David Hove, an analyst from Jefferies, reiterated the Buy rating on Newmont Mining (NEM – Research Report). The associated price target remains the same with $57.00.
David Hove has given his Buy rating due to a combination of factors that highlight Newmont Mining’s strong financial outlook and operational advantages. The convergence of market caps between Newmont Mining (NEM) and Agnico Eagle Mines (AEM) prompted an analysis of their financial metrics, revealing that despite similar ‘Real Costs,’ Newmont’s higher gold production volume significantly boosts its free cash flow (FCF) potential. Newmont is expected to generate approximately $3.6 billion in FCF in 2025, driven by gold volumes of around 5.5 million ounces, compared to AEM’s $2.4 billion from 3.3 million ounces.
Furthermore, Newmont’s longer life-of-mine based on reserves and resources, along with its ongoing optimization efforts, positions it for sustained volume advantage and higher FCF generation over time. The company’s valuation, trading at a discount compared to its peer AEM, is expected to improve as it continues to deliver on its guidance and operational efficiencies. This potential for increased FCF and narrowing valuation gap underpins the Buy rating, with a price target of $57 based on a combination of P/NAV and EV/EBITDA multiples.
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