Newmont Mining Seen as Undervalued Gold Investment Opportunity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy NEM?
Source: seekingalpha
- Market Undervaluation: Newmont Mining's current stock price is perceived as undervalued compared to its actual worth, with analysts highlighting the cash value of its gold asset portfolio, which is expected to attract more investor interest.
- Operational Shift Requirement: The Ghanaian government has mandated Newmont and AngloGold to transfer mining operations to local firms by December, a policy that will impact the company's operational model and may increase compliance costs.
- Positive Financial Outlook: Analysts anticipate a strong financial performance for Newmont in Q1, particularly focusing on its cash flow and asset portfolio value, which could drive stock price appreciation as investor interest grows.
- Investment Opportunity: In the current market environment, Newmont is viewed as a “falling golden knife,” and despite facing challenges, its potential returns are attracting value-seeking investors.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NEM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NEM
Wall Street analysts forecast NEM stock price to rise
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 109.900
Low
89.00
Averages
110.85
High
125.00
Current: 109.900
Low
89.00
Averages
110.85
High
125.00
About NEM
Newmont Corporation is a gold company and a producer of copper, zinc, lead, and silver with operations and/or assets in the Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea regions. The Company's operations include Brucejack, Red Chris, Penasquito, Merian, Cerro Negro, Yanacocha, Boddington, Tanami, Cadia, Lihir, Ahafo, and NGM. The Brucejack operation includes four mining leases and six core mineral claims which cover 8,169 acres (3,306 hectares) and 337 mineral claims covering 298,795 acres (120,918 hectares). The Red Chris operation includes five mining leases which cover 12,703 acres and 199 mineral claims, encompassing an area of 164,903 acres (66,734 hectares). Penasquito includes 20 mining concessions for operations comprising 113,231 acres (45,823 hectares) and 60 mining concessions for exploration of 107,456 acres (43,486 hectares). The Merian operation includes one right of exploitation encompassing an area of 41,687 acres (16,870 hectares).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
U.S. Stocks Close Lower, Weighed Down by Tech Sector
- Tech Sector Decline: Technology stocks fell broadly as concerns about the return on massive AI investments grew, with OpenAI missing its new user and sales targets, putting pressure on shares of partners like Nvidia and Oracle, which negatively impacted market sentiment.
- Positive Economic Data: Despite the market downturn, the U.S. consumer confidence index unexpectedly rose to 92.8, surpassing expectations, indicating economic resilience that could provide support for the market.
- Surging Oil Prices: WTI crude oil prices jumped over 3% to a two-week high amid escalating tensions between the U.S. and Iran in the Strait of Hormuz, potentially exacerbating the global energy crisis and pushing inflation expectations higher.
- Fed Policy Expectations: The market anticipates that the Federal Reserve will keep interest rates unchanged at the upcoming meeting, focusing on oil prices and inflation dynamics, reflecting a cautious outlook on the economic landscape.
See More
NEWMONT CORPORATION: RETIREMENT OF CHIEF TECHNICAL OFFICER (FORM 8-K)
Retirement Announcement: The Chief Technical Officer of Newmont Corporation has announced their retirement, as detailed in a Form 8-K filing.
Impact on Company: This retirement may lead to changes in the company's technical leadership and strategic direction moving forward.
See More
US Stock Market Volatility Amid Economic Data
- Tech Stock Pressure: Technology stocks are under pressure due to concerns over the return on massive investments in artificial intelligence, as OpenAI recently failed to meet its new user and sales targets, leading to declines in shares of partners like Nvidia and Oracle, reflecting market caution regarding the future of the AI sector.
- Positive Economic Data: The US consumer confidence index unexpectedly rose to 92.8, surpassing expectations of 89.0, indicating an increase in consumer confidence that could positively impact the stock market, although overall market pressures remain.
- Surging Oil Prices: WTI crude oil prices jumped over 3% to a two-week high amid escalating tensions between the US and Iran over the Strait of Hormuz, potentially deepening the global energy crisis and impacting inflation expectations and stock performance.
- Fed Policy Expectations: The market anticipates that the Federal Reserve will maintain interest rates at the upcoming meeting, despite increased uncertainty regarding future policy adjustments due to inflation and oil price volatility, reflecting investor caution about the economic outlook.
