Newmont Targets Margin Expansion Amid Record Gold Price Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NEM?
Source: Yahoo Finance
- Profit Decline Factors: Newmont reported a drop in fourth-quarter profits primarily due to increased royalties and taxes, despite record-high gold prices, indicating the impact of cost pressures on profitability.
- Surge in Gold Prices: In light of soaring gold prices, Newmont plans to expand margins by optimizing operations and reducing costs, aiming to maintain competitiveness and enhance shareholder returns amid market volatility.
- Strategic Shift: The CEO stated that Newmont will focus on improving operational efficiency and profit margins to adapt to the changing market environment, ensuring its leadership position in the gold market.
- Future Outlook: Despite facing short-term profit pressures, Newmont's strategic transformation and positive outlook on gold prices may drive long-term growth, strengthening its influence in the global gold market.
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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: 124.690
Low
89.00
Averages
110.85
High
125.00
Current: 124.690
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.
Newmont Reports Strong Q4 2025 Earnings with Record Cash Flow
- Earnings Beat: Newmont's Q4 2025 non-GAAP EPS of $2.52 surpassed expectations by $0.49, with revenue of $6.81 billion reflecting a 20.5% year-over-year increase, exceeding forecasts by $560 million, indicating robust profitability and market demand.
- Record Cash Flow: The company generated $10.3 billion in cash from operating activities for the year, net of $210 million in working capital impacts, achieving a record annual free cash flow of $7.3 billion, including $2.8 billion in Q4, showcasing excellence in cash management and capital allocation.
- Enhanced Capital Returns: Newmont declared an increased dividend of $0.26 per share and returned $3.4 billion to shareholders through share repurchases and dividends in 2025, demonstrating a strong commitment to shareholder returns and a sustainable capital allocation strategy.
- Optimistic Outlook: For 2026, attributable gold production is expected to be approximately 5.3 million ounces, with gold by-product AISC projected at $1,680 per ounce, indicating continued competitiveness in production and cost management moving forward.
See More
Olympic Gold Medal Values Reach Historic Highs
- Gold Medal Value Surge: Since the start of the 2024 Paris Summer Olympics, spot gold prices have surged approximately 110% to about $5,000 per ounce, with the intrinsic value of gold medals now estimated between $2,300 and $2,500, highlighting their increased investment appeal.
- Silver and Bronze Medal Valuation: Silver medals carry a raw metal value of about $1,400, while bronze medals, primarily made of copper, are valued at only $5 to $6, illustrating how the metal composition directly impacts the market value of different medals and emphasizing the rarity of gold medals.
- Market Volatility and Investment Trends: Despite recent fluctuations in precious metal prices, investors continue to flock to traditional safe havens like gold amid geopolitical instability and inflation concerns, keeping gold prices near historic highs, indicating a strong demand for these assets.
- Medal Quality Issues: The Milano Cortina 2026 Organizing Committee is investigating quality issues affecting a small number of medals after several athletes reported broken ribbons or clasps, demonstrating a commitment to athlete experience as organizers work with the Italian State Mint to repair affected medals.
See More
Newmont Corporation Q4 2025 Earnings Call Highlights
- Strong Financial Performance: Newmont generated $2.8 billion in free cash flow in Q4 2025 and $7.3 billion for the full year, demonstrating robust financial health that enhances shareholder confidence and supports future stock price growth.
- Increased Shareholder Returns: The company announced a 4% increase in its quarterly common dividend, with a sustainable annual cash dividend of $1.1 billion, which not only boosts per share growth potential but also reflects the company's commitment to shareholder returns.
- Gold Production Growth: Commercial production at Ahafo North added over 300,000 ounces of gold, contributing to a total production of 5.7 million ounces in 2025, indicating ongoing progress in project execution and resource development.
- Stable Future Outlook: Production guidance for 2026 remains at 5.3 million ounces, and while a production trough is expected, the company plans to return to growth in 2027 and beyond, showcasing confidence in long-term growth prospects.
