Intrinsic value of Newmont Mining - NEM

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$33.81

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$33.81

 
Intrinsic value

$13.89

 
Up/down potential

-59%

 
Rating

str. sell

 
Value-price divergence* premium content

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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of NEM stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 18.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  10.29
  23.20
  21.38
  19.74
  18.27
  16.94
  15.75
  14.67
  13.71
  12.83
  12.05
  11.35
  10.71
  10.14
  9.63
  9.16
  8.75
  8.37
  8.04
  7.73
  7.46
  7.21
  6.99
  6.79
  6.61
  6.45
  6.31
  6.18
  6.06
  5.95
  5.86
Revenue, $m
  6,711
  8,268
  10,036
  12,017
  14,212
  16,620
  19,237
  22,059
  25,083
  28,302
  31,712
  35,311
  39,093
  43,057
  47,202
  51,527
  56,034
  60,726
  65,605
  70,677
  75,949
  81,427
  87,120
  93,037
  99,190
  105,589
  112,248
  119,181
  126,401
  133,925
  141,770
Variable operating expenses, $m
 
  7,805
  9,474
  11,344
  13,416
  15,689
  18,160
  20,824
  23,678
  26,717
  29,937
  33,333
  36,904
  40,646
  44,558
  48,641
  52,896
  57,325
  61,931
  66,720
  71,696
  76,867
  82,241
  87,827
  93,635
  99,676
  105,963
  112,507
  119,323
  126,425
  133,830
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  6,776
  7,805
  9,474
  11,344
  13,416
  15,689
  18,160
  20,824
  23,678
  26,717
  29,937
  33,333
  36,904
  40,646
  44,558
  48,641
  52,896
  57,325
  61,931
  66,720
  71,696
  76,867
  82,241
  87,827
  93,635
  99,676
  105,963
  112,507
  119,323
  126,425
  133,830
Operating income, $m
  -65
  463
  562
  673
  796
  931
  1,077
  1,235
  1,405
  1,585
  1,776
  1,977
  2,189
  2,411
  2,643
  2,886
  3,138
  3,401
  3,674
  3,958
  4,253
  4,560
  4,879
  5,210
  5,555
  5,913
  6,286
  6,674
  7,078
  7,500
  7,939
EBITDA, $m
  1,155
  1,971
  2,392
  2,864
  3,387
  3,961
  4,585
  5,258
  5,979
  6,746
  7,559
  8,416
  9,318
  10,263
  11,251
  12,282
  13,356
  14,474
  15,637
  16,846
  18,103
  19,408
  20,765
  22,176
  23,642
  25,168
  26,755
  28,407
  30,128
  31,921
  33,791
Interest expense (income), $m
  0
  142
  221
  311
  412
  524
  646
  780
  923
  1,077
  1,241
  1,414
  1,597
  1,790
  1,992
  2,202
  2,423
  2,652
  2,891
  3,139
  3,397
  3,665
  3,944
  4,234
  4,535
  4,848
  5,173
  5,512
  5,865
  6,232
  6,615
Earnings before tax, $m
  -214
  321
  341
  362
  384
  407
  431
  456
  482
  508
  535
  563
  592
  621
  652
  683
  715
  749
  783
  819
  856
  895
  935
  976
  1,020
  1,065
  1,113
  1,162
  1,213
  1,267
  1,324
Tax expense, $m
  563
  87
  92
  98
  104
  110
  116
  123
  130
  137
  144
  152
  160
  168
  176
  184
  193
  202
  211
  221
  231
  242
  252
  264
  275
  288
  300
  314
  328
  342
  357
Net income, $m
  -627
  235
  249
  264
  280
  297
  315
  333
  351
  371
  391
  411
  432
  454
  476
  499
  522
  547
  572
  598
  625
  653
  682
  713
  745
  778
  812
  848
  886
  925
  966

