Newmont Corp. (NYSE:NEM)

The financial performance of the CC&V, U.S. segment is characterized by extreme volatility in profitability between 2021 and 2023, contrasted against relatively stable revenue streams. A significant operational contraction occurred in 2022, which was subsequently followed by a recovery to peak margin levels in 2023.

Revenue Trends

Sales exhibited a slight downward trajectory over the period, declining from 396 million US dollars in 2021 to 333 million US dollars in 2022, and remaining virtually stagnant at 332 million US dollars in 2023.

Income Volatility

Income before income and mining tax and other items experienced severe fluctuations. After reporting 64 million US dollars in 2021, the segment transitioned to a substantial loss of 527 million US dollars in 2022, before recovering to a positive 82 million US dollars by the end of 2023.

Profit Margin Analysis

The segment profit margin reflected the aforementioned income instability. The margin moved from 16.16% in 2021 to a deep negative of -158.26% in 2022, indicating that losses significantly exceeded total sales for that year. By 2023, the margin improved to 24.70%, marking a full recovery and an increase over 2021 levels despite the lower sales volume.

The financial performance of the Musselwhite segment between 2021 and 2023 is characterized by a significant divergence between revenue growth and operational profitability. While sales exhibited a consistent upward trajectory, income before taxes suffered a severe reversal, transitioning from a profitable state to a substantial loss by the end of the period.

Revenue Performance

Sales demonstrated steady growth over the observed period, increasing from 277 million US dollars in 2021 to 305 million US dollars in 2022, and further rising to 351 million US dollars in 2023. This indicates a consistent expansion in the segment's top-line generation.

Operating Income Trends

Income before income and mining tax showed a precipitous decline. The segment reported 30 million US dollars in 2021, which decreased to 23 million US dollars in 2022, before plummeting to a loss of 254 million US dollars in 2023. The magnitude of the loss in the final year suggests that operating expenses or other costs escalated at a rate that far exceeded revenue gains.

Segment Profit Margin Analysis

The segment profit margin mirrors the deterioration seen in operating income. The margin contracted from 10.83% in 2021 to 7.54% in 2022, ultimately collapsing to -72.36% in 2023. This sharp decline indicates a critical erosion of efficiency and profitability, as the segment moved from a positive return to a deeply negative margin profile despite increasing sales volume.

The Porcupine segment exhibited significant volatility in profitability between 2021 and 2023, characterized by a severe downturn in 2022 followed by a return to positive earnings in 2023. Despite the instability in net income, sales revenue remained remarkably consistent throughout the analyzed period.

Revenue Stability

Sales figures demonstrated minimal fluctuation, moving from US$ 517 million in 2021 to US$ 503 million by December 31, 2023. This stability indicates that the fluctuations in profitability were not the result of revenue decline or market demand shifts, but were instead driven by cost-side variables.

Income Volatility

Income before income and mining tax experienced a drastic reversal in 2022, shifting from a profit of US$ 121 million in 2021 to a substantial loss of US$ 329 million. A recovery was observed in 2023, with the segment returning to a positive income of US$ 45 million, although this figure remained well below 2021 levels.

Segment Profit Margin Trends

The segment profit margin mirrored the volatility of the income figures, plummeting from 23.40% in 2021 to -65.28% in 2022. While the margin returned to positive territory in 2023 at 8.95%, the recovery was partial, as the margin remained 14.45 percentage points lower than the 2021 baseline.

The financial performance of the Éléonore segment between 2021 and 2023 is characterized by a severe deterioration in profitability despite relatively stable revenue levels. While sales showed a recovery in the final year of the period, this growth was decoupled from the segment's bottom-line results, which transitioned from a profitable position to a substantial loss.

Sales Performance

Revenue exhibited fluctuations over the three-year period. Sales decreased from US$ 446 million in 2021 to US$ 391 million in 2022, before rebounding to US$ 453 million in 2023. This indicates that the top-line recovery in 2023 did not contribute to operational stability or profit recovery.

Income Trends

Income before income and mining tax and other items experienced a precipitous decline. From a positive US$ 60 million in 2021, income dropped sharply to US$ 4 million in 2022, and subsequently collapsed to a loss of US$ 203 million in 2023. The scale of the loss in 2023 suggests a significant increase in operating expenses or the impact of substantial non-recurring charges.

Segment Profit Margin

A severe downward trajectory is observed in the segment profit margin. The margin contracted from 13.45% in 2021 to a marginal 1.02% in 2022, ultimately falling to -44.81% in 2023. This trend highlights a complete erosion of profitability and suggests that costs grew at a rate vastly exceeding revenue growth during the latter part of the period.

The financial performance of the Red Chris segment for the period ending December 31, 2023, is characterized by positive earnings. Total sales reached US$ 32 million, while income before income and mining tax and other items was reported at US$ 8 million.

Profitability Analysis

The segment profit margin for the 2023 fiscal year stands at 25.00%. This figure represents the operational efficiency of the segment, indicating that 25% of total sales were retained as income before the application of income and mining taxes and other items.

Financial performance data for the Brucejack segment is available exclusively for the fiscal year ending December 31, 2023. The segment exhibited a negative profitability profile during this period, characterized by operating losses that exceeded total sales.

Revenue and Loss Analysis

For the period ending December 31, 2023, the segment generated sales of US$72 million. However, this revenue was insufficient to cover operating expenses, resulting in a loss of US$26 million before income and mining tax and other items.

Segment Profit Margin

The segment profit margin was recorded at -36.11% for 2023. This negative margin indicates that for every dollar of revenue generated, the segment incurred costs significantly exceeding its income, reflecting a lack of operational profitability for the reporting period.

The financial performance of the Peñasquito segment exhibits a severe downward trajectory between 2021 and 2023, characterized by a simultaneous contraction in revenue and a collapse in operational profitability.

Revenue Trends

Sales experienced a consistent and steep decline, falling from US$ 2,634 million in 2021 to US$ 901 million by the end of 2023. This represents a substantial reduction in the segment's capacity to generate top-line income over the three-year period.

Earnings Performance

Income before income and mining tax shifted from a positive US$ 979 million in 2021 to a significant loss of US$ 1,811 million in 2023. The progression shows a sharp deterioration, with a moderate decline in 2022 serving as a precursor to the substantial deficit recorded in 2023.

Profit Margin Erosion

The segment profit margin collapsed from 37.17% in 2021 to -201.00% in 2023. The transition to a negative margin of this magnitude indicates that losses in the final year of the period far exceeded the total sales generated, reflecting a critical breakdown in cost management or the impact of extraordinary operational impairments.

The financial performance of the Merian segment demonstrates a consistent downward trajectory across all measured metrics between 2021 and 2023.

Revenue Trends

Sales experienced a steady decline over the three-year period, decreasing from US$ 780 million in 2021 to US$ 625 million in 2023. This represents a total reduction in top-line revenue of approximately 19.8%.

Income Performance

Income before income and mining tax and other items exhibited a more severe contraction than sales. The figure fell from US$ 328 million in 2021 to US$ 122 million in 2023, marking a total decrease of approximately 62.8%.

Segment Profit Margin Analysis

A sharp compression in the segment profit margin is observed, which declined from 42.05% in 2021 to 19.52% in 2023. Because the decline in income significantly outpaced the decline in sales, the data indicates a substantial increase in operating costs or a decrease in operational efficiency during this interval.

The financial performance of the Cerro Negro segment between 2021 and 2023 is characterized by stable revenue generation contrasted with extreme volatility in operating profitability. While top-line growth remained consistent, the segment experienced a severe profitability collapse in 2022 followed by a marginal recovery in 2023.

Revenue Stability

Sales demonstrated a steady upward trajectory, increasing from US$ 480 million in 2021 to US$ 508 million in 2022, and reaching US$ 510 million by the end of 2023. This indicates that the segment maintained consistent market presence and production value throughout the analyzed period.

