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1. Company Snapshot

1.a. Company Description

Newmont Corporation engages in the production and exploration of gold.It also explores for copper, silver, zinc, and lead.The company has operations and/or assets in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana.


As of December 31, 2021, it had proven and probable gold reserves of 92.8 million ounces and land position of 62,800 square kilometers.The company was founded in 1916 and is headquartered in Denver, Colorado.

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1.b. Last Insights on NEM

Breaking News: Newmont Corporation recently reported no new earnings release however several institutional investors have adjusted their stakes in the company. Assetmark Inc. acquired 568437 shares raising its stake by 7418.9% to 576099 shares. Atria Investments Inc also increased its holdings by 460.7% to 51359 shares. Conversely Cadence Wealth Management LLC decreased its holdings by 23.1% to 13937 shares. Newmont stock has surged recently due to gold hitting record highs and project advancements. A recent article suggested investors to buy hold or sell the stock but no clear recommendation was made by an analyst.

1.c. Company Highlights

2. Newmont's Q3 2025 Earnings: A Record-Breaking Performance

Newmont's third-quarter 2025 results were outstanding, with the company generating $3.3 billion in adjusted EBITDA and $1.71 per share in adjusted net income, a 20% increase from the second quarter and more than double last year's results. The company's cash flow from operations was $2.3 billion, and free cash flow was $1.6 billion, marking a record third-quarter performance. The earnings per share (EPS) of $1.71 exceeded analyst estimates of $1.44. With a P/E Ratio of 10.57, the market seems to have fairly valued the company's earnings.

Publication Date: Oct -24

📋 Highlights
  • Record Cash Flow:: Generated $1.6B in Q3 cash flow, boosting annual cash flow to a record $4.5B with one quarter remaining.
  • Strong Financial Performance:: Achieved $3.3B adjusted EBITDA and $1.71/share adjusted net income, up 20% QoQ and over double YoY.
  • Debt Reduction & Credit Upgrade:: Retired $2B in debt, ending Q3 nearly debt-free, while Moody’s upgraded its credit rating to A3.
  • Shareholder Returns:: Repurchased $550M in shares post-earnings and declared a fixed $0.25/share quarterly dividend.

Debt Reduction and Capital Allocation

Newmont has made significant progress in reducing its debt, retiring $2 billion of debt and ending the quarter in a near-zero debt position. The company's capital allocation framework remains flexible, with a focus on disciplined spending. Newmont prioritizes investments in its own assets and share buybacks over external acquisitions, having repurchased $550 million of shares since the last earnings call. The company's net debt to EBITDA ratio is -0.4, indicating a healthy debt position.

Operational Performance and Guidance

Newmont's operational performance was strong, with gold production expected to be within the same guidance range as 2025 but towards the lower end due to the planned mine sequence at its world-class operations. The company expects all-in sustaining costs (AISC) to remain stable, with cost and productivity work helping to offset higher gold prices. For 2026, production guidance for managed operations is expected to be at the lower end of the plus or minus 5% range, around 5.6 million ounces.

Project Pipeline and Exploration

Newmont's project pipeline is progressing well, with the Red Chris block cave on track for a proposal to the Board by mid-2025. The company is prioritizing high-grade ounces and considering the cost of tailings, focusing on economic ounces. The $450 million reduction in Exploration and Advanced Projects is a result of a deliberate review of the work needed for each asset, targeting dollars towards delivering value.

Valuation and Dividend Yield

With a P/B Ratio of 2.74 and an EV/EBITDA of 6.63, Newmont's valuation seems reasonable. The company's dividend yield is 1.2%, and the free cash flow yield is 4.97%, indicating a decent return for investors. As Newmont continues to generate industry-leading free cash flow, the company's disciplined approach to cost control and capital allocation is likely to drive margin expansion and reward shareholders.

3. NewsRoom

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Gold Mining Stock Rallying Into This Week's Earnings

Feb -18

Source: schaeffersresearch.com

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Newmont Stock Dips As Lunar New Year Reduces Demand

Feb -17

Source: benzinga.com

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Why Newmont Corporation Stock Dropped Today

Feb -17

Source: fool.com

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Should You Buy, Sell or Hold Newmont Stock Ahead of Q4 Earnings?

Feb -17

Source: zacks.com

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U.S. Futures Slip as Market Braces for Another Inflation Test

Feb -17

Source: gurufocus.com

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Is Newmont Stock Now A Value Play Or A Value Trap?

Feb -17

Source: forbes.com

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Newmont Corporation $NEM is Colrain Capital LLC’s Largest Position

Feb -17

Source: defenseworld.net

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Atria Investments Inc Grows Stake in Newmont Corporation $NEM

Feb -15

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.00%)

6. Segments

NGM

Expected Growth: 2.5%

NGM's growth is driven by ongoing exploration and development of new projects, as well as optimization of existing mines. With a strong portfolio of assets, NGM is well-positioned for modest growth.

Peñasquito

Expected Growth: None%

None

Ahafo

Expected Growth: 4.0%

Ahafo's growth is driven by its high-grade ore and potential for expansion. Newmont's focus on operational efficiency and exploration is expected to drive growth.

Cadia

Expected Growth: 2.0%

Cadia's growth prospects are driven by its large reserves and potential for expansion. However, growth is expected to be modest due to the mine's mature stage.

