Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Newmont Corp. (NYSE:NEM)

Analysis of Debt

Advanced level

Total Debt (Carrying Amount)

Newmont Corp., balance sheet: debt

US$ in millions

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Current lease and other financing obligations 106  100  27  — 
Current debt 551  —  626  —  566 
Non-current debt 5,480  6,138  3,418  4,040  4,049 
Non-current lease and other financing obligations 565  596  190  21  — 
Total debt, lease and other financing obligations (carrying amount) 6,702  6,834  4,261  4,065  4,615 

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21).

Debt item Description The company
Total debt, lease and other financing obligations (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Newmont Corp.’s total debt increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.

Total Debt (Fair Value)

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Dec 31, 2020
Selected Financial Data (US$ in millions)
Debt 7,586 
Lease and other financing obligations 671 
Total debt, lease and other financing obligations (fair value) 8,257 
Financial Ratio
Debt, fair value to carrying amount ratio 1.23

Based on: 10-K (filing date: 2021-02-18).


Weighted-average Interest Rate on Debt

Weighted-average interest rate for debt: 4.55%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
3.63% 556  20 
3.50% 512  18 
3.70% 441  16 
2.80% 770  22 
2.25% 1,060  24 
5.88% 886  52 
6.25% 1,344  84 
4.88% 1,375  67 
5.45% 642  35 
5.58% 671  37 
Total 8,257  375 
4.55%

Based on: 10-K (filing date: 2021-02-18).

1 US$ in millions

2 Weighted-average interest rate = 100 × 375 ÷ 8,257 = 4.55%


Interest Costs Incurred

Newmont Corp., interest costs incurred

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Interest expense, net of capitalized interest 308  301  207  241  273 
Capitalized interest 24  26  37  22  33 
Interest costs incurred 332  327  244  263  306 

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21).

Debt item Description The company
Interest expense, net of capitalized interest Amount of the cost of borrowed funds accounted for as interest expense for debt. Newmont Corp.’s interest expense, net of capitalized interest increased from 2018 to 2019 and from 2019 to 2020.
Capitalized interest Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. Newmont Corp.’s capitalized interest decreased from 2018 to 2019 and from 2019 to 2020.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. Newmont Corp.’s interest costs incurred increased from 2018 to 2019 and from 2019 to 2020.

Adjusted Interest Coverage Ratio

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Newmont stockholders 2,829  2,805  341  (98) (627)
Add: Net income attributable to noncontrolling interest (38) 79  39  11  (296)
Less: Net income (loss) from discontinued operations 163  (72) 61  (38) (133)
Add: Income tax expense 704  832  386  1,125  563 
Add: Interest expense, net of capitalized interest 308  301  207  241  273 
Earnings before interest and tax (EBIT) 3,640  4,089  912  1,317  46 
 
Interest costs incurred 332  327  244  263  306 
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 11.82 13.58 4.41 5.46 0.17
Adjusted interest coverage ratio (with capitalized interest)2 10.96 12.50 3.74 5.01 0.15

Based on: 10-K (filing date: 2021-02-18), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-21).

2020 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, net of capitalized interest
= 3,640 ÷ 308 = 11.82

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 3,640 ÷ 332 = 10.96


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). Newmont Corp.’s adjusted interest coverage ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.