Profitability Volatility

Income before income and mining tax shifted drastically from a profit of US$ 68 million in 2021 to a substantial loss of US$ 451 million in 2022. This precipitous decline resulted in the segment profit margin plummeting from 14.17% to -88.78% within a single fiscal year, suggesting the impact of significant non-recurring expenses or operational impairments during 2022.

Recovery Trends

A return to positive earnings was observed in 2023, with income recovering to US$ 15 million. However, the resulting segment profit margin of 2.94% remains significantly below the 2021 level of 14.17%, indicating that while the segment has exited its deficit position, it has not yet restored its prior efficiency or profitability levels.

The Yanacocha segment exhibits a pattern of persistent operating losses and significant financial volatility from 2021 through 2023. Revenue generation during this period remained insufficient to offset operational expenditures, resulting in deeply negative profit margins.

Revenue Trends

Sales experienced fluctuations, beginning at US$ 471 million in 2021, dipping slightly to US$ 451 million in 2022, and subsequently rising to US$ 537 million in 2023. While the 2023 figures represent the highest revenue level in the analyzed period, the growth was insufficient to transition the segment toward profitability.

Operating Income and Loss

The segment reported substantial losses before income and mining taxes for all three years. The deficit was most severe in 2021 at US$ 1,552 million, showed a temporary improvement in 2022 by narrowing to US$ 612 million, and then widened again to US$ 1,070 million in 2023.

Segment Profit Margin

The profit margin remained critically negative, reflecting a structural imbalance between costs and revenue. The margin shifted from -329.51% in 2021 to -135.70% in 2022, before deteriorating to -199.26% in 2023. This indicates that operational costs consistently and substantially exceeded sales revenue.

An inverse relationship is observed in 2023, where an increase in sales was accompanied by a widening of the operating loss and a deterioration of the profit margin. This suggests that the segment faced intensified cost pressures or operational challenges that outweighed the benefits of higher revenue generation.

The Boddington segment demonstrates a consistent upward trajectory in both top-line revenue and bottom-line profitability from 2021 through 2023. This period is characterized by a simultaneous increase in sales and income before taxes, resulting in a steadily expanding profit margin.

Revenue Trends

Sales experienced a significant increase between 2021 and 2022, rising from US$ 1,507 million to US$ 1,763 million, followed by a more moderate increase to US$ 1,814 million by the end of 2023. This represents a cumulative growth in sales of approximately 20.3% over the three-year period.

Income Performance

Income before income and mining tax and other items grew from US$ 627 million in 2021 to US$ 811 million in 2023. The growth in income was more pronounced than the growth in sales, particularly between 2021 and 2022, suggesting an improvement in operational leverage or a reduction in relative operating costs.

Profit Margin Analysis

The segment profit margin increased progressively each year, starting at 41.61% in 2021, rising to 44.19% in 2022, and reaching 44.71% in 2023. This continuous expansion indicates a strengthening of the segment's ability to convert revenue into pre-tax profit, reflecting enhanced operational efficiency.

The Tanami segment experienced a consistent decline in overall profitability from 2021 through 2023. While revenue remained relatively stable, a contraction in operating income led to a steady erosion of the segment's profit margins.

Sales Performance

Annual sales exhibited a marginal downward trend, decreasing from US$ 879 million in 2021 to US$ 867 million in 2023. This represents a relatively stable top-line performance with minimal volatility over the three-year period.

Operating Income Trends

Income before income and mining tax and other items showed a more pronounced decline, falling from US$ 466 million in 2021 to US$ 407 million in 2023. The pace of income reduction exceeded the decline in sales, suggesting an increase in operational costs or a decrease in production efficiency.

Segment Profit Margin Analysis

The segment profit margin decreased steadily, moving from 53.01% in 2021 to 46.94% in 2023. The most significant compression occurred between 2021 and 2022, with a reduction of 4.95 percentage points, followed by a further decline of 1.12 percentage points in the subsequent year.

The financial results for the Cadia segment as of December 31, 2023, indicate a strong operational performance. The segment generated total sales of US$ 422 million, resulting in an income of US$ 158 million before the deduction of income and mining taxes and other items.

Segment Profit Margin

A profit margin of 37.44% was achieved for the fiscal year ending December 31, 2023. This indicates a high level of operational efficiency, as over one-third of the generated sales revenue was converted into profit before taxes and other adjustments.

The Telfer segment in Australia demonstrates negative financial performance for the period ending December 31, 2023. The operation is currently incurring losses, as the cost of operations exceeds the generated revenue.

Profit Margin Analysis

The segment profit margin is recorded at -6.58%, indicating that the operation failed to achieve break-even status. This negative margin reflects an inability to convert sales into operating profit during the reporting period.

Operating Results

Total sales for the segment amounted to 152 million USD. However, this revenue was insufficient to cover expenditures, resulting in a loss of 10 million USD before income and mining tax and other items.

The financial performance of the Lihir segment for the period ending December 31, 2023, demonstrates a strong operational capacity to convert revenue into operating profit. With reported sales of US$266 million and income before income and mining tax and other items of US$93 million, the segment maintained a significant margin of profitability.

Segment Profit Margin

A segment profit margin of 34.96% was achieved as of December 31, 2023. This indicates that approximately 35% of the total sales revenue was retained as operating income before the application of taxes and other adjustments.

Revenue and Income Analysis

The generation of US$93 million in income relative to US$266 million in sales reflects an efficient operational structure within the Lihir segment for the recorded period.

The Ahafo segment demonstrated steady expansion in top-line revenue and a recovery in profitability between 2021 and 2023. While sales grew consistently throughout the period, profitability margins experienced a contraction in 2022 before reaching a three-year peak in 2023.

Revenue Performance

Sales grew from US$ 864 million in 2021 to US$ 1,130 million in 2023. This represents a consistent upward trajectory, with a notable increase of approximately 18.4% in 2022, followed by a further 10.5% increase in 2023.

Income Trends

Income before income and mining tax remained relatively stagnant between 2021 and 2022, moving from US$ 269 million to US$ 267 million. However, a significant acceleration occurred in 2023, with income rising to US$ 369 million, reflecting a 38.2% increase over the previous year.

Segment Profit Margin

The segment profit margin exhibited volatility, declining from 31.13% in 2021 to 26.10% in 2022. This contraction indicates that operating expenses grew at a faster rate than revenue during that interval. By 2023, the margin rebounded to 32.65%, indicating an improvement in operational efficiency or a more favorable pricing environment relative to costs.

The Akyem segment demonstrated a consistent decline in operational efficiency and profitability between 2021 and 2023, characterized by a sustained contraction of the segment profit margin despite a temporary increase in sales during 2022.

Revenue Trends

Sales experienced volatility over the analyzed period. Revenue increased from 680 million USD in 2021 to 749 million USD in 2022, before undergoing a significant contraction to 574 million USD in 2023.

Operating Income Performance

Income before income and mining tax and other items followed a steady downward trajectory. Profitability decreased from 284 million USD in 2021 to 257 million USD in 2022, and further declined to 151 million USD in 2023. A notable divergence occurred in 2022, where income fell despite an increase in sales, suggesting a rise in operating expenses.

Segment Profit Margin Compression

A continuous deterioration in the segment profit margin is observed. The margin fell from 41.76% in 2021 to 34.31% in 2022, and ended at 26.31% in 2023. This represents a total reduction of approximately 1,545 basis points over the three-year period, indicating a diminishing capacity to maintain profitability relative to revenue generated.

The financial performance of the NGM, U.S. segment between 2021 and 2023 is characterized by a significant contraction in profitability despite relatively stable sales volumes. While revenue levels recovered toward the end of the period, the inability to restore income levels indicates a substantial increase in operating costs or a reduction in realized pricing.

