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Stock Analysis on Net

Newmont Corp. (NYSE:NEM)

This company has been moved to the archive! The financial data has not been updated since April 29, 2024.

Common-Size Income Statement

Newmont Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Sales 100.00 100.00 100.00 100.00 100.00
Costs applicable to sales -56.71 -54.28 -44.47 -43.61 -53.34
Depreciation and amortization -17.85 -18.34 -19.01 -20.01 -20.12
Reclamation and remediation -12.98 -7.73 -15.10 -3.18 -2.87
Gross profit 12.46% 19.65% 21.42% 33.20% 23.67%
Exploration -2.24 -1.94 -1.71 -1.63 -2.72
Advanced projects, research and development -1.69 -1.92 -1.26 -1.06 -1.54
General and administrative -2.53 -2.32 -2.12 -2.34 -3.21
Impairment charges -16.01 -11.08 -0.20 -0.43 -0.05
Loss on assets held for sale 0.00 0.00 -4.67 0.00 0.00
Newcrest transaction and integration costs -3.93 0.00 0.00 0.00 0.00
Restructuring and severance -0.20 -0.03 -0.09 -0.16 -0.07
Settlement costs -0.06 -0.18 -0.09 -0.50 -0.05
COVID-19 specific costs -0.01 -0.32 -0.71 -0.80 0.00
Goldcorp transaction and integration costs 0.00 0.00 0.00 -0.20 -2.23
Nevada JV transaction and implementation costs 0.00 0.00 0.00 0.00 -0.31
Other -0.18 -0.15 -0.28 -1.68 -0.37
Other expense, net -4.38% -0.69% -1.17% -3.34% -3.03%
Operating income (loss) -14.39% 1.70% 10.28% 24.41% 13.11%
Gain on formation of Nevada Gold Mines 0.00 0.00 0.00 0.00 24.54
Gain (loss) on asset and investment sales, net -1.67 0.29 1.73 5.89 0.31
Interest income 1.25 0.65 0.15 0.21 0.59
Foreign currency exchange, net -0.47 -0.04 0.19 -0.63 -0.07
Change in fair value of investments -0.40 -0.39 -1.10 2.19 1.70
Insurance Proceeds 0.31 0.12 0.00 0.00 0.39
Pension settlements -0.08 -1.15 -0.03 -0.80 0.21
Charges from debt extinguishment 0.00 0.00 -0.09 -0.67 0.00
Impairment of investments 0.00 0.00 -0.01 -0.81 -0.02
Other 0.30 0.29 0.19 0.23 0.26
Other income (loss), net -0.75% -0.23% 1.02% 5.61% 3.36%
Interest expense, net of capitalized interest -2.06 -1.91 -2.24 -2.68 -3.09
Other income (expense) -2.80% -2.13% -1.22% 2.93% 24.80%
Income (loss) before income and mining tax and other items -17.19% -0.43% 9.07% 27.34% 37.92%
Income and mining tax expense -4.45 -3.82 -8.98 -6.12 -8.54
Equity income of affiliates 0.53 0.90 1.36 1.64 0.98
Net income (loss) from continuing operations -21.11% -3.35% 1.44% 22.86% 30.35%
Net income (loss) from discontinued operations 0.23 0.25 0.47 1.42 -0.74
Net income (loss) -20.89% -3.10% 1.91% 24.28% 29.61%
Net (income) loss attributable to noncontrolling interests -0.23 -0.50 7.63 0.33 -0.81
Net income (loss) attributable to Newmont stockholders -21.11% -3.60% 9.54% 24.61% 28.80%

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).

The financial performance of the company exhibits a significant downward trajectory in profitability from 2019 through 2023, characterized by a transition from substantial net income to significant net losses. This erosion is primarily driven by increasing operational costs and a series of substantial non-cash impairment charges in the latter years of the period.

Gross Profitability and Cost Trends
Gross profit margins peaked in 2020 at 33.20% before entering a consistent decline, reaching a period low of 12.46% by 2023. This contraction is closely linked to the increase in costs applicable to sales, which rose from 43.61% of sales in 2020 to 56.71% in 2023. While depreciation and amortization remained relatively stable, fluctuating between 17.85% and 20.12%, reclamation and remediation costs showed high volatility, peaking at 15.10% in 2021 and remaining elevated at 12.98% in 2023.
Operating Income Degradation
Operating income shifted from a peak of 24.41% of sales in 2020 to an operating loss of 14.39% in 2023. This downturn is heavily attributed to a sharp increase in impairment charges, which were negligible between 2019 and 2021 but surged to 11.08% in 2022 and 16.01% in 2023. Additionally, 2023 was impacted by Newcrest transaction and integration costs amounting to 3.93% of sales.
Non-Operating Items and One-Time Gains
The 2019 results were significantly inflated by a one-time gain on the formation of Nevada Gold Mines, contributing 24.54% to total sales. Excluding this extraordinary item, the trend in other income is generally negative or marginal. Interest expense has remained relatively stable as a percentage of sales, hovering around 2% to 3% throughout the five-year period.
Net Income Trajectory
Net income attributable to stockholders reflects a severe decline, moving from 28.80% of sales in 2019 to a loss of 21.11% in 2023. The transition to negative net income began in 2022 (-3.60%) and accelerated sharply in 2023. This trend indicates that the combination of rising production costs, substantial asset impairments, and integration expenses has outpaced the company's revenue generation capabilities during this timeframe.

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