Newmont and Barrick are experiencing significant stock declines amid a bearish gold market, driven by a strengthening U.S. dollar and looming production cuts. Newmont's planned 10% reduction in gold output heightens concerns over profitability, despite past financial strength, as both companies contending with rising costs and market volatility struggle for investor confidence. With recent market dynamics pressing down on mining stocks, analysts suggest a shift toward more resilient royalty/streamer models to capture potential upside.
“Per the Zacks analyst, Newmont will gain from the progress of its key growth projects, which should expand production capacity. Higher gold prices will also drive its profitability and cash flow.”
“Newmont Corporation NEM reported 2025 revenues of $22.8 billion, marking a year-over-year increase of 21.3%.”
“For shareholders, the current setup raises practical questions about how insider behavior, production forecasts and cost pressures might influence the risk profile of NYSE:NEM.”
“The combination of an expected near 10% drop in gold production, elevated costs, and sensitivity to gold prices leaves Newmont exposed if prices weaken or operational issues emerge at key mines.”
“Recent analyst upgrades and references to production growth and EBITDA margins line up with the narrative that Newmont can benefit from strong gold demand and operational efficiency across its portfolio.”
“From here, it is worth watching whether insider selling remains persistent or begins to slow, as well as how Newmont’s reported production and cost numbers track against expectations through the year.”
“Newmont NEM: This company which, is one of the world's largest producers of gold with several active mines in Nevada, Peru, Australia and Ghana, has seen the Zacks Consensus Estimate for its current year earnings increasing 17.9% over the last 60 days.”
“Analysts have been steadily raising their estimates for Newmont. Over the past three months, the Zacks Consensus Estimate for the company has increased 13.8%.”
“The upgrade of Newmont to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.”
“Newmont currently has an average brokerage recommendation (ABR) of 1.35, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations made by 23 brokerage firms.”
“Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.”
“Barely a week after posting record numbers for 2025, shares of Newmont (NYSE: NEM) are getting punished. The gold stock plunged this week, dropping 13% at its lowest point in trading through 11 a.m. ET Friday.”