Newmont Mining (NEM) Stock Forecast & Price Target

Newmont, as the world's largest gold miner, has a robust operational portfolio that includes 11 mines and interests in two joint ventures across multiple regions, ensuring a stable production output. Following the acquisition of Newcrest, the company aims to sell approximately 5.6 million ounces of gold in 2025 from its core mines, having divested higher-cost assets, which will enhance its financial performance. With significant gold reserves projected to last for about two decades, coupled with substantial byproduct reserves, Newmont is positioned favorably to sustain its free cash flow in the coming years amid rising commodity prices.

Newmont's stock has recently underperformed relative to its peers, suggesting potential weaknesses in its market position despite being the largest gold miner globally. The company's reliance on future gold price assumptions, particularly the downside scenario projecting a long-term price of US$2,500 per ounce, raises concerns regarding its financial stability and operating margins. Additionally, while Newmont maintains about two decades of gold reserves, the divestment of higher-cost mines may further strain its operational efficiency and limit growth prospects, contributing to a negative outlook for the stock.