Core Insights - Newmont Corporation's shares have surged 79% in the past six months, driven by rising gold prices and strong earnings performance, supported by operational efficiency and a robust Tier 1 portfolio [1][7]. Stock Performance - NEM stock has outperformed the Zacks Mining – Gold industry's growth of 54.8% and the S&P 500's increase of 16% [2]. - Among peers, Barrick Mining Corporation, Agnico Eagle Mines Limited, and Kinross Gold Corporation have seen stock increases of 104.4%, 42%, and 81.7%, respectively, over the same period [2]. Technical Indicators - Technical indicators show bullish momentum for NEM, with the stock trading above its 200-day simple moving average (SMA) since April 9, 2025, indicating a long-term uptrend [5]. - A golden crossover occurred on April 16, 2025, with the 50-day SMA surpassing the 200-day SMA, further indicating a bullish trend [5]. Growth Projects and Portfolio Actions - Newmont is investing in growth projects, including the Ahafo North expansion in Ghana and the Cadia Panel Caves and Tanami Expansion 2 in Australia, aimed at increasing production capacity and extending mine life [10]. - The Ahafo North project is expected to produce between 275,000 and 325,000 ounces of gold annually over an estimated mine life of 13 years, with an initial production of 50,000 ounces expected this year [11]. - The acquisition of Newcrest Mining Limited has created a leading portfolio with a multi-decade production profile in favorable mining jurisdictions, achieving $500 million in annual run-rate synergies post-acquisition [12]. Strategic Focus and Divestitures - Newmont has divested non-core businesses to focus on Tier 1 assets, completing its non-core divestiture program in April 2025, which included the sale of operations in Ghana and Canada [13]. - The company anticipates generating $3 billion in after-tax cash proceeds from its 2025 divestiture program, supporting its capital allocation strategy [14]. Financial Health - Newmont has a strong liquidity position of $9.6 billion, including cash and cash equivalents of approximately $5.6 billion, and its free cash flow has more than doubled year-over-year to $1.6 billion [15]. - Over the past two years, Newmont has returned more than $5.7 billion to shareholders through dividends and share repurchases, with a commitment to deleveraging and reducing debt by roughly $2 billion [16]. Gold Price Dynamics - Gold prices have increased approximately 60% this year, driven by aggressive trade policies and central bank accumulation of gold reserves, which are expected to sustain the upward trend [17][18]. - The Federal Reserve's interest rate reductions and concerns over the labor market have contributed to the rally, pushing gold prices above $4,000 per ton for the first time [18]. Earnings Estimates and Valuation - Newmont's earnings estimates for 2025 have risen, with the Zacks Consensus Estimate currently at $6.06, indicating a year-over-year growth of 74.1% [20][21]. - The stock is trading at a forward price/earnings ratio of 12.56X, slightly below the industry's average of 12.74X, and offers a dividend yield of 1.1% with a payout ratio of 17% [19][21]. Investment Outlook - Newmont presents a compelling investment opportunity, supported by a strong pipeline of growth projects, solid Tier 1 operations, and a healthy financial foundation [24]. - The strategic focus on high-return, long-life assets, along with rising earnings estimates and favorable gold market trends, positions Newmont as an attractive option for investors [24].

