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Investing.com - Goldman Sachs has upgraded Newmont Mining Corp. (NYSE:NEM) from Neutral to Buy and raised its price target to $104.30 from $77.30. The mining giant, which has achieved a perfect Piotroski Score of 9 according to InvestingPro data, has seen its stock surge 131.95% year-to-date.
The upgrade reflects Goldman’s view that Newmont is trading at approximately 0.90 times net asset value, which implies gold pricing of about $3,000 per ounce, below the peer average of roughly 1.05 times NAV and $3,350 per ounce gold pricing. Trading at a P/E ratio of 15.43 and maintaining dividend payments for 55 consecutive years, InvestingPro analysis suggests the stock remains undervalued relative to its Fair Value.
Goldman Sachs also highlighted Newmont’s attractive near-term free cash flow yields of approximately 10%, which are expected to improve to around 13% as projects are completed.
The investment bank values Newmont’s approximately 32% effective stake in Fruta del Norte via Lundin Gold at about $2.8 billion, based on a 100% valuation of approximately $8.9 billion before second-quarter 2025 net cash of roughly $0.5 billion.
Goldman Sachs noted the market implied value of Newmont’s stake is approximately $5.4 billion, suggesting potential upside to their valuation of the mining company.
In other recent news, Newmont Corporation announced a significant milestone with the first gold pour at its Ahafo North Project in Ghana, marking progress toward commercial production expected in the fourth quarter of 2025. Additionally, Newmont completed the sale of its entire stake in Orla Mining Ltd. for $439 million, selling 43 million common shares through the Toronto Stock Exchange. Leadership changes are also on the horizon for Newmont, with CEO Tom Palmer set to resign by the end of 2025, and Natascha Viljoen slated to succeed him as President and CEO, marking a historic leadership transition. In related industry news, gold prices surged to a record high of $3,831.44, with silver prices also reaching levels not seen since 2011. This rise in precious metals followed the Federal Reserve’s decision to cut interest rates, contributing to a boost in gold stocks. These developments highlight Newmont’s strategic adjustments and the broader market’s response to economic shifts.
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