Update shared on27 Aug 2025
Fair value Increased 2.27%Newmont’s Analyst Price Target has risen to $72.33 as Q2 results, improved operational performance, positive gold and copper price outlooks, and project execution outweigh tempered valuation upside after recent outperformance.
Analyst Commentary
- Bullish analysts are updating price targets to reflect Q2 results and revised models, citing improved operational performance and updated outlooks for gold and copper prices.
- Positive expectations are driven by Newmont’s advancement of development projects, stabilization of Tier 1 asset portfolio, and ongoing share repurchase activity.
- Market positioning benefits from gold’s upward momentum, with tactical targets for gold prices suggesting continued upside for gold equities relative to both commodities and broader indices.
- Exposure to copper, viewed as “under-owned” amid rising supply constraints, presents a strategic opportunity for further upside.
- Bearish analysts are tempering their outlooks due to limited valuation upside after recent stock outperformance, noting valuations are now in line with peers and that significant cost improvements remain a longer-term objective.
What's in the News
- Newmont shares are considered undervalued at a 13x P/E ratio, offering strong earnings and record free cash flow amid rising gold and silver prices, making it an attractive option for investors seeking exposure to precious metals (Barron's, 2025-08-13).
- The White House is expected to clarify that imports of gold bars will not be subject to tariffs, reducing regulatory uncertainty for Newmont and other gold producers (Bloomberg, 2025-08-08).
- Newmont completed the sale of its Akyem operation in Ghana to Zijin Mining for $100 million, with total after-tax cash proceeds from divestitures expected to reach $3.1 billion in 2025, supporting debt reduction and shareholder returns (Key Developments, 2025-08-01).
- Newmont authorized a $3 billion share repurchase program; as of June 30, 2025, it had completed buybacks totaling $1.6 billion, repurchasing nearly 3% of shares outstanding (Key Developments, 2025-07-24).
- CFO Karyn F. Ovelmen resigned effective July 11, 2025, with Peter Wexler appointed as interim CFO while the company searches for a permanent successor; the transition is not related to any operational or financial disagreements (Key Developments, 2025-07-14).
Valuation Changes
Summary of Valuation Changes for Newmont
- The Consensus Analyst Price Target has risen slightly from $70.72 to $72.33.
- The Future P/E for Newmont has risen slightly from 13.26x to 13.82x.
- The Consensus Revenue Growth forecasts for Newmont remained effectively unchanged, at 1.6% per annum.
Disclaimer
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