Analysis of Property, Plant and Equipment
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- Income Statement
- Cash Flow Statement
- Analysis of Geographic Areas
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
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Property, Plant and Equipment Disclosure
Newmont Corp., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Land
- The value of land shows a consistent upward trend over the five-year period, increasing from $193 million in 2019 to $347 million in 2023. This indicates ongoing acquisition or revaluation of land assets, with a notable acceleration in growth after 2021.
- Facilities and Equipment
- Facilities and equipment demonstrate steady growth from $17,676 million in 2019 to $19,044 million in 2022, followed by a significant increase to $25,804 million in 2023. This sharp rise in the final year suggests substantial investment or expansion in operational capacity.
- Mine Development
- Mine development exhibits a continuous increase each year, from $3,427 million in 2019 to $7,223 million in 2023. The growth rate is steady, reflecting ongoing investment into mine planning and creation of new mining operations.
- Mineral Interests
- Mineral interests decrease from $13,581 million in 2019 to $12,673 million in 2020, then gradually recover to $13,276 million in 2022 before sharply rising to $19,450 million in 2023. The initial decline followed by recovery and a strong increase in the final year may indicate revaluation adjustments or acquisition of new mineral rights.
- Construction-in-progress
- Construction-in-progress fluctuates but shows an overall increasing trend, rising from $2,089 million in 2019 to $4,799 million in 2023. The dip in 2021 is followed by a substantial increase in 2022 and 2023, signaling intensified capital projects under development recently.
- Property, Plant and Mine Development, Cost
- The total cost of property, plant, and mine development systematically increases every year, from $36,966 million in 2019 to $57,623 million in 2023. This steady growth reflects ongoing capital expenditures and asset additions.
- Accumulated Depreciation
- Accumulated depreciation consistently rises in magnitude, moving from -$11,690 million in 2019 to -$20,060 million in 2023. The steady increase shows normal aging and consumption of assets over time, contributing to a higher depreciation base.
- Property, Plant and Mine Development, Net Book Value
- The net book value decreases slightly from $25,276 million in 2019 to $24,073 million in 2022, before experiencing a notable increase to $37,563 million in 2023. This pattern suggests that despite consistent depreciation, recent acquisitions or capital investments have significantly enhanced the net asset base in the latest period.
Asset Age Ratios (Summary)
Newmont Corp., asset age ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Average Age Ratio
- The average age ratio of property, plant, and equipment shows an overall upward trend from 31.79% in 2019 to a peak of 43.28% in 2022. This indicates a progressive aging of the fixed assets over this period. However, in 2023, there is a notable decline to 35.02%, reflecting a reduction in the average age of the assets. This decrease could suggest recent investments in new assets, retirements, or disposals of older equipment.
- From 2019 to 2022, the steady increase in the average age ratio may imply limited new acquisitions or slower asset turnover, potentially impacting operational efficiency or maintenance costs. The sharp decline in 2023 reverses this trend, which may indicate a strategic refreshment or modernization of the asset base.
- Overall, the data point to a maturing asset portfolio during the first four years, followed by a rejuvenation phase in the most recent year.
Average Age
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
2023 Calculations
1 Average age = 100 × Accumulated depreciation ÷ (Property, plant and mine development, cost – Land)
= 100 × ÷ ( – ) =
- Accumulated Depreciation
- There is a consistent upward trend in accumulated depreciation over the five-year period. The value increased from $11,690 million in 2019 to $20,060 million in 2023. This reflects a steady recognition of wear and usage on property, plant, and equipment assets, indicating ongoing asset aging and utilization.
- Property, Plant and Mine Development, Cost
- The cost associated with property, plant, and mine development shows a gradual increase from 2019 through 2022, moving from $36,966 million to $42,225 million. A significant jump is observed in 2023, with the cost rising sharply to $57,623 million. This implies substantial investment or acquisition of new assets or development activities occurring in 2023, possibly indicating expansion or modernization efforts.
- Land
- The value of land assets exhibits moderate growth over the period, starting at $193 million in 2019 and increasing to $347 million by 2023. The growth pattern is steady without sudden changes, suggesting continuous, measured land acquisitions or revaluations.
- Average Age Ratio
- The average age ratio of the assets increased from 31.79% in 2019 to a peak of 43.28% in 2022, signaling an aging asset base during this period. However, 2023 shows a decline to 35.02%, which could be attributed to recent investments or asset additions that have lowered the overall average age. This aligns with the significant increase in property, plant, and mine development costs observed in the same year.