WEBULL

Newmont (NEM) Is Up 8.2% After Gold’s Safe-Haven Rally and Analyst Praise Has The Bull Case Changed?

Simply Wall St · 4d ago
  • Newmont has recently drawn attention as gold prices climbed and investors sought safe-haven exposure, supported by its strong free cash flow and position as the only gold producer in the S&P 500.
  • The company’s visibility has been amplified by analyst commentary, including Jim Cramer’s praise and expectations for higher earnings, alongside a leadership transition and an upcoming earnings report that could further influence sentiment.
  • We’ll now examine how rising gold prices and safe-haven demand reshape Newmont’s existing investment narrative and the risks investors focus on.

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Newmont Investment Narrative Recap

To own Newmont, you need to be comfortable tying your investment to gold prices, the company’s large scale and its ability to keep converting production into free cash flow. The recent surge in gold and safe haven demand has reinforced the near term focus on its upcoming earnings report as the key catalyst, while the biggest ongoing risk remains that higher sustaining and development capital needs could squeeze margins if metal prices weaken. Overall, the latest headlines do not materially change that balance.

The most relevant recent development here is Newmont’s record free cash flow of US$1.6 billion in Q3 2025, its fourth straight quarter above US$1.0 billion. That cash generation has underpinned buybacks and dividends and gives management more room to absorb higher capital spending, which matters if investors are counting on strong free cash flow to support the current valuation as gold sensitive sentiment swings around each earnings update.

Yet beneath the strong gold driven momentum, investors should be aware of the rising capital spending needs and what they could mean for...

Read the full narrative on Newmont (it's free!)

Newmont's narrative projects $21.6 billion revenue and $6.4 billion earnings by 2028. This requires 1.6% yearly revenue growth and about a $0.2 billion earnings increase from $6.2 billion today.

Uncover how Newmont's forecasts yield a $104.53 fair value, a 3% downside to its current price.

Exploring Other Perspectives

NEM 1-Year Stock Price Chart
NEM 1-Year Stock Price Chart

Simply Wall St Community members see Newmont’s fair value anywhere from US$57.52 to US$156.29 across 11 separate views, showing how far opinions can stretch. When you set those against the reliance on strong free cash flow and gold prices to fund operations and capital spending, it becomes clear why you should compare several different viewpoints before deciding how Newmont might fit in your portfolio.

Explore 11 other fair value estimates on Newmont - why the stock might be worth 47% less than the current price!

Build Your Own Newmont Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your Newmont research is our analysis highlighting 4 key rewards that could impact your investment decision.
  • Our free Newmont research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Newmont's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.