How Newmont’s Fuerte Stake Sale and Portfolio Shift At Newmont (NEM) Has Changed Its Investment Story

• Earlier in December, Newmont Corporation agreed to sell 6,773,641 common shares of Fuerte Metals through its Goldcorp Canada ULC subsidiary, trimming its stake to about 19.5% as part of ongoing portfolio management and capital discipline.
• This move, alongside strong institutional inflows and broad-based gold demand, underscores how Newmont is actively reshaping its asset base while benefiting from renewed interest in precious metals producers.
• Against this backdrop of portfolio reshaping via the Fuerte stake sale, we’ll assess how the news affects Newmont’s longer-term investment narrative.

The latest GPUs need a type of rare earth metal called Terbium and there are only 34 companies in the world exploring or producing it. Find the list for free.

Newmont Investment Narrative Recap

To own Newmont, you need to believe that sustained gold demand and disciplined portfolio management can support earnings, even as some mines move into lower grade phases and capital needs stay elevated. The Fuerte Metals stake sale is relatively small in the context of Newmont’s scale, so it does not materially change the key near term catalyst of gold price momentum or the main risk around rising sustaining and development capital spending.

What stands out most alongside the Fuerte sale is Newmont’s continued capital return program, including regular US$0.25 per share quarterly dividends and an ongoing US$3,000 million buyback authorization. Together, these moves frame the Fuerte divestment as one piece of a broader effort to balance asset reshaping with shareholder returns, even as production guidance points toward the lower end of the range due to mine sequencing.

Yet, behind the strong share price and portfolio moves, investors should also be aware that rising sustaining and development capex could...

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 an earnings increase of about $0.2 billion from $6.2 billion today.

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

Exploring Other Perspectives

The Simply Wall St Community’s 10 fair value estimates for Newmont span roughly US$58 to US$112 per share, reflecting a wide spread of individual views. Set against this, Newmont’s need for higher sustaining and development capital spending could shape how those different investors think about the company’s future cash generation and resilience if gold prices soften.

Explore 10 other fair value estimates on Newmont - why the stock might be worth as much as 11% more 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.

Ready To Venture Into Other Investment Styles?

These stocks are moving-our analysis flagged them today. Act fast before the price catches up:

• Outshine the giants: these 24 early-stage AI stocks could fund your retirement.
• Find companies with promising cash flow potential yet trading below their fair value.
• AI is about to change healthcare. These 29 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com