Newmont Mining (NEM) AI Stock Analysis

• Market Cap: $79.56B
• Dividend Yield: 1.38%
• Average Volume (3M): 11.08M
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.71
• Revenue Growth: 39.02%
• EPS Growth: N/A
• Country: US
• Employees: 22,200
• Sector: Basic Materials
• Sector Strength: 65
• Industry: Gold
• EPS (TTM): 1.43
• Shares Outstanding: 1,098,449,700
• 10 Day Avg. Volume: 7,539,344
• 30 Day Avg. Volume: 11,078,276
• 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: 0.83
• Enterprise Value/Revenue: 3.22
• Enterprise Value/Gross Profit: 7.71
• Enterprise Value/Ebitda: 5.57
• 1Y Price Target: $73.90
• Price Target Upside: 2.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 79 Outperform
• Price Target: $79.00 ▲(9.13% Upside)

Newmont Mining's strong financial performance and positive earnings call are significant strengths, supported by robust profitability and cash flow management. Technical indicators suggest positive momentum, though caution is warranted due to overbought signals. Valuation is reasonable, but not particularly compelling. Overall, the stock is well-positioned, but potential operational challenges and market conditions should be monitored.

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

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

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.

Rising Costs

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

Newmont Mining Business Overview & Revenue Model

Company Description

Newmont Mining Corporation (NEM) is a leading gold producer and a key player in the mining industry, headquartered in Greenwood Village, Colorado. The company primarily focuses on the exploration, mining, and production of gold, along with copper, silver, and other mineral resources. Newmont operates a diverse portfolio of mines across North America, South America, Australia, and Africa, employing state-of-the-art technologies and sustainable practices to maximize resource extraction while minimizing environmental impact.

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: 72.39
• 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 72.39 is above the 20-day moving average (MA) of 68.48, above the 50-day MA of 63.25, and above the 200-day MA of 50.22, indicating a bullish trend. The MACD of 2.53 indicates Negative momentum. The RSI at 72.73 is Negative, neither overbought nor oversold. The STOCH value of 90.71 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	79 Outperform	$79.56B	12.77	20.26%	1.38%	39.02%	―
GFI	79 Outperform	$29.37B	15.35	35.09%	1.66%	49.62%	195.39%
HMY	78 Outperform	$9.33B	16.82	25.19%	1.17%	20.35%	20.44%
RGLD	78 Outperform	$11.71B	25.55	14.32%	0.99%	30.15%	86.71%
AU	73 Outperform	$27.90B	23.33	19.42%	2.92%	26.43%	―
HL	70 Outperform	$5.36B	50.22	4.67%	0.31%	36.30%	―
Sector *	61 Neutral	$10.31B	6.18	0.76%	2.94%	3.30%	-36.34%

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.