Sales Performance

Revenue exhibited a fluctuating but resilient trend. Sales decreased from US$ 2,291 million in 2021 to US$ 2,098 million in 2022, before rebounding to US$ 2,271 million in 2023. This recovery suggests that market demand or production volumes remained consistent, ending the three-year period near 2021 levels.

Income Before Income and Mining Tax

A sharp decline in profitability occurred between 2021 and 2022, with income dropping from US$ 818 million to US$ 434 million. This downward movement persisted into 2023, with income remaining nearly flat at US$ 432 million. The divergence between the recovery in sales and the stagnation of income indicates that the segment experienced significant cost pressures during this timeframe.

Segment Profit Margin

The segment profit margin reflects a consistent and steep downward trajectory. The margin collapsed from a peak of 35.70% in 2021 to 20.69% in 2022, further eroding to 19.02% by December 31, 2023. This represents a total margin compression of approximately 1,668 basis points over the analyzed period, signaling a marked decline in operational efficiency or an increase in the cost of goods sold relative to revenue.

The financial performance of the CC&V, U.S. segment from 2021 through 2023 is characterized by extreme volatility in profitability and a significant reconfiguration of the asset base. The segment transitioned from moderate profitability to a severe deficit before achieving a robust recovery in the most recent fiscal year.

Income Trends

Income before income and mining tax and other items fluctuated sharply, moving from 64 million USD in 2021 to a substantial loss of 527 million USD in 2022. A recovery was realized in 2023, with income returning to a positive 82 million USD.

Asset Base Dynamics

A significant contraction in total assets occurred between 2021 and 2022, with values dropping from 777 million USD to 286 million USD. This represents a reduction of approximately 63% of the asset base within a single year. Assets saw a slight increase to 383 million USD by the end of 2023.

Segment Return on Assets (ROA)

The Segment ROA experienced drastic swings corresponding to the volatility in income and assets. The ratio shifted from 8.24% in 2021 to a deep negative of -184.27% in 2022, driven by the combination of significant losses and a reduced asset denominator. By 2023, the ROA rebounded to 21.41%, marking a significant improvement in asset productivity and operational efficiency compared to the 2021 baseline.

The Musselwhite segment experienced a severe financial downturn between 2021 and 2023, transitioning from modest profitability to a substantial operating loss. This decline is characterized by a sharp collapse in both income and return on assets during the final year of the observed period.

Income Performance

Income before income and mining tax and other items exhibited a gradual decline from US$ 30 million in 2021 to US$ 23 million in 2022. However, the 2023 fiscal year marked a critical inflection point, with the segment reporting a significant loss of US$ 254 million. This shift indicates a drastic reversal in operational profitability.

Asset Base Trends

Total assets showed a consistent downward trend over the three-year period. Assets decreased from US$ 1,317 million in 2021 to US$ 1,294 million in 2022, followed by a more pronounced reduction to US$ 1,018 million by December 31, 2023. This contraction in the asset base occurred alongside the decline in earnings.

Segment Return on Assets (ROA)

The Segment ROA reflects the volatility of the earnings trend. The ratio moved from 2.28% in 2021 to 1.78% in 2022, signaling a slight reduction in asset efficiency. By 2023, the ROA plummeted to -24.95%, driven by the substantial operating loss relative to the diminished asset base, highlighting a severe erosion of value generation for the segment.

The Porcupine segment exhibited significant financial volatility from 2021 through 2023, characterized by sharp fluctuations in earnings and a corresponding impact on asset utilization efficiency.

Earnings Performance

Income before income and mining tax and other items showed a highly inconsistent trend. A profit of US$121 million in 2021 shifted to a substantial loss of US$329 million in 2022, followed by a return to profitability in 2023 with an income of US$45 million.

Asset Base Trends

Total assets remained relatively stable over the analyzed period. A decrease from US$1,572 million in 2021 to US$1,401 million in 2022 was followed by a partial recovery to US$1,473 million by the end of 2023.

Segment Return on Assets (ROA)

The Segment ROA mirrored the volatility of the earnings figures, plummeting from 7.70% in 2021 to -23.48% in 2022. Although the ROA recovered to 3.05% in 2023, this figure represents a significant decline in asset productivity compared to the 2021 performance level.

The Éléonore segment experienced a severe contraction in profitability and asset efficiency between 2021 and 2023. The financial trajectory indicates a shift from positive operating results to a substantial deficit, characterized by a precipitous decline in both earnings and the total asset base.

Income Before Tax and Other Items

A significant downward trend is observed in earnings, which fell from US$ 60 million in 2021 to US$ 4 million in 2022. By December 31, 2023, the segment reported a substantial loss of US$ 203 million, representing a complete reversal of profitability over the three-year period.

Total Assets

The asset base declined consistently, decreasing from US$ 1,062 million in 2021 to US$ 1,010 million in 2022, and further dropping to US$ 777 million by the end of 2023. This reflects a total asset reduction of approximately 26.7% since 2021.

Segment Return on Assets (ROA)

The ROA demonstrates a critical erosion of productivity. The ratio dropped from a positive 5.65% in 2021 to a marginal 0.40% in 2022, before collapsing to -26.13% in 2023. The scale of this decline indicates that the deterioration in income far exceeded the reduction in the asset base, leading to a sharp negative return on invested capital for the segment.

The financial performance of the Red Chris segment for the period ending December 31, 2023, is characterized by a marginal return on assets, indicating a low level of efficiency in utilizing the segment's asset base to generate pre-tax income.

Profitability and Asset Utilization

As of December 31, 2023, the segment reported income before income and mining tax and other items of 8 million USD. When measured against total assets of 2,178 million USD, the resulting segment return on assets (ROA) is 0.37%.

Financial Position Analysis

The significant disparity between the total asset value and the reported income suggests that the segment's capital-intensive operations yielded minimal profitability relative to the investment in assets during the reported fiscal year.

The financial performance of the Brucejack segment for the period ending December 31, 2023, is characterized by a negative return on assets, stemming from an operating loss before income and mining taxes.

Segment Profitability

The segment recorded a loss of US$ 26 million before income and mining taxes and other items for the 2023 fiscal year. This negative result indicates that operating expenses exceeded revenues during the reporting period.

Asset Base and ROA Analysis

With total assets valued at US$ 4,006 million, the segment's Return on Assets (ROA) is calculated at -0.65%. This ratio reflects a lack of profitability relative to the capital invested in the segment's assets.

Operational Efficiency

The negative ROA demonstrates that the asset base was unable to generate a positive return for the period. However, the narrow margin of the loss relative to the substantial asset base suggests that the underperformance is marginal in proportion to the total scale of the segment's investment.

The Peñasquito segment has experienced a severe deterioration in financial performance and asset efficiency between 2021 and 2023. This period is characterized by a precipitous decline in profitability, transitioning from a high-yield operational state to significant net losses.

Income Trajectory

A sharp downward trend is observed in income before income and mining tax. From a peak of 979 million USD in 2021, income fell to 403 million USD in 2022, before collapsing into a substantial loss of 1,811 million USD by the end of 2023. This represents a total reversal of profitability over the three-year period.

Asset Base Compression

Total assets for the segment showed a consistent decline. Assets decreased marginally from 6,561 million USD in 2021 to 6,430 million USD in 2022, followed by a more pronounced reduction to 4,738 million USD in 2023. This indicates a reduction in the segment's resource base coinciding with the decline in income.

Segment Return on Assets (ROA)

The Segment ROA mirrors the volatility of the income stream, exhibiting a drastic contraction. The ratio dropped from a robust 14.92% in 2021 to 6.27% in 2022, eventually reaching a deeply negative -38.22% in 2023. This trajectory indicates that the segment's ability to generate earnings from its asset base has completely eroded, resulting in significant value destruction in the final reporting period.

The financial performance of the Merian segment exhibits a significant decline in profitability and asset utilization efficiency between 2021 and 2023. While the asset base remained relatively stable throughout this period, a sharp contraction in income before taxes led to a substantial erosion of the Segment Return on Assets (ROA).