See More
Newmont Targets Margin Expansion Amid Record Gold Price Surge
- Profit Decline Factors: Newmont reported a drop in fourth-quarter profits primarily due to increased royalties and taxes, despite record-high gold prices, indicating the impact of cost pressures on profitability.
- Surge in Gold Prices: In light of soaring gold prices, Newmont plans to expand margins by optimizing operations and reducing costs, aiming to maintain competitiveness and enhance shareholder returns amid market volatility.
- Strategic Shift: The CEO stated that Newmont will focus on improving operational efficiency and profit margins to adapt to the changing market environment, ensuring its leadership position in the gold market.
- Future Outlook: Despite facing short-term profit pressures, Newmont's strategic transformation and positive outlook on gold prices may drive long-term growth, strengthening its influence in the global gold market.
See More
Newmont Lowers 2026 Gold Production Outlook
- Gold Price Performance: Newmont reported an average realized gold price of $4,216 in Q4, and although attributable production fell nearly 24% to 1.45 million ounces, the high gold prices provide support, reflecting strong market demand for gold.
- Production Outlook Adjustment: The company expects total attributable gold production of 5.3 million ounces in 2026, down from 5.89 million ounces in 2025, primarily due to planned mine sequencing at Ahafo South, Peñasquito, and Cadia, indicating short-term production challenges.
- Investment Plans: Newmont plans to invest approximately $1.4 billion in 2026, focusing on advancing several major projects, including feasibility studies at Red Chris and mine life extensions at Lihir and Cerro Negro, with 55% of total spending expected in the second half of the year to support future production growth.
- Market Sentiment Shift: Despite the company's weak outlook, retail investor sentiment on Newmont shifted from bearish to bullish, with message volumes on Stocktwits surging by 950%, indicating optimism about tight gold supply and potential price support.
See More
Newmont Corporation Reports Decline in Q4 Earnings
- Earnings Decline: Newmont Corporation reported a fourth-quarter profit of $1.301 billion, or $1.19 per share, down from $1.403 billion and $1.24 per share last year, indicating pressure on profitability.
- Adjusted Earnings: Excluding items, the company reported adjusted earnings of $2.753 billion, or $2.52 per share, suggesting a degree of profitability despite the overall earnings decline.
- Revenue Growth: The company's revenue rose 20.6% year-over-year to $6.818 billion from $5.652 billion last year, reflecting strong sales and market demand.
- Market Impact: Despite revenue growth, the decline in earnings may negatively affect investor confidence, particularly against the backdrop of fluctuating metal prices, potentially impacting future stock performance.
See More
Newmont Reports Strong Q4 2025 Earnings with Record Cash Flow
- Earnings Beat: Newmont's Q4 2025 non-GAAP EPS of $2.52 surpassed expectations by $0.49, with revenue of $6.81 billion reflecting a 20.5% year-over-year increase, exceeding forecasts by $560 million, indicating robust profitability and market demand.
- Record Cash Flow: The company generated $10.3 billion in cash from operating activities for the year, net of $210 million in working capital impacts, achieving a record annual free cash flow of $7.3 billion, including $2.8 billion in Q4, showcasing excellence in cash management and capital allocation.
- Enhanced Capital Returns: Newmont declared an increased dividend of $0.26 per share and returned $3.4 billion to shareholders through share repurchases and dividends in 2025, demonstrating a strong commitment to shareholder returns and a sustainable capital allocation strategy.
- Optimistic Outlook: For 2026, attributable gold production is expected to be approximately 5.3 million ounces, with gold by-product AISC projected at $1,680 per ounce, indicating continued competitiveness in production and cost management moving forward.
See More
Olympic Gold Medal Values Reach Historic Highs
- Gold Medal Value Surge: Since the start of the 2024 Paris Summer Olympics, spot gold prices have surged approximately 110% to about $5,000 per ounce, with the intrinsic value of gold medals now estimated between $2,300 and $2,500, highlighting their increased investment appeal.
- Silver and Bronze Medal Valuation: Silver medals carry a raw metal value of about $1,400, while bronze medals, primarily made of copper, are valued at only $5 to $6, illustrating how the metal composition directly impacts the market value of different medals and emphasizing the rarity of gold medals.
