"National Bank downgraded Newmont to Sector Perform from Outperform and cut its price target to $130 from $140, citing a confluence of cost pressures that are chipping away at the gold giant's margins."
"Newmont's 2026 gold by-product AISC guidance stands at $1,680 per ounce, up sharply from $1,302 per ounce in Q4 2025, with a proposed Ghana sliding royalty rate potentially adding about $50 per ounce."
"Despite record free cash flow of $7.3 billion in 2025, Newmont's attributable gold production is guided at roughly 5.3 million ounces in 2026, down from 5.9 million ounces."
Newmont Corporation has been downgraded by National Bank from Outperform to Sector Perform, with a price target cut from $140 to $130. The downgrade is attributed to rising costs, including higher diesel prices and a new tax framework in Ghana, which are affecting profit margins. Despite record gold prices, Newmont's production is expected to decline, and its all-in sustaining costs are projected to rise significantly. The company reported strong free cash flow in 2025 but faces challenges in 2026 with lower production guidance.
Read at 24/7 Wall St.
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