Newmont represents the premier way to capitalize on gold’s unprecedented bull market. The precious metal has surged to record highs as Federal Reserve rate cuts are on the table, 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 15.5 times the company’s forward earnings forecast. This means a convergence of a low 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.
Newmont has now completed its plan to sell six of its less important mines and smaller projects (more on that below).
Newmont’s increasingly 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.
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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 completed the divestiture program it announced in February 2024.
Newmont also recently sold its stake in the Coffee gold project in Yukon, Canada to Fuerte Metals Corp. (Toronto Venture symbol FMT). In exchange, it received $10 million in cash, $40 million in equity in Fuerte (27% ownership) and up to $100 million in future royalties.
With that sale, the company has now completed its plan to sell its smaller mines and investments so it can focus on its 10 top-tier mines in North America, South America, Australia, Papua New Guinea and Ghana.
Newmont’s shares have soared a whopping 221.7% for our subscribers since the start of 2025. Still, we think they can go higher. The shares yield 0.9%.
We feel the stock can keep moving higher. The company recently began commercial operations at its Ahafo North gold mine in Ghana. That should add between 275,000 and 325,000 ounces to Newmont’s annual output of about 5.9 million ounces.
The company will also benefit from increasing production of silver, lead and zinc at its Penasquito gold mine in Mexico.
In 2026, Newmont’s earnings will probably rise 27% to $8.11 a share and the stock trades at 15.5 times that forecast. That’s an attractive multiple considering most of the company’s mines are in politically stable countries.
Recommendation in Canadian Wealth Advisor: Newmont Corp. is a buy.
