Core Viewpoint - Newmont Corporation's shares have increased by 26.2% over the past three months, driven by record-high gold prices and strong earnings performance [1][7]. Group 1: Stock Performance - NEM stock has outperformed the Zacks Mining – Gold industry's 17.5% rise and the S&P 500's increase of 6% [2]. - Among gold mining peers, Barrick Mining Corporation, Agnico Eagle Mines Limited, and Kinross Gold Corporation have gained 46.7%, 12.9%, and 29.1%, respectively, over the same period [2]. Group 2: Technical Indicators - NEM has been trading above its 200-day simple moving average (SMA) since April 9, 2025, indicating a long-term uptrend [5]. - The 50-day SMA is higher than the 200-day SMA, following a golden crossover on April 16, 2025, suggesting a bullish trend [5]. Group 3: Growth Projects and Divestitures - 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 expanding production capacity [10]. - Ahafo North is expected to produce between 275,000 and 325,000 ounces of gold annually over an estimated mine life of 13 years, with production ramping up to full capacity in 2026 [11]. - The company completed its non-core divestiture program in April 2025, generating around $470 million from the sale of non-core assets [12]. - Newmont anticipates generating $3 billion in after-tax cash proceeds from its 2025 divestiture program to support its capital allocation strategy [13]. Group 4: Financial Health - Newmont has a strong liquidity position of $9.6 billion, including cash and cash equivalents of around $5.6 billion [14]. - Free cash flow more than doubled year over year to a record $1.6 billion, with net cash from operating activities increasing by 40% to $2.3 billion [14]. - The company has distributed over $5.7 billion to shareholders through dividends and share repurchases over the past two years [15]. Group 5: Gold Price Dynamics - Gold prices surged about 65% last year, currently trading above $4,600 per ounce, supported by central bank buying and expectations of rate cuts [18][19]. - Increased geopolitical tensions and macroeconomic uncertainty are expected to sustain favorable conditions for gold prices [19]. Group 6: Production Outlook - Newmont reported a 15% year-over-year and 4% sequential decline in gold production for Q3 2025, reaching 1.42 million ounces [21]. - The company expects fourth-quarter production of 1.415 million ounces, indicating a roughly 25% year-over-year decline [22]. Group 7: Earnings Estimates - Newmont's earnings estimates for 2025 have been revised higher, with the Zacks Consensus Estimate currently pegged at $6.32, suggesting year-over-year growth of 81.6% [23]. Group 8: Valuation - Newmont is currently trading at a forward price/earnings of 15.42X, a premium to the industry's average of 14.66X [25]. Group 9: Investment Recommendation - Newmont presents an attractive investment case backed by a robust portfolio of growth projects and solid financial health, despite challenges from lower production [26].

Core Insights - Newmont Corporation (NEM) is focusing on streamlining its portfolio by divesting non-core assets to concentrate on Tier 1 assets, enhancing its liquidity and capital allocation strategy [1][2][4] Group 1: Divestitures and Financial Impact - NEM has completed the sale of 43 million common shares in Orla Mining Ltd., generating gross proceeds of $439 million, marking a complete exit from Orla [1][9] - The company has agreed to sell its Coffee Project in Yukon, Canada, for up to $150 million, with the transaction expected to close in Q4 2025 [2][9] - NEM anticipates generating $3 billion in after-tax cash proceeds from its 2025 divestiture program, which will support its capital allocation strategy [3] Group 2: Strategic Focus and Growth Projects - The asset streamlining is aimed at concentrating capital on high-return, long-life assets, which are essential for Newmont's competitive edge and long-term sustainability [4] - The divestitures will free up capital for investment in key growth projects, including Tanami Expansion 2, Ahafo North expansion, and Cadia Panel Caves, expected to enhance production capacity and extend mine life [5] Group 3: Market Performance and Valuation - NEM shares have increased by 124.9% year to date, outperforming the Zacks Mining – Gold industry's rise of 112.5%, largely due to a rally in gold prices [8] - The Zacks Consensus Estimate for NEM's earnings in 2025 and 2026 indicates a year-over-year rise of 56.3% and 1.5%, respectively, with EPS estimates trending higher [11] - NEM is currently trading at a forward 12-month earnings multiple of 15.21, which is approximately 4.4% below the industry average of 15.91 [12]

Core Viewpoint - Newmont Corporation's shares have increased by 39.2% over the past six months, driven by rising gold prices amid trade and geopolitical uncertainties, outperforming both the Zacks Mining – Gold industry and the S&P 500 [1][6]. Performance Summary - NEM stock has outperformed the Zacks Mining – Gold industry's increase of 38.5% and the S&P 500's rise of 3.9% [1]. - Compared to peers, Barrick Mining Corporation, Agnico Eagle Mines Limited, and Kinross Gold Corporation have gained 30.1%, 39.5%, and 49.7%, respectively, over the same period [1]. Technical Indicators - Technical indicators show bullish momentum for NEM, with the stock trading above its 50-day and 200-day simple moving averages (SMA), indicating a long-term uptrend [4][5]. Financial Health - Newmont recorded $1.2 billion in free cash flow in Q1 2025, reflecting strong financial health that supports growth initiatives [6]. - The company has a liquidity position of $8.8 billion, including approximately $4.7 billion in cash and cash equivalents, and operating cash flow from continuing operations increased by roughly 162% year-over-year to around $2 billion in Q1 [12]. Growth Projects - Newmont is investing in growth projects such as the Tanami Expansion 2 in Australia and the Ahafo North expansion in Ghana, which are expected to enhance production capacity and extend mine life [9]. - The acquisition of Newcrest Mining Limited has created a strong portfolio with a multi-decade production profile, expected to deliver significant value and synergies, achieving $500 million in annual run-rate synergies post-acquisition [10]. Strategic Divestitures - Newmont has divested non-core businesses to focus on Tier 1 assets, completing a divestiture program in April 2025 that is expected to generate $3 billion in after-tax cash proceeds [11]. - Recent sales of shares in Greatland Resources Limited and Discovery Silver Corp are projected to yield around $470 million after taxes and commissions [11]. Gold Price Dynamics - Gold prices have increased by approximately 27% this year, reaching a record high of $3,500 per ounce on April 22, 2025, driven by trade tensions and central bank purchases [13][15]. - Current gold prices are hovering above $3,300 per ounce, supported by safe-haven demand amid geopolitical uncertainties [15]. Dividend and Earnings Outlook - NEM offers a dividend yield of 1.7% with a payout ratio of 24%, indicating a sustainable dividend backed by strong cash flows [16]. - Earnings estimates for 2025 have been revised upward, with a Zacks Consensus Estimate suggesting a year-over-year growth of 31.3% [17]. Valuation Metrics - Newmont is trading at a forward price/earnings ratio of 12.24X, slightly below the industry average of 12.45X, indicating a competitive valuation [19]. Investment Case - Newmont presents a compelling investment opportunity due to its robust growth projects, strong financial health, and rising earnings estimates, making it a prudent choice for investors looking to capitalize on favorable gold market conditions [23].