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2,812
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  21,031
  22,467
  27,271
  32,655
  38,620
  45,162
  52,274
  59,944
  68,159
  76,907
  86,175
  95,953
  106,230
  117,002
  128,265
  140,019
  152,267
  165,015
  178,275
  192,058
  206,383
  221,269
  236,739
  252,819
  269,538
  286,928
  305,023
  323,861
  343,481
  363,927
  385,243
Adjusted assets (=assets-cash), $m
  18,219
  22,467
  27,271
  32,655
  38,620
  45,162
  52,274
  59,944
  68,159
  76,907
  86,175
  95,953
  106,230
  117,002
  128,265
  140,019
  152,267
  165,015
  178,275
  192,058
  206,383
  221,269
  236,739
  252,819
  269,538
  286,928
  305,023
  323,861
  343,481
  363,927
  385,243
Revenue / Adjusted assets
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
  0.368
Average production assets, $m
  6,243
  7,689
  9,333
  11,176
  13,217
  15,456
  17,890
  20,515
  23,327
  26,321
  29,493
  32,839
  36,356
  40,043
  43,898
  47,920
  52,112
  56,475
  61,013
  65,730
  70,633
  75,727
  81,021
  86,525
  92,247
  98,198
  104,391
  110,838
  117,553
  124,550
  131,846
Working capital, $m
  2,927
  835
  1,014
  1,214
  1,435
  1,679
  1,943
  2,228
  2,533
  2,858
  3,203
  3,566
  3,948
  4,349
  4,767
  5,204
  5,659
  6,133
  6,626
  7,138
  7,671
  8,224
  8,799
  9,397
  10,018
  10,665
  11,337
  12,037
  12,767
  13,526
  14,319
Total debt, $m
  4,615
  6,325
  8,895
  11,775
  14,967
  18,467
  22,272
  26,375
  30,770
  35,450
  40,409
  45,640
  51,138
  56,901
  62,927
  69,215
  75,768
  82,588
  89,682
  97,056
  104,720
  112,684
  120,960
  129,563
  138,508
  147,811
  157,492
  167,571
  178,068
  189,006
  200,410
Total liabilities, $m
  10,310
  12,020
  14,590
  17,470
  20,662
  24,162
  27,967
  32,070
  36,465
  41,145
  46,104
  51,335
  56,833
  62,596
  68,622
  74,910
  81,463
  88,283
  95,377
  102,751
  110,415
  118,379
  126,655
  135,258
  144,203
  153,506
  163,187
  173,266
  183,763
  194,701
  206,105
Total equity, $m
  10,721
  10,447
  12,681
  15,184
  17,958
  21,001
  24,307
  27,874
  31,694
  35,762
  40,071
  44,618
  49,397
  54,406
  59,643
  65,109
  70,804
  76,732
  82,898
  89,307
  95,968
  102,890
  110,084
  117,561
  125,335
  133,421
  141,836
  150,595
  159,719
  169,226
  179,138
Total liabilities and equity, $m
  21,031
  22,467
  27,271
  32,654
  38,620
  45,163
  52,274
  59,944
  68,159
  76,907
  86,175
  95,953
  106,230
  117,002
  128,265
  140,019
  152,267
  165,015
  178,275
  192,058
  206,383
  221,269
  236,739
  252,819
  269,538
  286,927
  305,023
  323,861
  343,482
  363,927
  385,243
Debt-to-equity ratio
  0.430
  0.610
  0.700
  0.780
  0.830
  0.880
  0.920
  0.950
  0.970
  0.990
  1.010
  1.020
  1.040
  1.050
  1.060
  1.060
  1.070
  1.080
  1.080
  1.090
  1.090
  1.100
  1.100
  1.100
  1.110
  1.110
  1.110
  1.110
  1.110
  1.120
  1.120
Adjusted equity ratio
  0.434
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465
  0.465

