Name: Newmont Corp. (NYSE:NEM) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Newmont Corp., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Sales	11,812)	11,915)	12,222)	11,497)	9,740)
Costs applicable to sales	(6,699)	(6,468)	(5,435)	(5,014)	(5,195)
Depreciation and amortization	(2,108)	(2,185)	(2,323)	(2,300)	(1,960)
Reclamation and remediation	(1,533)	(921)	(1,846)	(366)	(280)
Gross profit	1,472)	2,341)	2,618)	3,817)	2,305)
Exploration	(265)	(231)	(209)	(187)	(265)
Advanced projects, research and development	(200)	(229)	(154)	(122)	(150)
General and administrative	(299)	(276)	(259)	(269)	(313)
Impairment charges	(1,891)	(1,320)	(25)	(49)	(5)
Loss on assets held for sale	—)	—)	(571)	—)	—)
Newcrest transaction and integration costs	(464)	—)	—)	—)	—)
Restructuring and severance	(24)	(4)	(11)	(18)	(7)
Settlement costs	(7)	(22)	(11)	(58)	(5)
COVID-19 specific costs	(1)	(38)	(87)	(92)	—)
Goldcorp transaction and integration costs	—)	—)	—)	(23)	(217)
Nevada JV transaction and implementation costs	—)	—)	—)	—)	(30)
Other	(21)	(18)	(34)	(193)	(36)
Other expense, net	(517)	(82)	(143)	(384)	(295)
Operating income (loss)	(1,700)	203)	1,257)	2,806)	1,277)
Gain on formation of Nevada Gold Mines	—)	—)	—)	—)	2,390)
Gain (loss) on asset and investment sales, net	(197)	35)	212)	677)	30)
Interest income	148)	78)	18)	24)	57)
Foreign currency exchange, net	(56)	(5)	23)	(73)	(7)
Change in fair value of investments	(47)	(46)	(135)	252)	166)
Insurance Proceeds	37)	14)	—)	—)	38)
Pension settlements	(9)	(137)	(4)	(92)	20)
Charges from debt extinguishment	—)	—)	(11)	(77)	—)
Impairment of investments	—)	—)	(1)	(93)	(2)
Other	36)	34)	23)	27)	25)
Other income (loss), net	(88)	(27)	125)	645)	327)
Interest expense, net of capitalized interest	(243)	(227)	(274)	(308)	(301)
Other income (expense)	(331)	(254)	(149)	337)	2,416)
Income (loss) before income and mining tax and other items	(2,031)	(51)	1,108)	3,143)	3,693)
Income and mining tax expense	(526)	(455)	(1,098)	(704)	(832)
Equity income of affiliates	63)	107)	166)	189)	95)
Net income (loss) from continuing operations	(2,494)	(399)	176)	2,628)	2,956)
Net income (loss) from discontinued operations	27)	30)	57)	163)	(72)
Net income (loss)	(2,467)	(369)	233)	2,791)	2,884)
Net (income) loss attributable to noncontrolling interests	(27)	(60)	933)	38)	(79)
Net income (loss) attributable to Newmont stockholders	(2,494)	(429)	1,166)	2,829)	2,805)

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 over the five-year period from 2019 to 2023 is characterized by an initial phase of revenue growth followed by a significant deterioration in profitability, culminating in substantial net losses by 2023. While top-line revenue peaked in 2021, escalating operational costs and significant non-cash impairment charges have severely impacted the bottom line.

Revenue and Gross Profit Trends: Sales experienced an upward trajectory from 2019, rising from 9,740 million to a peak of 12,222 million in 2021, before stabilizing and slightly declining to 11,812 million in 2023. Despite this revenue stability, gross profit has declined sharply from a peak of 3,817 million in 2020 to 1,472 million in 2023. This compression is primarily driven by a steady increase in costs applicable to sales, which rose from 5,195 million in 2019 to 6,699 million in 2023.
Operating Expense Analysis: Operating income has shifted from a positive 2,806 million in 2020 to an operating loss of 1,700 million in 2023. A critical factor in this decline is the volatility and increase in reclamation and remediation expenses, which reached 1,846 million in 2021 and remained elevated at 1,533 million in 2023. Additionally, general and administrative expenses have remained relatively stable, whereas exploration and research and development costs have fluctuated within a narrow range, indicating that the operating loss is driven more by direct production costs and remediation rather than administrative overhead.
Non-Recurring Items and Impairments: The latter part of the period is marked by significant impairment charges, which were negligible prior to 2022 but surged to 1,320 million in 2022 and 1,891 million in 2023. Further downward pressure was exerted by transaction and integration costs, specifically 464 million related to the Newcrest transaction in 2023. Conversely, the 2019 results were heavily bolstered by a one-time gain of 2,390 million from the formation of Nevada Gold Mines, which skewed the early-period profitability figures.
Net Income and Bottom-Line Performance: Net income attributable to stockholders has followed a steep downward trend, moving from 2,805 million in 2019 and 2,829 million in 2020 to a net loss of 429 million in 2022 and a severe loss of 2,494 million in 2023. While interest expenses have remained relatively consistent, ranging between 227 million and 308 million, the combination of declining operating income and massive impairment charges has led to a complete erosion of net profitability.

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