Income before Income and Mining Tax

A consistent downward trend is observed in operating income, which decreased from US$ 328 million in 2021 to US$ 122 million in 2023. This represents a total decline of approximately 62.8% over the three-year period, indicating a significant reduction in the segment's ability to generate earnings.

Total Asset Stability

The asset base remained remarkably consistent, moving from US$ 952 million in 2021 to US$ 927 million in 2023. The lack of significant fluctuation in total assets suggests that the decrease in profitability was not the result of asset divestments or a reduction in the operational scale of the segment.

Segment Return on Assets (ROA)

The Segment ROA experienced a steep decline, falling from 34.45% in 2021 to 26.98% in 2022, and further dropping to 13.16% in 2023. Because the asset base remained nearly constant, the collapse in ROA is directly attributable to the diminishing income levels, reflecting a marked decrease in the efficiency with which the segment's assets are generating profit.

The financial performance of the Cerro Negro segment from 2021 to 2023 was characterized by extreme volatility, specifically a severe contraction in 2022 followed by a marginal recovery in 2023.

Profitability Trends

Income before income and mining tax experienced a sharp decline, moving from a positive US$68 million in 2021 to a substantial loss of US$451 million in 2022. While the segment returned to profitability in 2023 with an income of US$15 million, this figure represents a significant decrease from the 2021 levels.

Asset Base Evolution

A consistent downward trend in total assets is observed, decreasing from US$2,183 million in 2021 to US$1,646 million by the end of 2023. The most pronounced reduction occurred between 2021 and 2022, coinciding with the period of peak financial loss.

Segment Return on Assets (ROA)

The Segment ROA mirrored the volatility of the income stream, plummeting from 3.11% in 2021 to -27.19% in 2022. The 2023 ROA recovered to 0.91%, indicating a return to positive asset utilization, though the efficiency remains low relative to the 2021 baseline.

The financial performance of the Yanacocha segment is characterized by persistent operating losses and significant volatility in asset productivity over the three-year period ending December 31, 2023.

Income and Loss Trends

The segment reported negative income before income and mining taxes for three consecutive years. A peak loss of US$ 1,552 million occurred in 2021, followed by a substantial reduction in losses to US$ 612 million in 2022. This improvement was not sustained, as losses widened again to US$ 1,070 million in 2023.

Asset Base Fluctuations

Total assets experienced growth between 2021 and 2022, increasing from US$ 1,735 million to US$ 2,225 million. A slight contraction followed in 2023, with total assets decreasing to US$ 2,117 million.

Segment Return on Assets (ROA)

The Segment ROA remained negative throughout the reporting period, reflecting a consistent inability to generate positive returns from the asset base. The ROA reached a critical low of -89.45% in 2021, showed a partial recovery to -27.51% in 2022, and subsequently declined to -50.54% in 2023. The volatility in the ROA is closely correlated with the fluctuations in pre-tax income, indicating that earnings instability is the primary driver of the segment's poor asset efficiency.

The financial performance of the Boddington segment from 2021 to 2023 is characterized by significant growth in profitability and a marked increase in asset efficiency. A consistent upward trajectory in income before income and mining tax is observed, while the asset base remained relatively stable, leading to an overall improvement in the return on assets.

Income Generation Trends

Operating income demonstrated steady growth over the three-year period, rising from 627 million USD in 2021 to 811 million USD in 2023. The most substantial increase occurred between 2021 and 2022, where income grew by approximately 24%, followed by a more moderate increase of 4% in 2023.

Asset Base Evolution

Total assets remained nearly constant between 2021 and 2022, moving from 2,261 million USD to 2,264 million USD. A modest expansion was recorded in 2023, with assets increasing to 2,376 million USD, representing a 4.9% growth compared to the previous year.

Segment Return on Assets (ROA)

The segment ROA experienced a sharp increase from 27.73% in 2021 to 34.41% in 2022. This improvement was driven by the disparity between the rapid growth in income and the stagnation of the asset base during that interval. In 2023, the ROA stabilized at 34.13%, as the growth in income was offset by the increase in total assets.

Overall, the data indicates that the Boddington segment significantly enhanced its operational efficiency between 2021 and 2022, subsequently maintaining a high and stable level of asset productivity through 2023.

An analysis of the Tanami segment from 2021 to 2023 reveals a progressive decline in asset utilization efficiency. While the segment remains profitable, there is a notable divergence between the growth of the asset base and the generation of pre-tax income.

Income Trends

Income before income and mining tax has followed a steady downward trajectory, decreasing from US$ 466 million in 2021 to US$ 407 million by the end of 2023. This represents a consistent contraction in operating profitability over the three-year period.

Asset Growth

Concurrent with the decline in income, total assets have expanded significantly. The asset base grew from US$ 1,334 million in 2021 to US$ 1,896 million in 2023, indicating substantial capital investment or asset accumulation within the segment.

Segment Return on Assets (ROA)

The Segment ROA has experienced a sharp and consistent decline, falling from 34.93% in 2021 to 26.62% in 2022, and further to 21.47% in 2023. This compression is the direct result of diminishing pre-tax earnings occurring simultaneously with an expanding asset base, suggesting that recent capital expenditures have not yet yielded proportional increases in financial returns.

The financial performance of the Cadia segment for the period ending December 31, 2023, is characterized by positive pre-tax earnings and a substantial asset base. As historical values for the period between 2019 and 2022 are unavailable, the analysis is based on a snapshot of the most recent reporting year.

Asset Base and Earnings

The segment reported total assets of US$ 6,351 million and generated US$ 158 million in income before income and mining tax and other items.

Segment Return on Assets (ROA)

The Segment ROA is recorded at 2.49%. This figure indicates the efficiency of the segment in utilizing its asset base to generate pre-tax profits, reflecting a modest return relative to the total capital invested in the operation's assets.

The financial performance of the Telfer segment as of December 31, 2023, is characterized by operational losses and negative asset productivity. Due to the absence of comparative data for the periods between 2019 and 2022, the analysis is focused exclusively on the results reported for the 2023 fiscal year.

Operational Profitability

The segment recorded a loss of US$ 10 million before income and mining tax and other items. This result indicates that operational costs exceeded the revenue generated by the Telfer operations during the period.

Asset Efficiency and ROA

The Segment Return on Assets (ROA) is reported at -1.74%. Based on a total asset base of US$ 574 million, this negative ratio reflects an inability to translate the segment's capital investments into positive earnings, signifying a period of underperformance in asset utilization.

As of December 31, 2023, the Lihir segment in Papua New Guinea demonstrates positive operating performance and a modest return on its allocated asset base.

Profitability and Asset Base

For the period ending December 31, 2023, the segment reported income before income and mining tax and other items of 93 million US dollars, supported by a total asset base of 3,909 million US dollars.

Segment Return on Assets (ROA)

The Segment ROA is recorded at 2.38%, reflecting the efficiency of the operation in converting its substantial asset investments into pre-tax earnings.

The financial performance of the Ahafo segment demonstrates a pattern of steady asset expansion accompanied by a significant surge in profitability during the final year of the analyzed period.

Income Performance

Income before income and mining tax remained relatively stagnant between 2021 and 2022, moving from US$ 269 million to US$ 267 million. However, a substantial increase occurred in 2023, with income rising to US$ 369 million, marking a significant growth in operational earnings.

Asset Base Evolution

A consistent upward trend is observed in total assets, which grew from US$ 2,425 million in 2021 to US$ 2,619 million in 2022, and further climbed to US$ 2,823 million by December 31, 2023. This indicates a continuous investment in the segment's infrastructure or resource base.

Segment Return on Assets (ROA)

The Segment ROA exhibited a slight contraction in 2022, decreasing from 11.09% to 10.19% as the growth in assets outpaced the growth in income. This trend reversed sharply in 2023, with the ROA increasing to 13.07%, the highest level in the period, reflecting an improved efficiency in generating earnings from the expanded asset base.