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -627
  235
  249
  264
  280
  297
  315
  333
  351
  371
  391
  411
  432
  454
  476
  499
  522
  547
  572
  598
  625
  653
  682
  713
  745
  778
  812
  848
  886
  925
  966
Depreciation, amort., depletion, $m
  1,220
  1,508
  1,830
  2,191
  2,592
  3,031
  3,508
  4,023
  4,574
  5,161
  5,783
  6,439
  7,129
  7,852
  8,607
  9,396
  10,218
  11,073
  11,963
  12,888
  13,850
  14,848
  15,887
  16,966
  18,088
  19,255
  20,469
  21,733
  23,050
  24,422
  25,852
Funds from operations, $m
  1,783
  1,742
  2,079
  2,455
  2,872
  3,328
  3,822
  4,355
  4,925
  5,532
  6,174
  6,850
  7,561
  8,305
  9,083
  9,895
  10,740
  11,620
  12,535
  13,486
  14,475
  15,502
  16,569
  17,678
  18,832
  20,032
  21,281
  22,581
  23,935
  25,347
  26,819
Change in working capital, $m
  -490
  157
  179
  200
  222
  243
  264
  285
  305
  325
  344
  363
  382
  400
  419
  437
  455
  474
  493
  512
  532
  553
  575
  598
  621
  646
  673
  700
  729
  760
  792
Cash from operations, $m
  2,273
  7,827
  1,900
  2,255
  2,650
  3,085
  3,558
  4,070
  4,620
  5,207
  5,829
  6,487
  7,179
  7,905
  8,665
  9,458
  10,285
  11,146
  12,042
  12,974
  13,942
  14,948
  15,994
  17,081
  18,211
  19,386
  20,608
  21,881
  23,206
  24,587
  26,026
Maintenance CAPEX, $m
  0
  -1,224
  -1,508
  -1,830
  -2,191
  -2,592
  -3,031
  -3,508
  -4,023
  -4,574
  -5,161
  -5,783
  -6,439
  -7,129
  -7,852
  -8,607
  -9,396
  -10,218
  -11,073
  -11,963
  -12,888
  -13,850
  -14,848
  -15,887
  -16,966
  -18,088
  -19,255
  -20,469
  -21,733
  -23,050
  -24,422
New CAPEX, $m
  -1,133
  -1,447
  -1,644
  -1,843
  -2,042
  -2,239
  -2,434
  -2,625
  -2,812
  -2,994
  -3,172
  -3,346
  -3,517
  -3,687
  -3,855
  -4,023
  -4,192
  -4,363
  -4,538
  -4,717
  -4,903
  -5,095
  -5,294
  -5,503
  -5,722
  -5,952
  -6,193
  -6,447
  -6,715
  -6,997
  -7,295
Cash from investing activities, $m
  -80
  -2,671
  -3,152
  -3,673
  -4,233
  -4,831
  -5,465
  -6,133
  -6,835
  -7,568
  -8,333
  -9,129
  -9,956
  -10,816
  -11,707
  -12,630
  -13,588
  -14,581
  -15,611
  -16,680
  -17,791
  -18,945
  -20,142
  -21,390
  -22,688
  -24,040
  -25,448
  -26,916
  -28,448
  -30,047
  -31,717
Free cash flow, $m
  2,193
  5,157
  -1,251
  -1,417
  -1,583
  -1,746
  -1,906
  -2,063
  -2,214
  -2,361
  -2,504
  -2,642
  -2,778
  -2,911
  -3,042
  -3,172
  -3,303
  -3,435
  -3,569
  -3,707
  -3,849
  -3,996
  -4,149
  -4,309
  -4,477
  -4,653
  -4,839
  -5,035
  -5,242
  -5,460
  -5,691
Issuance/(repayment) of debt, $m
  -1,312
  2,276
  2,570
  2,880
  3,191
  3,500
  3,805
  4,103
  4,395
  4,680
  4,958
  5,231
  5,499
  5,763
  6,026
  6,288
  6,553
  6,820
  7,094
  7,374
  7,664
  7,964
  8,276
  8,603
  8,945
  9,304
  9,681
  10,078
  10,497
  10,938
  11,404
Issuance/(repurchase) of shares, $m
  0
  0
  915
  1,041
  1,165
  1,288
  1,409
  1,526
  1,639
  1,749
  1,855
  1,958
  2,058
  2,156
  2,253
  2,349
  2,445
  2,542
  2,641
  2,742
  2,846
  2,954
  3,066
  3,183
  3,307
  3,436
  3,572
  3,716
  3,868
  4,029
  4,199
Cash from financing (excl. dividends), $m  
  -1,734
  2,276
  3,485
  3,921
  4,356
  4,788
  5,214
  5,629
  6,034
  6,429
  6,813
  7,189
  7,557
  7,919
  8,279
  8,637
  8,998
  9,362
  9,735
  10,116
  10,510
  10,918
  11,342
  11,786
  12,252
  12,740
  13,253
  13,794
  14,365
  14,967
  15,603
Total cash flow (excl. dividends), $m
  460
  7,433
  1,318
  1,463
  1,609
  1,754
  1,898
  2,041
  2,181
  2,319
  2,455
  2,588
  2,721
  2,852
  2,984
  3,116
  3,250
  3,386
  3,525
  3,668
  3,815
  3,968
  4,127
  4,294
  4,468
  4,650
  4,842
  5,043
  5,255
  5,478
  5,713
Retained Cash Flow (-), $m
  629
  -1,972
  -2,234
  -2,503
  -2,774
  -3,042
  -3,307
  -3,566
  -3,820
  -4,068
  -4,310
  -4,546
  -4,779
  -5,009
  -5,237
  -5,465
  -5,695
  -5,928
  -6,166
  -6,409
  -6,661
  -6,922
  -7,193
  -7,477
  -7,774
  -8,086
  -8,414
  -8,760
  -9,124
  -9,507
  -9,912
Prev. year cash balance distribution, $m
 
