Newmont Corp. (NYSE:NEM)

Current Income Tax Expense

The current income tax expense shows an overall upward trend from 2019 to 2021, increasing from 498 million US dollars to a peak of 1,207 million US dollars. This was followed by a significant decline in 2022 to 733 million US dollars and a further decrease in 2023 to 630 million US dollars. This pattern indicates a peak in tax liability in 2021 with subsequent reductions over the next two years.

Deferred Income Tax Expense

The deferred income tax expense demonstrates considerable volatility during the observed period. It begins positively at 334 million US dollars in 2019 but shifts to negative figures from 2020 onwards, with values of -222, -109, -278, and -104 million US dollars respectively. These negative values suggest a deferred tax benefit or deferred tax asset recognition during the last four years, with the magnitude of this benefit peaking in 2022.

Total Income and Mining Tax Expense

The combined income and mining tax expense reveals a fluctuating pattern. It decreased from 832 million US dollars in 2019 to 704 million US dollars in 2020, then rose sharply to 1,098 million US dollars in 2021, followed by a marked decline to 455 million US dollars in 2022. In 2023, it increased moderately to 526 million US dollars. This suggests variations in taxable income, mining activities, or tax rates impacting the overall tax expense across the years.

Insights

The contrasting trends between current and deferred tax expenses indicate changes in the company's tax position, possibly related to timing differences between accounting income and taxable income. The significant negative deferred tax expenses from 2020 onward may reflect utilization of deferred tax assets, changes in tax laws, or adjustments in estimates. The peak in current tax expense in 2021 and corresponding rise in total tax expense suggests a year of higher taxable income or changes in tax obligations. The subsequent declines in 2022 and 2023 might be due to reduced profitability, tax planning strategies, or other factors affecting taxable income and tax liabilities.

The data reveals significant volatility in the effective tax rate components and related tax adjustments over the five-year period. The U.S. federal statutory tax rate remained constant at 21%, serving as a stable baseline for comparisons.

Percentage Depletion

This metric fluctuates notably, starting at -1% in 2019, dipping further to -7% by 2021, spiking sharply to 90% in 2022, and then dropping to 4% in 2023. The sharp peak in 2022 suggests an unusual charge or adjustment during that year, which then normalized somewhat in the following year.

Change in Valuation Allowance on Deferred Tax Assets

The values show significant variability, with a moderate negative change in 2019 (-8%), positive adjustments in 2020 (6%) and 2021 (38%), followed by a dramatic negative swing in 2022 (-569%) and a less severe negative adjustment in 2023 (-18%). The large negative figure in 2022 indicates substantial write-downs or reversals impacting deferred tax assets during that period.

Rate Differential for Foreign Earnings Indefinitely Reinvested

The rate differentials rise modestly from 4% in 2019 to 10% in 2021, then plunge sharply to -151% in 2022 before partially recovering to 7% in 2023. This pattern implies significant repatriation events or reassessments of foreign earnings taxation particularly in 2022.

Mining and Other Taxes, Net of Associated Federal Benefit

Starting at 2% in 2019, there is a steady increase to 5% in 2020 and 15% in 2021, followed by a substantial decrease to -231% in 2022, then shifting to -4% in 2023. This indicates a large-scale tax benefit or credit recognized in 2022 related to mining or other taxes, contrasting with previous consistent positive tax levies.

Uncertain Tax Positions

Fluctuations occur with a small positive value of 2% in 2019, dipping to -1% in 2020, ascending to 9% in 2021, surging dramatically to 261% in 2022, and then dropping back to 1% in 2023. The spike in 2022 may reflect significant adjustments or resolutions related to tax uncertainties or disputes.

Goodwill Write-Downs

This item shows no activity until 2021, when a substantial charge of -482% is recorded, followed by a smaller write-down of -25% in 2022. No data for 2019, 2020, or 2023 suggests the impairments were specific to this period, with a pronounced non-recurring impact in 2021.