Analysis of the Akyem segment from 2021 to 2023 reveals a marked decline in operational efficiency and profitability. The segment experienced a simultaneous reduction in earnings and an increase in total assets, which accelerated the deterioration of the Segment Return on Assets (ROA).

Earnings Performance

Income before income and mining tax and other items decreased consistently over the three-year period. From a peak of US$ 284 million in 2021, income fell to US$ 257 million in 2022 and declined further to US$ 151 million by December 31, 2023, representing a cumulative decrease of approximately 46.8%.

Asset Base Trends

Total assets exhibited a steady upward trend throughout the analyzed period. The asset base grew from US$ 990 million in 2021 to US$ 998 million in 2022, reaching US$ 1,069 million in 2023. This expansion suggests continued capital investment or asset appreciation within the segment.

Segment ROA Deterioration

The Segment ROA shows a severe downward trajectory, falling from 28.69% in 2021 to 25.75% in 2022, and dropping sharply to 14.13% in 2023. The compression of this ratio is the direct result of the diverging trends between shrinking profitability and an expanding asset base, indicating a significant reduction in the segment's capacity to generate returns from its invested capital.

The financial performance of the NGM, U.S. segment is characterized by a significant decline in profitability and efficiency between 2021 and 2022, with levels remaining stagnant through 2023.

Earnings Performance

Income before income and mining tax and other items decreased sharply from $818 million in 2021 to $434 million in 2022, representing a decline of approximately 47%. This figure remained nearly constant into 2023, ending the period at $432 million.

Asset Base Stability

Total assets exhibited a marginal downward trend, moving from $7,584 million in 2021 to $7,401 million by the end of 2023. The relative stability of the asset base suggests that the contraction in profitability was not the result of significant divestments or a reduction in the scale of operations.

Segment Return on Assets (ROA)

The Segment ROA experienced a substantial reduction, falling from 10.79% in 2021 to 5.85% in 2022. This metric remained virtually unchanged in 2023 at 5.84%, indicating that the segment's ability to generate earnings from its assets has plateaued at a level roughly half of its 2021 performance.

In summary, the data reveals a sharp correction in operational efficiency following 2021. The stability in both total assets and income between 2022 and 2023 indicates that the segment entered a period of stagnation after the initial decline in returns.

The analysis of segment performance from 2021 to 2023 reveals significant volatility in asset utilization and revenue generation. While sales experienced a moderate decline and subsequent stabilization, the segment asset turnover ratio exhibited sharp fluctuations driven primarily by substantial changes in the asset base.

Revenue Trends

Sales peaked in 2021 at 396 million US dollars, followed by a decrease to 333 million US dollars in 2022. Revenue remained nearly flat through 2023, closing at 332 million US dollars. This represents a total contraction of approximately 16.2% over the three-year period.

Asset Base Fluctuations

Total assets underwent a dramatic reduction between 2021 and 2022, falling from 777 million US dollars to 286 million US dollars. This sharp contraction was reversed in 2023, with assets increasing to 383 million US dollars, reflecting a 33.9% increase from the previous year.

Segment Asset Turnover Analysis

The asset turnover ratio increased significantly from 0.51 in 2021 to 1.16 in 2022. This peak was not the result of revenue growth, but rather the consequence of the substantial reduction in the asset base, which mathematically inflated the ratio. By 2023, the ratio declined to 0.87, as the increase in total assets occurred without a corresponding increase in sales.

In summary, the efficiency of asset utilization peaked in 2022 due to a leaner asset structure. However, the subsequent rise in assets in 2023, coupled with stagnant revenue, led to a reduction in the turnover ratio, indicating a decrease in the revenue generated per unit of asset held.

The Musselwhite segment demonstrates a significant improvement in asset utilization efficiency between 2021 and 2023. This trend is characterized by a simultaneous increase in annual sales and a reduction in the total asset base, leading to a strengthened asset turnover ratio.

Revenue Performance

A consistent upward trend in revenue is observed, with sales increasing from US$ 277 million in 2021 to US$ 351 million in 2023. This trajectory indicates expanding revenue generation capabilities over the three-year period.

Asset Base Dynamics

Total assets decreased progressively from US$ 1,317 million in 2021 to US$ 1,018 million in 2023. A substantial contraction in the asset base occurred between 2022 and 2023, where assets fell from US$ 1,294 million to US$ 1,018 million.

Segment Asset Turnover Analysis

The asset turnover ratio improved annually, rising from 0.21 in 2021 to 0.34 in 2023. This improvement suggests that the segment is generating higher levels of sales per unit of asset employed, reflecting an optimization of the operational asset base relative to revenue output.

The financial performance of the Porcupine segment from 2021 to 2023 is characterized by relatively stable revenue streams paired with fluctuations in the total asset base, resulting in a marginally volatile asset turnover ratio.

Revenue Trends

Sales exhibited a slight downward trajectory over the three-year period. Revenue decreased from 517 million US dollars in 2021 to 504 million US dollars in 2022, and remained nearly flat at 503 million US dollars by the end of 2023. This represents a total revenue decline of approximately 2.7% from the 2021 baseline.

Asset Base Fluctuations

Total assets experienced a notable dip in 2022, falling from 1,572 million US dollars in 2021 to 1,401 million US dollars. However, this was followed by a moderate recovery in 2023, with assets increasing to 1,473 million US dollars.

Asset Turnover Analysis

The segment asset turnover ratio fluctuated between 0.33 and 0.36. A peak in efficiency was observed in 2022, where the ratio rose to 0.36; this improvement was primarily driven by the contraction of the asset base occurring more rapidly than the decline in sales. In 2023, the ratio moderated to 0.34, as the increase in total assets was not matched by a corresponding growth in sales, indicating a slight decrease in the efficiency of asset utilization.

The financial performance of the Éléonore segment between 2021 and 2023 is characterized by fluctuating revenue streams and a strategic contraction of the asset base, resulting in a marked improvement in asset utilization efficiency by the end of the period.

Revenue Trends

Annual sales exhibited volatility, decreasing from US$ 446 million in 2021 to US$ 391 million in 2022, before recovering to US$ 453 million in 2023. This indicates a return to and slight exceedance of 2021 revenue levels by the conclusion of the analyzed timeframe.

Asset Base Evolution

A consistent downward trajectory is observed in total assets, which declined from US$ 1,062 million in 2021 to US$ 1,010 million in 2022, followed by a significant reduction to US$ 777 million in 2023. This represents a substantial decrease in the capital invested in the segment.

Asset Turnover Analysis

The segment asset turnover ratio experienced a slight contraction from 0.42 in 2021 to 0.39 in 2022, mirroring the decline in sales. However, the ratio rose sharply to 0.58 in 2023. This surge in efficiency is the result of a dual impact: the recovery of sales figures combined with a significant reduction in the asset denominator, signifying that the segment generated more revenue per unit of asset held in 2023 than in previous years.

The financial performance of the Red Chris segment for the period ending December 31, 2023, indicates a high level of capital intensity and low asset utilization.

Segment Asset Turnover

The asset turnover ratio is recorded at 0.01, reflecting a significant disparity between the asset base and the revenue generated during the period. This low ratio suggests that the segment is not currently operating at a scale that optimizes its substantial investment in assets.

Revenue and Asset Correlation

With sales of US$ 32 million against total assets of US$ 2,178 million, the segment demonstrates a minimal conversion of invested capital into top-line growth. This profile is characteristic of mining operations in an early production phase or those undergoing significant capital expenditure prior to reaching full operational capacity.

As of December 31, 2023, the Brucejack segment reported sales of US$ 72 million against a total asset base of US$ 4,006 million. Due to the absence of financial figures for the preceding four years, a longitudinal trend analysis cannot be performed; however, the current snapshot reveals a significant disparity between the asset base and revenue generation.