  2,246
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  7,706
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  7,389
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  100.0
  95.0
  90.6
  86.6
  83.1
  79.9
  77.0
  74.4
  72.0
  69.9
  67.9
  66.1
  64.4
  62.8
  61.4
  60.1
  58.8
  57.6
  56.5
  55.5
  54.5
  53.5
  52.6
  51.7
  50.9
  50.1
  49.3
  48.6
  47.9
  47.2

Newmont Mining Corporation, together with its subsidiaries, operates in the mining industry. The company primarily acquires, develops, explores for, and produces gold. It also explores for silver and copper properties. The company’s operations and/or assets are located in the United States, Australia, Peru, Indonesia, Ghana, and Suriname. As of December 31, 2016, it had proven and probable gold reserves of 68.5 million ounces and an aggregate land position of approximately 23,000 square miles. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado.

FINANCIAL RATIOS  of  Newmont Mining (NEM)

Valuation Ratios
P/E Ratio -28.6
Price to Sales 2.7
Price to Book 1.7
Price to Tangible Book
Price to Cash Flow 7.9
Price to Free Cash Flow 15.7
Growth Rates
Sales Growth Rate 10.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -13.6%
Cap. Spend. - 3 Yr. Gr. Rate -9.8%
Financial Strength
Quick Ratio 5
Current Ratio 0.5
LT Debt to Equity 37.8%
Total Debt to Equity 43%
Interest Coverage 0
Management Effectiveness
Return On Assets -2.7%
Ret/ On Assets - 3 Yr. Avg. 0.1%
Return On Total Capital -3.9%
Ret/ On T. Cap. - 3 Yr. Avg. 0.2%
Return On Equity -5.7%
Return On Equity - 3 Yr. Avg. 0.5%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 43.8%
Gross Margin - 3 Yr. Avg. 42.5%
EBITDA Margin 15%
EBITDA Margin - 3 Yr. Avg. 22%
Operating Margin -1%
Oper. Margin - 3 Yr. Avg. 6.3%
Pre-Tax Margin -3.2%
Pre-Tax Margin - 3 Yr. Avg. 4.6%
Net Profit Margin -9.3%
Net Profit Margin - 3 Yr. Avg. 0.6%
Effective Tax Rate -263.1%
Eff/ Tax Rate - 3 Yr. Avg. -35.2%
Payout Ratio -10.7%

