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NEM's Solid Cash Flow Driving Investor Returns: Can It Keep Growing?
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Key Takeaways
Newmont has returned $2B to shareholders through dividends and buybacks since the start of 2025.
NEM doubled its repurchase authorization to $6B and cut $1.4B of debt this year.
Free cash flow hit $1.7B in Q2, nearly triple year over year and up 42% sequentially.
Newmont Corporation (NEM - Free Report) remains committed to enhancing shareholder value through dividends and share repurchases, leveraging robust financial health and strong free cash flow generation. NEM has delivered roughly $2 billion to its shareholders through dividends and share repurchases since the beginning of 2025.
Newmont has also doubled its share repurchase authorization to $6 billion with an additional $3 billion share repurchase program. It has already repurchased shares worth $2.8 billion under this authorization since February 2024, including $1.5 billion in the first half of 2025.
In the second quarter of 2025, NEM logged a record free cash flow in the second quarter of 2025, reflecting its operational efficiency. Its free cash flow surged nearly threefold year over year and 42% from the prior quarter to $1.7 billion, led by an increase in net cash from operating activities and lower capital investment.
NEM is executing a disciplined capital allocation policy, utilizing its significant cash generation to return capital to its shareholders, fund growth projects and pay down debt. Notably, it has already reduced $1.4 billion of debt in 2025. With gold prices hitting fresh highs, NEM is well-placed to strengthen its balance sheet and continue returning capital to its shareholders following the completion of its divestment program.
Among its peers, Barrick Mining Corporation (B - Free Report) has a solid liquidity position and generates healthy cash flows, positioning it well to take advantage of attractive development and exploration opportunities and drive shareholder value. Barrick returned $1.2 billion to its shareholders in 2024 through dividends and repurchases. Barrick’s board, in February 2025, authorized a new program for the repurchase of up to $1 billion of its outstanding common shares. It repurchased shares worth $411 million under this program during the first half of 2025.
Agnico Eagle Mines Limited (AEM - Free Report) is capitalizing on strong free cash flow to aggressively enhance shareholder value. Agnico Eagle delivered record shareholder returns totaling roughly $300 million in the second quarter, bringing the cumulative return to $550 million for the first half. Agnico Eagle returned around one-third of its free cash flow through dividends and buybacks in the first half.
The Zacks Rundown for NEM
Newmont’s shares have rallied 102.6% year to date against the Zacks Mining – Gold industry’s surge of 89.6%, driven by the record-setting upside in gold prices.
Image Source: Zacks Investment Research
From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 14.14, a modest 3.9% discount to the industry average of 14.71X. It carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NEM’s 2025 and 2026 earnings implies a year-over-year rise of 52.3% and 0.9%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.
Image Source: Zacks Investment Research
NEM stock currently carries a Zacks Rank #3 (Hold).
Image: Bigstock
NEM's Solid Cash Flow Driving Investor Returns: Can It Keep Growing?
Key Takeaways
Newmont Corporation (NEM - Free Report) remains committed to enhancing shareholder value through dividends and share repurchases, leveraging robust financial health and strong free cash flow generation. NEM has delivered roughly $2 billion to its shareholders through dividends and share repurchases since the beginning of 2025.
Newmont has also doubled its share repurchase authorization to $6 billion with an additional $3 billion share repurchase program. It has already repurchased shares worth $2.8 billion under this authorization since February 2024, including $1.5 billion in the first half of 2025.
In the second quarter of 2025, NEM logged a record free cash flow in the second quarter of 2025, reflecting its operational efficiency. Its free cash flow surged nearly threefold year over year and 42% from the prior quarter to $1.7 billion, led by an increase in net cash from operating activities and lower capital investment.
NEM is executing a disciplined capital allocation policy, utilizing its significant cash generation to return capital to its shareholders, fund growth projects and pay down debt. Notably, it has already reduced $1.4 billion of debt in 2025. With gold prices hitting fresh highs, NEM is well-placed to strengthen its balance sheet and continue returning capital to its shareholders following the completion of its divestment program.
Among its peers, Barrick Mining Corporation (B - Free Report) has a solid liquidity position and generates healthy cash flows, positioning it well to take advantage of attractive development and exploration opportunities and drive shareholder value. Barrick returned $1.2 billion to its shareholders in 2024 through dividends and repurchases. Barrick’s board, in February 2025, authorized a new program for the repurchase of up to $1 billion of its outstanding common shares. It repurchased shares worth $411 million under this program during the first half of 2025.
Agnico Eagle Mines Limited (AEM - Free Report) is capitalizing on strong free cash flow to aggressively enhance shareholder value. Agnico Eagle delivered record shareholder returns totaling roughly $300 million in the second quarter, bringing the cumulative return to $550 million for the first half. Agnico Eagle returned around one-third of its free cash flow through dividends and buybacks in the first half.
The Zacks Rundown for NEM
Newmont’s shares have rallied 102.6% year to date against the Zacks Mining – Gold industry’s surge of 89.6%, driven by the record-setting upside in gold prices.
From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 14.14, a modest 3.9% discount to the industry average of 14.71X. It carries a Value Score of B.
The Zacks Consensus Estimate for NEM’s 2025 and 2026 earnings implies a year-over-year rise of 52.3% and 0.9%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.
NEM stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.