Segment Asset Turnover

The segment asset turnover ratio is recorded at 0.02, indicating that for every dollar invested in assets, the segment generates only two cents in sales. This extremely low ratio reflects a high level of capital intensity and suggests that the assets currently employed are not generating proportional revenue.

An analysis of the Peñasquito segment's operational performance from 2021 through 2023 reveals a significant deterioration in asset utilization and revenue generation capacity.

Revenue Trends

Sales experienced a precipitous decline over the three-year period, falling from US$ 2,634 million in 2021 to US$ 901 million in 2023. The most acute contraction occurred between 2022 and 2023, during which revenue decreased by approximately 58.8%.

Asset Base Evolution

Total assets remained relatively stable between 2021 and 2022, shifting from US$ 6,561 million to US$ 6,430 million. A notable reduction occurred in 2023, with total assets decreasing to US$ 4,738 million, a decline of approximately 26.3% compared to the prior year.

Segment Asset Turnover Analysis

The segment asset turnover ratio exhibited a consistent downward trajectory, decreasing from 0.40 in 2021 to 0.34 in 2022, and ultimately reaching 0.19 by the end of 2023. This trend indicates a substantial decline in the efficiency with which the segment employs its assets to generate sales. Although the asset base was reduced significantly in 2023, the magnitude of the revenue collapse far outpaced the reduction in assets, resulting in a marked compression of the turnover ratio.

An analysis of the Merian segment reveals a consistent decline in operational efficiency regarding asset utilization between 2021 and 2023. While the asset base remained relatively stable over the period, revenue generation trended downward, leading to a contraction in the asset turnover ratio.

Sales Performance

Annual sales exhibited a steady decrease, falling from 780 million US$ in 2021 to 723 million US$ in 2022, and further declining to 625 million US$ by December 31, 2023.

Asset Base Stability

Total assets showed minimal fluctuation, beginning at 952 million US$ in 2021, dipping to 923 million US$ in 2022, and remaining nearly flat at 927 million US$ in 2023.

Asset Turnover Trend

The segment asset turnover ratio decreased from 0.82 in 2021 to 0.67 in 2023. This downward trajectory indicates a reduction in the segment's ability to generate sales from its existing asset investments, driven primarily by the erosion of the top-line revenue rather than changes in the asset base.

The financial performance of the Cerro Negro segment between 2021 and 2023 is characterized by a gradual increase in revenue coupled with a significant reduction in the asset base, leading to an improvement in operational efficiency regarding asset utilization.

Sales Performance

Revenue demonstrated a steady upward trajectory, increasing from 480 million US dollars in 2021 to 508 million US dollars in 2022, and reaching 510 million US dollars by the end of 2023. This represents a consistent, albeit slowing, growth in top-line performance.

Asset Base Evolution

A substantial contraction in total assets occurred between 2021 and 2022, with values falling from 2,183 million US dollars to 1,659 million US dollars. The asset base remained relatively stable thereafter, closing 2023 at 1,646 million US dollars.

Segment Asset Turnover

The asset turnover ratio improved from 0.22 in 2021 to 0.31 in 2022, reflecting the combined effect of rising sales and a diminished asset base. This ratio remained constant at 0.31 in 2023, indicating that the segment maintained its enhanced level of asset productivity.

The Yanacocha segment demonstrated volatility in asset utilization and revenue generation between 2021 and 2023. While there was a significant contraction in efficiency during 2022, a recovery trend emerged in 2023, characterized by increased sales and a stabilized asset base.

Sales Performance

Revenue experienced a slight decline of approximately 4.2% between 2021 and 2022, falling from 471 million to 451 million. However, a strong recovery occurred in 2023, with sales increasing to 537 million, representing a year-over-year growth of approximately 19%.

Total Asset Evolution

The asset base expanded substantially in 2022, rising from 1,735 million to 2,225 million, an increase of roughly 28.2%. In 2023, the total assets saw a marginal reduction to 2,117 million, indicating a stabilization of the segment's capital investment.

Segment Asset Turnover Efficiency

The asset turnover ratio declined from 0.27 in 2021 to 0.20 in 2022, driven by the simultaneous occurrence of decreasing sales and rapidly increasing assets. This suggests a period where capital expansion did not immediately yield proportional revenue gains. By 2023, the ratio improved to 0.25, reflecting enhanced operational efficiency as higher sales volumes were achieved against a slightly smaller asset base.

Between 2021 and 2023, the Boddington segment exhibited a general upward trend in revenue generation coupled with a relatively stable asset base, resulting in an overall improvement in operational efficiency compared to the 2021 baseline.

Revenue Trends

Sales increased consistently over the observed period, rising from US$ 1,507 million in 2021 to US$ 1,814 million in 2023. The most significant expansion occurred between 2021 and 2022, with a growth rate of approximately 17%, while the increase between 2022 and 2023 was more moderate at approximately 3%.

Asset Base and Turnover Efficiency

Total assets remained nearly flat between 2021 and 2022, moving from US$ 2,261 million to US$ 2,264 million, before increasing to US$ 2,376 million in 2023. Consequently, the segment asset turnover ratio peaked in 2022 at 0.78, reflecting a significant gain in efficiency from the 0.67 recorded in 2021. A slight decline to 0.76 was observed in 2023, as the growth in the asset base outpaced the growth in sales for that period.

A comprehensive review of the Tanami segment's financial performance from 2021 to 2023 reveals a consistent decline in asset utilization efficiency. While revenue streams remained relatively stagnant, the asset base grew substantially, resulting in a downward trend for the segment asset turnover ratio.

Revenue Stability

Sales exhibited marginal declines over the analyzed period, moving from US$ 879 million in 2021 to US$ 867 million in 2023. This minimal fluctuation suggests a period of plateaued revenue growth for the segment.

Asset Base Expansion

Total assets increased significantly and consistently each year, rising from US$ 1,334 million in 2021 to US$ 1,896 million by December 31, 2023. This growth represents a substantial increase in the capital invested in the segment.

Segment Asset Turnover Trend

The asset turnover ratio experienced a steady contraction, falling from 0.66 in 2021 to 0.55 in 2022, and reaching 0.46 in 2023. This deterioration indicates that each dollar of assets is generating progressively less revenue, driven by the divergence between rising asset values and flat sales performance.

The financial performance of the Cadia segment as of December 31, 2023, is characterized by a substantial asset base relative to its reported sales. Due to the absence of historical data for the preceding years, trend analysis is not possible, and the assessment is limited to a point-in-time evaluation of operational efficiency.

Segment Asset Efficiency

The segment asset turnover ratio is recorded at 0.07. This indicates that the segment generated approximately $0.07 in sales for every $1.00 of assets employed, reflecting a low level of asset productivity during the reporting period.

Asset and Revenue Composition

Total assets for the segment are valued at $6,351 million, while sales are reported at $422 million. The significant disparity between these figures underscores a capital-intensive structure where the vast majority of the segment's value is tied up in assets rather than being converted into immediate revenue.

As of December 31, 2023, the Telfer segment's operational efficiency is characterized by its reported revenue relative to its asset base.

Asset Utilization Efficiency

The segment generated 152 million USD in sales with a total asset base of 574 million USD. This results in a segment asset turnover ratio of 0.26, indicating that for every dollar of assets deployed, the segment produced 0.26 USD in revenue.

Temporal Trend Analysis

A longitudinal analysis of performance trends is not possible, as financial data for the years 2019 through 2022 is unavailable. Consequently, the current ratio of 0.26 serves as a static snapshot rather than a point of comparison for growth or decline in asset productivity.

Analysis of the Lihir segment as of December 31, 2023, reveals a highly capital-intensive operational structure. Due to the absence of financial figures for the preceding four years, a longitudinal trend cannot be established; however, the current snapshot provides a clear indication of the segment's asset productivity.

