Newmont Mining (NEM) Stock Forecast & Price Target

Newmont, as the world's largest gold miner, is positioned advantageously following its strategic acquisitions, including Goldcorp and Newcrest, which enhance its portfolio that comprises 11 mines and ventures across multiple continents. The company is projected to sell approximately 5.6 million ounces of gold from its core mines by 2025, indicating a focus on higher-margin production after divesting from smaller, higher-cost operations. Additionally, Newmont is expected to maintain strong free cash flow (FCF) moving forward, benefitting from increased investment aligned with rising production levels, which contributes to a favorable long-term financial outlook.

Newmont's stock has recently underperformed compared to its peers, indicating potential challenges in maintaining competitive market positioning. The company's downside scenario suggests a valuation of US$41 per share, which is grounded in assumptions of lower long-term gold prices at US$2,500 per ounce, despite stable operating and financial metrics. Furthermore, the strategic changes, including the sales of higher-cost mines and the acquisition of Newcrest, may not fully stabilize revenues and earnings in the context of fluctuating commodity prices and operational adjustments.