Newmont Mining (NEM) AI Stock Analysis

• Market Cap: $97.95B
• Dividend Yield: 1.12%
• Average Volume (3M): 9.44M
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.79
• Revenue Growth: 26.25%
• EPS Growth: N/A
• Country: US
• Employees: 22,200
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Gold
• EPS (TTM): 1.71
• Shares Outstanding: 1,091,263,000
• 10 Day Avg. Volume: 7,597,292
• 30 Day Avg. Volume: 9,435,177
• PEG Ratio: -0.07
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 2.30
• P/FCF Ratio: 14.41
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 4.36
• Enterprise Value/Gross Profit: 9.55
• Enterprise Value/Ebitda: 6.92
• 1Y Price Target: $106.22
• Price Target Upside: 19.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: $108.00 ▲(21.35% Upside)

Newmont Mining's strong financial performance and positive earnings call are the most significant factors driving the stock's score. The company's robust profitability, efficient operations, and strategic initiatives provide a solid foundation for future growth. Technical analysis supports a bullish outlook, although potential overbought conditions warrant caution. Valuation metrics suggest the stock is reasonably priced, enhancing its investment appeal.

Positive Factors

Record Cash Flow

Record cash flow indicates strong operational efficiency and financial health, enhancing Newmont's ability to invest in growth and return value to shareholders.

Asset Divestment Success

Successful asset divestment strengthens the balance sheet and provides liquidity for strategic investments, supporting long-term growth.

New Mine Production

The new mine expands Newmont's production capacity and geographic footprint, contributing to sustained revenue growth and market presence.

Negative Factors

Production Challenges

Production challenges at key sites can impact output and revenue, potentially affecting Newmont's ability to meet production targets and maintain margins.

Higher Costs from Gold Prices

While beneficial, higher gold prices increase operational costs, which can offset profit margins and affect overall profitability.

Earnings Volatility

Earnings volatility poses risks to financial stability, potentially impacting investor confidence and the company's ability to plan long-term strategies.

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 production and sale of gold. The company operates numerous mines across its global portfolio, which allows it to extract gold and other metals. The primary revenue stream comes from the sale of gold, which is influenced by market prices. Additionally, Newmont earns revenue from the sale of by-products such as copper and silver. The company also engages in hedging strategies to manage price volatility and lock in revenues. Strategic partnerships and joint ventures with other mining companies and local governments can enhance operational efficiency and expand resource access. Furthermore, Newmont invests in technology and sustainable practices to reduce costs and improve the profitability of its mining operations.

Newmont Mining Financial Statement Overview

Summary

Newmont Mining exhibits strong financial health with robust profitability, efficient operations, and a solid balance sheet. The company has shown resilience in revenue growth and cash flow generation, although historical earnings volatility and debt fluctuations pose some risks.

Income Statement

Newmont Mining's income statement shows strong profitability with a TTM gross profit margin of 45.63% and a net profit margin of 33.82%. The company has demonstrated consistent revenue growth, with a 3.81% increase in the TTM period. EBIT and EBITDA margins are robust at 48.96% and 62.36%, respectively, indicating efficient operations. However, past volatility in net income, such as the negative net income in 2023, suggests some risk in earnings stability.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.17 in the TTM period, indicating conservative leverage. Return on equity is strong at 22.72%, showcasing effective use of shareholder funds. The equity ratio is healthy, suggesting a stable capital structure. However, fluctuations in debt levels over the years highlight potential risks in financial stability.

Cash Flow

Cash flow analysis reveals a positive trajectory with a 15.03% growth in free cash flow in the TTM period. The operating cash flow to net income ratio of 1.81 indicates strong cash generation relative to earnings. The free cash flow to net income ratio of 0.66 suggests a good conversion of earnings into cash. Despite past periods of negative free cash flow growth, recent improvements enhance the company's liquidity position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.25B	18.56B	11.78B	11.95B	12.19B	11.42B
Gross Profit	9.70B	6.42B	1.17B	2.14B	2.38B	3.55B
EBITDA	13.37B	7.87B	1.86B	3.28B	5.54B	6.10B
Net Income	7.19B	3.35B	-2.52B	-459.00M	1.17B	2.83B
Balance Sheet
Total Assets	54.69B	56.35B	55.51B	38.48B	40.56B	41.37B
Cash, Cash Equivalents and Short-Term Investments	5.97B	3.64B	3.02B	3.76B	5.07B	5.83B
Total Debt	5.65B	8.97B	9.44B	6.13B	6.30B	6.70B
Total Liabilities	21.28B	26.24B	26.30B	18.95B	18.70B	17.49B
Stockholders Equity	33.23B	29.93B	29.03B	19.35B	22.02B	23.01B
Cash Flow
Free Cash Flow	6.12B	2.96B	97.00M	1.09B	2.63B	3.58B
Operating Cash Flow	9.22B	6.36B	2.76B	3.22B	4.28B	4.88B
Investing Cash Flow	718.00M	-2.70B	-1.00B	-2.98B	-1.87B	91.00M
Financing Cash Flow	-7.45B	-2.95B	-1.60B	-2.36B	-2.96B	-1.68B

Newmont Mining Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 89.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 89 is above the 20-day moving average (MA) of 88.40, above the 50-day MA of 86.70, and above the 200-day MA of 65.25, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 53.33 is Neutral, neither overbought nor oversold. The STOCH value of 66.07 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
NEM	81 Outperform	$97.95B	13.95	22.84%	1.12%	26.25%	―
GFI	79 Outperform	$38.85B	20.04	35.09%	1.69%	49.62%	195.39%
RGLD	78 Outperform	$17.02B	27.65	14.90%	0.91%	28.11%	66.85%
HMY	77 Outperform	$11.04B	13.94	32.05%	1.02%	29.08%	72.12%
HL	74 Outperform	$11.37B	55.90	8.88%	0.09%	45.61%	―
AU	73 Outperform	$41.62B	35.32	―	3.20%	26.43%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Newmont Mining Corporate Events

Newmont Mining Announces CEO Retirement and Successor

On September 29, 2025, Newmont Corporation announced the retirement of CEO Tom Palmer, effective December 31, 2025, and the appointment of Natascha Viljoen as his successor, effective January 1, 2026. Palmer, who has been with Newmont for over a decade, will continue as a Strategic Advisor until March 31, 2026, to ensure a smooth transition. Viljoen, who joined Newmont in 2023, brings over 30 years of global mining experience and will be the first woman to lead the company. This leadership change is part of Newmont’s long-term succession planning and is expected to continue the company’s focus on operational excellence and value creation.