Newmont’s stock soars to $103 fair value after record gold production and leadership shift
Newmont, a prominent gold miner, has witnessed its stock consensus fair value surge to $103.42 per share. The company's third quarter results demonstrated impressive adjusted EBITDA of $3.3 billion and gold production of 1.4 million ounces. Newmont has also offloaded assets worth over $3.5 billion, including the Coffee project, and has received bullish reviews from CIBC, RBC Capital, and Goldman Sachs.
Newmont has implemented significant operational changes. It has reduced cost forecasts and exploration spending, yet maintained its 2025 production outlook. The company has also concluded its restructuring program, Project Catalyst, leading to a 16% reduction of its global workforce. Around 12% of mid-tier management roles and 10% of entry-level positions were eliminated.
The leadership of Newmont is poised to change. Current CEO Tom Palmer will step down, with Natascha Viljoen, the current President and Chief Operating Officer, set to take over as the first woman to helm Newmont as the new CEO. This transition is slated for the end of the year.
Newmont's third quarter results showcased record free cash flow of $1.6 billion and net income of $1.8 billion. The company's asset sales, cost reductions, and operational efficiency gains have been applauded by analysts, with Goldman Sachs upgrading Newmont from Neutral to Buy and raising its price target to $104.30.
