NEM's Solid Cash Flow Driving Investor Returns: Can It Keep Growing?

Newmont Corporation NEM remains committed to enhancing shareholder value through dividends and share repurchases, leveraging robust financial health and strong free cash flow generation. NEM has delivered roughly $2 billion to its shareholders through dividends and share repurchases since the beginning of 2025.
 
Newmont has also doubled its share repurchase authorization to $6 billion with an additional $3 billion share repurchase program. It has already repurchased shares worth $2.8 billion under this authorization since February 2024, including $1.5 billion in the first half of 2025.  
 
In the second quarter of 2025, NEM logged a record free cash flow in the second quarter of 2025, reflecting its operational efficiency. Its free cash flow surged nearly threefold year over year and 42% from the prior quarter to $1.7 billion, led by an increase in net cash from operating activities and lower capital investment.
 
NEM is executing a disciplined capital allocation policy, utilizing its significant cash generation to return capital to its shareholders, fund growth projects and pay down debt. Notably, it has already reduced $1.4 billion of debt in 2025. With gold prices hitting fresh highs, NEM is well-placed to strengthen its balance sheet and continue returning capital to its shareholders following the completion of its divestment program. 

Among its peers, Barrick Mining Corporation B has a solid liquidity position and generates healthy cash flows, positioning it well to take advantage of attractive development and exploration opportunities and drive shareholder value. Barrick returned $1.2 billion to its shareholders in 2024 through dividends and repurchases. Barrick’s board, in February 2025, authorized a new program for the repurchase of up to $1 billion of its outstanding common shares. It repurchased shares worth $411 million under this program during the first half of 2025. 

Agnico Eagle Mines Limited AEM is capitalizing on strong free cash flow to aggressively enhance shareholder value. Agnico Eagle delivered record shareholder returns totaling roughly $300 million in the second quarter, bringing the cumulative return to $550 million for the first half. Agnico Eagle returned around one-third of its free cash flow through dividends and buybacks in the first half.

The Zacks Rundown for NEM

Newmont’s shares have rallied 102.6% year to date against the Zacks Mining – Gold industry’s surge of 89.6%, driven by the record-setting upside in gold prices.

From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 14.14, a modest 3.9% discount to the industry average of 14.71X. It carries a Value Score of B.

The Zacks Consensus Estimate for NEM’s 2025 and 2026 earnings implies a year-over-year rise of 52.3% and 0.9%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.

NEM stock currently carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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