Newmont's Record Cash Flow Boosts Gold Mining Sector Optimism

Newmont Corporation (NEM) remains one of the most attractive bets in the gold-mining sector, according to Freedom Broker experts. They maintained their 'Buy' rating on NEM shares and a $130 target price, citing the company's strong cash flow and active capital returns to shareholders.

Newmont is the largest gold miner with a diversified portfolio of mining assets. After acquiring Newcrest Mining in November 2023 for about $16.8 billion, the company focused on improving portfolio efficiency and cutting costs, which is reflected in its financial results.

The key positive factor for the gold-mining sector remains the ability of major producers to convert high gold prices into free cash flow. Newmont showed particularly strong momentum with a record $2.2 billion in free cash flow generated in Q2 2026, a quarterly figure. This was accompanied by production of about 1.3 million ounces of gold and maintained plans to produce 5.3 million ounces for the full year 2026.

Newmont actively returned capital to shareholders with $1.9 billion allocated to dividends and share buybacks since the previous earnings call. The company reduced shares outstanding by more than 100 million, or about 9%, since February 2024, and expects further reductions in share count will allow it to increase dividends per share without raising the total payout amount.