Newmont Shares Plunge 5.9% Amid Falling Gold Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: Fool
- Reasons for Gold Price Drop: Gold prices have been declining due to U.S. inflation exceeding 4% in May for the first time since April 2023, coupled with rising oil and gas prices amid escalating tensions in the Middle East, leading to a drop below $4,100 per ounce, the lowest since November 2025, which directly impacts gold-related stocks.
- Newmont Stock Plunge: Newmont (NEM) shares have tumbled 20% in the past month, despite the company's strong operational performance as the largest U.S. gold producer, generating a record quarterly free cash flow of $3.1 billion in Q1 and doubling its share buyback program with an additional $6 billion authorized.
- Production Outlook Downgrade: Newmont expects its gold production to decrease from 5.7 million ounces in 2025 to 5.3 million ounces in 2026 due to planned sequencing at two mines and lower expected grades at another, making the company particularly vulnerable under current gold price conditions.
- Rising Cost Risks: The company anticipates a significant increase in all-in sustaining costs this year, creating a trifecta of pressures with falling prices; if gold prices continue to decline, the combination of lower output, higher costs, and weaker pricing could severely impact Newmont's profits and cash flows.
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: 100.230
Low
89.00
Averages
110.85
High
125.00
Current: 100.230
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.
US Stocks Surge as Tech Leads Gains Amid Peace Deal
- Strong Market Performance: The S&P 500 rose by 1.65%, the Nasdaq 100 surged by 3.06%, and the Dow Jones Industrial Average hit a new record high, reflecting investor optimism about market prospects, particularly driven by gains in technology stocks.
- Crude Oil Price Plunge: WTI crude oil prices fell over 4% to a three-month low due to the US-Iran peace agreement and the reopening of the Strait of Hormuz, easing inflation expectations and boosting risk appetite in the equity markets.
- Weak Economic Data: The US June Empire Manufacturing Survey index dropped to 5.7, below the expected 13.7, indicating weakness in manufacturing that could pressure stocks, yet simultaneously supported gains in Treasury bonds.
- Tech Stocks Lead Gains: Chipmakers and AI infrastructure stocks performed strongly, with the iShares Semiconductor ETF rising over 5% and Western Digital up more than 15%, demonstrating strong market confidence in the technology sector.
See More
Newmont Appoints New CFO Amid Leadership Changes
- Executive Changes: Newmont has appointed Brian Tabolt as the new CFO, replacing interim finance head Peter Wexler, a move aimed at enhancing the company's financial management efficiency.
- Background of Appointment: Tabolt joined Newmont in 2021 and previously served as chief accounting officer and group head of finance, bringing extensive financial management experience that will aid the company in improving capital discipline and performance.
- Leadership Restructuring: This appointment comes alongside other senior leadership changes, including Mark Rodgers as COO and David Thornton as CTO, reflecting the company's commitment to strategic execution.
- Strategic Objectives: As the world's largest gold mining company, Newmont is focused on strengthening capital management and operational performance to address market challenges and achieve sustainable growth.
See More
Newmont Appoints New Executive Team
- Financial Leadership Change: Newmont has appointed Brian Tabolt as CFO, who brings over 20 years of finance experience and has served as the chief accounting officer since 2021, which is expected to enhance the company's financial management capabilities through his extensive background.
- Operational Management Appointment: Mark Rodgers has been named COO, bringing over 30 years of mining experience and currently serving as managing director for Africa and Asia Pacific, which is anticipated to optimize the company's operational efficiency leveraging his industry expertise.
- Technical Leadership Update: David Thornton has been appointed CTO, with over 25 years of mining experience and currently serving as managing director for the Americas, expected to drive technological innovation and project execution through his technical expertise.
- Positive Stock Reaction: Newmont's shares rose by 5.56% following the announcement of the new executive team, reflecting market confidence in the leadership changes and potentially enhancing investor optimism regarding the company's future growth.
See More
US Stocks Surge as Tech Leads Gains Amid Peace Deal
- Strong Market Performance: The S&P 500 rose by 1.67% and the Nasdaq 100 by 2.79%, with the Dow Jones Industrial Average hitting a new record high, reflecting optimistic market sentiment driven primarily by gains in technology stocks.
