reg GaleFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    FOCUS-Barrick Gold forges ahead on Papua New Guinea mine in face of local backlash

    Barrick Gold Corp is set to elevate its troubled Papua New Guinea mine to its top-tier assets, despite landowner and government demands to cede a larger stake and deteriorating security at the joint venture with China's Zijin Mining. With a 20-year lease renewal application in the balance, Barrick has faced backlash from Papua New Guinea (PNG) landowners and residents. Critics say the Porgera mine has polluted the water supply and created other environmental and social problems, with minimal economic returns for locals.

  • GlobeNewswire

    GFG Announces Drill Results from the Rattlesnake Hills Gold Project in Wyoming, US

    The drill program, consisting of 3,900 metres of core drilling in three holes, tested multiple gold targets proximal to the North Stock deposit (See Table 1 and Figures 1 and 2). This initial test of the North Deep and South Deep targets outlined encouraging and widespread alteration, brecciation, sulphidation and multiple porphyry bodies; however, results from this test returned relatively low gold grades.

  • Reuters

    CORRECTED-FOCUS-Barrick Gold forges ahead on Papua New Guinea mine in face of local backlash

    Barrick Gold Corp is set to elevate its troubled Papua New Guinea mine to its top-tier assets, despite landowner and government demands to cede a larger stake and deteriorating security at the joint venture with China's Zijin Mining. With a 20-year lease renewal application in the balance, Barrick has faced backlash from Papua New Guinea (PNG) landowners and residents. Critics say the Porgera mine has polluted the water supply and created other environmental and social problems, with minimal economic returns for locals.

  • Does Newcrest Mining Limited's (ASX:NCM) CEO Salary Compare Well With Others?
    Simply Wall St.

    Does Newcrest Mining Limited's (ASX:NCM) CEO Salary Compare Well With Others?

    Sandeep Biswas became the CEO of Newcrest Mining Limited (ASX:NCM) in 2014. This report will, first, examine the CEO...

  • Thomson Reuters StreetEvents

    Edited Transcript of NCM.AX earnings conference call or presentation 13-Feb-19 10:00pm GMT

    Half Year 2019 Newcrest Mining Ltd Earnings Call

  • Charles de Vaulx's Top 5 Buys of the 3rd Quarter
    GuruFocus.com

    Charles de Vaulx's Top 5 Buys of the 3rd Quarter

    IVA Worldwide Fund releases portfolio. New holdings include three gold stocks Continue reading...

  • CNW Group

    Newcrest increases ownership in Lundin Gold Inc. to 32%

    MELBOURNE , Dec. 6, 2019 /CNW/ - Newcrest has today acquired a further 10,977,502 common shares of Lundin Gold Inc. (representing 4.9% of the outstanding common shares) from Kinross Gold Corporation for C$7.25 per share, or C$79.6 million in the aggregate, at a 4.2% discount to last trade price. Lundin Gold Inc. owns the Fruta del Norte which is a high-grade, underground gold-silver mine located in south-eastern Ecuador .

  • Reuters

    Australia's Newcrest Mining raises stake in Canada's Lundin Gold

    Newcrest last year paid $250 million for a 27.1% stake in Lundin, which owns a high-potential gold mine project in Ecuador. Newcrest said it paid C$7.25 per share to acquire a further 4.9% stake in Lundin from Toronto-based Kinross Gold Corp.

  • Don't Sell Newcrest Mining Limited (ASX:NCM) Before You Read This
    Simply Wall St.

    Don't Sell Newcrest Mining Limited (ASX:NCM) Before You Read This

    Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll apply a basic...

  • Thomson Reuters StreetEvents

    Edited Transcript of NCM.AX earnings conference call or presentation 16-Aug-19 12:00am GMT

    Full Year 2019 Newcrest Mining Ltd Earnings Call

  • GlobeNewswire

    GFG and Newcrest Complete Drill Program at Rattlesnake Hills Gold Project, Wyoming

    The drill program, consisting of 3,900 metres of core drilling in three holes, tested moderate to deep gold targets proximal to the North Stock deposit (see Figures 1 and 2). At this early stage, the drill program was a success as all three holes hit their intended targets and intersected favourable geological and structural settings.

  • Who Has Been Selling Newcrest Mining Limited (ASX:NCM) Shares?
    Simply Wall St.

    Who Has Been Selling Newcrest Mining Limited (ASX:NCM) Shares?

    We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is...

  • Should Newcrest Mining Limited (ASX:NCM) Focus On Improving This Fundamental Metric?
    Simply Wall St.

    Should Newcrest Mining Limited (ASX:NCM) Focus On Improving This Fundamental Metric?

    One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will...

  • If You Had Bought Newcrest Mining (ASX:NCM) Stock Five Years Ago, You Could Pocket A 241% Gain Today
    Simply Wall St.

    If You Had Bought Newcrest Mining (ASX:NCM) Stock Five Years Ago, You Could Pocket A 241% Gain Today

    The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put...

  • Reuters

    PNG demands Wafi-Golpu gold stays in-country, urges Newcrest, Harmony talks

    Papua New Guinea wants to keep 40% of gold produced from the proposed Wafi-Golpu project, the country's commerce minister said, creating a potential hurdle to an agreement with co-owners Newcrest Mining and Harmony Gold. The miners had been hoping to secure a mining lease over the major gold and copper deposit earlier this year, before a change in PNG's leadership and a shift in minerals policy led to delays. "We'd like to see Newcrest come to the negotiating table on this," PNG's Minister for Commerce and Industry Wera Mori told Reuters in a phone interview late on Thursday.

  • Reuters

    UPDATE 1-PNG demands Wafi-Golpu gold stays in-country, urges Newcrest, Harmony talks

    Papua New Guinea wants to keep 40% of gold produced from the proposed Wafi-Golpu project, the country's commerce minister said, creating a potential hurdle to an agreement with co-owners Newcrest Mining and Harmony Gold. The miners had been hoping to secure a mining lease over the major gold and copper deposit earlier this year, before a change in PNG's leadership and a shift in minerals policy led to delays. "We'd like to see Newcrest come to the negotiating table on this," PNG's Minister for Commerce and Industry Wera Mori told Reuters in a phone interview late on Thursday.

  • Here's Why We Think Newcrest Mining (ASX:NCM) Is Well Worth Watching
    Simply Wall St.

    Here's Why We Think Newcrest Mining (ASX:NCM) Is Well Worth Watching

    Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

  • GuruFocus.com

    Newcrest Mining Falls After Posting Full-Year Results

    Australian miner records strong profit, free cash flow growth Continue reading...

  • What Should You Know About The Future Of Newcrest Mining Limited's (ASX:NCM)?
    Simply Wall St.

    What Should You Know About The Future Of Newcrest Mining Limited's (ASX:NCM)?

    Based on Newcrest Mining Limited's (ASX:NCM) earnings update on 30 June 2019, analysts seem fairly confident, with...