Newmont's Q2 Output Falls: Can Tier-1 Mines Deliver a Stronger 2H?

Core Insights - Newmont Corporation (NEM) reported an 8% year-over-year decline in gold production for Q2 2025, reaching 1.48 million ounces, attributed to the divestment of non-core assets [1][7] - The company anticipates maintaining its 2025 gold production target at approximately 5.9 million ounces, with Q3 production expected to align with Q2 levels despite mixed performance across various mines [2][3][7] - Newmont's strategy focuses on transitioning to a high-quality, Tier-1 portfolio, but uncertainties remain regarding the ability to meet full-year production targets due to cost pressures and capital requirements [3][7] Company Performance - Newmont's Q2 gold output of 1.48 million ounces is the lowest since Q3 2023, marking the second consecutive quarter of production decline [1][7] - The company's shares have increased by 80.7% year-to-date, outperforming the Zacks Mining – Gold industry's rise of 63.7% [6] - NEM is currently trading at a forward 12-month earnings multiple of 13.13, slightly above the industry average of 12.87 [8] Earnings Forecast - The Zacks Consensus Estimate for NEM's earnings in 2025 suggests a year-over-year increase of 46.6%, with a modest rise of 0.6% expected in 2026 [9]