Up 59%! Here are 3 reasons I'd still buy Newmont shares today

Newmont Corp (ASX: NEM) shares have delivered some outsized gains to faithful stockholders.

In afternoon trade on Tuesday, shares in the S&P/ASX 200 Index (ASX: XJO) gold stock were trading for $167.71 apiece.

That sees shares in the gold mining giant up 58.9% in a year, smashing the 4.6% 12-month gains delivered by the benchmark index. Atop those capital gains, Newmont stock also trades on a slender 0.6% unfranked trailing dividend yield.

The past month has been particularly rewarding for stockholders, with Newmont shares up 24.8% since market close on 13 July.

Part of that boost is thanks to a resurgent gold price. The yellow metal has gained 7.4% over the month to be trading for US$4,426 per ounce on Tuesday. Investors have also been snapping up Newmont stock following some promising recent updates.

And looking ahead, Bell Potter Securities' Christopher Watt expects the gold mining giant is well-positioned to keep outperforming (courtesy of The Bull).

Here's why.

Should I buy Newmont shares today?

"Newmont is the world's largest gold miner," Watt said.

Explaining the first reason he issued a buy recommendation on Newmont shares, he said:

Its free cash flow yield appears attractive at conservative gold price assumptions, and even more so if gold prices increase. It reported record second quarter free cash flow of $2.2 billion in fiscal year 2026.

Other highlights from Newmont's Q2 results included a 25% year on year increase in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) to US$3.76 billion. And quarterly gold sales of US$6.12 billion were up 15.1% year on year.

Then there's the miner's strong 2026 gold production outlook.

"In July, the company announced it was on track to meet full-year production guidance of 5.3 million attributable ounces," Watt said.

Sounding a note of caution, Watt added:

There's execution risk from Ghana's shifting regulatory environment and seismic disruption near its Cadia mine in New South Wales. But underlying operations remain solid and management appears to be navigating both issues well.

Which brings us to the third reason I'd buy Newmont shares today.

On Tuesday, the ASX 200 gold miner reported that it had reached an agreement with Barrick Mining Corporation to resolve the disputes relating to their Nevada Gold Mines joint venture.

Under the agreement, Newmont will pay Barrick US$1.95 billion in consideration for land that had previously been excluded from the Nevada Gold Mines joint venture. Those tenements include Barrick's Fourmile and Newmont's Fiberline and Mike developments.

The post Up 59%! Here are 3 reasons I'd still buy Newmont shares today appeared first on The Motley Fool Australia.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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