Expiration of U.S. Capital Losses and Foreign Tax Credits

The data indicates minor activity with 1% in 2019, no value in 2020, then 14% in 2021, followed by significant negative adjustments in 2022 (-61%) and 2023 (-10%). This pattern suggests the company utilized or lost capital loss carryforwards and foreign tax credits variably, affecting tax expense notably in the last two years.

Transactions

Available data only for 2020 (-11%) and 2022 (100%) reflects likely transactional tax impacts in these years, with the very high positive value in 2022 pointing to tax effects from major transactions or restructuring activities.

Other

This category shows small negative and positive values throughout, including a significant 130% in 2022, indicating miscellaneous tax adjustments with a noteworthy spike that year likely tied to unusual or one-off events.

Income and Mining Tax Effective Tax Rate

The effective tax rate remains fairly stable at 23% in 2019 and 22% in 2020, but escalates sharply to 99% in 2021. A dramatic reversal occurs in 2022 with an effective tax rate of -892%, reflecting significant net tax benefits or credits, and then adjusting to -26% in 2023. This highly volatile pattern corresponds closely with the large swing items in valuation allowances, mining taxes, and uncertain tax positions.

Overall, the data demonstrates substantial tax-related volatility concentrated mainly in 2021 and 2022, with exceptional tax charges, credits, and adjustments impacting effective tax rates and related components. The years 2021 and 2022 appear to involve unusual events such as goodwill impairments, deferred tax asset write-downs, and significant tax position changes, which dramatically influence the company’s effective tax rate and tax expense profile. The periods before and after these years show more normalized and less volatile tax rate behavior.

The analysis of the financial data reveals several noteworthy trends across multiple asset and liability categories over the five-year period ending December 31, 2023.

Property, Plant, and Mine Development

The gross asset value for property, plant, and mine development demonstrated a consistent decline from $1001 million in 2019 to $746 million in 2023, indicating ongoing depreciation or divestment activities. Concurrently, the associated accumulated depreciation or amortization increased significantly in absolute terms, moving from a negative $2629 million in 2019 to negative $4425 million in 2023, deepening the net reduction in this asset category.

Inventory

Inventory levels showed a modest fluctuation initially, dipping from $71 million in 2019 to $62 million in 2020, then rising to $94 million by 2022. A dramatic increase occurred in 2023, with inventory reaching $320 million. Corresponding contra accounts increased in negative value, reflecting adjustments or write-downs; this movement suggests changes in inventory management or valuation policies.

Reclamation and Remediation

There was a steady increase in reclamation and remediation assets, with their value more than tripling from $771 million in 2019 to $2362 million in 2023. This upward trend likely reflects increased obligations or capitalization of reclamation costs associated with mining operations.

Net Operating Losses, Capital Losses, and Tax Credits

These deferred tax assets exhibited a consistent upward trajectory, growing from $1683 million in 2019 to $2655 million in 2023, suggesting the accumulation of losses and credits that could offset future taxable income.

Investments in Partnerships and Subsidiaries

The reported investment value experienced volatility: a sharp increase from $31 million in 2019 to $340 million in 2020, followed by a decline to $26 million in 2021, with no data for 2022 and 2023. The associated contra accounts reflected a reduction from negative $508 million in 2019 to negative $579 million in 2023, indicating possible impairment or reclassification over time.

Employee-Related Benefits

Employee-related benefit assets rose from $123 million in 2019 to $162 million in 2020, then decreased markedly to $75 million in 2022 before partially recovering to $97 million in 2023. This pattern may be indicative of changes in benefit plan valuations or funding levels.

Derivative Instruments and Unrealized Loss on Investments

Values fluctuated between $25 million and $85 million without a clear trend, suggesting varying exposure or valuation adjustments in these financial instruments across periods.

Foreign Exchange and Financing Obligations

This category decreased from $159 million in 2019 to $82 million in 2020 and remained relatively stable thereafter, indicating a reduction in related exposures or obligations.