Segment Asset Turnover

The asset turnover ratio is recorded at 0.07, signifying that for every dollar invested in assets, the segment generates approximately 7 cents in sales. This low ratio indicates a low level of efficiency in utilizing the total asset base to drive top-line revenue.

Asset and Revenue Relationship

The segment maintains a total asset base of 3,909 million USD against sales of 266 million USD. The substantial disparity between these two figures highlights the heavy infrastructure and capital requirements inherent to the Lihir operations, where the magnitude of invested capital far outweighs the annual sales volume.

Between 2021 and 2023, the Ahafo segment exhibited a positive trajectory in both revenue generation and operational efficiency. Sales increased consistently, rising from 864 million USD in 2021 to 1,130 million USD by the end of 2023. This growth occurred alongside a steady expansion of the asset base, which grew from 2,425 million USD to 2,823 million USD over the same period.

Revenue Growth Patterns

A consistent upward trend in sales is observed, with a significant increase of approximately 18.3% between 2021 and 2022, followed by a further growth of 10.4% in 2023. This suggests a strengthening of the segment's revenue-generating capacity.

Asset Base Expansion

Total assets grew at a stable rate, increasing from 2,425 million USD to 2,823 million USD. The annual growth rate of the asset base remained relatively constant at approximately 8% per year, indicating steady capital investment in the segment.

Asset Turnover Efficiency

The segment asset turnover ratio improved from 0.36 in 2021 to 0.40 in 2023. The steady rise in this ratio indicates that revenue grew at a faster pace than the investment in assets, reflecting an increase in the efficiency of asset utilization to produce sales.

The Akyem segment exhibited volatile revenue performance alongside a steadily expanding asset base between 2021 and 2023, resulting in a significant decline in asset utilization efficiency by the end of the observed period.

Sales Performance

Annual sales increased from US$ 680 million in 2021 to a peak of US$ 749 million in 2022, before declining to US$ 574 million in 2023. The decrease in 2023 represents a notable contraction in revenue generation for the segment.

Asset Base Expansion

Total assets demonstrated a consistent upward trend, growing from US$ 990 million in 2021 to US$ 998 million in 2022, and reaching US$ 1,069 million by December 31, 2023.

Segment Asset Turnover Efficiency

The segment asset turnover ratio improved from 0.69 in 2021 to 0.75 in 2022, indicating an increase in the efficiency of asset utilization during that interval. However, the ratio dropped sharply to 0.54 in 2023. This deterioration is the result of a dual impact: a significant reduction in sales occurring simultaneously with an increase in total assets, which suggests a diminished capacity to convert the segment's asset base into revenue.

The financial performance of the segment from 2021 to 2023 is characterized by a stable asset base and fluctuating revenue, resulting in a relatively consistent asset turnover ratio. While a brief decline in efficiency was noted in 2022, the segment recovered by the end of 2023, achieving its highest turnover rate within the observed period.

Sales Performance

Revenue exhibited a V-shaped trend, decreasing from 2,291 million in 2021 to 2,098 million in 2022, before recovering to 2,271 million in 2023. This indicates a return to near-baseline revenue levels after a moderate dip in the middle year.

Asset Base Stability

Total assets remained remarkably stable over the three-year period, experiencing a slight and gradual decline from 7,584 million in 2021 to 7,401 million in 2023. The minimal variance in the asset base suggests a period of maintained capacity without significant capital expansion or divestiture.

Segment Asset Turnover Analysis

The asset turnover ratio shifted from 0.30 in 2021 to 0.28 in 2022, reflecting a period where the decline in sales outweighed the reduction in assets. However, in 2023, the ratio increased to 0.31. This improvement was driven by the combination of rising sales and a further slight reduction in total assets, signaling an increase in the efficiency of asset utilization to generate revenue.

The financial trajectory for the CC&V, U.S. segment reveals a significant shift in investment strategy and asset valuation between 2021 and 2023. While initial years were characterized by capital expenditures remaining below depreciation levels, the most recent period shows a reversal of this trend, indicating an aggressive increase in capital allocation relative to asset consumption.

Capital Expenditures

Investment levels demonstrated a consistent upward trend over the three-year period. Expenditures rose from US$ 42 million in 2021 to US$ 44 million in 2022, followed by a substantial increase to US$ 64 million in 2023, representing a 52% increase from 2021 levels.

Depreciation and Amortization

Depreciation expenses remained relatively stable between 2021 and 2022, moving from US$ 66 million to US$ 71 million. However, a sharp contraction occurred in 2023, where depreciation and amortization fell to US$ 23 million, a decrease of approximately 68% compared to the prior year.

Segment Capital Expenditures to Depreciation Ratio

The ratio remained stable and below 1.0 during 2021 and 2022, recorded at 0.64 and 0.62 respectively, suggesting that capital reinvestment was not keeping pace with the depreciation of existing assets. In 2023, the ratio surged to 2.78, driven by the simultaneous increase in capital spending and the precipitous decline in depreciation expenses. This shift indicates a transition from a phase of asset depletion to one of significant expansion or asset modernization.

An analysis of the Musselwhite segment reveals a significant acceleration in capital investment relative to depreciation expenses between 2021 and 2023. While depreciation levels remained nearly constant over the three-year period, capital expenditures increased substantially, shifting the segment from a state of investment below depreciation levels to a state of active expansion or asset renewal.

Capital Expenditure Trends

Investment levels demonstrated a consistent and sharp upward trajectory, rising from US$ 39 million in 2021 to US$ 54 million in 2022, and reaching US$ 104 million by the end of 2023. This represents a total increase of approximately 166% over the observed period.

Depreciation and Amortization Stability

Annual depreciation and amortization remained remarkably stable, recording US$ 80 million in 2021 and 2023, and US$ 79 million in 2022. This stability indicates a consistent rate of asset consumption and a lack of significant asset retirements or sudden changes in depreciation methods.

Reinvestment Ratio Analysis

The segment capital expenditures to depreciation ratio grew from 0.49 in 2021 to 0.68 in 2022, ultimately reaching 1.30 in 2023. The transition of this ratio above the 1.0 threshold in 2023 is a key indicator that capital spending has surpassed the annual depreciation of the asset base, signifying a shift from maintaining existing capacity to investing in growth, modernization, or life-of-mine extensions.

The Porcupine segment exhibited a significant shift in its investment strategy between 2021 and 2023, moving from a period of conservative spending to a phase of aggressive reinvestment. This transition is evidenced by the movement of the capital expenditures to depreciation ratio from a level below unity to a sustained position above 1.0.

Capital Expenditure Trends

A substantial upward trajectory in capital spending is observed, with expenditures increasing from 68 million USD in 2021 to 166 million USD by 2023. The most pronounced increase occurred between 2021 and 2022, during which capital outlays more than doubled.

Depreciation and Amortization Patterns

Expenses related to the depreciation and amortization of assets grew at a moderate and steady pace, rising from 91 million USD in 2021 to 117 million USD in 2023. The growth in these expenses was significantly outpaced by the growth in capital expenditures.

Analysis of the Capital Expenditure to Depreciation Ratio

In 2021, a ratio of 0.75 indicated that the segment was not reinvesting enough to replace the value of the assets being consumed. This trend reversed sharply in 2022, with the ratio climbing to 1.46, and remaining relatively stable at 1.42 in 2023. This shift suggests a strategic prioritization of asset modernization, capacity expansion, or the extension of the mine's operational life.

A pronounced shift in the investment profile of the Éléonore segment is observed from 2021 through 2023, characterized by accelerating capital allocations and declining depreciation charges.

Capital Expenditure Trends

Annual capital expenditures exhibited consistent growth, rising from US$ 46 million in 2021 to US$ 60 million in 2022, and reaching US$ 106 million by 2023. This represents a substantial increase in the deployment of capital over the three-year period.

Depreciation and Amortization Trends

Conversely, depreciation and amortization expenses followed a steady downward trajectory, decreasing from US$ 139 million in 2021 to US$ 115 million in 2022, and further declining to US$ 101 million in 2023.

