Newmont Mining (NEM) AI Stock Analysis

• Market Cap: $93.64B
• Dividend Yield: 1.17%
• Average Volume (3M): 10.56M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.72
• Revenue Growth: 39.02%
• EPS Growth: N/A
• Country: US
• Employees: 22,200
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 1.43
• Shares Outstanding: 1,098,449,700
• 10 Day Avg. Volume: 14,554,456
• 30 Day Avg. Volume: 10,562,561
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 3.22
• Enterprise Value/Gross Profit: 7.71
• Enterprise Value/Ebitda: 5.57
• 1Y Price Target: $81.38
• Price Target Upside: -4.54% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 78 Outperform
• Price Target: $86.00 ▲(0.88% Upside)

Newmont Mining's overall stock score reflects its strong financial performance and positive earnings call, which are slightly offset by technical indicators suggesting overbought conditions and a modest valuation score. The company's robust cash flow and strategic initiatives support a solid outlook, despite operational challenges.

Positive Factors

Strong Cash Flow Generation

Record free cash flow indicates strong operational efficiency and financial health, enabling strategic investments and shareholder returns.

Successful Asset Divestment

The divestment of noncore assets enhances focus on core operations and strengthens the balance sheet, providing capital for growth opportunities.

Robust Balance Sheet

A stable balance sheet with low leverage and strong ROE indicates financial resilience and the ability to withstand market fluctuations.

Negative Factors

Operational Challenges

Operational disruptions like the Red Chris incident can impact production and safety, posing risks to achieving operational targets.

Expected Production Decline

Anticipated production declines can affect revenue and profitability, highlighting the need for effective resource management and planning.

Higher Sustaining Capital

Increased capital expenditure in the latter half of the year could pressure free cash flow and limit financial flexibility for other initiatives.

Newmont Mining Business Overview & Revenue Model

Company Description

Newmont Corporation engages in the production and exploration of gold. It also explores for copper, silver, zinc, and lead. The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana. As of December 31, 2021, it had proven and probable gold reserves of 92.8 million ounces and land position of 62,800 square kilometers. The company was founded in 1916 and is headquartered in Denver, Colorado.

How the Company Makes Money

Newmont generates revenue primarily through the sale of gold, which constitutes the bulk of its earnings. The company operates several mines, producing gold in various forms including bullion and concentrate. Revenue is significantly influenced by gold prices, which fluctuate based on global market conditions, demand, and geopolitical factors. In addition to gold, Newmont also generates income from the sale of other metals, such as copper and silver, which contribute to its overall revenue streams. The company has entered into various joint ventures and partnerships with other mining companies and local governments, further expanding its operational capacity and market reach. Additionally, Newmont focuses on cost management, operational efficiency, and sustainable mining practices to enhance profitability and maintain its competitive edge in the industry.

Newmont Mining Financial Statement Overview

Summary

Newmont Mining exhibits strong financial health with robust profitability and effective cash flow management. The income statement benefits from strong revenue growth and profitability margins, while the balance sheet is stable with manageable leverage. Cash flow generation is solid, although there are concerns about the sustainability of cash flow growth.

Income Statement

Newmont Mining has demonstrated strong revenue growth, particularly in the TTM period, with revenue increasing from $18.56 billion to $19.65 billion, a growth of approximately 6%. The company exhibits a robust gross profit margin of 39.31% and a solid net profit margin of 25.80% in TTM, indicating effective cost management and profitability. However, the net income showed volatility in prior years, affecting the net profit margin, which was negative in 2023.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.26, indicating prudent leverage. The equity ratio stands at 56.27%, showcasing a strong reliance on equity financing. Return on equity (ROE) is impressive at 16.22%, signaling efficient use of equity. However, fluctuations in total debt and equity over the years suggest potential financing volatility.

Cash Flow

The cash flow statement illustrates a healthy cash generation capability, with a significant increase in free cash flow from $63.63 billion to $42.06 billion in TTM. The operating cash flow to net income ratio is 1.50, reflecting strong cash earnings. The free cash flow to net income ratio of 0.83 indicates effective capital expenditure management, though the decrease in free cash flow growth rate points to potential future challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.47B	18.56B	11.78B	11.95B	12.19B	11.42B
Gross Profit	8.55B	6.42B	1.17B	2.14B	2.38B	3.55B
EBITDA	11.83B	7.87B	1.86B	3.28B	5.54B	6.10B
Net Income	6.28B	3.28B	-2.52B	-459.00M	1.17B	2.83B
Balance Sheet
Total Assets	55.16B	56.35B	55.51B	38.48B	40.56B	41.37B
Cash, Cash Equivalents and Short-Term Investments	6.65B	3.64B	3.02B	3.76B	5.07B	5.83B
Total Debt	7.61B	8.97B	9.44B	6.13B	6.30B	6.70B
Total Liabilities	22.88B	26.24B	26.30B	18.95B	18.70B	17.49B
Stockholders Equity	32.11B	29.93B	29.03B	19.35B	22.02B	23.01B
Cash Flow
Free Cash Flow	5.32B	2.96B	97.00M	1.09B	2.63B	3.58B
Operating Cash Flow	8.57B	6.36B	2.76B	3.22B	4.28B	4.88B
Investing Cash Flow	154.00M	-2.70B	-1.00B	-2.98B	-1.87B	91.00M
Financing Cash Flow	-5.40B	-2.95B	-1.60B	-2.36B	-2.96B	-1.68B

Newmont Mining Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEM, the sentiment is Positive. The current price of 85.25 is above the 20-day moving average (MA) of 79.14, above the 50-day MA of 71.54, and above the 200-day MA of 53.97, indicating a bullish trend. The MACD of 3.75 indicates Negative momentum. The RSI at 79.39 is Negative, neither overbought nor oversold. The STOCH value of 74.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEM.

Newmont Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFI	79 Outperform	$36.47B	19.40	23.94%	1.90%	49.62%	195.39%
NEM	78 Outperform	$93.64B	15.02	20.26%	1.17%	39.02%	―
HMY	78 Outperform	$11.27B	14.23	―	0.95%	29.08%	70.63%
RGLD	78 Outperform	$12.95B	28.80	―	0.89%	30.15%	86.71%
AU	73 Outperform	$34.39B	29.26	24.34%	2.36%	26.43%	―
HL	70 Outperform	$7.82B	74.57	6.73%	0.21%	36.30%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Newmont Mining Corporate Events

Newmont Mining Promotes Viljoen to President and COO

On May 2, 2025, Newmont Corporation announced the promotion of Natascha Viljoen to President and Chief Operating Officer, effective May 1, 2025. This move acknowledges her leadership since 2023 and aligns with Newmont’s leadership development strategy. Viljoen’s new role aims to enhance cost efficiency and productivity, crucial after the Newcrest acquisition, to support Newmont’s strategic objectives and deliver shareholder value. Additionally, Newmont’s 2025 Annual Meeting of Stockholders on April 30, 2025, saw the approval of all matters, including director elections and executive compensation resolutions.