Boddington

Expected Growth: 1.5%

Boddington's growth prospects are limited due to its mature stage and declining reserves. However, Newmont's focus on operational efficiency is expected to maintain production levels.

Lihir

Expected Growth: 3.5%

Lihir's growth prospects are driven by its large reserves and potential for expansion. Newmont's investments in the mine's infrastructure and exploration are expected to drive growth.

Tanami

Expected Growth: 2.5%

Tanami's growth prospects are driven by its high-grade ore and potential for expansion. Newmont's focus on operational efficiency and exploration is expected to drive growth.

Yanacocha

Expected Growth: 2.0%

Yanacocha's growth prospects are driven by its large reserves and potential for expansion. However, growth is expected to be modest due to the mine's mature stage.

Porcupine

Expected Growth: 3.0%

Porcupine's growth prospects are driven by its high-grade ore and potential for expansion. Newmont's focus on operational efficiency and exploration is expected to drive growth.

Merian

Expected Growth: 4.5%

Merian's growth prospects are driven by its high-grade ore and potential for expansion. Newmont's investments in the mine's infrastructure and exploration are expected to drive growth.

Brucejack

Expected Growth: 3.5%

Brucejack's growth prospects are driven by its high-grade ore and potential for expansion. Newmont's focus on operational efficiency and exploration is expected to drive growth.

Éléonore

Expected Growth: None%

None

Cerro Negro

Expected Growth: 4.0%

Cerro Negro's growth prospects are driven by its high-grade ore and potential for expansion. Newmont's investments in the mine's infrastructure and exploration are expected to drive growth.

Musselwhite

Expected Growth: 2.0%

Musselwhite's growth prospects are limited due to its mature stage and declining reserves. However, Newmont's focus on operational efficiency is expected to maintain production levels.

Akyem

Expected Growth: 3.0%

Akyem's growth prospects are driven by its high-grade ore and potential for expansion. Newmont's focus on operational efficiency and exploration is expected to drive growth.

CC&V

Expected Growth: 2.5%

CC&V's growth prospects are driven by its large reserves and potential for expansion. However, growth is expected to be modest due to the mine's mature stage.

Red Chris

Expected Growth: 4.5%

Red Chris's growth prospects are driven by its high-grade ore and potential for expansion. Newmont's investments in the mine's infrastructure and exploration are expected to drive growth.

Telfer

Expected Growth: 2.0%

Telfer's growth prospects are limited due to its mature stage and declining reserves. However, Newmont's focus on operational efficiency is expected to maintain production levels.

7. Detailed Products

Gold

Newmont Corporation is one of the largest gold producers in the world, with operations in the United States, Australia, Peru, and Ghana.

Copper

Newmont Corporation also produces copper as a by-product of its gold mining operations, primarily in Peru and Australia.

Silver

Silver is another by-product of Newmont's gold mining operations, primarily in Peru and Australia.

Lead

Lead is a by-product of Newmont's gold mining operations, primarily in Peru.

Zinc

Zinc is a by-product of Newmont's gold mining operations, primarily in Peru.

Exploration Services

Newmont Corporation provides exploration services to identify and develop new mineral deposits.

Mining Services

Newmont Corporation provides mining services, including mine planning, operations, and maintenance.

8. Newmont Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Newmont Corporation's gold mining operations are susceptible to substitutes, such as recycling of gold and alternative metals. However, the demand for gold is relatively inelastic, reducing the threat of substitutes.

Bargaining Power Of Customers

Newmont Corporation's customers, primarily jewelry manufacturers and central banks, have limited bargaining power due to the company's dominant position in the gold mining industry.

Bargaining Power Of Suppliers

Newmont Corporation's suppliers, including equipment manufacturers and contractors, have some bargaining power due to the company's dependence on their services. However, the company's scale and diversification mitigate this risk.

Threat Of New Entrants

The threat of new entrants in the gold mining industry is low due to the high barriers to entry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The gold mining industry is highly competitive, with several major players competing for market share. Newmont Corporation faces intense rivalry from companies such as Barrick Gold and AngloGold Ashanti.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.69%
Debt Cost 3.95%
Equity Weight 76.31%
Equity Cost 6.39%
WACC 5.81%
Leverage 31.05%

11. Quality Control: Newmont Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Newmont

A-Score: 6.1/10

Value: 4.6

Growth: 4.8

Quality: 8.0

Yield: 4.0

Momentum: 10.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Royal Gold

A-Score: 5.7/10

Value: 1.8

Growth: 6.0

Quality: 8.4

Yield: 2.0

Momentum: 9.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Wheaton

A-Score: 5.5/10

Value: 0.2

Growth: 5.9

Quality: 8.0

Yield: 2.0

Momentum: 10.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Vulcan Materials

A-Score: 5.2/10

Value: 1.9

Growth: 6.7

Quality: 6.1

Yield: 1.0

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Sherwin-Williams

A-Score: 4.9/10

Value: 1.7

Growth: 6.4

Quality: 6.0

Yield: 2.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Dow

A-Score: 4.8/10

Value: 8.6

Growth: 2.7

Quality: 1.9

Yield: 10.0

Momentum: 0.5

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

124.69$

Current Price

124.69$

Potential

-0.00%

Expected Cash-Flows