Segment Capital Expenditures to Depreciation Ratio

The ratio of capital expenditures to depreciation reflects a significant upward trend, moving from 0.33 in 2021 to 0.52 in 2022, and ultimately surpassing the 1.0 threshold to reach 1.05 in 2023. The transition to a ratio above 1.0 indicates that current investments in the segment have exceeded the rate of asset depreciation, suggesting a shift from sustaining capital expenditures toward growth-oriented investment or comprehensive asset renewal.

Analysis of the Red Chris segment's capital allocation for the period ending December 31, 2023, indicates a significant emphasis on capital investment relative to asset depreciation.

Capital Expenditure and Depreciation Levels

For the fiscal year ending December 31, 2023, capital expenditures were 25 million US$, while depreciation and amortization amounted to 4 million US$. No financial data is available for the years 2019 through 2022, limiting the analysis to a single-period snapshot.

Segment Capital Expenditures to Depreciation Ratio

The calculated ratio of 6.25 demonstrates that capital spending is substantially higher than the annual depreciation of the asset base. This high ratio suggests that the segment is in a phase of aggressive growth, expansion, or significant infrastructure upgrading, as the investment far exceeds the capital required to replace assets worn out during the period.

The financial analysis for the Brucejack segment in Canada is restricted to the fiscal year ending December 31, 2023, as no comparative figures are available for the period between 2019 and 2022.

Segment Capital Expenditures to Depreciation Ratio

For the period ending December 31, 2023, the ratio is recorded at 1.00. This value is based on capital expenditures of US$ 22 million and depreciation and amortization expenses of US$ 22 million. A ratio of 1.00 indicates that capital reinvestment is exactly proportional to the depreciation of the asset base. This equilibrium suggests a maintenance-oriented investment strategy, where expenditures are directed toward replacing worn-out assets to sustain existing operational capacity rather than funding growth or allowing the asset base to deplete.

Analysis of the capital expenditure to depreciation ratio for the Peñasquito segment reveals a consistent trend of reinvestment levels remaining significantly below the rate of asset consumption. Between 2021 and 2023, the segment operated with a ratio consistently under 1.0, indicating that capital investments were insufficient to offset the annual depreciation and amortization of the asset base.

Capital Expenditure Trends

Investment levels exhibited volatility over the observed period. Expenditures increased from US$ 144 million in 2021 to a peak of US$ 183 million in 2022, before declining to US$ 113 million in 2023. The 2023 figure represents the lowest investment level in the three-year sequence.

Depreciation and Amortization Patterns

A steady downward trend is observed in depreciation and amortization charges, which decreased annually from US$ 521 million in 2021 to US$ 427 million in 2022, and further to US$ 351 million in 2023. This consistent reduction suggests a shrinking depreciable asset base or the maturation of existing assets.

Ratio Interpretation

The segment capital expenditures to depreciation ratio rose from 0.28 in 2021 to 0.43 in 2022, before moderating to 0.32 in 2023. Because the ratio remained well below 1.0 throughout the period, it is evident that the segment is not replacing its capital assets at the rate they are being consumed, a pattern typically associated with assets in a late-life cycle or a strategic shift toward minimizing further capital intensity.

The Merian, Suriname segment exhibits a consistent upward trend in capital investment relative to asset depreciation between 2021 and 2023. Capital expenditures grew steadily from US$ 47 million in 2021 to US$ 84 million in 2023, while depreciation and amortization expenses decreased from US$ 98 million in 2021 to US$ 82 million in 2023.

Segment Capital Expenditures to Depreciation Ratio

The ratio demonstrated a significant and linear increase over the analyzed period, rising from 0.48 in 2021 to 0.70 in 2022, and ultimately reaching 1.02 by December 31, 2023. This trend reflects a growing proportion of capital being reinvested back into the segment relative to the consumption of its existing assets.

Asset Base Maintenance and Expansion

During 2021 and 2022, the ratio remained below 1.0, indicating that capital spending was not sufficient to cover the annual depreciation of the asset base. The shift to a ratio of 1.02 in 2023 marks a critical inflection point, signifying that the segment is now investing at a rate that exceeds its depreciation, which typically suggests a phase of capacity expansion, asset modernization, or extended life-of-mine initiatives.

The financial trajectory of the Cerro Negro segment between 2021 and 2023 is characterized by a steady increase in capital investment relative to the consumption of existing assets.

Capital Expenditure Trends

A consistent upward trend in capital expenditures is observed, rising from US$ 108 million in 2021 to US$ 162 million in 2023. This represents a significant increase in the allocation of funds toward the segment's asset base over the three-year period.

Depreciation and Amortization Stability

Depreciation and amortization costs remained relatively stable, recorded at US$ 137 million in 2021, increasing slightly to US$ 148 million in 2022, and returning to US$ 137 million in 2023. This stability indicates a consistent rate of asset wear and tear relative to the total book value of the segment's assets.

Capital Expenditure to Depreciation Ratio Analysis

The ratio of capital expenditures to depreciation demonstrates a progressive increase, moving from 0.79 in 2021 to 0.89 in 2022, and ultimately reaching 1.18 in 2023. In 2021 and 2022, the ratio remained below 1.0, suggesting that reinvestment was insufficient to fully offset the depreciation of the asset base. The shift to a ratio above 1.0 in 2023 indicates that capital investment has exceeded depreciation, signaling a transition toward asset expansion or significant modernization of the Cerro Negro operations.

The financial data for the Yanacocha segment indicates a period of aggressive capital reinvestment relative to asset depreciation between 2021 and 2023. The ratio of capital expenditures to depreciation consistently remained above 1.0, signaling that the segment invested more in new or improved assets than the value lost through depreciation and amortization during this period.

Capital Expenditure Trends

Investment levels experienced a sharp increase from US$ 171 million in 2021 to a peak of US$ 439 million in 2022. While expenditures moderated to US$ 312 million in 2023, the spending level remained substantially higher than the 2021 baseline, indicating a period of intensified capital allocation.

Depreciation and Amortization Patterns

A consistent downward trajectory is observed in depreciation and amortization expenses. Costs decreased steadily from US$ 111 million in 2021 to US$ 95 million in 2022, and further declined to US$ 85 million by the end of 2023.

Segment Capital Expenditures to Depreciation Ratio

The reinvestment ratio grew from 1.54 in 2021 to a peak of 4.62 in 2022, driven by the simultaneous increase in capital spending and the decrease in depreciation. Although the ratio contracted to 3.67 in 2023, the sustained high value suggests a strategic focus on asset modernization or capacity expansion within the segment.

An analysis of the Boddington segment reveals a volatile investment cycle between 2021 and 2023, characterized by a sharp contraction in capital spending followed by a substantial recovery.

Capital Expenditure Volatility

Capital expenditures exhibited significant variance, beginning at US$ 174 million in 2021, declining sharply to US$ 72 million in 2022, and rebounding to US$ 164 million in 2023. This pattern suggests a temporary reduction in investment activities or a strategic deferment of projects during the 2022 fiscal year.

Depreciation and Amortization Trends

Depreciation and amortization costs remained relatively stable in comparison to capital spending, rising from US$ 122 million in 2021 to US$ 152 million in 2022, and slightly moderating to US$ 143 million in 2023. The stability of these figures reflects the ongoing consumption of the segment's fixed asset base.

Capital Expenditures to Depreciation Ratio

The segment capital expenditures to depreciation ratio shifted from 1.43 in 2021 to 0.47 in 2022, before recovering to 1.15 in 2023. The decline below the 1.0 threshold in 2022 indicates a period where reinvestment fell below the rate of asset depreciation, implying a temporary reduction in the replacement of aging infrastructure. The return to a ratio above 1.0 in 2023 confirms a restoration of investment levels exceeding the annual depreciation of assets.