Can Newmont's Record Free Cash Flow Momentum Carry Into Q4?

Newmont Corporation NEM logged a record quarterly free cash flow in the third quarter of 2025, underscoring its operational efficiency and the strength of its Tier 1 portfolio. Its free cash flow more than doubled year to year to record $1.6 billion, led by an increase in net cash from operating activities. This marked the fourth straight quarter of free cash flow exceeding $1 billion. Net cash from operating activities shot up 40% from the prior-year quarter to $2.3 billion. Strong free cash flow positions the company to strengthen its balance sheet and pursue strategic growth investments. 

Despite the company’s strong performance in the third quarter, questions remain about how well Newmont can maintain its cash flow in the fourth quarter. The miner has already cautioned that several factors could weigh on its free cash flow, including continued higher spending on Yanacocha’s water treatment construction and planned severance payments. 

Still, the expected decline doesn’t signal weakening fundamentals. Newmont’s robust balance sheet positions it to continue supporting growth initiatives, meeting its debt commitments and delivering shareholder value, even with short-term cash flow pressures.

Among its major peers, Barrick Mining Corporation B reported a free cash flow of $1.5 billion for the third quarter, rising from $444 million in the prior-year quarter. The surge reflects Barrick’s higher operating cash flows driven by an uptick in realized gold prices. Barrick generated strong operating cash flows of roughly $2.4 billion in the quarter, up 105% year over year.  

Agnico Eagle Mines Limited AEM recorded third-quarter free cash flow of roughly $1.2 billion, nearly doubling the prior-year quarter figure of $620 million. The increase was backed by the strength in gold prices and Agnico Eagle’s robust operational results. Agnico Eagle remains focused on paying down debt using excess cash, with total long-term debt reducing by roughly $400 million sequentially to $196 million at the end of the quarter.  

The Zacks Rundown for NEM

Shares of Newmont have shot up 143.5% year to date compared with the Zacks Mining – Gold industry’s rise of 139.1%, largely driven by the gold price rally.

From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 12.8, a roughly 4.8% discount to the industry average of 13.44X. 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 73.9% and 18.3%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.

NEM stock currently carries a Zacks Rank #1 (Strong Buy). 

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

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