- Market Volatility and Investment Trends: Despite recent fluctuations in precious metal prices, investors continue to flock to traditional safe havens like gold amid geopolitical instability and inflation concerns, keeping gold prices near historic highs, indicating a strong demand for these assets.
- Medal Quality Issues: The Milano Cortina 2026 Organizing Committee is investigating quality issues affecting a small number of medals after several athletes reported broken ribbons or clasps, demonstrating a commitment to athlete experience as organizers work with the Italian State Mint to repair affected medals.
See More
Newmont Corporation Q4 2025 Earnings Call Highlights
- Strong Financial Performance: Newmont generated $2.8 billion in free cash flow in Q4 2025 and $7.3 billion for the full year, demonstrating robust financial health that enhances shareholder confidence and supports future stock price growth.
- Increased Shareholder Returns: The company announced a 4% increase in its quarterly common dividend, with a sustainable annual cash dividend of $1.1 billion, which not only boosts per share growth potential but also reflects the company's commitment to shareholder returns.
- Gold Production Growth: Commercial production at Ahafo North added over 300,000 ounces of gold, contributing to a total production of 5.7 million ounces in 2025, indicating ongoing progress in project execution and resource development.
- Stable Future Outlook: Production guidance for 2026 remains at 5.3 million ounces, and while a production trough is expected, the company plans to return to growth in 2027 and beyond, showcasing confidence in long-term growth prospects.
See More
Newmont Targets Margin Expansion Amid Record Gold Price Surge
- Profit Decline Factors: Newmont reported a drop in fourth-quarter profits primarily due to increased royalties and taxes, despite record-high gold prices, indicating the impact of cost pressures on profitability.
- Surge in Gold Prices: In light of soaring gold prices, Newmont plans to expand margins by optimizing operations and reducing costs, aiming to maintain competitiveness and enhance shareholder returns amid market volatility.
- Strategic Shift: The CEO stated that Newmont will focus on improving operational efficiency and profit margins to adapt to the changing market environment, ensuring its leadership position in the gold market.
- Future Outlook: Despite facing short-term profit pressures, Newmont's strategic transformation and positive outlook on gold prices may drive long-term growth, strengthening its influence in the global gold market.
See More
Newmont Lowers 2026 Gold Production Outlook
- Gold Price Performance: Newmont reported an average realized gold price of $4,216 in Q4, and although attributable production fell nearly 24% to 1.45 million ounces, the high gold prices provide support, reflecting strong market demand for gold.
- Production Outlook Adjustment: The company expects total attributable gold production of 5.3 million ounces in 2026, down from 5.89 million ounces in 2025, primarily due to planned mine sequencing at Ahafo South, Peñasquito, and Cadia, indicating short-term production challenges.
- Investment Plans: Newmont plans to invest approximately $1.4 billion in 2026, focusing on advancing several major projects, including feasibility studies at Red Chris and mine life extensions at Lihir and Cerro Negro, with 55% of total spending expected in the second half of the year to support future production growth.
- Market Sentiment Shift: Despite the company's weak outlook, retail investor sentiment on Newmont shifted from bearish to bullish, with message volumes on Stocktwits surging by 950%, indicating optimism about tight gold supply and potential price support.
See More
Newmont Corporation Reports Decline in Q4 Earnings
- Earnings Decline: Newmont Corporation reported a fourth-quarter profit of $1.301 billion, or $1.19 per share, down from $1.403 billion and $1.24 per share last year, indicating pressure on profitability.
- Adjusted Earnings: Excluding items, the company reported adjusted earnings of $2.753 billion, or $2.52 per share, suggesting a degree of profitability despite the overall earnings decline.
- Revenue Growth: The company's revenue rose 20.6% year-over-year to $6.818 billion from $5.652 billion last year, reflecting strong sales and market demand.
- Market Impact: Despite revenue growth, the decline in earnings may negatively affect investor confidence, particularly against the backdrop of fluctuating metal prices, potentially impacting future stock performance.
See More
