Bernstein Lowers Price Target for Newmont Corporation (NYSE:NEM) Amid Production Challenges
Bernstein has lowered its price target for Newmont Corporation, though it still indicates a potential upside of 13.31% . Newmont faces significant gold production issues, including a 13% year-over-year decline in output and projected increases in All-in Sustaining Costs (AISC) to
- Bernstein has lowered its price target for Newmont Corporation, though it still indicates a potential upside of 13.31%.
- Newmont faces significant gold production issues, including a 13% year-over-year decline in output and projected increases in All-in Sustaining Costs (AISC) to $1,680 per ounce by 2026.
- Despite operational challenges, Newmont stock saw a substantial 34.5% gain in August, fueled by rising gold prices and the resolution of a dispute with Barrick Mining Corporation.
An analyst from Bernstein has lowered the price target for Newmont Corporation (NYSE:NEM) to $144. Newmont is a leading global company focused on producing gold. When the target was set, Newmont traded at $127.09, meaning the new target still suggests a potential upside of approximately 13.31%.
This analyst revision occurs as the company manages significant production issues, as highlighted by Zacks Investment Research. Newmont's gold production saw a 13% year-over-year decline in the second quarter, reaching 1.29 million ounces. This drop is partly due to the company selling off non-core assets.
Lower output from the Cadia mine and reduced mineral quality from other sites also contributed to the production decrease. Looking ahead, Newmont projects its 2026 gold output will fall to 5.26 million ounces, down from 5.89 million ounces in 2025, with lower production expected from key mines.
These production challenges are expected to increase costs. The All-in Sustaining Cost (AISC), which is the total cost to produce one ounce of gold, is projected to rise to $1,680 per ounce in 2026. Lower production volumes mean fixed costs are spread over fewer ounces, increasing the per-ounce cost.
Despite these issues, Newmont stock rose 34.5% in August, as reported by S&P Global Market Intelligence. This gain was driven by a rally in gold prices and a positive resolution to a dispute with competitor Barrick Mining Corporation over their shared Nevada Gold Mines joint venture.
Originally published by fmp.
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