Silver Streaming Agreement

The assets related to silver streaming agreements steadily declined from $396 million in 2019 to $246 million in 2022 before staging a partial recovery to $332 million in 2023, reflecting contractual or market-driven changes affecting these rights.

Other Assets

Other assets showed variability, declining from $224 million in 2019 to $112 million in 2020, then increasing moderately before surging to $643 million in 2023. This considerable increase may indicate new asset recognition or reclassifications.

Deferred Income Tax Assets and Liabilities

The gross deferred income tax assets before valuation allowances increased steadily from $4544 million in 2019 to $7310 million in 2023, indicating expanding temporary differences. However, valuation allowances also increased in magnitude from negative $3112 million to negative $4652 million, reflecting cautious recognition of these assets due to uncertainty regarding realizability. Consequently, net deferred income tax assets declined from $1432 million to $2658 million overall.
Deferred income tax liabilities remained substantial and fluctuated around negative $3000 million until 2022, before dramatically increasing in magnitude to negative $5377 million in 2023, suggesting growing taxable temporary differences.
The net deferred income tax position (assets less liabilities) remained negative throughout the period, moving from negative $1858 million in 2019 to a deeper negative $2719 million in 2023, which may signal net deferred tax liabilities on the balance sheet.

In summary, the data indicates a general decline in core fixed assets net of accumulated depreciation, a significant increase in reclamation and remediation obligations, and expanding deferred tax asset and liability balances with growing valuation allowances. Inventory levels and other asset categories exhibited notable volatility, while investments and employee-related assets declined or fluctuated without clear trends. These patterns point to active asset management, evolving environmental obligations, and cautious recognition of deferred tax benefits over the analyzed period.

The analysis of the deferred income tax assets and liabilities over the five-year period reveals notable trends and fluctuations.

Deferred Income Tax Assets

The deferred income tax assets exhibited a declining trend from 2019 to 2022, decreasing from 549 million US dollars to a low of 173 million US dollars. However, in 2023, this item rebounded to 268 million US dollars, indicating a partial recovery. Overall, the asset value decreased significantly over the full period but shows signs of stabilization in the most recent year.

Deferred Income Tax Liabilities

The deferred income tax liabilities showed a general downward trend from 2019 through 2022, falling from 2,407 million US dollars to 1,809 million US dollars. This decline was interrupted in 2023 by a sharp increase to 2,987 million US dollars, surpassing the initial 2019 level by a substantial margin. This suggests a significant change in the company’s deferred tax obligations in the latest year.

In summary, both deferred income tax assets and liabilities declined steadily from 2019 to 2022. However, whereas the assets partially recovered in 2023, liabilities surged sharply, indicating a divergence in trends that may reflect changes in the underlying tax positions, taxable temporary differences, or adjustments in tax rates or forecasts. The pronounced increase in deferred income tax liabilities in 2023 warrants further investigation to understand the drivers behind this variation.

Total Assets

The reported total assets remained relatively stable from 2019 to 2022, fluctuating slightly between approximately US$38 billion and US$41 billion. However, there is a significant increase in 2023, rising sharply to over US$55 billion. The adjusted total assets exhibit a similar trend, showing stability during 2019-2022 with a minor downward trend, followed by a pronounced jump in 2023 closely mirroring the reported figures. This indicates a substantial asset growth or acquisition activity in the most recent year.

Total Liabilities

Reported total liabilities remained fairly consistent from 2019 through 2022, with a slight upward trajectory from around US$17.5 billion to approximately US$18.9 billion. In 2023, liabilities increased significantly to over US$26 billion. Adjusted total liabilities demonstrate a comparable pattern but consistently lower values compared to reported liabilities, suggesting accounting adjustments that reduce the recognized liabilities. The jump in liabilities in 2023 corresponds with the surge in total assets, indicating increased borrowing or obligations.