Industry Overview - The Zacks Mining - Gold industry has experienced a remarkable 60% growth in gold prices this year, with prices currently above $4,200 per ounce, driven by geopolitical uncertainty and central bank purchases [1][4] - The industry involves complex processes of gold extraction from mines, which can take 10-20 years to yield refined material [3] Major Trends - Gold prices are expected to continue rising due to a demand-supply imbalance, with increasing demand from sectors like energy, healthcare, and technology, particularly from India and China, which account for about 50% of consumer demand [6] - The industry is facing high production costs due to a skilled workforce shortage and rising expenses for electricity and materials, prompting companies to adopt cost-reduction strategies and digital innovations [5] Performance Metrics - The Mining-Gold Industry has outperformed the broader sector and the S&P 500, with a collective growth of 113.2% over the past year compared to the sector's 14.5% and the S&P 500's 16.3% [9] - The industry is currently trading at an EV/EBITDA of 9.45X, significantly lower than the S&P 500's 18.74X and the Basic Materials sector's 14.36X [11] Company Highlights - **Newmont Mining (NEM)**: Expected to produce 5.6 million ounces in 2025, with a record free cash flow of $1.6 billion in Q3 2025. The company has reduced debt by $2 billion and has a strong cash position of $5.6 billion [17][18] - **Agnico Eagle Mines (AEM)**: Targeting gold production of 3.3-3.5 million ounces, with Q3 free cash flow nearly doubling year-over-year to $1.2 billion. The company has a net cash position of $2.2 billion [21][22] - **Kinross Gold (KGC)**: Reported record free cash flow of $686.7 million in Q3 2025, with a strong production profile and promising development projects [25][26] - **Royal Gold (RGLD)**: Achieved record revenues and cash flows in Q3 2025, with significant acquisitions expected to increase gold equivalent ounces production by 26% [30] - **Centerra Gold (CGAU)**: Generated nearly $100 million in free cash flows in Q3 2025, with a strong cash balance of $562 million and a long-life asset at Mount Milligan [32][33]

Core Viewpoint - Investors are evaluating Newmont Corporation (NEM) and Royal Gold (RGLD) for potential undervalued stock opportunities, with a focus on valuation metrics and earnings outlooks [1]. Group 1: Company Overview - Both Newmont Corporation and Royal Gold currently hold a Zacks Rank of 1 (Strong Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3]. - The Zacks Rank strategy targets companies with favorable earnings trends, which is a key consideration for investors [2]. Group 2: Valuation Metrics - NEM has a forward P/E ratio of 14.69, while RGLD has a higher forward P/E of 24.90, suggesting NEM may be more attractively priced [5]. - NEM's PEG ratio is 0.62, compared to RGLD's PEG ratio of 0.76, indicating NEM's expected earnings growth is more favorable relative to its price [5]. - NEM's P/B ratio stands at 2.91, while RGLD's P/B ratio is significantly higher at 4.9, further supporting NEM as the more undervalued option [6]. - Based on these valuation metrics, NEM is assigned a Value grade of B, whereas RGLD receives a Value grade of D, highlighting NEM as the superior value option at this time [6].

Newmont Corporation (NYSE:NEM) is one of the Most Undervalued Stocks to Buy Right Now. On November 24, BofA analyst Lawson Winder lifted the price target on the company’s stock to $118 from $115, while keeping a “Buy” rating, as reported by The Fly. The analyst highlighted that the firm has been refreshing its price forecasts for North American Metals & Mining stocks that are under its coverage. BofA Raises PT on Newmont (NEM) Stock As per the firm, the macro backdrop remains challenging because of China ...

Core Insights - Newmont Corporation has experienced a 135% year-to-date increase in stock price in 2025, primarily driven by rising gold prices as investors seek safe-haven assets amid macroeconomic uncertainty [2] - The company has strategically refined its portfolio by divesting non-essential assets, which has raised hundreds of millions of dollars and improved operational efficiency, thereby enhancing cash flow and margins [2][3] - Newmont's financial position has significantly improved, with nearly zero net debt and substantial free cash flow, allowing for ongoing dividends, share repurchases, and reinvestment in core assets [3][5] Financial Performance - Revenue growth for Newmont has been robust, increasing by approximately 26.6% over the last twelve months, with an average growth rate of about 23.9% over the past three years [4] - The company's operating cash flow margin is around 32.6%, and its long-term operating margin is near 23.9%, indicating strong operational performance for a mining firm [4] Strategic Positioning - Newmont is well-positioned to benefit from potential upward momentum in gold prices, supported by its minimal debt, strong cash flow, and efficient operations [5] - The focus on core "Tier-1" mines and continuous productivity enhancements suggests potential for steady output and margin strength, even in the face of rising costs [6] Risks and Vulnerabilities - The company remains susceptible to fluctuations in commodity prices, which could impact profitability if gold prices decline due to factors such as a strengthening dollar or changes in global interest rates [6] - Geopolitical, regulatory, and environmental risks associated with global operations could also influence future outcomes, regardless of broader gold market trends [7]

