Newmont represents the premier way to capitalize on gold’s unprecedented bull market. The precious metal has surged to record highs in 2025 as Federal Reserve rate cuts intensify, and geopolitical tensions escalate.
The company’s disciplined capital allocation strategy includes a strong balance sheet. Meanwhile, the firm has created a focused operation centered on high-margin Tier 1 mines that generate superior returns on invested capital.
The stock trades at 19.6 times the company’s forward earnings forecast. This means a convergence of a reasonable valuation, strong profits, and the most favourable gold price environment in decades.
NEWMONT CORP. (New York symbol NEM; www.newmont.com) is the world’s largest gold miner, with major mines in North America, South America, Australia, and Africa. In addition to gold, it also produces copper, silver, lead and zinc.
In November 2023, Newmont made its biggest acquisition to date when it bought Newcrest Mining Ltd. (Toronto symbol NCM) for about $16.6 billion.
Newcrest operated gold mines in Australia, Canada and Papua New Guinea. These included the Brucejack mine and Red Chris mines in British Columbia; the Cadia, Havieron and Telfer mines in Western Australia; and the Lihar and Wafi-Golpu mines in Papua New Guinea.
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Newmont has now completed its plan to sell six of its less important mines and smaller projects (more on that below).
Due to those asset sales, it produced a total of 1.48 million ounces of gold in the three months ended June 30, 2025, down 8.1% from 1.61 million ounces a year earlier. However, the company’s average realized gold price soared 41.5%, to $3,320 an ounce from $2,347 a year earlier.
As a result, revenue in the latest quarter gained 20.8%, to $5.32 billion from $4.40 billion. In the quarter, earnings before one-time items jumped 91.1%, to $1.59 billion from $834 million. Newmont used some of the cash from asset sales to buy back shares, which is why per-share earnings improved 98.6%, to $1.43 from $0.72.
The company’s sound balance sheet cuts your risk. Newmont ended the latest quarter with cash of $6.2 billion, and its long-term debt of $7.1 billion is a low 7.7% of its market cap.
Newmont’s more focused operations are a big plus going forward
Newmont has now completed its plan to sell several of its less important mines and smaller projects. That includes the 2024 sale of several properties in Australia, including the Telfer (100% owned) and Havieron (70% owned) gold-copper mines, for proceeds of $475 million. In March 2025, Newmont completed the sale of three more of non-core properties: the Musselwhite and Éléonore operations in Canada and the Cripple Creek & Victor operation in Colorado. The total proceeds for those mines were $1.7 billion.
And finally, in April 2025, Newmont completed the sale of its Akyem gold mine in Ghana and the Porcupine mine in Ontario for a total of $850 million. With the sales of those two developments, the company has now completed the divestiture program it announced in February 2024.
In all, Newmont received $4.3 billion (including contingent payments) from these asset sales. It will now focus on its 10 top-tier mines in North America, South America, Australia, Papua New Guinea and Ghana.
(Note—an incident involving three miners trapped at the company’s Red Chris mine in northwest B.C. was successfully resolved on July 25, just 60 hours after the cave-in.)
Newmont’s shares have soared a whopping 123% for our subscribers since the start of 2025. Still, we think they can go higher. The stock trades at 19.6 times the $4.34 a share that the company is forecast to earn this year. The shares yield 1.2%.
Recommendation in Canadian Wealth Advisor: Newmont Corp. is a buy.
