NEM Rallies 82% on Gold Price Upside and Strategic Strength

Newmont Corporation NEM has witnessed a strong share price surge over the past six months, driven by a combination of supportive macro conditions, improving fundamentals and positive market sentiment. 

Shares of NEM have popped 81.6% in the past six months compared with the industry’s 73.9% rise. 

Let’s look into the factors driving the price surge: 

Rising Gold Prices and Strategic Focus Boost Newmont

Gold prices have surged 73% this year and are currently at around $4,463 an ounce. Persistently elevated geopolitical tensions, inflation concerns and uncertainty around global interest-rate trajectories have reinforced gold’s role as a safe-haven asset.  

The favorable pricing environment has translated into strong earnings and solid free cash flow, supporting an attractive dividend yield of about 3–4% and continued shareholder returns. Operational progress at growth assets such as the Ahafo North project in Ghana, which is expected to boost production significantly over its life, has further strengthened medium-term output visibility and long-term cash flow potential.  

As the world’s largest gold miner, Newmont is perceived as a defensive, lower-risk proxy to gold, benefiting from its geographic diversification, long reserve life and scale advantages, which enhance earnings stability across commodity cycles. The company’s portfolio rationalization strategy, including the divestment of non-core and higher-cost assets, has sharpened its focus on Tier-1, long-life, low-cost operations, improving the overall quality of its asset base.  

This strategic shift, combined with disciplined capital allocation and an emphasis on shareholder returns, has strengthened confidence in management’s execution and long-term value creation.  

NEM Zacks Rank & Key Picks

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

Some better-ranked stocks in the Basic Materials space are Agnico Eagle Mines Ltd. AEM, Iamgold Corp. IAG and Kinross Gold Corporation KGC. AEM, IAG and KGC carry a Zacks Rank of #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank here.

The Zacks Consensus Estimate for AEM’s current fiscal-year earnings is pegged at $7.87 per share, indicating an 86% year-over-year increase. Its earnings beat the Zacks Consensus Estimates in each of the trailing four quarters, with an average surprise of 12%. 

The Zacks Consensus Estimate for IAG’s current fiscal-year earnings stands at 89 cents per share, implying a 62% year-over-year increase. Its earnings beat the Zacks Consensus Estimates in two of the trailing four quarters while missing two, with the average surprise being 3%. 

The Zacks Consensus Estimate for KGC’s current fiscal-year earnings is pegged at $1.68 per share, indicating a 147% year-over-year increase. Its earnings beat the Zacks Consensus Estimates in three of the trailing four quarters while missing one, with the average surprise being 17.4%. 

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

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