This ASX gold giant jumped almost 5% on Wednesday. Here's why

Newmont Corp (ASX: NEM) shares are higher on Wednesday following a fresh update from the company.

At the time of writing, the gold miner's shares are up around 4.55% to $161.28, outperforming the broader ASX.

The move comes after Newmont released an operational update relating to recent bushfires near its Boddington mine in Western Australia.

Here's what the company said.

Bushfire update

According to the release, Newmont provided an update on bushfires that began in mid-December and affected the area surrounding its Boddington operations.

The company confirmed the fire has now been contained, with no serious injuries reported among employees or contractors. Importantly, site inspections confirmed that critical infrastructure, including the pit, processing plant, and tailings facilities, remained secure and undamaged.

Operations at Boddington were temporarily suspended on 24 December as a precaution. Mining and processing have since resumed, although processing rates are currently reduced while repairs to a portion of the site's water supply infrastructure are completed.

Newmont expects full restoration of the water supply by February, with a forecast production impact of around 60,000 ounces of gold in 2026.

Why the market is reacting positively

While bushfire disruptions can create uncertainty, investors appear reassured by the limited operational impact outlined in the update.

The company confirmed that production for 2025 was not materially affected and that the interruption relates to a defined, short-term issue rather than widespread damage across the operation.

Newmont also highlighted its support for local emergency services and the Boddington community, noting that it provided equipment, resources, and personnel during the response effort.

Overall, the update reduced the risk of a more significant production hit, which likely helped drive today's share price rebound.

Strong momentum behind the stock

Today's move adds to what has already been a strong period for Newmont shares, following significant gains over the past year. That performance reflects higher gold prices and improving sentiment towards large, established producers.

Gold prices have climbed to record levels as investors seek safe-haven assets amid geopolitical uncertainty and expectations of lower interest rates. This backdrop has been supportive for miners with long mine lives and diversified asset bases.

Operationally, the company has continued to deliver solid results, maintaining production and cost targets across its global portfolio. Recent financial updates also point to growing free cash flow and balance sheet discipline, which have further supported investor confidence.

What investors will watch next

Looking ahead, investor focus will likely remain on the company's operational execution and commodity prices.

Progress on restoring water infrastructure at Boddington will be a key focus, alongside production and cost guidance in the upcoming updates.

For now, today's announcement helps explain why Newmont shares are higher. The market appears reassured that recent bushfires have not derailed the near-term outlook.

The post This ASX gold giant jumped almost 5% on Wednesday. Here's why appeared first on The Motley Fool Australia.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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