Why Did Newmont Stock Jump Nearly 12% This Week?
Key Points
Investors who sought safety in the dollar could boost Newmont stock when they return to precious metals.
Newmont generated a record $7.3 billion in free cash flow last year.
Almost half of that was returned to shareholders in the form of dividends and buybacks.
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Gold prices have fluctuated since the start of the year, and so has the stock price of gold miner Newmont (NYSE: NEM). That volatility gives investors opportunities, though.
This week was one where precious metals investors bought back in. Gold moved higher this week, and Newmont shares jumped by 11.7% since last Friday's close, according to data provided by S&P Global Market Intelligence.
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Flight to safety
Newmont's weekly move far outpaced that of the underlying metal. That's because the gold, silver, and copper miner has the potential to deliver strong gains moving forward. Geopolitical strife has led investors to seek safety in the U.S. dollar.
Gold contracts have plunged by more than 10% since the Iran war began. But Newmont's underlying business is strong. Investors will likely look to get back into gold and Newmont stock as geopolitical issues get resolved.
Newmont had a strong 2025, and that could help attract those investors. The company generated an all-time high in free cash flow. Almost half of that $7.3 billion was also returned to shareholders through dividends and buybacks.
The next look at how the underlying business is performing comes when first-quarter results are reported on April 23. Macroeconomic and geopolitical factors may swing stock prices, but investors should focus on the results. Price dips unrelated to the business are the times to add Newmont shares.
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Howard Smith 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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