Business Analysis of Newmont Mining

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Newmont Mining

NEWMONT MINING

Business Overview

Newmont Mining Corporation is a mining company, which is focused on the production of and exploration for gold and copper. The Company is primarily a gold producer with operations and/or assets in the United States, Australia, Peru, Ghana and Suriname. The Company's segments include North America, South America, Asia Pacific and Africa. The Company's North America segment consists primarily of Carlin, Phoenix, Twin Creeks and Long Canyon in the state of Nevada, and Cripple Creek &Victor (CC&V) in the state of Colorado, in the United States. The Company's South America segment consists primarily of Yanacocha in Peru and Merian in Suriname. The Company's Asia Pacific segment consists primarily of Boddington, Tanami and Kalgoorlie in Australia. The Company's Africa segment consists primarily of Ahafo and Akyem in Ghana. As of December 31, 2016, it had gold reserves of 68.5 million ounces and an aggregate land position of approximately 23,000 square miles (59,000 square kilometers).

Newmont Mining

Newmont Mining


R&P Rank: 407
Sector: Basic Materials
Industry:Metal Mining
H.Q Location:Colorado
Website: www.newmont.com
Company Address:
6363 SOUTH FIDDLERS GREEN CIRCLE, GREENWOOD VILLAGE CO 80111
Ph:303-863-7414

Business Analysis of Newmont Mining

The Basic Materials Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Newmont Mining compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Newmont Mining to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Newmont Mining with an interactive chart.

  1. Revenue Growth: Newmont Mining reported a revenue growth of 10.3% year-on-year during 2016. Metal Mining Industry grew at -5.5% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Newmont Mining spent 56.2% of its total revenues on COGS. Metal Mining industry average (COGS share of revenue) in the same period was 86.3%
  3. R&D share of Revenues: As a percentage of revenue, Newmont Mining spent 4.2% of its total revenues on R&D. Metal Mining industry average R&D spending in the same period was 0.5%
  4. SG&A share of Revenues: As a percentage of revenue, Newmont Mining spent 3.5% of its total revenues on Sales, Marketing, and General Administration (SG&A). Metal Mining industry average SG&A spending in the same period was 6.3%
  5. Inventory share of Revenues: As a percentage of revenue, Newmont Mining spent 48.3% of its total revenues on Inventories. Metal Mining industry average Inventory spending in the same period was 20.9%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Newmont Mining invested 4.8% of its total revenues on Accounts Payable (A/P) Metal Mining industry average Accounts Payable investment in the same period was 9.8%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Newmont Mining invested 5.1% of its total revenues on Accounts Receivable (A/R). Metal Mining industry average Accounts Receivable investment in the same period was 10.1%
  8. PP&E share of Revenues: As a percentage of revenue, Newmont Mining invested 186.0% of its total revenues on Property, Plants, and Equipments (PP&E). Metal Mining industry average PPE investment in the same period was 67.7%
  9. Intangibles share of Revenues: Newmont Mining Intangibles share of Revenues details are not available because either company does not share the data or we do not have it
  10. Net Margins: Newmont Mining Net Margins in the year 2016 were -9.3%. Metal Mining industry average Net Margins in the same period were -3.7%

Sector and Industry Association of Newmont Mining

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Newmont Mining is associated with Basic Materials Sector and Metal Mining Industry.

Basic Materials sector is comprised of the following industries: Metal Mining; Coal Mining; Chemicals. The definitions for each of the industries is as follows:

  • Metal Mining industry includes companies primarily engaged in mining, developing mines, or exploring for precious metals such as Gold, Silver, Platinum and base metals such as Iron, Copper, Aluminum, Lead, and Zinc. It also includes companies that manufacture alloys such as steel.
  • Coal Mining industry includes companies engaged in the exploration for and/or mining of coal.
  • Chemicals industry includes companies that produce and/or distribute commodity and specialty chemicals. The companies manufacture three general classes of products: (1) basic chemicals, such as acids, alkalies, salts, and organic chemicals; (2) chemical products to be used in further manufacture, such as synthetic fibers, plastics materials, dry colors, and pigments; and (3) finished chemical products to be used as materials or supplies in other industries, such as paints, fertilizers, and explosives.

Industry Ranking of Newmont Mining

With $6.7 billion revenues, Newmont Mining ranked number 9 of all the companies in the US Metal Mining industry. There were a total of 34 public companies in the US Metal Mining industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Metal Mining industry by revenues during 2016 were:

  1. Nucor ($16.2 billion)
  2. Freeport-McMoRan ($14.8 billion)
  3. Arconic ($12.4 billion)
  4. United States Steel ($10.3 billion)
  5. Alcoa ($9.3 billion)
  6. Reliance Steel & Aluminum ($8.6 billion)
  7. Steel Dynamics ($7.8 billion)
  8. A-Mark Precious Metals ($6.8 billion)
  9. Newmont Mining ($6.7 billion)
  10. AK Steel Holding ($5.9 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Newmont Miningand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of newmont-mining

Reliance Steel & Aluminum (RS) Business Analysis – Analyze Historical Performance,...

Reliance Steel & Aluminum Co with $9 billion revenues in the year 2016 was the number 6 Metal Mining company. Read this report to know the top competitors of Reliance Steel & Aluminum and identify growth and cost optimization opportunities of Reliance Steel & Aluminum

Steel Dynamics (STLD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Steel Dynamics Inc with $8 billion revenues in the year 2016 was the number 7 Metal Mining company. Read this report to know the top competitors of Steel Dynamics and identify growth and cost optimization opportunities of Steel Dynamics

A-Mark Precious Metals (AMRK) Business Analysis – Analyze Historical Performance, Strategic...

A-Mark Precious Metals, Inc. with $7 billion revenues in the year 2016 was the number 8 Metal Mining company. Read this report to know the top competitors of A-Mark Precious Metals and identify growth and cost optimization opportunities of A-Mark Precious Metals

AK Steel Holding (AKS) Business Analysis – Analyze Historical Performance, Strategic...

AK Steel Holding Corp with $6 billion revenues in the year 2016 was the number 10 Metal Mining company. Read this report to know the top competitors of AK Steel Holding and identify growth and cost optimization opportunities of AK Steel Holding

Southern Copper (SCCO) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Southern Copper Corp with $5 billion revenues in the year 2016 was the number 11 Metal Mining company. Read this report to know the top competitors of Southern Copper and identify growth and cost optimization opportunities of Southern Copper

Commercial Metals (CMC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Commercial Metals Co with $5 billion revenues in the year 2016 was the number 12 Metal Mining company. Read this report to know the top competitors of Commercial Metals and identify growth and cost optimization opportunities of Commercial Metals

Revenues Analysis

Newmont Mining (NEM) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Newmont Mining Corp (NEM) from 2012 to 2016. Newmont Mining generated a total of $6.7 billion revenues during 2016. Newmont Mining reported a revenue growth of 10.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Newmont Mining (NEM) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Newmont Mining Corp (NEM) from 2002 to 2016. Newmont Mining generated a total of $6.7 billion revenues during 2016. Newmont Mining reported a revenue growth of 10.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Newmont Mining (NEM) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Newmont Mining Corp (NEM) revenue growth with Metal Mining industry growth during the last five years from 2012 to 2016. Newmont Mining reported a revenue growth of 10.3% year-over-year during 2016. The Metal Mining industry growth was -5.5% year-over-year during 2016. Newmont Mining growth was faster than the industry during 2016.