Stockholders’ Equity

Reported stockholders’ equity shows a decline from US$21.4 billion in 2019 to US$19.4 billion in 2022, followed by a marked increase to US$29 billion in 2023. Adjusted equity values are consistently higher than reported figures, displaying a similar trend with a dip ending in 2022 and recovery in 2023. The equity fluctuations imply that while the company experienced a reduction in equity, possibly due to losses or distributions, there was a recovery probably driven by capital inflows or improvements in retained earnings in 2023.

Net Income (Loss) Attributable to Stockholders

The reported net income attributable to stockholders shows a positive trend in 2019 and 2020 with values above US$2.8 billion, followed by a sharp decline in 2021 and negative net income in 2022 and 2023, reaching a loss of approximately US$2.5 billion. The adjusted net income follows a similar pattern but exhibits slightly lower income in earlier years and greater losses in the final two years. This pattern indicates that the company faced significant challenges affecting profitability starting in 2021, which intensified through 2023.

Overall Analysis

The analyzed period reveals a company with stable asset and liability bases from 2019 to 2022, followed by a considerable expansion in 2023. Despite the growth in assets and equity in 2023, the preceding years showed deteriorating profitability culminating in consecutive years of net losses. The adjusted figures consistently show lower liabilities and higher equity compared to reported numbers, reflecting accounting adjustments possibly related to deferred taxes. The sharp increase in 2023's balance sheet metrics may indicate strategic financial maneuvers or significant corporate events such as acquisitions or capital restructuring. Profitability remains a concern given the recent sustained net losses.

Net Profit Margin

The reported net profit margin shows a significant declining trend from 28.8% in 2019 to -21.11% in 2023. Similarly, the adjusted net profit margin falls from 32.23% in 2019 to -21.99% in 2023. Both reported and adjusted figures indicate a steady decrease, with the margin entering negative territory starting in 2022, implying deteriorating profitability.

Total Asset Turnover

The reported total asset turnover ratio increases moderately from 0.24 in 2019 to 0.31 in 2022, reflecting improved efficiency in asset utilization. However, it then drops sharply to 0.21 in 2023. The adjusted total asset turnover ratio follows the same pattern, indicating consistency between reported and adjusted figures in asset management performance.

Financial Leverage

Reported financial leverage shows minor fluctuations, decreasing slightly from 1.87 in 2019 to 1.8 in 2020, then rising to a peak of 1.99 in 2022, before falling to 1.91 in 2023. Adjusted financial leverage exhibits a similar pattern but with lower values overall, moving from 1.69 in 2019 up to 1.83 in 2022 and then declining to 1.74 in 2023. This suggests a modest increase in leverage up to 2022 followed by some deleveraging in the latest year.

Return on Equity (ROE)

The reported ROE decreases from 13.1% in 2019 to a negative value of -8.59% in 2023, with a notable drop occurring from 2021 onward. Adjusted ROE mirrors this trend, declining from 13.48% to -8.18% over the same period. The negative ROE in recent years indicates a loss of value for shareholders and highlights deteriorating company profitability.

Return on Assets (ROA)

Reported ROA declines steadily from 7.02% in 2019 to -4.49% in 2023. Adjusted ROA similarly decreases from 7.96% to -4.7%. The consistent downward trend and negative returns in the later years indicate weakening overall asset performance and operational inefficiency.

Net Income Trends

Reported net income attributable to Newmont stockholders shows a declining pattern over the reported periods. Starting from a high of 2,805 million USD in 2019, the income remains relatively stable in 2020 at 2,829 million USD, then decreases sharply to 1,166 million USD in 2021. In the subsequent periods, 2022 and 2023, the company experiences losses of 429 million USD and 2,494 million USD respectively, indicating a significant downward trend and worsening profitability.

Similarly, adjusted net income follows a comparable trend with a peak of 3,139 million USD in 2019, followed by a decline to 2,607 million USD in 2020 and further down to 1,057 million USD in 2021. The trend then reverses to losses in 2022 of 707 million USD and a deeper loss of 2,598 million USD in 2023, confirming the deteriorating financial performance after adjustment for reported and deferred income taxes.

