NEM's Robust Cash Flow Drives Investor Returns: Can It Keep Growing?

Newmont Corporation NEM is leveraging robust financial health and strong free cash flow generation to enhance shareholder value through dividends and share repurchases. It has distributed more than $5.7 billion to its shareholders through dividends and share repurchases over the past two years. 

Newmont doubled its share repurchase authorization to $6 billion with an additional $3 billion share repurchase program. It executed $3.3 billion of the $6 billion buyback authorization as of Oct. 23, 2025. 

Newmont generated a record free cash flow of $1.6 billion in the third quarter, reflecting strong financial health supporting growth initiatives and shareholder returns.  Net cash from operating activities shot up 40% from the prior-year quarter to $2.3 billion. 

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 reduced debt by roughly $2 billion in the third quarter, resulting in a near-zero net debt position at the end of the quarter. Given the continued strength in gold prices, NEM is well-placed to strengthen its balance sheet and continue returning capital to its shareholders following the completion of its divestment program. 

Among NEM’s 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’s board, in February 2025, authorized a new program for the buyback of up to $1 billion of its outstanding common shares. Barrick repurchased shares worth $1 billion under this program during the first nine months of 2025, including $589 million in the third quarter.  
 
Agnico Eagle Mines Limited AEM is capitalizing on its strong free cash flow to boost shareholder value through dividends and share buybacks. Agnico Eagle returned around $350 million to its shareholders in the third quarter, bringing the cumulative return to roughly $900 million for the first nine months of 2025. Agnico Eagle returned around one-third of its free cash flow through dividends and buybacks in the first nine months.

The Zacks Rundown for NEM

Newmont’s shares have rallied 79.2% in the past six months compared with the Zacks Mining – Gold industry’s surge of 64.8%, 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 15.23, a 15% premium to the industry average of 13.24.X. It carries a Value Score of C.

The Zacks Consensus Estimate for NEM’s 2025 and 2026 earnings implies a year-over-year rise of 81.9% and 21.1%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.

NEM currently carries a Zacks Rank #3 (Hold).
 
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This article originally published on Zacks Investment Research (zacks.com).

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