Newmont Shares Retreat Following Record-Breaking Rally

Newmont Mining concluded the 2025 trading year on a softer note. The company's stock declined by approximately 2.1% on the final trading session, closing at $99.76. Intraday losses had exceeded 5% at one point. This pullback is attributed to profit-taking activity in the wake of historic gold price gains and market reactions to reports concerning potential environmental litigation.

Fundamentally, Newmont's position remains robust. For the third quarter of 2025, the mining giant reported revenue of $5.52 billion. This figure represents a nearly 20% year-over-year increase and comfortably surpassed analyst expectations of $5.14 billion. Earnings per share came in at $1.71, also decisively beating the consensus estimate of $1.27.

The company's strategic portfolio management continued with a year-end announcement. On December 31st, Newmont finalized the sale of a 3% Net Smelter Return royalty on the West Cache Gold Project to Galleon Gold Corp. for $7.7 million. This transaction aligns with the firm's ongoing strategy to monetize non-core assets.

Exploration Success and Institutional Confidence

Positive exploration news emerged from the Yamagano Project in Japan, where Newmont holds a 60% interest. Partner Irving Resources reported high-grade mineralization from the project's deepest drill hole to date, reaching 951.8 meters. The results, showing 2.11 grams of gold per tonne, confirm the extension of the epithermal system well below historical mining levels.

Should investors sell immediately? Or is it worth buying Newmont Mining?

Institutional investor sentiment appears strong. Los Angeles Capital Management significantly increased its stake in Newmont during Q3, boosting its position by over 120% to a value of around $286 million. In a separate transaction, CEO Tom Palmer sold 5,000 shares in early November for approximately $406,700.

Gold Rally Fuels Performance, Analysts Maintain Outlook

The primary catalyst for Newmont's performance throughout the year was the remarkable surge in gold prices. During 2025, the price of gold climbed from around $2,600 to briefly exceed $4,300 per ounce. This rally was driven by geopolitical tensions and substantial purchases by central banks. Newmont's shares directly benefited, reaching an all-time high near $111 in December before the recent correction set in.

The analyst consensus remains largely optimistic, maintaining a "Buy" recommendation with an average price target of $97. UBS expresses even greater bullishness, setting a target of $125 per share. The firm's analysts suggest that persistent geopolitical uncertainty could push gold prices to $5,400 by 2026.

Market participants now await the full annual report, expected in early 2026, for clarity on whether record gold prices have translated into sustainable cash flows and dividend growth. The current dividend yield stands at approximately 1.0%.