Key Takeaways:
- Newmont shares fell 14.9% in June, the worst monthly drop this year
- Gold tumbled more than 25% from its January all-time high of $5,608.35
- The miner's $3.2 billion net cash position supports buybacks at lower prices
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Newmont stock plunges 14.9% in June as gold enters bear market
Newmont Corp. shares dropped 14.9% in June as gold entered a bear market and the miner guided for lower output and higher costs, according to S&P Global Market Intelligence data.
Gold tumbled more than 25% from its all-time high of $5,608.35 per ounce reached in January, exchange data show, as the Federal Reserve held interest rates steady and annual inflation surpassed 4% in May for the first time since April 2023, boosting the appeal of Treasury yields over the metal.
The selloff followed a record first quarter in which Newmont reported all-time cash flows, doubled its share repurchase program with an additional $6 billion authorization, and raised its dividend. Management also guided for attributable gold production to decline to roughly 5.3 million ounces in 2026 from 5.9 million ounces in 2025, with all-in-sustaining costs rising to $1,680 per ounce from $1,358.
Newmont's forward P/E of 9.4x compares with AngloGold Ashanti's 10.2x, according to Financial Modeling Prep data, as investors weigh the margin outlook. The company's Q2 earnings report on July 23 will provide the next catalyst, with the miner holding a net cash position of $3.2 billion that could fund additional buybacks at current prices.
AISC Pressures Mount as Output Declines
Newmont's projected AISC of $1,680 per ounce for 2026 leaves a narrowing margin against spot gold prices now trading in the low $4,000 range. For every $100 rise in gold, the company's AISC increases by $6 due to royalty agreements and other expenses, management said. AngloGold Ashanti's AISC stands at $1,751 per ounce, making Newmont the lower-cost producer among the two major miners.
The company's financial position remains strong despite the stock decline. Newmont reported FY 2025 revenue of $22.7 billion and net income of $7.1 billion, with a net margin of roughly 32.1%. Its debt-to-equity ratio stands at approximately 0.2x, and free cash flow reached $7.3 billion for the fiscal year. The stock's forward dividend yield of 1.1% trails AngloGold Ashanti's 5.7%, but the expanded buyback program offers an alternative return mechanism for shareholders.
This article is for informational purposes only and does not constitute investment advice.
