Newmont Mining (NEM) AI Stock Analysis

• Market Cap: $57.35B
• Dividend Yield: 1.94%
• Average Volume (3M): 15.29M
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.94
• Revenue Growth: 48.69%
• EPS Growth: N/A
• Country: US
• Employees: 22,200
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Gold
• EPS (TTM): 4.46
• Shares Outstanding: 1,112,997,000
• 10 Day Avg. Volume: 13,735,696
• 30 Day Avg. Volume: 15,293,102
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 9.01
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $60.24
• Price Target Upside: 16.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

Newmont Mining demonstrates strong financial performance with robust profitability and effective cash management. The company's technical analysis indicates positive momentum, while the valuation suggests potential undervaluation. The earnings call reinforces strong operational performance despite external challenges. Corporate changes bolster strategic leadership. These factors contribute to a solid overall stock score, indicating a well-managed company with positive prospects, though attention to cost pressures and market volatility is advised.

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.

Financial Performance

A strong showing with higher realized gold prices and lower cash costs contributed to beats in EPS, EBITDA, and free cash flow.

Market Position

Newmont offers stability, a strong management team, and a conservative corporate strategy, which are attractive to many gold and generalist investors.

Negative Factors

Cost Management

AISC and capex are expected to peak, leading to higher costs in the short term.

Future Performance

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

Operational Track Record

NEM has a poor operational track record, missing production and cost guidance for the last five years and abandoning its 5-year guidance.

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 Mining Corporation generates revenue primarily through the extraction and sale of minerals, with gold being the predominant product. The company's revenue model is centered around mining operations, where it explores, develops, and operates gold mines, extracting gold ore which is then processed into bullion and sold in the global market. Additionally, Newmont produces and sells copper, silver, and other by-products, which contribute to its revenue streams. The company benefits from strategic partnerships and joint ventures to optimize production and share risks. Factors such as market gold prices, production costs, and operational efficiency significantly influence Newmont's earnings. The company also focuses on expanding its mineral reserves through exploration and acquisitions, ensuring long-term sustainability of its revenue model.

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.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
18.56B	11.81B	11.91B	12.22B	11.50B
	Gross Profit
6.42B	3.00B	3.26B	4.46B	4.18B
	EBIT
5.75B	708.00M	1.46B	1.74B	2.82B
	EBITDA
7.87B	320.00M	3.28B	5.54B	6.10B
	Net Income Common Stockholders
3.35B	-2.49B	-506.00M	10.00M	2.83B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.64B	3.02B	3.76B	5.07B	5.83B
	Total Assets
56.35B	55.51B	38.48B	40.56B	41.37B
	Total Debt
8.97B	9.44B	6.13B	6.30B	6.70B
	Net Debt
5.35B	6.43B	3.25B	1.31B	1.16B
	Total Liabilities
26.24B	26.30B	18.95B	18.70B	17.49B
	Stockholders Equity
30.11B	29.03B	19.35B	22.02B	23.01B
Cash Flow		Free Cash Flow
2.96B	97.00M	1.09B	2.63B	3.58B
	Operating Cash Flow
6.36B	2.76B	3.22B	4.28B	4.88B
	Investing Cash Flow
-2.70B	-1.00B	-2.98B	-1.87B	91.00M
	Financing Cash Flow
-2.95B	-1.60B	-2.36B	-2.96B	-1.68B

Newmont Mining Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 51.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEM, the sentiment is Neutral. The current price of 51.53 is below the 20-day moving average (MA) of 52.22, above the 50-day MA of 48.23, and above the 200-day MA of 46.73, indicating a neutral trend. The MACD of 1.28 indicates Positive momentum. The RSI at 50.61 is Neutral, neither overbought nor oversold. The STOCH value of 14.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NEM.

Newmont Mining Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AU	82 Outperform	$20.23B	17.21	19.42%	2.27%	26.43%	―
NEM	81 Outperform	$57.35B	11.57	16.64%	1.94%	48.69%	―
RGLD	78 Outperform	$11.82B	35.58	11.05%	0.96%	18.77%	38.55%
GFI	77 Outperform	$19.19B	15.24	25.35%	2.09%	13.41%	73.34%
HMY	76 Outperform	$9.62B	16.10	25.19%	0.92%	20.35%	20.44%
HL	59 Neutral	$2.87B	80.21	3.49%	0.83%	29.12%	―
Sector *	49 Neutral	$1.95B	-1.37	-21.20%	3.73%	0.84%	-29.84%

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.

Spark’s Take on NEM Stock

According to Spark, TipRanks’ AI Analyst, NEM is a Outperform.

Newmont Mining demonstrates strong financial performance with robust profitability and effective cash management, which are significant strengths. Technical analysis shows positive momentum, although caution is warranted due to potential overbought conditions. The valuation suggests possible undervaluation relative to peers, and the earnings call underscores strong operational performance despite external challenges. These factors contribute to a solid overall stock score, indicating a well-managed company with positive prospects, though attention to cost pressures and market volatility is advised.

To see Spark’s full report on NEM stock, click here.