See More
Newmont Mining Surges After Exceeding Earnings Expectations
- Earnings Beat: Newmont Mining reported a 45.9% year-over-year revenue increase to $7.31 billion in Q1, with adjusted EPS soaring 132% to $2.90, significantly surpassing analyst expectations and demonstrating robust performance amid rising gold prices.
- Share Buyback Initiative: The company repurchased $2.4 billion in shares during the quarter and announced a new $6 billion buyback program, aimed at enhancing shareholder returns and reflecting management's confidence in the company's future prospects.
- Cost Reduction: Despite anticipating lower production this year due to weather and maintenance issues, Newmont achieved an all-in sustaining cost of $1,029 per ounce, well below the $4,900 per ounce realization price, showcasing effective cost management.
- Market Outlook Caution: Management warned that sustaining costs per ounce may rise due to the closure of the Strait of Hormuz, although Newmont trades at only 13 times this year's earnings, indicating market sensitivity to gold prices.
See More
Newmont Reports Strong Q1 Earnings Beat
- Significant Earnings Growth: Newmont's Q1 revenue surged 45.9% to $7.31 billion, with adjusted earnings per share skyrocketing 132% to $2.90, both figures exceeding analyst expectations and reflecting the company's strong position in the gold market.
- Accelerated Share Buybacks: Management ramped up share repurchases amid stock price declines due to the Iran war, having repurchased $2.4 billion in shares since the last earnings release, alongside a newly authorized $6 billion buyback program aimed at enhancing shareholder returns.
- Effective Cost Control: While sustaining costs are expected to rise due to increasing oil and gas prices, Newmont's all-in sustaining costs dropped to $1,029 per ounce, significantly lower than the average realization of $4,900 per ounce for gold sales, demonstrating effective cost management.
- Optimistic Market Outlook: Despite gold prices being 15% below historical highs, Newmont trades at only 13 times this year's earnings expectations, indicating market confidence in its future profitability, while its leadership in the global gold market continues to provide a competitive edge.
See More
Newmont Reports Strong Q1 Earnings Amid Record Gold Prices
- Earnings Beat: Newmont reported a net income of $3.3 billion for Q1, with adjusted net income at $3.2 billion or $2.90 per share, significantly exceeding market expectations, showcasing strong financial performance supported by record gold prices despite lower production.
- Share Buyback Plan: The company announced a $6 billion share repurchase program, which not only boosts shareholder confidence but may also enhance earnings per share by reducing the number of shares outstanding, potentially driving the stock price higher.
- Production and Costs: Q1 attributable gold production fell to 1.3 million ounces from 1.54 million ounces year-over-year, while all-in sustaining costs dropped to $1,029 per ounce, primarily impacted by bushfires and heavy rainfall at the Boddington mine, indicating dual pressures of production challenges and cost control.
- Future Guidance: Newmont maintained its FY 2026 gold production guidance at 5.26 million ounces, expecting Q2 production to account for 23% of total attributable output, but warned that costs in Q2 would be notably higher than Q1 due to increased sustaining capital spending and operating costs, which could pressure profitability.
See More
U.S. Stocks Close Lower, Weighed Down by Tech Sector
- Tech Sector Decline: Technology stocks fell broadly as concerns about the return on massive AI investments grew, with OpenAI missing its new user and sales targets, putting pressure on shares of partners like Nvidia and Oracle, which negatively impacted market sentiment.
- Positive Economic Data: Despite the market downturn, the U.S. consumer confidence index unexpectedly rose to 92.8, surpassing expectations, indicating economic resilience that could provide support for the market.
- Surging Oil Prices: WTI crude oil prices jumped over 3% to a two-week high amid escalating tensions between the U.S. and Iran in the Strait of Hormuz, potentially exacerbating the global energy crisis and pushing inflation expectations higher.
- Fed Policy Expectations: The market anticipates that the Federal Reserve will keep interest rates unchanged at the upcoming meeting, focusing on oil prices and inflation dynamics, reflecting a cautious outlook on the economic landscape.
See More
NEWMONT CORPORATION: RETIREMENT OF CHIEF TECHNICAL OFFICER (FORM 8-K)
Retirement Announcement: The Chief Technical Officer of Newmont Corporation has announced their retirement, as detailed in a Form 8-K filing.
