NCM -1.69% : A very strong 1H23 result today for NCM reporting Net Profit After tax (NPAT) of $293m, which is well ahead of consensus of $262m. The dividend of 35c is well ahead of expectations and includes a 20c special dividend. Guidance remains unchanged with NCM targeting the lower range of guidance 2.1 – 2.4moz.
They also rejected the bid from Newmont (NEM US) on valuation grounds, but are prepared to give them a look under the hood to try and entice a higher bid. Based off the latest Newmont share price and FX, the 0.38 scrip offer is down -7% to A$25.45/sh NCM vs A$27.45/sh week end 5-Feb close. Barrick Gold (ABX) have ruled out a bid for NCM, CEO Mark Bristow stating overnight “We’re not going down that road at all” and “Getting big for the sake of getting big doesn’t make much sense”. While there is more to play out here, NCM is also delivering operationally which can only be positive.
MM is long & bullish NCM
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