Newmont Navigates Gold Price Surge Amid Operational Setback

Newmont Mining US6516391066

Shares of Newmont Corporation, the world’s leading gold producer, are facing a week of contrasting forces. While the company benefits from gold’s record-breaking rally—with the precious metal recently testing the $5,000 per ounce threshold—its operations have been clouded by a tragic incident. A fatal accident at a key Australian mine has halted production, creating a complex landscape for investors ahead of the company’s quarterly earnings release.

The soaring price of gold has prompted several financial institutions to revise their outlooks for Newmont’s stock. Analysts point to significantly improved profit margins driven by the robust commodity environment.

• Macquarie reaffirmed its "Outperform" rating on Friday, raising its price target for the New York-listed shares to $126. The firm highlighted the favorable impact of higher gold prices on the miner's financials.
• CIBC also adjusted its models on February 4, setting a target of A$177 for Newmont’s Australian listing (ASX: NEM). This equates to approximately $115 for the U.S. shares, a distinction made to clarify confusion in market forums regarding the currency of the target.

Production Halt Following Australian Accident

Operations at the strategically important Tanami mine in the Northern Territory were suspended following a fatal workplace accident on February 4, 2026. A 47-year-old employee lost his life in the incident.

Newmont immediately ceased all activity at the site to facilitate investigations by NT WorkSafe and other local authorities. Preliminary reports suggest a mechanical failure in a winching system may have been involved. The company’s management has emphasized that safety is its absolute priority but has not yet provided a timeline for resuming operations. A prolonged shutdown at Tanami could jeopardize production targets for the first quarter of 2026.

Ghana Project Reaches Commercial Stage

In a positive operational development, Newmont’s Ahafo North project in Ghana is currently ramping up. The site achieved commercial production in October 2025 and is now focused on increasing throughput.

Contrary to some weekend market speculation, this is not a new production start; the facility has been operational since year-end. The key objective for 2026 is to optimize operations to reach the targeted annual output of between 275,000 and 325,000 ounces. This project is critical for the company to offset declining production from its more mature mining assets.

Market Performance and Forthcoming Earnings

Newmont’s stock closed the previous week on a strong note at $115.32, posting a 6.26% gain on Friday alone, largely fueled by the surge in precious metals. However, the Tanami suspension casts uncertainty over near-term prospects.

All eyes are now on the Q4 2025 financial report, scheduled for release on February 19, 2026. This update is expected to address several pressing questions:

• Impact of Tanami: How long will the mine remain closed, and what are the implications for the company’s full-year production forecast of roughly 5.3 million ounces globally?
• Capital Allocation: With an anticipated net cash position exceeding $1 billion, investors will scrutinize management's signals regarding potential dividend increases or share buybacks.
• Cost Management: All-In Sustaining Costs (AISC) remain a critical metric. Analysts will assess whether Newmont can maintain its projected cost of $1,823 per ounce despite ongoing inflationary pressures.

The coming weeks will see Newmont’s shares pulled between operational challenges and an exceptionally supportive gold market. The quarterly results will reveal the company's capacity to manage this delicate balance.

@ boerse-global.de | US6516391066 NEWMONT