BMO Cuts Newmont Target to $140 After Q4 EPS Beat, Cites Cost Pressures
Newmont beat Q4 EPS forecasts with $2.52, generated a record $2.8B free cash flow and cut $3.4B of debt to end 2025 with $2.1B net cash. BMO Capital cut its price target to $140 from $145 and upheld an outperform rating, flagging 14% lower gold output and elevated operating costs.
1. Q4 2025 Financial Highlights
Newmont reported EPS of $2.52 versus $2.00 estimates, generated a record $2.8 billion in free cash flow, and saw 14% lower production year over year due to planned mine sequencing.
2. Balance Sheet Strength
The company cut $3.4 billion of debt in 2025, ending the year with $2.1 billion in net cash and $7.6 billion in cash on hand, bolstering its liquidity profile.
3. BMO Capital Rating Review
BMO Capital lowered its Newmont price target to $140 from $145 while retaining an outperform rating, warning of elevated operating costs and near‐term production declines.
4. 2026 Production Outlook
FY 2026 guidance forecasts 5.3 million ounces of gold attributable production, down from 5.89 million, with management aiming to return to 6 million ounces of gold and 150,000 tonnes of copper annually from 2027 onward through cost and productivity programs.