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Home»Equity Investments»Will NEM’s Liquidity Strength Fuel Growth and Returns Ahead?
Equity Investments

Will NEM’s Liquidity Strength Fuel Growth and Returns Ahead?

By CharlotteJune 30, 20264 Mins Read
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Newmont Corporation NEM has a strong liquidity position and generates substantial cash flows, which allow it to fund its growth projects and drive shareholder value. At the end of the first quarter of 2026, Newmont had robust liquidity of roughly $12.8 billion, including cash and cash equivalents of around $8.8 billion.  

NEM’s strong liquidity profile and substantial cash flows provide it with ample flexibility to fund expansion projects, reduce debt and enhance returns. The company remains focused on investing in its organic growth initiatives, leveraging a strong balance sheet. It is pursuing several projects, including the Cadia Panel Caves and Tanami Expansion 2 in Australia. These projects should expand Newmont’s production capacity and extend mine life, driving revenues and profits.

Newmont also remains committed to deleveraging, having reduced debt by roughly $3.4 billion in 2025. It reduced debt by an additional $42 million in the first quarter of 2026, resulting in a strong net cash position of $3.2 billion.  

The company generated $3.6 billion from its portfolio optimization actions in 2025. These funds will support Newmont’s capital allocation strategy, which focuses on reinforcing its balance sheet and delivering returns to its shareholders.

Looking across the competitive landscape, Kinross Gold CorporationKGC had strong liquidity of $3.9 billion at the end of the first quarter. KGC’s cash and cash equivalents were around $2.19 billion at the end of the quarter, increasing from $1.74 billion at the end of the prior quarter. With $1.7 billion in available credit (as of March 31, 2026) and no debt maturities until 2033, Kinross is well-positioned to support growth while strengthening its balance sheet and delivering shareholder value.  

Agnico Eagle Mines LimitedAEM has a robust liquidity position and generates healthy cash flows, enabling it to maintain a strong exploration budget and finance a robust pipeline of growth projects. AEM ended the first quarter with cash and cash equivalents of roughly $3.1 billion. Agnico Eagle had a significant net cash position of roughly $2.9 billion at the end of the quarter, driven by an increase in cash.

The Zacks Rundown for NEM

Shares of Newmont have shot up 60.7% in the past year against the Zacks Mining – Gold industry’s rise of 43.2%.

Zacks Investment ResearchImage Source: Zacks Investment Research

From a valuation standpoint, NEM is currently trading at a forward 12-month earnings multiple of 9.35, a modest 2.2% premium to the industry average of 9.15X. It carries a Value Score of B.

Zacks Investment ResearchImage Source: Zacks Investment Research

The Zacks Consensus Estimate for NEM’s 2026 and 2027 earnings implies a year-over-year rise of 43.8% and 8.7%, respectively. The EPS estimates for 2026 and 2027 have been trending higher over the past 60 days.

Zacks Investment ResearchImage Source: Zacks Investment Research

NEM stock currently carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research



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