Newmont Sets a High Bar With Record Q2 Free Cash Flow: Will It Last?

Newmont Corporation NEM logged a record quarterly free cash flow in the second quarter of 2025, underscoring its operational efficiency and the strength of its Tier 1 portfolio. Its free cash flow surged nearly threefold year over year and 42% from the prior quarter to $1.7 billion, led by an increase in net cash from operating activities and lower capital investment. Net cash from operating activities shot up 17% from the prior quarter to $2.4 billion. Strong free cash flow positions the company to strengthen its balance sheet and pursue strategic growth investments. Despite the strong second-quarter showing, concerns linger over the sustainability of Newmont’s cash flow heading into the third quarter. Newmont has flagged several headwinds likely to unfavorably impact third-quarter free cash flow. These include higher capital spending and increased cash tax payments. Also, the continued increase in spending related to the construction of the Yanacocha water treatment facilities is expected to contribute to the sequential decline. The anticipated dip, however, does not point to deteriorating fundamentals. Newmont’s solid balance sheet allows it to fund its growth projects, meet debt obligations and drive shareholder value, notwithstanding the near-term cash flow pressure.Among its major peers, Barrick Mining Corporation B reported a free cash flow of $375 million for the first quarter, a nearly 12-fold year-over-year rise. The surge reflects Barrick’s higher operating cash flows driven by an uptick in realized gold and copper prices. Barrick reduced net debt by 5% during the quarter, leveraging healthy free cash flow generation. Agnico Eagle Mines Limited AEM also generated solid first-quarter free cash flows of $594 million, up around 50% year over year, backed by the strength in gold prices and operational results. This growth reflects Agnico Eagle's consistent operational execution and cost management. Agnico Eagle remains focused on paying down debt using excess cash flow, with net debt reducing by $212 million sequentially to just $5 million at the end of the first quarter.  The Zacks Rundown for NEMShares of Newmont have shot up 76.7% year to date against the Zacks Mining – Gold industry’s rise of 58.7%, largely driven by the gold price rally. Image Source: Zacks Investment ResearchFrom a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 13.57, a roughly 6.6% premium to the industry average of 12.73X. It carries a Value Score of B. Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for NEM’s 2025 and 2026 earnings implies a year-over-year rise of 35.6% and 4.6%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days. Image Source: Zacks Investment ResearchNEM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report Barrick Mining Corporation (B): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks