Newmont Corp (ASX: NEM) shares are up more than 20% over the past year, but analysts agree that the world's largest gold miner is set to get even bigger.
Three brokers have issued new research notes on the company with bullish share price targets, which I'll get to shortly.
First, let's have a closer look at the quarterly production report.
Image source: Getty Images
Gold production is going to plan
Newmont said in a statement to the ASX that it remained on track to deliver its full-year production guidance and improved full-year cost outlook, supported by disciplined operational execution in the third quarter.
The company produced about 1.3 million ounces of gold during the quarter and generated US$1.9 billion in free cash flow.
The company is expecting to produce 5.3 million ounces of gold for the full year.
As well as its gold production for the quarter, Newmont produced 11 million ounces of silver and 23,000 tonnes of copper.
Newmont said it had bought back US$1.6 billion worth of shares since its last earnings call and had US$2.8 billion in remaining capacity under its current buyback plan.
The company ended the quarter with US$3.2 billion in net cash.
Newmont's average realised gold price for sales was US$4,317 per ounce, down $US97 per ounce on the previous quarter.
Analysts agree Newmont shares are looking cheap
UBS said in its note to clients that the third-quarter results were ahead of consensus, with no material negative surprises.
The broker added:
NEM reiterated FY26 production guidance and remains well positioned to meet/modestly exceed the midpoint while lowering FY26 unit cost guidance materially. Results have generally exceeded expectations over the past 12 months, although this has periodically been offset by guidance reductions.
UBS said it continued to consider Newmont's production assumptions as relatively conservative.
UBS has a price target of $210 on Newmont shares, compared with the current price of $156.31.
Morgans is less bullish, reducing its price target from $194 to $177.
This was due to an increase in its cost and capital expenditure assumptions.
But the ongoing buyback would lend strength to the share price, though, they said.
Morgans added:
Annualising the US$6bn buyback implies a ~5% capital return yield at current prices (about 6% including the dividend), which we see as a strong cushion for the share price. Ultimately, however, a re-rating requires a turnaround in the gold price, and the near-term backdrop is not supportive given the short-term interest rate outlook. For long-term investors we see current levels as an accumulation opportunity, but would remain cautious in the short term.
Macquarie, meanwhile, has a price target of $184 on Newmont and also calls out costs as an issue.
