Newmont Corporation (NEM, Financial) announced an impressive performance in the first quarter, achieving a record free cash flow of $1.2 billion. The company produced 1.5 million attributable gold ounces, reflecting the strength of its Tier 1 mining portfolio.
In the first half of 2025, Newmont successfully executed its non-core asset divestiture program, which resulted in total gross proceeds of approximately $4.3 billion. This includes over $2.5 billion in after-tax cash proceeds, bolstering the company's financial position.
With these achievements, Newmont remains on course to meet its 2025 financial and operational targets, reinforcing its strategy to build a leading gold and copper portfolio aimed at maximizing shareholder value.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Newmont Corp (NEM, Financial) is $61.21 with a high estimate of $77.50 and a low estimate of $52.00. The average target implies an upside of 15.16% from the current price of $53.15. More detailed estimate data can be found on the Newmont Corp (NEM) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Newmont Corp's (NEM, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Newmont Corp (NEM, Financial) in one year is $48.61, suggesting a downside of 8.54% from the current price of $53.15. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Newmont Corp (NEM) Summary page.
Key Business Developments
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Newmont Corp (NEM, Financial) exceeded its production guidance by delivering 6.8 million ounces of gold and over 150,000 tonnes of copper in 2024.
- The company generated a record free cash flow of $1.6 billion in the fourth quarter, driven by strong gold prices and higher sales volumes.
- Newmont Corp (NEM) successfully completed its divestment program, selling six non-core operations, which is expected to result in $2.5 billion in cash proceeds.
- The company maintained a strong balance sheet with over $3.6 billion in cash and $7.7 billion in liquidity, while retiring $1.4 billion in debt.
- Newmont Corp (NEM) returned $2.3 billion to shareholders through dividends and share repurchases, demonstrating a commitment to shareholder returns.
Negative Points
- The integration of acquired assets like Cadia and Lihir faced challenges, requiring significant investment to realize their full potential.
- All-in sustaining costs are expected to rise to $1,620 per ounce in 2025 due to sustaining capital investments and macroeconomic factors.
- The company is undergoing an investment cycle that will keep sustaining capital at elevated levels over the next few years.
- Newmont Corp (NEM) is carrying unacceptably high G&A costs, which are expected to decrease as the company transitions to a smaller portfolio of managed operations.
- The company provided only one-year guidance for 2025, focusing on stabilizing the business, which may leave investors seeking more long-term visibility.
