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Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Newmont Corp., economic profit calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net operating profit after taxes (NOPAT)¹	(2,520)	(555)	274)	2,630)	3,486)
Cost of capital²	8.10%	8.50%	8.61%	8.45%	8.39%
Invested capital³	36,379)	23,044)	27,566)	29,461)	28,943)

Economic profit⁴	(5,467)	(2,515)	(2,099)	141)	1,058)

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).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2023 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= -2,520 – 8.10% × 36,379 = -5,467

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Item	Description	The company
Economic profit	Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital.	Newmont Corp. economic profit decreased from 2021 to 2022 and from 2022 to 2023.

Newmont Corp., NOPAT calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (loss) attributable to Newmont stockholders	(2,494)	(429)	1,166)	2,829)	2,805)
Deferred income tax expense (benefit)¹	(104)	(278)	(109)	(222)	334)
Increase (decrease) in equity equivalents²	(104)	(278)	(109)	(222)	334)
Interest expense, net of capitalized interest	243)	227)	274)	308)	301)
Interest expense, operating lease liability³	4)	5)	6)	4)	4)
Adjusted interest expense, net of capitalized interest	247)	232)	280)	312)	305)
Tax benefit of interest expense, net of capitalized interest⁴	(52)	(49)	(59)	(66)	(64)
Adjusted interest expense, net of capitalized interest, after taxes⁵	195)	183)	221)	247)	241)
(Gain) loss on marketable securities	—)	—)	—)	(5)	—)
Interest income	(148)	(78)	(18)	(24)	(57)
Investment income, before taxes	(148)	(78)	(18)	(29)	(57)
Tax expense (benefit) of investment income⁶	31)	16)	4)	6)	12)
Investment income, after taxes⁷	(117)	(62)	(14)	(23)	(45)
(Income) loss from discontinued operations, net of tax⁸	(27)	(30)	(57)	(163)	72)
Net income (loss) attributable to noncontrolling interest	27)	60)	(933)	(38)	79)
Net operating profit after taxes (NOPAT)	(2,520)	(555)	274)	2,630)	3,486)

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).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in equity equivalents to net income (loss) attributable to Newmont stockholders.

³ 2023 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 105 × 3.78% = 4

⁴ 2023 Calculation
Tax benefit of interest expense, net of capitalized interest = Adjusted interest expense, net of capitalized interest × Statutory income tax rate
= 247 × 21.00% = 52

⁵ Addition of after taxes interest expense to net income (loss) attributable to Newmont stockholders.

⁶ 2023 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 148 × 21.00% = 31

⁷ Elimination of after taxes investment income.

⁸ Elimination of discontinued operations.

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Item	Description	The company
NOPAT	Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income.	Newmont Corp. NOPAT decreased from 2021 to 2022 and from 2022 to 2023.

Newmont Corp., cash operating taxes calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Income and mining tax expense	526)	455)	1,098)	704)	832)
Less: Deferred income tax expense (benefit)	(104)	(278)	(109)	(222)	334)
Add: Tax savings from interest expense, net of capitalized interest	52)	49)	59)	66)	64)
Less: Tax imposed on investment income	31)	16)	4)	6)	12)
Cash operating taxes	651)	765)	1,262)	985)	550)

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).

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Item	Description	The company
Cash operating taxes	Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction.	Newmont Corp. cash operating taxes decreased from 2021 to 2022 and from 2022 to 2023.

Newmont Corp., invested capital calculation (financing approach)

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Current finance lease and other financing obligations	114)	96)	106)	106)	100)
Current debt	1,923)	—)	87)	551)	—)
Non-current debt	6,951)	5,571)	5,565)	5,480)	6,138)
Non-current finance lease and other financing obligations	448)	465)	544)	565)	596)
Operating lease liability¹	105)	116)	128)	108)	75)
Total reported debt & leases	9,541)	6,248)	6,430)	6,810)	6,909)
Total Newmont stockholders’ equity	29,027)	19,354)	22,022)	23,008)	21,420)
Net deferred tax (assets) liabilities²	2,719)	1,636)	1,875)	1,736)	1,858)
Equity equivalents³	2,719)	1,636)	1,875)	1,736)	1,858)
Accumulated other comprehensive (income) loss, net of tax⁴	(14)	(29)	133)	216)	265)
Contingently redeemable noncontrolling interest	—)	—)	48)	34)	47)
Noncontrolling interests	178)	179)	(209)	837)	950)
Adjusted total Newmont stockholders’ equity	31,910)	21,140)	23,869)	25,831)	24,540)
Construction-in-progress⁵	(4,799)	(3,211)	(2,309)	(2,474)	(2,089)
Marketable securities and restricted marketable securities⁶	(273)	(1,133)	(424)	(706)	(417)
Invested capital	36,379)	23,044)	27,566)	29,461)	28,943)

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).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of equity equivalents to total Newmont stockholders’ equity.

⁴ Removal of accumulated other comprehensive income.

