PRECIOUS METALS

Newmont declares dividend, Boddington teething trouble 'irrelevant': Edison

Gold major Newmont has declared another quarterly dividend of US55c per share ahead of releasing its September quarter results tomorrow.

Staff reporter
 An autonomous truck at Newmont’s Boddington gold mine in Western Australia

An autonomous truck at Newmont’s Boddington gold mine in Western Australia

The amount, payable on December 28, is the fourth 55c per share dividend in a row from the miner following a 38% boost announced in February.   

In a note yesterday, investment research firm Edison reduced its adjusted earnings per share forecast for FY21 by 10.3% to $2.88, below the consensus forecast of $3.28, citing several recent issues.

Newmont had cut guidance earlier this month for Boddington, Western Australia's largest gold mine, by 140,000 ounces to 690,000oz for 2021 after challenges including severe weather during the commissioning of the mine's fully autonomous haulage fleet.

The company also had a two-week shutdown mid-year at its Tanami mine in the Northern Territory due to COVID-19, with an expected 40,000-50,000oz impact.

Barrick Gold also recently reported 495,000oz produced and 485,0000oz sold from its Nevada Gold Mines joint venture with Newmont, below Edison's forecast of 553,000oz produced and sold.

"In the light of these changes, we have reduced our valuation of Newmont by a modest 0.6% to US$71.61/share (cf US$72.05/share previously)," Edison said.

However analyst Lord Ashbourne (formerly Charles Gibson) said this valuation put Newmont on a premium rating relative to its peers, which might be justified by the company's size, track record and the fact almost all its operations were in top-tier jurisdictions.

"In the meantime, it remains cheap relative to historical valuation measures, which continue to imply a share price of nearly US$100/share," he said.

Newmont shares closed yesterday at $57.70, towards the lower end of a 52-week range after peaking above $75 in May.

It's capitalised at $46 billion.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.