Should You Buy Newmont Stock With Gold Prices Above $5,000?
Key Points
Gold has rallied 70% over the past year.
Newmont has cashed in on higher prices, enabling it to strengthen its balance sheet and return money to shareholders.
It could produce even more cash this year, even if gold prices drop.
- 10 stocks we like better than Newmont ›
Gold prices have spiked over the past year. They're up over 70% in the last 12 months and recently closed well above $5,000 an ounce. That's enabling gold producers like Newmont (NYSE: NEM) to cash in by posting much higher revenue and earnings.
Here's a look at whether you should invest in the gold stock given the precious metal's current price.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Digging into Newmont
Newmont is one of the world's leading gold producers. It also produces copper, zinc, lead, and silver. The company's operations span eight countries, including five world-class gold-copper projects. Its core portfolio produced 5.7 million ounces of gold at an all-in sustaining cost (AISC) of $1,599 per ounce last year.
The company sold its gold for an average price of $3,498 an ounce, a 45% increase from 2024. That surge in gold prices enabled Newmont to generate $10.2 billion in cash from operating activities last year and a record $7.3 billion in free cash flow. The company returned $3.4 billion to investors via dividends and share repurchases. Newmont also reduced its debt by $3.4 billion, ending the year with a net cash position of $2.1 billion.
Positioned to cash in again in 2026
Newmont currently expects to produce 5.3 million ounces of gold this year. It anticipates producing that gold at an AISC of $1,680 an ounce. That's higher than last year due to lower volumes, a higher expected gold price (Newmont projects gold will average $4,500 in 2026), and increased sustaining capital expenses.
With gold currently over $5,000 an ounce, Newmont is on track to produce even more cash in 2026. That will give it even more money to allocate to enhancing shareholder value. Newmont plans to invest $1.4 billion in development capital this year, primarily in its highest-return free cash flow growth projects. It has also committed to paying $1.1 billion in dividends this year. That's higher on a per-share basis ($0.26 per share compared to $0.25 per share last quarter) due solely to the impact of the company's share repurchase program. The company currently has $2.4 billion remaining under its current $6 billion share repurchase authorization, leaving it room for continued repurchases. Newmont also intends to maintain a cash-rich balance sheet, which will give it the flexibility to continue returning money to shareholders if gold prices fall.
An enticing gold stock
Newmont is a leading gold producer with low costs. That's enabling it to cash in on higher gold prices. Even if gold prices drop, Newmont can still generate significant cash, which it can use to repurchase more shares as they decline in value. That makes it an intriguing lower-risk way to invest in the precious metal, even at its current elevated price.
Should you buy stock in Newmont right now?
Before you buy stock in Newmont, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Newmont wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $424,262!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,163,635!*
Now, it’s worth noting Stock Advisor’s total average return is 904% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 23, 2026.
Matt DiLallo 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.
Recommended Articles
