Follow Newmont to never miss an important update.
After Newmont reported its October results, we updated our fair value and cut our quality score to 3.7. We moved our rating from Buy to Watch. We have started tracking how copper sales lower the cost of mining gold and have added the impact of the settlement payment to our cash projections. We also lowered our expectation for annual gold production to 5.26 million ounces.
The firm moved its rating from a buy to a hold, suggesting they see less room for the stock to rise from here. This shift comes just after the company reported its latest earnings and as the average price target across all analysts sits at about $136.
While the company remains the largest gold producer in the world, analysts often move to the sidelines if they believe the current stock price already reflects the value of its best mines. This downgrade suggests a more cautious view on how much more profit the company can squeeze out of its current operations in the near term.
Source: Freedom Broker
Newmont reported earnings of $2.20 per share, which was higher than the $1.96 analysts expected. The company brought in $6.36 billion in revenue as it benefited from higher gold prices and steady production of 1.3 million ounces. This performance allowed the company to generate $1.9 billion in free cash flow, which is the cash left over after paying for its mining operations and equipment.
Management confirmed it is on track to meet its full-year goals and has used its extra cash to buy back shares, reducing its total share count by about 10 percent since early 2024. For a long-term owner, this quarter shows the company is successfully turning its massive scale into actual cash. Even as mining costs remain a focus, the ability to produce gold at this volume while prices are high is strengthening the balance sheet and rewarding shareholders.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Newmont is scheduled to share its latest quarterly results today. Analysts are looking for about 6.26 billion dollars in revenue and earnings of roughly 1.95 dollars per share. Beyond the headline numbers, the most important details for the business are its costs to mine each ounce of gold and its progress in selling off smaller, less profitable mines. Keeping those costs low and focusing on its largest, most efficient sites is the core of the company's plan to stay profitable even if gold prices shift.
CIBC lowered its price target for the gold miner from $170 to $154 on Friday. Even with the lower target, the firm still expects the stock to rise significantly from its current price of about $116. This move follows a broader trend among analysts, who have set an average target of $136 for the company as it works to integrate its recent large acquisition and sell off smaller mines.
Source: CIBC
Management has beaten its own profit targets for eight straight quarters. This perfect record shows they set a beatable bar and the business is currently outrunning analyst expectations.
| Expectation | |
|---|---|
| EPS | $2.09 |
| Revenue | $6.38B |