🏆 Newmont's performance exceeded expectations but faced selling: Why did the gold giant encounter a 'late spring chill'?
As global geopolitical tensions rise (the U.S.-Iran situation escalates) and gold prices stabilize above $5000, the world's largest gold mining company Newmont (NEM) released a perplexing financial report.
📊 Impressive data for 2025:
Total revenue: $22.7 billion (significantly exceeding expectations). Earnings per share (EPS): $6.89, far surpassing Wall Street forecasts. Average selling gold price: soared 45% to $3498/ounce. Q4 single quarter: earnings per share $2.52, well above the expected $2.05.
📉 With such good performance, why the sell-off?
The market is speculating on 'expectations.' Newmont lowered its production guidance for 2026: expected to mine 5.3 million ounces, down from 5.89 million ounces in 2025. The decline in production is mainly affected by forest fires in Australia and adjustments in mining area development sequence.
🎯 How do Wall Street firms view this?
Analysts remain optimistic about the future, raising target prices:
Jefferies: target price raised to $158 (buy rating). RBC Capital: target price $125 (outperform). Consensus expectation: average target price $139.02, still about 11% upside from the current.
💡 Summary:
Despite facing short-term production decline pressure, as the biggest beneficiary of soaring gold prices (up 71% over the past 12 months), Newmont's strategic position remains solid. In the context of heightened global risk aversion, gold assets continue to serve as a safe haven.
Note: The above content does not constitute investment advice. Investing involves risks; proceed with caution (DYOR).
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