Net Profit Margin Patterns

The reported net profit margin demonstrates a notable decline through the periods analyzed. Beginning with a healthy margin of 28.8% in 2019, the margin decreases to 24.61% in 2020, then falls sharply to single digits at 9.54% in 2021. Negative margins are observed in 2022 and 2023, at -3.6% and -21.11%, respectively, illustrating a transition from profitability to significant losses as a proportion of revenue.

Adjusted net profit margin trends are consistent with reported margins but at slightly differing levels. The margin starts at 32.23% in 2019, declines to 22.68% in 2020, then diminishes to 8.65% in 2021. The adjusted margin turns negative in subsequent years, with -5.93% in 2022 and -21.99% in 2023, corroborating the financial difficulties indicated by the reported data.

Summary of Insights

Overall, the analysis reveals a steady decline in both reported and adjusted net income and profit margins over the five-year period. The transition from positive earnings and margins to significant losses indicates potential operational or market challenges affecting financial performance. The adjustment for deferred income taxes marginally influences the absolute values but does not alter the downward trend, suggesting that tax effects are not the primary drivers of the observed performance deterioration.

Total Assets

The total assets, both reported and adjusted, demonstrate a general fluctuation over the period under review. Starting at approximately 39,974 million USD reported and 39,425 million USD adjusted at the end of 2019, there is a slight increase through 2020 followed by a minor decline in 2021 and 2022. Notably, a sharp rise occurs in 2023, with reported assets reaching 55,506 million USD and adjusted assets 55,238 million USD. This represents a significant increase compared to the prior years, suggesting notable asset growth or acquisition activity in 2023.

Total Asset Turnover

The total asset turnover ratios, both reported and adjusted, show a generally increasing trend from 2019 through 2022, beginning at 0.24-0.25 and rising to 0.31 in 2022. This indicates improving efficiency in using assets to generate revenue during this period. However, there is a pronounced decline in 2023, with the ratio dropping to 0.21, suggesting a decrease in asset utilization efficiency. This drop may be related to the large increase in total assets seen in 2023, possibly indicating that asset growth has not yet translated into proportional revenue growth.

Overall Insights

The data indicate stability and modest growth in asset base through 2019–2022, accompanied by improved asset utilization efficiency. The year 2023 marks a distinct shift, with a significant asset increase coupled with a reduced turnover ratio, highlighting a potential period of investment or expansion that has yet to optimize revenue generation. The close alignment between reported and adjusted figures suggests consistent treatment of income tax adjustments without materially affecting the underlying financial trends.

The analysis of the financial data reveals several notable trends and variations over the five-year period.

Total Assets

Both reported and adjusted total assets show a generally stable level from 2019 through 2022, with a slight decline observed in 2022 compared to previous years. However, in 2023, there is a significant increase in total assets, reaching their highest value in the period under review. This suggests a substantial asset growth initiative or acquisition occurring in the latest year.

Stockholders’ Equity

Reported stockholders’ equity increased from 2019 to 2020 but then decreased consistently through 2022 before rising sharply in 2023. Adjusted equity follows a similar pattern but maintains consistently higher values than the reported figures, indicating the effect of adjustments such as deferred income tax considerations on equity valuation.

Financial Leverage

Reported financial leverage ratios decreased from 2019 to 2020, then increased steadily to a peak in 2022, followed by a slight decrease in 2023. The adjusted financial leverage ratios follow a similar trend but maintain lower values throughout the period, reflecting a more conservative leverage position when adjustments are included. The increase in leverage until 2022 could indicate increased use of debt financing or a decrease in equity, while the reduction in 2023 suggests an improvement in the capital structure.

General Insights

The divergence between reported and adjusted values, particularly in equity and leverage, underscores the importance of considering deferred tax adjustments for a more accurate assessment of financial health. The overall increase in assets and equity in 2023, combined with a decrease in leverage, points toward a strengthening financial position, possibly due to operational improvements, asset acquisitions, or capital restructuring efforts.

