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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Current lease and other financing obligations 100  27  —  — 
Current debt —  626  —  566  149 
Non-current debt 6,138  3,418  4,040  4,049  6,087 
Non-current lease and other financing obligations 596  190  21  —  — 
Total debt, lease and other financing obligations (carrying amount) 6,834  4,261  4,065  4,615  6,236 

Based on: 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), 10-K (filing date: 2016-02-17).

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 2017 to 2018 and from 2018 to 2019.

Total Debt (Fair Value)

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Dec 31, 2019
Selected Financial Data (US$ in millions)
Debt 7,068 
Lease and other financing obligations 696 
Total debt, lease and other financing obligations (fair value) 7,764 
Financial Ratio
Debt, fair value to carrying amount ratio 1.14

Based on: 10-K (filing date: 2020-02-20).


Weighted-average Interest Rate on Debt

Weighted-average interest rate for debt: 4.59%

Interest Rate Debt Amount1 Interest Rate × Debt Amount Weighted-average Interest Rate2
3.63% 562  20 
3.50% 1,026  36 
3.70% 1,050  39 
2.80% 700  20 
5.88% 794  47 
6.25% 1,180  74 
4.88% 1,188  58 
5.45% 568  31 
Total 7,068  324 
4.59%

Based on: 10-K (filing date: 2020-02-20).

1 US$ in millions

2 Weighted-average interest rate = 100 × 324 ÷ 7,068 = 4.59%


Interest Costs Incurred

Newmont Corp., interest costs incurred

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Interest expense, net of capitalized interest 301  207  241  273  325 
Capitalized interest 26  37  22  33  40 
Interest costs incurred 327  244  263  306  365 

Based on: 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), 10-K (filing date: 2016-02-17).

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 decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
Capitalized interest Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. Newmont Corp.’s capitalized interest increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. Newmont Corp.’s interest costs incurred decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Adjusted Interest Coverage Ratio

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Newmont stockholders 2,805  341  (98) (627) 220 
Add: Net income attributable to noncontrolling interest 79  39  11  (296) 84 
Less: Net income (loss) from discontinued operations (72) 61  (38) (133) 27 
Add: Income tax expense 832  386  1,125  563  644 
Add: Interest expense, net of capitalized interest 301  207  241  273  325 
Earnings before interest and tax (EBIT) 4,089  912  1,317  46  1,246 
 
Interest costs incurred 327  244  263  306  365 
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 13.58 4.41 5.46 0.17 3.83
Adjusted interest coverage ratio (with capitalized interest)2 12.50 3.74 5.01 0.15 3.41

Based on: 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), 10-K (filing date: 2016-02-17).

2019 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, net of capitalized interest
= 4,089 ÷ 301 = 13.58

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 4,089 ÷ 327 = 12.50


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 deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.