CHONGQING, CHINA – JULY 19: In this photo illustration, a smartphone displays the logo of Newmont Corporation (NYSE: NEM), the world’s leading gold mining company, in front of a screen showing the company’s latest stock market chart on July 19, 2025 in Chongqing, China. (Photo illustration by Cheng Xin/Getty Images)
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135% represents the increase Newmont (NYSE:NEM) has achieved year-to-date (YTD) in 2025. The surge in Newmont’s stock has been primarily fueled by a significant rise in gold prices. As the demand for precious metals escalated amidst macroeconomic uncertainty, worldwide investors sought gold as a safe haven — and Newmont, as one of the largest producers of gold (and copper) globally, benefitted directly. Additionally, refer to What’s Behind SoFi Stock’s 101% Surge?
Simultaneously, Newmont’s own strategic actions contributed to amplifying the gains. The company has been refining its portfolio: selling non-essential assets such as its investment in Orla Mining Ltd. and the Coffee Project in Yukon, which raised hundreds of millions of dollars in proceeds. Efforts in cost reduction, rationalization, and operational efficiency have bolstered margins and enhanced cash flow — a potent combination in a commodity-driven sector. Furthermore, Newmont has notably improved its balance sheet: as per its latest reports, the company has significantly decreased its debt — now having nearly zero net debt — and produced substantial free cash flow, supported by robust operating cash flows and strong liquidity.
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What the analytics reveal about the underlying strength
Recent company data presents an optimistic view. Newmont has consistently shown revenue growth, reportedly increasing by about 26.6% (LTM – last twelve months), with an average growth rate of approximately 23.9% over the past three years. The firm’s operating cash flow margin stands around 32.6%, and its long-term operating margin hovers near 23.9% — both strong figures for a mining firm.
The combination of near-zero net debt, strong free cash flow, and proceeds from divestitures has granted Newmont significant financial flexibility. This flexibility enables ongoing dividends, share repurchases, and reinvestment in core high-quality assets or growth initiatives — establishing a solid foundation even if gold prices fluctuate.
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What may lie ahead for Newmont
If gold prices maintain their upward momentum, potentially driven by global macro uncertainties or additional monetary easing, Newmont is strategically positioned to benefit from the uptrend. Its minimal debt, robust cash flow, and efficient operations suggest it could generate substantial profits if bullion prices remain high.
From an operational perspective, Newmont’s concentration on its core “Tier-1” mines and continuous productivity enhancements indicate potential for steady output and margin strength even if costs or outside pressures escalate.
Nonetheless, the company remains vulnerable to fluctuations in commodity prices. Should gold decline — possibly due to a strengthening dollar, shift in global interest rates, or diminished investor appetite for safe-haven assets — Newmont’s profitability could be compromised.
Moreover, like all mining companies, geopolitical, regulatory, or environmental risks associated with its global operations are significant — and could influence future outcomes regardless of broader gold market trends. We value Newmont stock at $90, which aligns with the current market price.
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