Why Newmont Stock Dropped on Friday
Key Points
Newmont delivered blowout numbers for 2025.
Its expectations for 2026, however, are muted.
Newmont's dispute with Barrick has also escalated further.
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Newmont Corporation (NYSE: NEM) is the world's largest gold mining company. With the price of gold surging in recent months, you'd expect Newmont to deliver blowout numbers. That's exactly what's happened. Newmont's fourth-quarter and full-year 2025 numbers, released on Feb. 19 after market close, have crushed estimates.
Why is the gold stock then falling today, losing 5.4% at its lowest point in trading through 2 p.m. ET Friday?
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Newmont's big 2025 numbers
Newmont's average realized gold price surged 45% in 2025, driving its net earnings per share higher by 123% in the year.
Newmont is also in an incredibly strong financial position today. It delivered a record $7.3 billion in free cash flow in 2025, repaid $3.4 billion in debt, and exited the year with $7.6 billion in cash.
The gold giant's guidance, however, has left investors disappointed.
Newmont's 2026 attributable gold production guidance of 5.26 million ounces reflects a 10% drop over 2025. It also expects all-in-sustaining cost (AISC) for the year to spike to $1,680 per ounce from $1,358 an ounce due to planned mine sequencing and lower production. AISC is a comprehensive measure in the gold industry that reflects the total cost of producing gold, including all expenses from mining to overheads and maintenance capital expenditures.
Then, there's the ongoing dispute between Newmont and Barrick Gold (NYSE: B), centered on their Nevada Gold Mines joint venture, which has just taken an ugly turn.
The Newmont-Barrick dispute, and why you shouldn't worry
Barrick owns 61.5% stake in the joint venture. This morning, Newmont revealed that is has issued a notice of default to Barrick for mismanagement, including the diversion of funds from the venture to develop Barrick's own Fourmile mine. A default notice between two of the largest gold miners is a significant escalation in the mining industry.
Should investors in Newmont worry? Perhaps not. Newmont's CEO, Natascha Viljoen, says both companies want to improve the performance of the Nevada mines, and are working in the "best interests" of their shareholders.
The dispute aside, Newmont has one of the strongest balance sheets in the gold mining industry today. It also pays a dividend and is aggressively repurchasing shares.
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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