Newmont Corp. (NYSE:NEM)

The analysis of the financial data over the five-year period reveals notable trends in the asset composition and growth of the entity.

Total Assets

The total assets exhibited a fluctuating pattern from 2019 through 2023. Starting at approximately $39,974 million at the end of 2019, there was a marginal increase in 2020 to about $41,369 million, followed by a slight decline in 2021 to $40,564 million. The trend of contraction continued into 2022, reaching the lowest point in the observed period at $38,482 million. However, 2023 saw a substantial increase, with total assets rising sharply to $55,506 million. This marked growth in the most recent year suggests a significant expansion or acquisition that contributed to the asset base.

Adjusted Total Assets

The adjusted total assets mirrored the trend observed in total assets closely, beginning at $39,425 million in 2019. The figures increased moderately in 2020 and then decreased gradually over the next two years, aligning with total assets. By the end of 2023, adjusted total assets also experienced a pronounced rise to $55,238 million, indicating that the adjustment factors applied to total assets maintained a consistent relationship and that the sharp growth in total assets is robust under adjustment.

Overall, the entity experienced a relatively stable asset base with minor declines through the early years, culminating in a significant asset increase in 2023. This increase may reflect strategic financial activities such as acquisitions, capital investments, or revaluation effects that materially enhanced the asset portfolio. The close alignment between total and adjusted asset trends suggests that the adjustments have not distorted the underlying growth pattern.

Total liabilities

Total liabilities showed a generally increasing trend over the observed five-year period. After a slight decrease from 17,557 million USD in 2019 to 17,490 million USD in 2020, the liabilities rose consistently to 18,703 million USD in 2021 and 18,949 million USD in 2022. A significant increase occurred in 2023, where total liabilities surged to 26,301 million USD, indicating a sharp rise in the company's obligations during the most recent year.

Adjusted total liabilities

The adjusted total liabilities exhibited a similar upward trajectory. Starting at 15,150 million USD in 2019, this figure increased steadily each year, reaching 15,417 million USD in 2020 and climbing further to 16,559 million USD in 2021. The upward trend continued through 2022, with adjusted liabilities reaching 17,140 million USD. A more pronounced increase was observed in 2023, with adjusted liabilities rising substantially to 23,314 million USD.

Summary of trends

Both total and adjusted total liabilities increased over the period, with a relatively moderate rise through 2022 followed by a marked acceleration in 2023. The significant jump in liabilities during the final year suggests increased financial leverage or a higher level of obligations undertaken by the entity. The consistency in the pattern of adjusted liabilities alongside total liabilities indicates that adjustments made do not materially alter the trend but confirm the escalation of debt or financial commitments.

The analysis of the equity data over the five-year period highlights several notable trends.

Total Newmont stockholders’ equity

The total stockholders’ equity demonstrated a fluctuating pattern throughout the years. It increased from 21,420 million US dollars in 2019 to 23,008 million in 2020, marking a positive growth. However, in 2021 and 2022, the equity declined consecutively to 22,022 million and then 19,354 million, indicating a contraction in shareholder equity. In 2023, there was a significant rebound, with equity rising sharply to 29,027 million, representing the highest value in the analyzed period.

Adjusted total equity

The adjusted total equity followed a somewhat similar pattern as the total stockholders’ equity but on a slightly higher scale. Starting at 24,275 million US dollars in 2019, it grew moderately to 25,615 million in 2020. Subsequently, it decreased over the next two years to 23,736 million in 2021 and 21,169 million in 2022. The year 2023 witnessed a sharp recovery as adjusted total equity surged to 31,924 million, exceeding all prior years and indicating a strong financial position after the decline.

Overall, both equity measures show initial growth in 2020, followed by a two-year decline in 2021 and 2022, and a marked recovery in 2023. This suggests some volatility in the company's equity base, with 2023 marking a significant strengthening of equity levels relative to previous years.

Total reported debt

The total reported debt showed a general downward trend from 2019 through 2022, decreasing from $6,834 million in 2019 to $6,132 million in 2022. However, there was a significant increase in 2023, rising sharply to $9,436 million. This indicates a substantial rise in debt levels in the most recent year after a multi-year period of reduction.

Total Newmont stockholders’ equity

Stockholders' equity increased from $21,420 million in 2019 to a peak of $23,008 million in 2020, followed by a decline to $19,354 million in 2022. In 2023, equity rebounded strongly to $29,027 million, marking the highest equity value in the observed period. This suggests fluctuations in equity with a notable recovery in the latest year.

Total reported capital

Total reported capital mirrored the combined movements of debt and equity. It increased from $28,254 million in 2019 to $29,710 million in 2020, declined steadily to $25,486 million in 2022, and then surged to $38,463 million in 2023. The variability in reported capital is largely driven by the changes in debt and equity, with a pronounced increase evident in the final year.

Adjusted total debt

The trend in adjusted total debt closely parallels that of reported debt, showing a decrease from $6,909 million in 2019 to $6,248 million in 2022, before climbing sharply to $9,541 million in 2023. This reinforces the observation of a sizeable increase in debt obligations during the most recent period.

Adjusted total equity

Adjusted total equity exhibited an increase from $24,275 million in 2019 to $25,615 million in 2020, followed by a decline to $21,169 million in 2022. The figure then surged to $31,924 million in 2023, consistent with the trend in reported equity, indicating a strengthened equity position after a period of decline.

Adjusted total capital

Adjusted total capital rose from $31,184 million in 2019 to $32,425 million in 2020, decreased to $27,417 million in 2022, and then increased markedly to $41,465 million in 2023. This reflects the combined dynamics of debt and equity, emphasizing the large capital build-up in the latest year.

Overall, the data reveals a pattern of declining debt and equity from 2020 through 2022, followed by a significant reversal in 2023 characterized by a sharp increase in both debt and equity levels. This recent expansion in capital structure could suggest strategic financing initiatives or major investment activities undertaken in the most recent period.

The financial data reveals a significant decline in profitability over the analyzed periods. Initially, the net income attributable to stockholders was relatively strong, with values of 2,805 million USD at the end of 2019 and a slight increase to 2,829 million USD in 2020. However, this positive trend was not sustained, as net income drastically dropped to 1,166 million USD in 2021. The subsequent years saw the company recording net losses, with -429 million USD in 2022 and a further worsening to -2,494 million USD by the end of 2023.

The adjusted net income figures also exhibit a downward trajectory, although the figures differ slightly from the reported net income. Starting at 3,309 million USD in 2019, adjusted net income decreased markedly to 2,455 million USD in 2020 and then became significantly lower in 2021 at just 150 million USD. Adjusted net income turned negative in 2022, amounting to -515 million USD, and further declined to -2,613 million USD in 2023.

Trends and Patterns

There is a clear pattern of diminishing profitability across the reviewed years. Both net income and adjusted net income moved from solid positive earnings in 2019 and 2020 to substantial losses by 2023.

Magnitude of Changes

The decline between 2020 and 2021 marks a pivotal point where earnings fell sharply, and the transition to negative earnings in 2022 indicates the company faced considerable financial challenges.

Comparison of Net Income and Adjusted Net Income

The adjusted net income is generally higher than the reported net income in the earlier years, reflecting favorable adjustments likely related to non-recurring items or other accounting considerations. However, from 2021 onward, both metrics converge in displaying financial distress, with adjusted net income reflecting greater losses by 2023.

Implications

The ongoing decline suggests deteriorating operational performance or external factors adversely impacting profitability. The persistent losses may require strategic reassessment and possible operational restructuring to restore financial stability.