Newmont Corporation (NEM) Down 6.5% — Should I Get Off This Ride?
Newmont Corporation (NEM) slumped sharply in the latest session, closing at $98.95 on the NYSE, down 6.46% and surrendering $6.83 from the prior close of $105.78. The stock is clearly under pressure, retreating back below the triple‑digit level after briefly challenging its 52‑week high of $106.34 set on Dec. 26, 2025. At current levels, shares are now sliding roughly 7% below that recent peak, signaling that bullish momentum is losing ground in the near term.
Trading activity also points to waning conviction. Volume came in at 2.63 million shares, running well below the 90‑day average of about 10.73 million. That lighter‑than‑usual turnover suggests the latest pullback has unfolded without the kind of strong participation that typically supports a durable move, keeping the price action looking fragile. Within the materials and mining group, other large gold and copper names such as Southern Copper (SCCO) and Agnico Eagle Mines (AEM) have recently held up better on a relative basis, leaving Newmont’s stock retreat looking more pronounced. With the shares sliding away from their highs on soft volume, the near‑term technical picture remains under strain and the stock appears to be facing ongoing headwinds.
Why Newmont Corporation Price is Moving Lower
Recent news flow around Newmont Corporation is creating as many questions as answers, putting pressure on the share price despite some headline positives. The upcoming departure of CEO Tom Palmer on Dec. 31, 2025, represents a major leadership transition just as the company is integrating asset sales and capital allocation decisions. Investors often treat sudden C-suite changes as a risk factor, particularly in capital-intensive industries, and that uncertainty can weigh on valuation. At the same time, the stock’s modest gain on the NYSE against a falling broader market contrasts with weakness in its ASX listing, highlighting cross-market skepticism and potential profit-taking after a strong run.
Fundamentally, the company’s recent strength — including 19.96% revenue growth, a robust 33.42% profit margin, and record Q3 free cash flow of $1.6 billion — has already been recognized and reflected in prior price appreciation. That sets a higher bar going forward and makes the stock more vulnerable if gold prices soften or if execution on divestitures and portfolio optimization stumbles. The recent Moody’s upgrade to A3 and a near-zero net debt position reduce credit risk, but they do not eliminate operational and commodity-cycle risk. With other large metals and mining names such as Southern Copper, Agnico Eagle, and Newmont’s Canadian listing offering alternative exposure to the sector, any hint of leadership instability or earnings normalization can prompt rotation out of NEM, contributing to downside pressure despite solid trailing results.
What is the Newmont Corporation Rating - Should I Sell?
Weiss Ratings assigns NEM a B rating. Current recommendation is Buy. That may sound reassuring on the surface, but investors should recognize that this is a moderate Buy driven by select strengths and does not eliminate meaningful downside risk, especially after the recent price drop. The B rating signals a better-than-average risk/reward profile for its group, but it is far from a low-risk, must-own name.
The Excellent Growth Index and Excellent Solvency Index show that Newmont is expanding and maintains a strong balance sheet. Double‑digit revenue growth near 20%, a profit margin above 30%, and return on equity around 23% back up those sub-indices. However, these positives have not insulated shareholders from volatility or negative sentiment. The Fair Volatility Index warns that price swings can be uncomfortable, particularly in a cyclical, commodity‑driven business where sharp drawdowns are common.
Income‑oriented investors face additional concerns. The Weak Dividend Index indicates that Newmont’s payout profile and total income return fall short of what many investors might expect from a large miner, especially given its solid profitability. In other words, strong operations have not translated into equally strong, dependable cash returns to shareholders.
Relative to peers, Newmont’s B rating places it on par with Southern Copper Corporation (SCCO, B), but below Agnico Eagle Mines Limited (AEM, A), which carries a stronger overall assessment. For investors already holding NEM, the B rating supports staying invested only if they can tolerate sector‑level risk and ongoing volatility. Those seeking more defensive exposure may find better risk-adjusted profiles elsewhere in the group.
About Newmont Corporation
Newmont Corporation is a global gold mining company operating across the full value chain of mineral exploration, development, extraction, processing and reclamation. Headquartered in the United States, it focuses primarily on gold production, while also producing copper, silver, zinc and lead as byproducts in certain operations. The company’s asset base includes open-pit and underground mines, along with a portfolio of development projects and exploration targets located in established mining jurisdictions in North America, South America, Australia and Africa. Newmont’s operations typically involve large-scale, capital-intensive projects with long development timelines, complex permitting requirements and ongoing environmental and regulatory obligations.
Within the Materials sector, Newmont positions itself as a large-scale, diversified gold producer with an emphasis on operating large, long-life mines. Its business model relies heavily on maintaining ore reserves, replacing mined resources through exploration, and executing mine plans efficiently to sustain production levels. The company also manages extensive processing infrastructure, including mills, leach facilities and concentrators, to extract and refine ore into saleable metal. Newmont promotes a focus on safety, environmental stewardship and community relations as part of its license to operate, but its footprint across multiple continents exposes it to operational disruptions, geopolitical risks, labor issues and changing regulatory regimes. The company competes with other global and regional mining companies for attractive deposits, skilled labor, equipment and capital, and must continually invest in exploration, mine development and technology just to maintain output in the face of declining ore grades and natural resource depletion.
Investor Outlook
Despite its current B (Buy) Weiss Rating, Newmont Corporation (NEM) warrants careful monitoring as recent downside price action could signal shifting risk/reward dynamics. Investors may want to watch how the stock behaves around recent lows, as well as broader Materials-sector and commodity-price trends that could pressure margins or total return potential and ultimately impact the rating. See full rankings of all B-rated Materials stocks inside the Weiss Stock Screener.
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