NEM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NEM stock intrinsic value calculation we used $6711 million for the last fiscal year's total revenue generated by Newmont Mining. The default revenue input number comes from 2016 income statement of Newmont Mining. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our NEM stock valuation model: a) initial revenue growth rate of 23.2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for NEM is calculated based on our internal credit rating of Newmont Mining, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Newmont Mining.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of NEM stock the variable cost ratio is equal to 94.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for NEM stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Newmont Mining.

Corporate tax rate of 27% is the nominal tax rate for Newmont Mining. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the NEM stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for NEM are equal to 93%.

Life of production assets of 5.1 years is the average useful life of capital assets used in Newmont Mining operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for NEM is equal to 10.1%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $10721 million for Newmont Mining - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 531.857 million for Newmont Mining is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Newmont Mining at the current share price and the inputted number of shares is $18.0 billion.


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COMPANY NEWS

▶ Wheres Newmonts Debt Reduction Plan Now?   [09:07AM  Market Realist]
▶ Newmont Mining Reports 1st-Quarter Earnings   [05:00PM  GuruFocus.com]
▶ Gold Keeps Melting On Risk Revival Rally; Barrick Crashes   [12:17PM  Investor's Business Daily]
▶ The 5 Best Dividend Stocks in Gold   [10:29AM  Motley Fool]
▶ Newmont tops 1Q profit forecasts   [04:26PM  Associated Press]
▶ Newmont Announces First Quarter 2017 Results   [04:15PM  Business Wire]
▶ Earnings Could Sink Gold Miners   [12:04PM  Investopedia]
▶ Newmont Mining Expansion Positive for Outlook, BMO Says   [Apr-21-17 10:37AM  TheStreet.com]
▶ What Could Affect Goldcorp Stock in 2017?   [07:36AM  Market Realist]
▶ Newmont Mining Announces Quarterly Dividend   [Apr-20-17 01:04PM  GuruFocus.com]
▶ How Miners Performed on April 18   [12:10PM  Market Realist]
▶ Newmont Declares Quarterly Dividend of $0.05 Per Share   [Apr-19-17 04:05PM  Business Wire]
▶ Must Know: Gold Miners 1Q17 Expectations   [01:08PM  Market Realist]
▶ Analyzing Miners RSI Levels As of April 18   [12:00PM  Market Realist]
▶ A Close Look at Barrick Gold Corp's Dividend Potential   [Apr-18-17 02:41PM  Motley Fool]
▶ Gold Hits 5-Month High: Hows the Outlook?   [Apr-17-17 02:07PM  Market Realist]
▶ Gold Will Continue to Move Higher   [Apr-12-17 01:04PM  GuruFocus.com]
▶ How Have Mining Stocks Been Performing in April 2017?   [Apr-06-17 01:31PM  Market Realist]
▶ Mixed Performances of Mining Stocks in 2017 So Far   [Apr-05-17 10:40AM  Market Realist]
▶ What Affected Goldcorp Stock in 1Q17?   [10:37AM  Market Realist]
▶ How Gold Miner Stocks Performed in 1Q17   [Apr-04-17 03:52PM  Market Realist]
▶ Newmont Mining Reports Management Change   [11:11AM  GuruFocus.com]
▶ The 5 Hottest Gold Stocks In The Market Today   [Apr-03-17 07:30PM  Oilprice.com]
Stock chart of NEM Financial statements of NEM
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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