- Crude Oil Price Plunge: WTI crude oil prices fell over 5% to a three-month low due to the US-Iran peace agreement and the reopening of the Strait of Hormuz, easing inflation expectations and providing support for equity markets.
- Weak Economic Data: The US June Empire Manufacturing Index dropped to 5.7, below the expected 13.7, while May manufacturing production remained unchanged, and the June NAHB housing market index unexpectedly fell to 35, indicating fragility in the economic recovery that could impact future market confidence.
- Tech Stocks Lead Gains: Chipmakers and AI infrastructure stocks surged, with the iShares Semiconductor ETF up over 4% and Western Digital soaring more than 14%, demonstrating strong market confidence in the tech sector, particularly amid rising risk appetite.
See More
US Stocks Surge as Oil Prices Plunge Following US-Iran Peace Deal
- Strong Market Performance: The S&P 500 index rose by 1.62%, the Nasdaq 100 increased by 2.73%, and the Dow Jones Industrial Average reached a new high, reflecting investor optimism about market prospects, particularly driven by gains in technology stocks.
- Impact of Plummeting Oil Prices: WTI crude oil prices fell over 5% to a three-month low, easing inflation expectations and pushing global bond yields lower, which provided support for the stock market, especially benefiting airline and mining stocks.
- Weak Economic Data: The US June Empire manufacturing index dropped to 5.7, below the expected 13.7, indicating signs of economic slowdown; however, the market remains optimistic about future economic recovery.
- Tech Stocks Lead Gains: Chipmakers and AI infrastructure stocks performed strongly, with the iShares Semiconductor ETF up over 4% and Western Digital soaring more than 15%, indicating a robust recovery in the tech sector and an increase in investor risk appetite.
See More
Newmont Corporation Acquires LunR Shares via Dividend
- Share Acquisition: Newmont Corporation, through its wholly owned subsidiary, has acquired 16,099,564 common shares of LunR, representing approximately 13.32% of LunR's issued shares, indicating a significant investment position in LunR.
- Dividend Distribution: Lundin Gold declared a special dividend on May 28, 2026, distributing its LunR shares to eligible shareholders as a dividend-in-kind, with Newmont receiving these shares without cash consideration, reflecting its long-term investment strategy in LunR.
- Investment Evaluation: Newmont stated it will periodically assess its investment in LunR and may adjust its holdings based on market conditions and other factors, a flexible investment strategy that could impact Newmont's future financial performance.
- Regulatory Disclosure: This announcement complies with early warning provisions of Canadian securities laws, with Newmont set to file an early warning report, ensuring transparency and compliance, thereby enhancing investor confidence.
See More
US Stocks Surge as Tech Leads Gains Amid Peace Deal
- Strong Market Performance: The S&P 500 rose by 1.65%, the Nasdaq 100 surged by 3.06%, and the Dow Jones Industrial Average hit a new record high, reflecting investor optimism about market prospects, particularly driven by gains in technology stocks.
- Crude Oil Price Plunge: WTI crude oil prices fell over 4% to a three-month low due to the US-Iran peace agreement and the reopening of the Strait of Hormuz, easing inflation expectations and boosting risk appetite in the equity markets.
- Weak Economic Data: The US June Empire Manufacturing Survey index dropped to 5.7, below the expected 13.7, indicating weakness in manufacturing that could pressure stocks, yet simultaneously supported gains in Treasury bonds.
- Tech Stocks Lead Gains: Chipmakers and AI infrastructure stocks performed strongly, with the iShares Semiconductor ETF rising over 5% and Western Digital up more than 15%, demonstrating strong market confidence in the technology sector.
See More
Newmont Appoints New CFO Amid Leadership Changes
- Executive Changes: Newmont has appointed Brian Tabolt as the new CFO, replacing interim finance head Peter Wexler, a move aimed at enhancing the company's financial management efficiency.
- Background of Appointment: Tabolt joined Newmont in 2021 and previously served as chief accounting officer and group head of finance, bringing extensive financial management experience that will aid the company in improving capital discipline and performance.
