COMPANY PROFILE -Newmont Corporation
Business Sector :Mining and Metals
Operating Geography :United States, North America, Global
About Newmont Corporation :
Newmont is a gold mining and exploration corporation. Silver, copper, zinc, lead, and molybdenum are among the metals that it explores, produces, processes, and refines. The company was established in 1916 by Colonel William Boyce Thompson as a holding company for private acquisitions in the oil and gas, mining, and minerals industries. In the United States, Mexico, Canada, Ghana, Peru, Chile, Argentina, the Dominican Republic, Suriname, and Australia, the firm has an open pit and underground mining operations. Phoenix, Carlin, Twin Creeks, and Long Canyon, as well as Boddington, Tanami, Pueblo Viejo, Ahafo, and Yanacocha, are all part of the company's mining portfolio. It also includes several gold reserves and acreage that are now being explored. Newmont, headquartered in Denver, Colorado, United States, is the sole gold miner in the S&P 500 Index, and it is noted for its high ethical environmental, social, and governance standards. On November 22, 2021, the firm announced that it had reached an agreement to sell its Kalgoorlie power business to Northern Star Resources Limited of Australia.
Newmont Corporation's USP is that it has the industry's largest gold reserve base, which is backed up by world-class mineral reserves in top-tier jurisdictions. The mission statement of Newmont Corporation's reads, "To build a sustainable mining business while leading in safety, environmental stewardship and social responsibility. Today, we primarily mine gold and copper, as well as silver and other metals and minerals".
Newmont Corporation Revenue :
$11,497 million - FY ending 31st Dec 2020 (y-o-y growth -18%)
$9,740 million - FY ending 31st Dec 2019
Competitive Analysis of Newmont Corporation
The SWOT analysis for Newmont Corporation is presented below in a matrix followed by the detailed analysis report:
Strengths | Weaknesses |
1. Possesses industry’s largest gold reserves
2. Diversified product portfolio in top-tier jurisdictions
3. Industry-leading ESG performance
4. Stable production outlook due to long asset life
5. Strong financial performance and investment grade balance sheet
| 1. Incidents of factory safety negligence in Ghana
2. Projects suspended over anti-mining protests
3. Dispute with Bullion Monarch over non-payment of royalty |
Opportunities | Threats |
1. Increasing exposure to non-gold metals
2. Expanding exploration activities in 2021
3. Improve shareholder returns through Goldcorp acquisition | 1. Foreign currency fluctuations can affect earnings
2. Disruptions in exploration and mining activities due to COVID-19
3. High costs of complying with environmental regulations
4. Operations subject to risks of natural disasters and climate change related problems |
Newmont Corporation SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
Detailed SWOT Analysis of Newmont Corporation
Strength
1. Possesses industry’s largest gold reserves: Newmont Corporation has the largest gold mineral reserves compared to other gold mining companies, as reported by the company in 2020. The reserves were worth over 100.2 million attributable ounces of gold mineral. Not only is this the largest in the industry, but also the largest reserve in the history of Newmont. There has been a jump of 53% from the 65.4 million ounces in 2018. In 2019, Newmont Corp completed the large and strategic acquisition of Goldcorp and started a new mining project in Nevada which led to the sudden increase in gold reserves. Another major advantage is that 88% of Newmont’s gold is located in the top-tier jurisdictions of America and Australia and most of the mines have an operating life greater than 10 years. Newmont’s gold reserve currently stands at 124 ounces per 1000 stockholder shares. This is good news for current and potential Newmont investors.
The remaining section under "Strength" is available only in the 'Complete Report' on purchase.
Weakness
1. Incidents of factory safety negligence in Ghana: In July 2018, Newmont Corporation was heavily fined by the Ghana government after 6 mine workers died in a fatal accident on the company’s operations site. the accident occurred in the Ahafo mines site of Newmont Corp. which is located around 400km from the capital. The accident killed six contractual workers and injured four others. The investigation which followed the incident revealed that Newmont Corp had failed to comply with multiple safety mining regulations listed down by the Ministry of Lands and Natural Resources. The ministry ordered Newmont and its contractor, DRA, to be fined $2.7 million for the accident and also banned DRA from undertaking any mining projects in Ghana. Ghana is the second largest gold producer in the world. If incidents like this become frequent, Newmont may lose their mining license in Ghana altogether.
