Will Lower Capex Help Newmont Sustain Free Cash Flow Momentum in Q4?

Newmont Corporation NEM saw lower capital expenditure in the third quarter of 2025 on a year-over-year basis, helping it to deliver record free cash flows. Its total capital expenditures fell roughly 17% year over year to $727 million. Newmont’s free cash flow more than doubled year over year to record $1.6 billion in the third quarter, led by an increase in net cash from operating activities and lower capital investment.  This marked the fourth straight quarter of free cash flow exceeding $1 billion.  NEM, on its third-quarter call, lowered its capital guidance for 2025, factoring in reduced sustaining and development capital spending. It reduced sustaining capital by $150 million to $1,725 million and development capital by $50 million to $1,280 million, leading to a $200 million reduction in consolidated capital spending.  Lower capital expenditures are expected to favorably impact free cash flow in the fourth quarter and for full-year 2025. Notwithstanding lower capital spending, NEM has cautioned that several factors could weigh on its free cash flow in the fourth quarter, including continued higher spending on Yanacocha’s water treatment construction and planned severance payments.Among its major peers, Barrick Mining Corporation’s B total attributable capital expenditures increased 6% sequentially and 30% year over year in the third quarter. For 2025, Barrick expects the same in the band of $3,100-$3,600 million, higher than the 2024 level of $2,607 million. Barrick’s attributable capital expenditures are expected to rise in 2025, partly due to the advancement of the Lumwana Super Pit Expansion project and spending associated with the Reko Diq project.  Agnico Eagle Mines Limited’s AEM capital spending is also expected to remain at high levels in 2025. Agnico Eagle predicts capital expenditures excluding capitalized exploration to be between $1.75 billion and $1.95 billion for the year, compared with roughly $1.66 billion in 2024. This increase in capital expenditures is partly driven by higher capital expenditures to advance Agnico Eagle’s pipeline projects.  The Zacks Rundown for NEMShares of Newmont have shot up 88.5% in the past six months against the Zacks Mining – Gold industry’s rise of 79.6%, 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 15.64, a roughly 3.4% premium to the industry average of 15.13X. It carries a Value Score of C. Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for NEM’s 2025 and 2026 earnings implies a year-over-year rise of 81.9% and 15.1%, 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.Just Released: Zacks Top 10 Stocks for 2026Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.See New Top 10 Stocks >>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