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Newmont Mining (NEM)
NYSE:NEM
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Newmont Mining
(NYSE:NEM)
Rating:81Outperform
Price Target:―
Positive Factors
Capital Returns
There is potential for higher capital returns with the possibility of increasing the share buyback program's upper limit and paying down debt.
Earnings Performance
A strong showing in Q1 with higher realized gold prices and lower cash costs contributed to beats in EPS, EBITDA, and free cash flow.
Operational Improvements
Upgrades made during a planned 35-day shutdown are expected to improve plant throughput and recovery rates, helping PV reach its production target of 800koz in 2026 while generating cost savings.
Negative Factors
Cost Pressures
AISC and capex are expected to peak in Q2, leading to higher costs in the short term.
Market Sentiment
The market is in a show-me attitude after a disappointing cut to the outlook in 2024.
Operational Challenges
NEM has a poor operational track record, missing production and cost guidance for the last five years and abandoning its 5-year guidance laid out in early 2024.
Newmont Mining (NEM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.50B
Dividend Yield1.9%
Average Volume (3M)11.51M
Price to Earnings (P/E)11.8
Beta (1Y)0.75
Revenue Growth48.69%
EPS GrowthN/A
CountryUS
Employees22,200
SectorBasic Materials
Sector Strength68
IndustryGold
Share Statistics
EPS (TTM)1.25
Shares Outstanding1,112,997,000
10 Day Avg. Volume11,499,957
30 Day Avg. Volume11,507,729
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)1.94
Price to Sales (P/S)0.00
P/FCF Ratio34.41
Enterprise Value/Market Cap0.70
Enterprise Value/Revenue0.58
Enterprise Value/Gross Profit5.27
Enterprise Value/Ebitda1.87
Forecast
1Y Price Target
$62.73Price Target Upside17.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Newmont Mining Business Overview & Revenue Model
Company DescriptionNewmont Mining Corporation (NYSE: NEM) is a leading gold mining company based in Greenwood Village, Colorado. As one of the largest gold producers in the world, Newmont operates in several countries, including the United States, Australia, Ghana, Peru, and Suriname. The company is involved in the exploration, development, and production of gold and copper, with a focus on sustainability and responsible mining practices. Newmont is committed to creating value and improving lives through sustainable and responsible mining practices.
How the Company Makes MoneyNewmont Mining makes money primarily through the extraction and sale of gold, which accounts for the majority of its revenue. The company also produces and sells copper and in some operations, silver and lead as by-products, which contribute to its income streams. Newmont's revenue model relies on the efficient management of its mining operations, optimizing production processes, and expanding its resource base through exploration and acquisition. The company benefits from long-term contracts and partnerships with various stakeholders, including governments, local communities, and industry partners, which can impact its operational efficiency and profitability. Additionally, Newmont manages its portfolio of assets to focus on high-yield projects and divests non-core assets to optimize its financial performance.
Newmont Mining Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: 0.78%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Newmont Corporation's strong financial and operational performance, including record free cash flow and successful completion of the divestment program. The company remains on track to meet full-year guidance and is focused on key projects and shareholder returns. However, global tariff volatility and anticipated higher costs in the second quarter pose potential challenges.Q1-2025 Updates
Positive Updates
Record First Quarter Free Cash Flow
Newmont Corporation generated $1.2 billion in free cash flow, setting a record for first-quarter cash flow performance.
Completion of Divestment Program
Successfully completed divestment of six high-quality non-core operations, receiving more than $2.5 billion in after-tax cash proceeds this year.
Strong Operational Performance
Produced 1,500,000 ounces of gold and 35,000 tonnes of copper, in line with full-year guidance.
Debt Reduction and Shareholder Returns
Retired $1.5 billion in debt over the last twelve months and completed $755 million in share repurchases so far this year.
Advancement of Key Projects
Progressed key projects such as Cadia, Tanami expansion, and Ahafo North, staying on track with timelines and production targets.
Negative Updates
Impact of Global Tariff Volatility
Monitoring global tariff situation closely, with potential impacts on costs, particularly for materials and consumables.
Higher Costs Anticipated in Second Quarter
Expectations for increased capital spend and cash tax payments in the second quarter, which may impact working capital.
Challenges at Lihir
Lihir operations focus on stable and reliable performance, with anticipated lower-grade ore processing impacting production.
