We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Newmont's Record Free Cash Flow Momentum Carry Into Q4?
Read MoreHide Full Article
Key Takeaways
Newmont logged record Q3 free cash flow of $1.6B, marking its fourth straight quarter above $1B.
Higher operating cash flows drove the surge, with net cash from operations up 40% year over year.
Newmont warns Q4 cash flow may ease due to higher Yanacocha water treatment spending and severance.
Newmont Corporation (NEM - Free Report) logged a record quarterly free cash flow in the third quarter of 2025, underscoring its operational efficiency and the strength of its Tier 1 portfolio. Its free cash flow more than doubled year to year to record $1.6 billion, led by an increase in net cash from operating activities. This marked the fourth straight quarter of free cash flow exceeding $1 billion. Net cash from operating activities shot up 40% from the prior-year quarter to $2.3 billion. Strong free cash flow positions the company to strengthen its balance sheet and pursue strategic growth investments.
Despite the company’s strong performance in the third quarter, questions remain about how well Newmont can maintain its cash flow in the fourth quarter. The miner has already cautioned that several factors could weigh on its free cash flow, including continued higher spending on Yanacocha’s water treatment construction and planned severance payments.
Still, the expected decline doesn’t signal weakening fundamentals. Newmont’s robust balance sheet positions it to continue supporting growth initiatives, meeting its debt commitments and delivering shareholder value, even with short-term cash flow pressures.
Among its major peers, Barrick Mining Corporation (B - Free Report) reported a free cash flow of $1.5 billion for the third quarter, rising from $444 million in the prior-year quarter. The surge reflects Barrick’s higher operating cash flows driven by an uptick in realized gold prices. Barrick generated strong operating cash flows of roughly $2.4 billion in the quarter, up 105% year over year.
Agnico Eagle Mines Limited (AEM - Free Report) recorded third-quarter free cash flow of roughly $1.2 billion, nearly doubling the prior-year quarter figure of $620 million. The increase was backed by the strength in gold prices and Agnico Eagle’s robust operational results. Agnico Eagle remains focused on paying down debt using excess cash, with total long-term debt reducing by roughly $400 million sequentially to $196 million at the end of the quarter.
The Zacks Rundown for NEM
Shares of Newmont have shot up 143.5% year to date compared with the Zacks Mining – Gold industry’s rise of 139.1%, largely driven by the gold price rally.
Image Source: Zacks Investment Research
From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 12.8, a roughly 4.8% discount to the industry average of 13.44X. 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 73.9% and 18.3%, 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 #1 (Strong Buy).
Image: Bigstock
Can Newmont's Record Free Cash Flow Momentum Carry Into Q4?
Key Takeaways
Newmont Corporation (NEM - Free Report) logged a record quarterly free cash flow in the third quarter of 2025, underscoring its operational efficiency and the strength of its Tier 1 portfolio. Its free cash flow more than doubled year to year to record $1.6 billion, led by an increase in net cash from operating activities. This marked the fourth straight quarter of free cash flow exceeding $1 billion. Net cash from operating activities shot up 40% from the prior-year quarter to $2.3 billion. Strong free cash flow positions the company to strengthen its balance sheet and pursue strategic growth investments.
Despite the company’s strong performance in the third quarter, questions remain about how well Newmont can maintain its cash flow in the fourth quarter. The miner has already cautioned that several factors could weigh on its free cash flow, including continued higher spending on Yanacocha’s water treatment construction and planned severance payments.
Still, the expected decline doesn’t signal weakening fundamentals. Newmont’s robust balance sheet positions it to continue supporting growth initiatives, meeting its debt commitments and delivering shareholder value, even with short-term cash flow pressures.
Among its major peers, Barrick Mining Corporation (B - Free Report) reported a free cash flow of $1.5 billion for the third quarter, rising from $444 million in the prior-year quarter. The surge reflects Barrick’s higher operating cash flows driven by an uptick in realized gold prices. Barrick generated strong operating cash flows of roughly $2.4 billion in the quarter, up 105% year over year.
Agnico Eagle Mines Limited (AEM - Free Report) recorded third-quarter free cash flow of roughly $1.2 billion, nearly doubling the prior-year quarter figure of $620 million. The increase was backed by the strength in gold prices and Agnico Eagle’s robust operational results. Agnico Eagle remains focused on paying down debt using excess cash, with total long-term debt reducing by roughly $400 million sequentially to $196 million at the end of the quarter.
The Zacks Rundown for NEM
Shares of Newmont have shot up 143.5% year to date compared with the Zacks Mining – Gold industry’s rise of 139.1%, largely driven by the gold price rally.
From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 12.8, a roughly 4.8% discount to the industry average of 13.44X. 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 73.9% and 18.3%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.
NEM stock currently carries a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.