The remaining section under "Weakness" is available only in the 'Complete Report' on purchase.
Opportunity
This section is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
The PESTLE analysis for Newmont Corporation is presented below in a table followed by the detailed analysis report.
Political | Economical |
1. Ban on mining activities in several countries
2. High inflation in Argentina affecting business
| 1. High prices of gold in post-COVID economy
2. Strong US dollar increases margins for mining companies |
Social | Technological |
1. Increasing demand for gold among investors
2. Electric cars boosting demand for copper | 1. Growing recognition of copper in decarbonisation
1. Autonomous haulage fleet to ease mining operations |
Legal | Environmental |
1. Subject to regulations under the CERCLA Act
2. Operations subject to multiple worker safety laws in different geographies | 1. Aims to reduce GHG emissions by 30% by 2030
2. Operations in line with TCFD’s recommendations
3. Received multiple awards and acclamations for ESG activities |
Newmont Corporation SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
Detailed Pestle Analysis of Newmont Corporation
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
1. Growing recognition of copper in decarbonization: Copper is being recognized as an integral part in the process of decarbonization. Copper has the greatest thermal and electrical conductivity of any non-precious metal and is widely used in cables and wiring and other power products. The European Commission states than by 2050, copper can reduce EU’s carbon emissions by 25% or more than 1,100 million tons a year. The copper industry has to develop strategies to help support the decarbonization process across all sectors. Renewable energy technologies use almost four to five times more copper than fossil fuel-based means for power generation. Moreover, demand for copper is expected to more than double over the next few years owing to increasing shift to electric vehicles and renewable energy technology. Newmont increased its exposure to metals other than gold significantly in 2020, with copper, silver, zinc and lead amounting to 63 million gold equivalent ounces. They plan to increase their copper mining activities further to take advantage of this surge in demand.
The remaining section under "Technology" is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
This section is available only in the 'Complete Report' on purchase.
Major Competitors :
- Gran Colombia Gold
- Gold Resource
- Freeport Mc-Moran
- Barrick Gold Corporation
- Lumina Gold
- Northern Dynasty
- Argonaut Gold
Major Brands :
- Goldcorp
- Newmont Suriname LLC
- Newmont Golden Ridge
- Newmont Australia
- Newmont Capital Ltd.
- Newmont Holdings ULC
Newmont Corporation SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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References used in Newmont Corporation SWOT & PESTLE Analysis Report
1. 2020 ANNUAL REPORT AND FORM 10-K - https://s24.q4cdn.com/382246808/files/doc_financials/2020/ar/386219(1)_17_Newmont_AR_WR.pdf
2. Newmont Investor Presentation May 2021 - https://s24.q4cdn.com/382246808/files/doc_presentations/2021/05/Newmont-Investor-Presentation-May-2021_Finalv3.pdf
3. Ghana penalizes mining giants Newmont Gold, contractors over fatal accident | News Ghana - https://newsghana.com.gh/ghana-penalizes-mining-giants-newmont-gold-contractors-over-fatal-accident/
4. Newmont Corporation - Newmont Reports 2019 Gold Mineral Reserves of 100 Million Ounces, Largest in Company History - https://newmont.com/investors/news-release/news-details/2020/Newmont-Reports-2019-Gold-Mineral-Reserves-of-100-Million-Ounces-Largest-in-Company-History/default.aspx
5. Ghana: Govt. fines Newmont after six workers died allegedly due to company’s negligence - Business & Human Rights Resource Centre - https://www.business-humanrights.org/en/latest-news/ghana-govt-fines-newmont-after-six-workers-died-allegedly-due-to-companys-negligence/
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Newmont Corporation SWOT and PESTLE analysis has been conducted by Anangsha Saha and reviewed by senior analysts from Barakaat Consulting.
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