Company Guidance
During Newmont Corporation's First Quarter 2025 Earnings Conference Call, CEO Tom Palmer reported a promising start to the year, highlighting several key metrics. The company produced 1,500,000 ounces of gold and 35,000 tonnes of copper, aligning with their full-year guidance. Financially, Newmont generated $2 billion in cash flow from operations and achieved a record first-quarter free cash flow of $1.2 billion. The completion of their divestment program brought in over $2.5 billion in after-tax cash proceeds, further bolstering their balance sheet. This, coupled with $1 billion in debt reduction and $755 million in share repurchases, underscores their commitment to capital returns and maintaining a strong financial position. Despite global market volatility, Newmont remains focused on safety, operational stability, and executing their capital allocation strategy to deliver on their 2025 commitments.Newmont Mining Financial Statement Overview
Summary
Newmont Mining exhibits strong financial health with robust profitability and effective cash flow management. The income statement shows strong revenue growth and profitability margins, and the balance sheet is stable with manageable leverage. However, 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 2023.85
Very Positive
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.78
Positive
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.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 19.64B | 18.56B | 11.81B | 11.91B | 12.22B | 11.50B | Gross Profit |
| 7.72B | 6.42B | 3.00B | 3.26B | 4.46B | 4.18B | EBIT |
| 6.87B | 5.75B | 708.00M | 1.46B | 1.74B | 2.82B | EBITDA |
| 9.78B | 7.87B | 320.00M | 3.28B | 5.54B | 6.10B | Net Income Common Stockholders |
| 5.07B | 3.35B | -2.49B | -506.00M | 10.00M | 2.83B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.72B | 3.64B | 3.02B | 3.76B | 5.07B | 5.83B | Total Assets |
| 55.52B | 56.35B | 55.51B | 38.48B | 40.56B | 41.37B | Total Debt |
| 7.99B | 8.97B | 9.44B | 6.13B | 6.30B | 6.70B | Net Debt |
| 3.29B | 5.35B | 6.43B | 3.25B | 1.31B | 1.16B | Total Liabilities |
| 24.09B | 26.24B | 26.30B | 18.95B | 18.70B | 17.49B | Stockholders Equity |
| 31.25B | 30.11B | 29.03B | 19.35B | 22.02B | 23.01B |
| Cash Flow | Free Cash Flow | ||||
| 4.21B | 2.96B | 97.00M | 1.09B | 2.63B | 3.58B | Operating Cash Flow |
| 7.58B | 6.36B | 2.76B | 3.22B | 4.28B | 4.88B | Investing Cash Flow |
| -1.14B | -2.70B | -1.00B | -2.98B | -1.87B | 91.00M | Financing Cash Flow |
| -4.29B | -2.95B | -1.60B | -2.36B | -2.96B | -1.68B |
Newmont Mining Technical Analysis
Positive
53.31
Price Trends
52.07
Positive
48.26
Positive
47.21
Positive
Market Momentum
0.52
Positive
52.47
Neutral
26.43
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 53.31 is above the 20-day moving average (MA) of 52.59, above the 50-day MA of 52.07, and above the 200-day MA of 47.21, indicating a bullish trend. The MACD of 0.52 indicates Positive momentum. The RSI at 52.47 is Neutral, neither overbought nor oversold. The STOCH value of 26.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEM.
Newmont Mining Risk Analysis
Newmont Mining disclosed 52 risk factors in its most recent earnings report. Newmont Mining reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Newmont Mining Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $58.50B | 11.80 | 16.64% | 1.90% | 48.69% | ― | |
78 Outperform | $11.43B | 28.68 | 13.03% | 1.04% | 18.77% | 38.55% | |
77 Outperform | $9.28B | 15.61 | 25.19% | 1.64% | 20.35% | 20.44% | |
76 Outperform | $21.89B | 17.41 | 25.35% | 3.10% | 13.41% | 73.34% | |
75 Outperform | $22.71B | 19.33 | 19.42% | 1.11% | 26.43% | ― | |
72 Outperform | $3.88B | 55.18 | 3.49% | 0.24% | 41.04% | ― | |
51 Neutral | $2.04B | -1.15 | -21.24% | 3.95% | 2.91% | -30.44% |
* Basic Materials Sector Average
Performance Comparison
NEM
Newmont Mining
53.31
13.19
32.88%
GFI
Gold Fields
24.35
8.89
57.50%
HMY
Harmony Gold Mining
14.35
6.06
73.10%
HL
Hecla Mining Company
6.07
0.78
14.74%
RGLD
Royal Gold
174.56
53.79
44.54%
AU
Anglogold Ashanti PLC
45.87
23.29
103.14%
Newmont Mining Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Newmont Mining Promotes Viljoen to President and COO
Positive
May 2, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.