⁵ Subtraction of construction-in-progress.

⁶ Subtraction of marketable securities and restricted marketable securities.

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Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	Newmont Corp. invested capital decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Newmont Corp., cost of capital calculations

Dec 31, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	36,017)	36,017)	÷	45,659)	=	0.79	0.79	×	9.33%	=	7.36%
Debt, finance lease and other financing obligations³	9,537)	9,537)	÷	45,659)	=	0.21	0.21	×	4.44% × (1 – 21.00%)	=	0.73%
Operating lease liability⁴	105)	105)	÷	45,659)	=	0.00	0.00	×	3.78% × (1 – 21.00%)	=	0.01%
Total:	45,659)					1.00					8.10%

Based on: 10-K (reporting date: 2023-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt, finance lease and other financing obligations. See details »

⁴ Operating lease liability. See details »

Dec 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	35,133)	35,133)	÷	40,946)	=	0.86	0.86	×	9.33%	=	8.01%
Debt, finance lease and other financing obligations³	5,697)	5,697)	÷	40,946)	=	0.14	0.14	×	4.42% × (1 – 21.00%)	=	0.49%
Operating lease liability⁴	116)	116)	÷	40,946)	=	0.00	0.00	×	4.35% × (1 – 21.00%)	=	0.01%
Total:	40,946)					1.00					8.50%

Based on: 10-K (reporting date: 2022-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt, finance lease and other financing obligations. See details »

⁴ Operating lease liability. See details »

Dec 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	52,876)	52,876)	÷	60,366)	=	0.88	0.88	×	9.33%	=	8.18%
Debt, finance lease and other financing obligations³	7,362)	7,362)	÷	60,366)	=	0.12	0.12	×	4.42% × (1 – 21.00%)	=	0.43%
Operating lease liability⁴	128)	128)	÷	60,366)	=	0.00	0.00	×	4.90% × (1 – 21.00%)	=	0.01%
Total:	60,366)					1.00					8.61%

Based on: 10-K (reporting date: 2021-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt, finance lease and other financing obligations. See details »

⁴ Operating lease liability. See details »

Dec 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	45,906)	45,906)	÷	54,271)	=	0.85	0.85	×	9.33%	=	7.90%
Debt, finance lease and other financing obligations³	8,257)	8,257)	÷	54,271)	=	0.15	0.15	×	4.55% × (1 – 21.00%)	=	0.55%
Operating lease liability⁴	108)	108)	÷	54,271)	=	0.00	0.00	×	3.87% × (1 – 21.00%)	=	0.01%
Total:	54,271)					1.00					8.45%

Based on: 10-K (reporting date: 2020-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt, finance lease and other financing obligations. See details »

⁴ Operating lease liability. See details »

Dec 31, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	38,845)	38,845)	÷	46,684)	=	0.83	0.83	×	9.33%	=	7.77%
Debt, finance lease and other financing obligations³	7,764)	7,764)	÷	46,684)	=	0.17	0.17	×	4.68% × (1 – 21.00%)	=	0.61%
Operating lease liability⁴	75)	75)	÷	46,684)	=	0.00	0.00	×	5.31% × (1 – 21.00%)	=	0.01%
Total:	46,684)					1.00					8.39%

Based on: 10-K (reporting date: 2019-12-31).

¹ US$ in millions

² Equity. See details »

³ Debt, finance lease and other financing obligations. See details »

⁴ Operating lease liability. See details »

Newmont Corp., economic spread ratio calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	(5,467)	(2,515)	(2,099)	141)	1,058)
Invested capital²	36,379)	23,044)	27,566)	29,461)	28,943)
Performance Ratio
Economic spread ratio³	-15.03%	-10.91%	-7.62%	0.48%	3.66%
Benchmarks
Economic Spread Ratio, Competitors⁴
Freeport-McMoRan Inc.	-6.88%	-5.90%	-2.42%	-13.98%	-14.57%

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).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2023 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -5,467 ÷ 36,379 = -15.03%

⁴ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic spread ratio	The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital.	Newmont Corp. economic spread ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Newmont Corp., economic profit margin calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Economic profit¹	(5,467)	(2,515)	(2,099)	141)	1,058)
Sales	11,812)	11,915)	12,222)	11,497)	9,740)
Performance Ratio
Economic profit margin²	-46.29%	-21.11%	-17.18%	1.22%	10.86%
Benchmarks
Economic Profit Margin, Competitors³
Freeport-McMoRan Inc.	-10.53%	-9.37%	-3.69%	-31.57%	-28.50%

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).

¹ Economic profit. See details »

² 2023 Calculation
Economic profit margin = 100 × Economic profit ÷ Sales
= 100 × -5,467 ÷ 11,812 = -46.29%

³ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic profit margin	The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin.	Newmont Corp. economic profit margin deteriorated from 2021 to 2022 and from 2022 to 2023.

Newmont Corp. (NYSE:NEM)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin