Why Newmont Stock Jumped 26% Amid Market Volatility This Week

Core Viewpoint - Newmont stock is expected to rally further as gold prices reach record highs, with analysts optimistic about the company's performance amid rising gold prices and operational improvements [1][4]. Company Performance - Newmont is the world's largest gold producer, projected to produce 6.8 million attributable ounces of gold in 2024, alongside other minerals like silver, copper, zinc, and lead [3]. - The company experienced a significant turnaround in 2024, with sales increasing by 57% following the acquisition of Newcrest in 2023, resulting in a net profit of $3.4 billion compared to a net loss of nearly$2.5 billion in 2023 [6]. Stock Analysis - Analyst Daniel Major upgraded Newmont's stock rating from neutral to buy and raised the price target from $50 to$60 per share, indicating a potential 20% upside from the stock's closing price on April 10 [5]. - Newmont stock has underperformed compared to the industry and gold prices in recent years due to operational challenges and high costs, but the outlook for 2025 is more positive with expectations of increased sales driven by soaring gold prices [6][8]. Market Context - Gold prices have surged, reaching over $3,220 per ounce, with predictions from UBS analysts suggesting a potential rise to$3,500 per ounce by 2026, driven by investor demand amid economic uncertainties [4]. - The broader stock market has seen volatility, but Newmont stock has provided stability with solid gains, hitting a weekly intraday high of 26% [2]. Financial Strategy - Newmont is actively reducing debt and anticipates raising approximately $2.5 billion in net cash proceeds from asset sales this year, with expectations of returning much of this cash to shareholders through share buybacks [7].