Newmont Mining (NEM) Stock Forecast & Price Target

Newmont, as the world's largest gold miner, has solidified its position through strategic acquisitions, including Goldcorp in 2019 and Newcrest in November 2023, resulting in a comprehensive portfolio of 11 mines and interests in additional joint ventures across multiple continents. The company is projected to sell approximately 5.6 million ounces of gold in 2025 from its core mines, improving its operational efficiency after divesting higher-cost assets, thereby likely enhancing free cash flow in the coming years. With current gold prices around $3,650 per ounce and expectations for further increases beyond $4,000 by the second half of 2026, Newmont's robust reserve base, including two decades of gold reserves and substantial byproduct reserves, positions the company favorably for sustained financial growth.

Newmont has experienced a recent underperformance compared to its peers, contributing to negative sentiment surrounding its stock. The company's downside scenario forecasts a valuation of $41, which relies on lower long-term gold prices of $2,500 per ounce while holding existing operating and financial assumptions constant. This outlook raises concerns about the sustainability of Newmont's profitability, especially considering its substantial gold production and reliance on various commodities amid volatile market conditions.