Newcrest Mining Limited
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Metals & Mining
What does Newcrest Mining Limited (NCM) do?
Newcrest Mining Limited (NCM) is Australia's golden goose. Founded in 1966 and headquartered in Melbourne, it's the largest producer of gold listed on the ASX – and one of the world's largest gold mining companies.
Newcrest primarily engages in the exploration of gold and gold/copper concentrates. It's also focused on the development and operation of mines and the sale of its gold and copper findings.
The company owns and operates an extensive portfolio of mines and projects across Australia, Papua New Guinea (PNG) and Canada. These include:
Cadia, NSW — Comprised of the Cadia East underground panel cave mine and the Ridgeway underground mine, the operation produces gold doré from a gravity circuit and gold-rich copper concentrates from a flotation circuit. In FY2021, Cadia produced 765 thousand ounces (Koz) of gold and 106 kilotons (kt) of copper.
Telfer, WA — Located in the Great Sandy Desert of the Pilbara, Telfer comprises the Main Dome, West Dome open pits and underground mines. Telfer produces gold doré and copper-gold concentrate. Throughout FY2021, Telfer produced 416 Koz of gold and 13 kt of copper.
Havieron, WA — Located 45km east of Telfer in the Paterson Province, Havieron is operated as a joint venture with Greatland Gold. Newcrest began exploration drilling in June 2019 and currently has 8 drill rigs in operation.
Lihir, PNG — One of the world’s largest producing gold mines, Lihir is located on a geothermally active extinct volcanic crater on Niolam Island, 900 kilometres from Port Moresby, PNG. Lihir has Ore Reserves of 22 million ounces (Moz) and Measured and Indicated Mineral Resources of 43 Moz. The operation produced 416 Koz of gold in FY2021.
Wafi-Golpu, PNG — An advanced exploration project, Wafi-Golpu is currently in the permitting phase. Newcrest and Harmony Gold Mining Company each own a 50% stake in the project.
Red Chris, Canada — 1,700 kilometres north of Vancouver, the Red Chris operation was acquired by Newcrest in August 2019 in a joint venture with Imperial Metals. The operation targets both gold and copper. Throughout FY2021, Red Chris produced 46 Koz of gold and 23 kt of copper.
Brucejack, Canada — 950 kilometres north-west of Vancouver, in the Golden Triangle region of British Columbia, Brucejack is one of the highest-grade operating gold mines in the world. Newcrest acquired the Brucejack operation after agreeing to acquire Pretium Resources in November 2021. The target is gold and silver.
Is Newcrest Mining a profitable company?
Yes, Newcrest Mining is profitable.
The company’s net income has risen for the past four financial years from A$260.7m in FY2018 to A$784.45m in FY2019 to A$965.13m in FY2020 and eventually A$1.56b in FY2021.
As of the end of FY2021, Newcrest Mining held a free cash flow position of A$1.63b.
Is NCM a good investment?
Due to its financial stability and consistent distribution of dividends, some investors regard NCM stock as a good long-term buy and hold investment.
Other short-term investors see NCM as a cyclical, up-and-down play and more of an opportunity to trade the current impacts of inflation, fluctuating interest rates and geopolitical tensions between Australia and China.
Does NCM stock pay dividends?
Barring 2014 and 2015, Newcrest has paid NCM shareholders dividends every year since October 2000.
NCM stock usually pays dividends twice a year. In 2021, it paid a dividend of A$0.1931 in March and another of A$0.552 in September, for a total of A$0.7451 per share for the year.
In March 2022, Newcrest’s dividend payment was A$0.1044.
Who owns NCM stock?
Holding 58.4% of the float, institutions are the largest owners of NCM stock.
Some of these institutions include BlackRock (10.87%), Orbis Investment Management Limited (8.47%), GQG Partners LLC (5.2%), State Street Global Advisors (4.62%), Van Eck Associates Corporation (4.42%), The Vanguard Group (4.16%), First Eagle Investment Management, LLC (2.21%), Norges Bank Investment Management (2.01%) and BNP Paribas Arbitrage Sa, Asset Management Arm (1.35%).
The general public owns 40.2% of all NCM stock. The remaining 1.4% is owned by individual insiders and private companies.
How do I buy NCM stock?
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This does not constitute financial advice. You should do your own research before making an investment decision. Past performance is not a reliable indication of future performance. No representation is made as to the timeliness, reliability, accuracy or completeness of the market data provided.