The financial data reveals a clear downward trend in company profitability over the five-year period. Reported net income attributable to stockholders decreased significantly from a strong positive level in 2019 and 2020 to negative values starting in 2022, with losses deepening further in 2023. Adjusted net income follows a similar pattern, albeit with slightly different magnitudes. This indicates that both reported and tax-adjusted earnings deteriorated substantially, transitioning from profitability to sustained losses over the latest two years.

Total stockholders’ equity, both reported and adjusted, presents a mixed trend. Initially, there was a modest increase from 2019 to 2020, followed by a decline in 2021 and 2022. However, 2023 shows a marked recovery and the highest equity levels in the five-year span. This rebound in equity, despite net income losses, suggests possible capital infusions, asset revaluations, or other equity enhancements to strengthen the financial position.

Return on equity (ROE) trends closely mirror the income figures. Reported ROE declined from a healthy double-digit level in 2019 and 2020 to negative returns in the last two years, reflecting the net losses incurred. Adjusted ROE also declined, showing a reduction from double-digit positive returns to negative figures by 2022 and 2023. The deterioration in ROE signals eroding shareholder profitability and challenges in generating returns on equity capital during the recent periods.

Income Trends

Both reported and adjusted net income started at strong positive values in 2019 and 2020, then dropped sharply in 2021, and turned negative in 2022 and 2023, with losses worsening in 2023.

Equity Trends

Reported and adjusted stockholders’ equity initially increased up to 2020, declined over 2021 and 2022, and then surged significantly in 2023 to new highs, indicating potential external equity support or valuation changes.

Return on Equity (ROE)

Both reported and adjusted ROE mirrored income trends, declining from strong profitability in 2019-2020 to negative returns in 2022 and 2023, reflecting poor earnings performance impacting shareholder returns.

Overall Insights

The data suggests the company faced worsening profitability over recent years, culminating in sustained net losses and negative returns on equity. The equity growth in 2023 may indicate efforts to strengthen the balance sheet amid challenging earnings conditions.

Net Income Trends

The reported net income attributable to stockholders showed a downward trend over the five-year period. Starting from $2,805 million in 2019, it slightly increased to $2,829 million in 2020, then sharply declined to $1,166 million in 2021. The decline became more pronounced in 2022 and 2023, with losses recorded at -$429 million and -$2,494 million, respectively. The adjusted net income follows a similar pattern, beginning at $3,139 million in 2019 and decreasing to a loss of -$2,598 million by 2023, indicating that adjustments related to income tax and other factors did not alter the overall negative trend in profitability.

Total Assets

Reported total assets exhibited minor fluctuations before a significant increase in the final year. From $39,974 million in 2019, assets rose slightly to $41,369 million in 2020, then declined gradually to $38,482 million in 2022. However, in 2023, a substantial increase occurred, with assets reaching $55,506 million. Adjusted total assets mirrored this trend, from $39,425 million in 2019 to a peak of $55,238 million in 2023, suggesting possible acquisitions, revaluations, or other balance sheet changes impacting asset bases in the latest period.

Return on Assets (ROA)

Both reported and adjusted ROA showed declining performance over the observed years. Reported ROA decreased from 7.02% in 2019 to a negative -4.49% in 2023, highlighting diminishing asset profitability. Adjusted ROA followed a comparable pattern, starting at 7.96% in 2019 and falling to -4.70% in 2023. The negative ROA in the latter years indicates that the company’s assets generated losses rather than profits, consistent with the reported net income trend.

Overall Analysis

The data reveals a deteriorating profitability environment for the company from 2019 to 2023, with net income shifting from solid profits to significant losses. Despite this, total assets remained relatively stable until a pronounced increase in 2023, which could reflect strategic investments or asset revaluation efforts. The sustained decline in ROA underscores challenges in generating returns from the asset base, exacerbated in the recent years by negative earnings. Adjustments for reported and deferred income taxes appear not to materially change the direction or magnitude of performance trends, suggesting underlying operational or market factors as key drivers.