Impact on Company: This retirement may lead to changes in the company's technical leadership and strategic direction moving forward.
See More
US Stock Market Volatility Amid Economic Data
- Tech Stock Pressure: Technology stocks are under pressure due to concerns over the return on massive investments in artificial intelligence, as OpenAI recently failed to meet its new user and sales targets, leading to declines in shares of partners like Nvidia and Oracle, reflecting market caution regarding the future of the AI sector.
- Positive Economic Data: The US consumer confidence index unexpectedly rose to 92.8, surpassing expectations of 89.0, indicating an increase in consumer confidence that could positively impact the stock market, although overall market pressures remain.
- Surging Oil Prices: WTI crude oil prices jumped over 3% to a two-week high amid escalating tensions between the US and Iran over the Strait of Hormuz, potentially deepening the global energy crisis and impacting inflation expectations and stock performance.
- Fed Policy Expectations: The market anticipates that the Federal Reserve will maintain interest rates at the upcoming meeting, despite increased uncertainty regarding future policy adjustments due to inflation and oil price volatility, reflecting investor caution about the economic outlook.
See More
Newmont Mining Surges After Exceeding Earnings Expectations
- Earnings Beat: Newmont Mining reported a 45.9% year-over-year revenue increase to $7.31 billion in Q1, with adjusted EPS soaring 132% to $2.90, significantly surpassing analyst expectations and demonstrating robust performance amid rising gold prices.
- Share Buyback Initiative: The company repurchased $2.4 billion in shares during the quarter and announced a new $6 billion buyback program, aimed at enhancing shareholder returns and reflecting management's confidence in the company's future prospects.
- Cost Reduction: Despite anticipating lower production this year due to weather and maintenance issues, Newmont achieved an all-in sustaining cost of $1,029 per ounce, well below the $4,900 per ounce realization price, showcasing effective cost management.
- Market Outlook Caution: Management warned that sustaining costs per ounce may rise due to the closure of the Strait of Hormuz, although Newmont trades at only 13 times this year's earnings, indicating market sensitivity to gold prices.
See More
Newmont Reports Strong Q1 Earnings Beat
- Significant Earnings Growth: Newmont's Q1 revenue surged 45.9% to $7.31 billion, with adjusted earnings per share skyrocketing 132% to $2.90, both figures exceeding analyst expectations and reflecting the company's strong position in the gold market.
- Accelerated Share Buybacks: Management ramped up share repurchases amid stock price declines due to the Iran war, having repurchased $2.4 billion in shares since the last earnings release, alongside a newly authorized $6 billion buyback program aimed at enhancing shareholder returns.
- Effective Cost Control: While sustaining costs are expected to rise due to increasing oil and gas prices, Newmont's all-in sustaining costs dropped to $1,029 per ounce, significantly lower than the average realization of $4,900 per ounce for gold sales, demonstrating effective cost management.
- Optimistic Market Outlook: Despite gold prices being 15% below historical highs, Newmont trades at only 13 times this year's earnings expectations, indicating market confidence in its future profitability, while its leadership in the global gold market continues to provide a competitive edge.
See More
Newmont Reports Strong Q1 Earnings Amid Record Gold Prices
- Earnings Beat: Newmont reported a net income of $3.3 billion for Q1, with adjusted net income at $3.2 billion or $2.90 per share, significantly exceeding market expectations, showcasing strong financial performance supported by record gold prices despite lower production.
- Share Buyback Plan: The company announced a $6 billion share repurchase program, which not only boosts shareholder confidence but may also enhance earnings per share by reducing the number of shares outstanding, potentially driving the stock price higher.
- Production and Costs: Q1 attributable gold production fell to 1.3 million ounces from 1.54 million ounces year-over-year, while all-in sustaining costs dropped to $1,029 per ounce, primarily impacted by bushfires and heavy rainfall at the Boddington mine, indicating dual pressures of production challenges and cost control.
- Future Guidance: Newmont maintained its FY 2026 gold production guidance at 5.26 million ounces, expecting Q2 production to account for 23% of total attributable output, but warned that costs in Q2 would be notably higher than Q1 due to increased sustaining capital spending and operating costs, which could pressure profitability.
See More
