How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Newmont Corporation (NEM) ten years ago? It may not have been easy to hold on to NEM for all that time, but if you did, how much would your investment be worth today?
Newmont Corporation's Business In-Depth
With that in mind, let's take a look at Newmont Corporation's main business drivers.
Colorado-based Newmont Corporation is one of the world's largest producers of gold with several active mines in Nevada, Peru, Australia and Ghana. As of Dec 31, 2024, Newmont had gold mineral reserves of 134.1 million ounces. Its attributable gold production for 2024 was around 6.8 million ounces.
Newmont’s operating segments are North America, South America, Australia and Africa.
The North America segment has operations in Mexico, Canada and in the United States in both Colorado and Nevada. The South America segment is represented by operations in Suriname, Peru, Argentina and Dominican Republic. The Australia segment consists of Boddington and Tanami. Newmont fully owns and operates the Tanami mine. It also owns 100% of the Boddington mine. The Africa segment operations are represented by the fully-owned Ahafo and Akyem mines in Ghana.
The company closed the sale of its 48.5% ownership interest in PT Newmont Nusa Tenggara (PTNNT), which operates the Batu Hijau copper and gold mine in Indonesia, to PT Amman Mineral Internasional (PTAMI) on Nov 2, 2016. The asset’s name is now changed to PT Amman Mineral Nusa Tenggara (PTAMNT).
The company, in February 2014, completed the sale of its Midas underground operation and mill complex to Klondex Mines Ltd. The company, in March 2014, also sold its 5.4% equity interest in Paladin Energy Ltd. through a block sale deal with UBS Australia. Moreover, the company, in July 2014, completed the sale of its Jundee underground gold mine in Australia to Northern Star Resources for roughly $91 million. The company also completed the sale of its 44% stake in the Penmont joint venture in Mexico in October 2014 to Fresnillo plc for $477 million.
On Apr 18, 2019, Newmont completed the acquisition of all of the outstanding common shares of Goldcorp in a stock-for-stock transaction. The deal provides the company an investment-grade balance sheet and financial flexibility to pursue promising projects. Newmont also completed the purchase of Newcrest Mining Limited on Nov 6, 2023, creating an industry-leading portfolio of assets.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Newmont Corporation ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in February 2016 would be worth $5,243.51, or a gain of 424.35%, as of February 4, 2026, and this return excludes dividends but includes price increases.
In comparison, the S&P 500's gained 261.71% and the price of gold went up 310.86% over the same time frame.
Analysts are forecasting more upside for NEM too.
Earnings estimates for Newmont for the fourth quarter have been going up over the past month. The company is making notable progress with its growth projects. It is likely to gain from several projects, including the Tanami expansion. The acquisition of Newcrest also created an industry-leading portfolio and provided opportunities for significant synergies. The company also remains focused on improving operational efficiency and returning value to shareholders. However, it is grappling with higher production costs, reflected by higher costs applicable to sales (CAS) and all-in-sustaining costs (AISC). Lower gold production will also impact its performance in the fourth quarter. Elevated sustaining capital spending, along with a projected increase for 2025, has also raised concerns about Newmont's cash flow.
The stock has jumped 7.27% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2025; the consensus estimate has moved up as well.
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Newmont Corporation (NEM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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