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Must-know: An overview of Newmont Mining

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Company overview

Newmont Mining Corporation (NEM) is the world’s second largest gold producer and the only gold company included in the S&P 500 Index and Fortune 500. Newmont is engaged in the exploration and acquisition of gold and copper properties with operations in the United States, Australia, Peru, Indonesia, Ghana, New Zealand, and Mexico.

In this series we’ll analyze various business aspects of Newmont. We’ll also look at various key drivers that will impact Newmont investors.

Newmont’s operating segments include North America, South America, Australia/New Zealand, Indonesia, and Africa. We’ll discuss each of these segments in detail in the latter parts of this series.

The company had 88.40 million ounces (or moz) of gold reserves and an aggregate land position of approximately 62,000 square kilometers as of December 31, 2013.

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Industry peers

Among its gold peers, Barrick Gold (ABX) has the highest reserves at 104.1 moz. Goldcorp (GG) has 54.4 moz. Yamana Gold (AUY) and Agnico Eagle mines (AEM) have reserves of 18.5 moz and 16.9 moz, respectively.

Investors can gain access to the gold industry through gold-backed ETFs like the Standard & Poor’s Depositary Receipt (SPDR), the SPDR Gold Shares (GLD), and the VanEck Vectors Gold Miners Index (GDX). These ETFs invest in the stocks mentioned above.

A brief history of Newmont Mining

Colonel William Boyce Thompson founded the Newmont Company in 1916 as a holding company for private acquisitions in the oil and gas and mining and minerals enterprises.

Publicly traded on the New York Stock Exchange since 1940, Newmont Mining Corporation has spent a century primarily in the natural resources industry mining gold, copper, silver, lead, zinc, lithium, uranium, coal, nickel, aggregates, and even developing oil and gas.

Newmont has steadily grown from acquisitions and diversification, often through joint ventures with other well-established companies. In the next part we’ll look at the regions that Newmont operates in and the implications that these regions have on the company’s earnings.

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