Newmont shares surge 86 per cent as record gold prices drive earnings beat

Newmont Corporation has significantly outperformed the broader US equity market over the past 52 weeks, with its shares rising 86.2 per cent compared to the S&P 500 Index’s gain of 25.5 per cent. The world’s leading gold producer, which holds a market capitalisation of $115.6 billion, has delivered robust returns for investors despite a recent 24.4 per cent decline from its 52-week high of $134.88.

The company’s strong long-term performance was primarily underpinned by record gold prices realised in the first quarter of 2026. Newmont reported an average gold price of $4,900 per ounce during the period, a sharp increase from $2,944 per ounce a year earlier. This price surge helped offset a decline in attributable gold production, which fell to 1.30 million ounces from 1.54 million ounces in the previous year.

Following the announcement of its first quarter 2026 results on 23 April, Newmont’s shares climbed 8.7 per cent. The company reported adjusted earnings per share of $2.90, significantly beating analyst expectations. The earnings beat was driven by the record gold prices, which more than compensated for the lower production volumes.

Despite the strong annual performance, Newmont has underperformed the broader market in the short term. Over the past three months, the stock has decreased 12.6 per cent, lagging behind the S&P 500’s 9.1 per cent gain. Year-to-date, NEM stock has risen 1.7 per cent, also lagging the index’s 8.9 per cent return. However, the stock has been trading above its 50-day and 200-day moving averages since last year.

In comparison, Newmont has outpaced its rival AngloGold Ashanti, whose stock has gained 81.6 per cent over the past 52 weeks. Analysts remain bullish on Newmont’s prospects, maintaining a “Strong Buy” consensus rating from 23 analysts. The mean price target of $141.53 suggests a potential upside of 39.1 per cent from current levels.