- Leadership Restructuring: This appointment comes alongside other senior leadership changes, including Mark Rodgers as COO and David Thornton as CTO, reflecting the company's commitment to strategic execution.
- Strategic Objectives: As the world's largest gold mining company, Newmont is focused on strengthening capital management and operational performance to address market challenges and achieve sustainable growth.
See More
Newmont Appoints New Executive Team
- Financial Leadership Change: Newmont has appointed Brian Tabolt as CFO, who brings over 20 years of finance experience and has served as the chief accounting officer since 2021, which is expected to enhance the company's financial management capabilities through his extensive background.
- Operational Management Appointment: Mark Rodgers has been named COO, bringing over 30 years of mining experience and currently serving as managing director for Africa and Asia Pacific, which is anticipated to optimize the company's operational efficiency leveraging his industry expertise.
- Technical Leadership Update: David Thornton has been appointed CTO, with over 25 years of mining experience and currently serving as managing director for the Americas, expected to drive technological innovation and project execution through his technical expertise.
- Positive Stock Reaction: Newmont's shares rose by 5.56% following the announcement of the new executive team, reflecting market confidence in the leadership changes and potentially enhancing investor optimism regarding the company's future growth.
See More
US Stocks Surge as Tech Leads Gains Amid Peace Deal
- Strong Market Performance: The S&P 500 rose by 1.67% and the Nasdaq 100 by 2.79%, with the Dow Jones Industrial Average hitting a new record high, reflecting optimistic market sentiment driven primarily by gains in technology stocks.
- Crude Oil Price Plunge: WTI crude oil prices fell over 5% to a three-month low due to the US-Iran peace agreement and the reopening of the Strait of Hormuz, easing inflation expectations and providing support for equity markets.
- Weak Economic Data: The US June Empire Manufacturing Index dropped to 5.7, below the expected 13.7, while May manufacturing production remained unchanged, and the June NAHB housing market index unexpectedly fell to 35, indicating fragility in the economic recovery that could impact future market confidence.
- Tech Stocks Lead Gains: Chipmakers and AI infrastructure stocks surged, with the iShares Semiconductor ETF up over 4% and Western Digital soaring more than 14%, demonstrating strong market confidence in the tech sector, particularly amid rising risk appetite.
See More
US Stocks Surge as Oil Prices Plunge Following US-Iran Peace Deal
- Strong Market Performance: The S&P 500 index rose by 1.62%, the Nasdaq 100 increased by 2.73%, and the Dow Jones Industrial Average reached a new high, reflecting investor optimism about market prospects, particularly driven by gains in technology stocks.
- Impact of Plummeting Oil Prices: WTI crude oil prices fell over 5% to a three-month low, easing inflation expectations and pushing global bond yields lower, which provided support for the stock market, especially benefiting airline and mining stocks.
- Weak Economic Data: The US June Empire manufacturing index dropped to 5.7, below the expected 13.7, indicating signs of economic slowdown; however, the market remains optimistic about future economic recovery.
- Tech Stocks Lead Gains: Chipmakers and AI infrastructure stocks performed strongly, with the iShares Semiconductor ETF up over 4% and Western Digital soaring more than 15%, indicating a robust recovery in the tech sector and an increase in investor risk appetite.
See More
Newmont Corporation Acquires LunR Shares via Dividend
- Share Acquisition: Newmont Corporation, through its wholly owned subsidiary, has acquired 16,099,564 common shares of LunR, representing approximately 13.32% of LunR's issued shares, indicating a significant investment position in LunR.
- Dividend Distribution: Lundin Gold declared a special dividend on May 28, 2026, distributing its LunR shares to eligible shareholders as a dividend-in-kind, with Newmont receiving these shares without cash consideration, reflecting its long-term investment strategy in LunR.
- Investment Evaluation: Newmont stated it will periodically assess its investment in LunR and may adjust its holdings based on market conditions and other factors, a flexible investment strategy that could impact Newmont's future financial performance.
- Regulatory Disclosure: This announcement complies with early warning provisions of Canadian securities laws, with Newmont set to file an early warning report, ensuring transparency and compliance, thereby enhancing investor confidence.
See More