Core Insights - Newmont Corporation has experienced a 135% year-to-date increase in stock price in 2025, primarily driven by rising gold prices as investors seek safe-haven assets amid macroeconomic uncertainty [2] - The company has strategically refined its portfolio by divesting non-essential assets, which has raised hundreds of millions of dollars and improved operational efficiency, thereby enhancing margins and cash flow [2][3] - Newmont's financial position has significantly improved, with nearly zero net debt and substantial free cash flow, allowing for ongoing dividends, share repurchases, and reinvestment in core assets [3][5] Financial Performance - Revenue growth for Newmont has been robust, increasing by approximately 26.6% over the last twelve months, with an average growth rate of about 23.9% over the past three years [4] - The company's operating cash flow margin is around 32.6%, and its long-term operating margin is approximately 23.9%, indicating strong financial health for a mining firm [4] Strategic Positioning - Newmont is well-positioned to benefit from potential continued increases in gold prices due to its minimal debt, strong cash flow, and efficient operations [6] - The focus on core "Tier-1" mines and ongoing productivity enhancements suggest that Newmont can maintain steady output and margin strength even in the face of rising costs [7] Market Risks - The company remains susceptible to fluctuations in commodity prices, particularly gold, which could impact profitability if prices decline due to factors like a strengthening dollar or changes in global interest rates [7] - Geopolitical, regulatory, and environmental risks associated with global operations could also influence future outcomes, regardless of broader gold market trends [8]

An aerial view of the Camino Rojo site. Credit: Orla Mining. Shares of Orla Mining (TSX: OLA) plunged on Friday after it was announced that Fairfax Financial Holdings (TSX: FFH, FFH.U) sold nearly half of its shares in the company at a below-market price.The Toronto-based investment firm sold a total of 25 million shares at a price of C$17.6435 per share for total proceeds of approximately C$441.1 million, Orla said in a press release.Prior to the sale, Fairfax held, through its insurance company subsidiari ...

Core Insights - Newmont (NEM) is adapting to the current economic context, indicating a focus on stability in an uncertain world [1] Group 1: Company Analysis - The company is perceived as a safe investment option amidst economic uncertainty, attracting investor interest [1] - Newmont's performance is analyzed beyond mere financial metrics, emphasizing the importance of macroeconomic dynamics in valuation [1] Group 2: Market Context - The article reflects on the broader economic environment, suggesting that investors are increasingly cautious and seeking safe havens [1] - The author's background in Argentina provides insights into complex market dynamics, which may influence the analysis of Newmont and similar companies [1]

Core Insights - Newmont (NEM) is adapting to the current economic context, indicating a focus on stability in an uncertain world [1] Group 1: Company Analysis - The company is perceived as a safe investment option amidst economic uncertainty, attracting investor interest [1] - Newmont's performance is analyzed beyond mere financial metrics, emphasizing the importance of macroeconomic dynamics in company valuation [1] Group 2: Market Context - The article reflects on the broader economic environment, highlighting the complexities and dynamics of markets, particularly in Latin America [1]

Newmont Corporation (NYSE:NEM) is one of the stocks Jim Cramer was recently asked about. A caller asked if the stock is a buy, given that analysts are raising price targets. Cramer commented, “I like Newmont. Now, I do like Agnico better, but Newmont is real, real good.” Image by Csaba Nagy from Pixabay Newmont Corporation (NYSE:NEM) is a mining company that produces and explores gold, while also seeking copper, silver, zinc, lead, and other metals. Cramer mentioned the stock during the October 24 episo ...