Newmont Mining (NEM) AI Stock Analysis

• Market Cap: $73.86B
• Dividend Yield: 1.45%
• Average Volume (3M): 11.74M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.71
• 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: 12,416,660
• 30 Day Avg. Volume: 11,737,917
• PEG Ratio: -0.06
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 2.30
• P/FCF Ratio: 14.41
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 4.30
• Enterprise Value/Gross Profit: 10.43
• Enterprise Value/Ebitda: 5.67
• 1Y Price Target: $71.99
• Price Target Upside: 4.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 80 Outperform
• Price Target: $73.00 ▲(5.69% Upside)

Newmont Mining's overall score is supported by strong financial performance, solid technical indicators, and positive earnings call highlights. The company's robust profitability and cash flow management, along with strategic leadership changes and asset divestments, contribute positively. However, near-term operational challenges and overbought technical conditions moderately impact the overall outlook.

Positive Factors

Asset Sales

NEM did well on asset sales in 2024 with gross proceeds up to $4.3B including contingent payments.

Financial Performance

Newmont Mining has consistently outperformed expectations with strong production, sales, pricing, and unit costs, which can drive a re-rate.

Share Buyback

The company has approved an additional $3 billion buyback, signaling confidence in its financial health and future prospects.

Negative Factors

Cost Management

The All-In Sustaining Cost (AISC) is expected to rise due to higher sustaining capital expenditures in the second half of the year.

Future Performance Concerns

Despite strong Q1 results, there is an element of pulling forward some free cash flow from Q2, which could affect future performance.

Market Sentiment

The market is in a show-me attitude after a disappointing cut to the outlook in 2024.

Newmont Mining Business Overview & Revenue Model

Company Description

Newmont 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 Money

Newmont 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 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	15.33B	18.56B	11.78B	11.95B	12.19B	11.42B
Gross Profit	6.32B	6.42B	1.17B	2.14B	2.38B	3.55B
EBITDA	11.62B	7.87B	1.86B	3.28B	5.54B	6.10B
Net Income	8.43B	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: 69.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 69.07 is above the 20-day moving average (MA) of 62.37, above the 50-day MA of 58.99, and above the 200-day MA of 48.78, indicating a bullish trend. The MACD of 2.42 indicates Negative momentum. The RSI at 71.41 is Negative, neither overbought nor oversold. The STOCH value of 95.52 is Negative, 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
NEM	80 Outperform	$73.86B	12.07	20.26%	1.45%	39.02%	―
HMY	78 Outperform	$9.98B	17.00	25.19%	1.09%	20.35%	20.44%
RGLD	78 Outperform	$10.54B	26.45	14.32%	1.06%	18.77%	38.55%
GFI	76 Outperform	$27.41B	22.14	25.72%	1.75%	14.83%	75.86%
HL	73 Outperform	$3.88B	55.27	4.67%	0.48%	36.30%	―
AU	73 Outperform	$29.35B	24.97	19.42%	1.40%	26.43%	―
Sector *	44 Neutral	C$864.60M	-6.74	-14.91%	2.77%	16.77%	-26.72%

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.