Newmont Stock Drops 20.3% Amid Falling Gold Prices
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 27 2026
0mins
Should l Buy NEM?
Source: NASDAQ.COM
- Gold Price Decline: Newmont (NYSE: NEM) saw its stock drop 20.3% over the month ending March 24, a decline nearly 430 basis points worse than the largest gold ETF, indicating a direct impact from falling gold prices on mining stocks.
- Cost Structure Impact: The volatility in gold prices affects mining companies' profitability, as their relatively fixed cost structures mean extraction costs do not decrease in tandem with gold prices, exacerbating profit fluctuations in the current market environment.
- Strong Dollar and Rising Yields: A strong dollar and rising bond yields diminish gold's appeal, leading investors to prefer interest-bearing Treasuries, which pressures gold prices and subsequently affects the performance of mining companies like Newmont.
- Geopolitical Risks: The conflict in Iran has pushed oil prices near $100 per barrel, increasing energy costs for mining companies, which account for 20% to 30% of Newmont's operational expenses, further straining its financial position.
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Analyst Views on NEM
Wall Street analysts forecast NEM stock price to fall
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 111.850
Low
89.00
Averages
110.85
High
125.00
Current: 111.850
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.
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- Gold Market Opportunities: Precious metals, particularly gold, have been hot investments over the past year, and as a leading miner, Newmont is reaping the benefits of high operating leverage in its capital expenditure-heavy portfolio, showcasing its competitive edge in the gold market.
- Upgrade Impact: Recently upgraded to a “buy” rating by JR Research, analysts see Newmont's valuation as below historical averages following a market selloff, with production growth projects poised to support future expansion, enhancing its investment appeal.
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- Market Reaction: This upgrade and price target increase may stimulate demand for Newmont shares in the market, enhancing its liquidity and overall market performance.
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- Earnings Announcement: Newmont is set to release its Q1 earnings on April 23 after market close, with consensus EPS estimates at $2.22, reflecting a 77.6% year-over-year increase, and revenue expectations at $6.44 billion, indicating strong financial performance.
- Enhanced Industry Position: Analysts argue that Newmont has not only improved its balance sheet but also simplified its portfolio, securing a stronger financial position while preserving the industry's largest reserve base, thereby establishing a clearer framework for converting cash into per-share value.
- Gold Market Opportunities: Precious metals, particularly gold, have been hot investments over the past year, and as a leading miner, Newmont is reaping the benefits of high operating leverage in its capital expenditure-heavy portfolio, showcasing its competitive edge in the gold market.
- Upgrade Impact: Recently upgraded to a “buy” rating by JR Research, analysts see Newmont's valuation as below historical averages following a market selloff, with production growth projects poised to support future expansion, enhancing its investment appeal.
See More
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- Price Target Set: The average price target set by analysts is $144.35, reflecting an optimistic outlook on the company's stock price, potentially driving the stock closer to this target.
- Market Reaction: This upgrade and price target increase may stimulate demand for Newmont shares in the market, enhancing its liquidity and overall market performance.
- Investor Confidence: The positive rating from analysts underscores recognition of Newmont's ongoing competitiveness in the gold and silver markets, potentially bolstering investor confidence in its long-term investment value.
See More
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Target Price Increase: Argus Research has raised its target price for a specific stock to $125 from $94.
Market Implications: This adjustment reflects a positive outlook on the stock's performance and potential growth in the market.
See More
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- Surge in Hybrid Sales: According to a report by Care Ratings, hybrid vehicle sales in India reached 362,866 units in the financial year ending March 2026, up nearly fourfold from 98,010 units in 2020, indicating a strong consumer demand for better fuel efficiency, with hybrids expected to account for 10% of total car sales by FY2027.
- Limited EV Market Share: Despite the rising demand for electric vehicles, only 131,865 units are projected to be sold by March 2026, reflecting a consumer preference for hybrids due to concerns over inadequate charging infrastructure.
- Market Leaders: Toyota and Maruti Suzuki dominate the hybrid vehicle market in India, with Toyota selling 366,896 cars including 91,536 strong hybrids in FY2026, while Maruti sold 20,466 strong hybrids, further solidifying their market positions.
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See More
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- Compliance Deadline: The regulator has issued letters to the three companies requiring full compliance with contract mining regulations by December 2026, despite Newmont's request for an extension to 2027 being denied, indicating the regulator's strict stance on compliance.
- Market Response: Almost all large mining companies have already transitioned to contract mining, with only these three firms still employing their own staff, reflecting Ghana's tightening policies in the mining sector aimed at increasing national revenue and fostering local economic development.
- Consequences of Non-Compliance: Miners failing to adhere to the new regulations will face hefty fines and potential mine shutdowns, which will significantly impact Ghana's mining landscape and promote the rise of local contractors.
See More
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Extension Requested: A request has been made for an extension until 2027 to comply with certain regulations.
Citing Constraints: The request cites listing-related constraints as the reason for the extension.
See More
