Newmont Shares Plunge Despite Record-Breaking Earnings

The world's largest gold mining company has delivered outstanding financial results, yet finds itself facing a severe market selloff. Newmont Mining reported exceptional third-quarter performance with net profit surging over 33 percent alongside record cash flow generation. Despite these impressive achievements, the company's stock price has experienced a dramatic decline. The catalyst? A single management comment that transformed investor optimism into widespread concern.

Newmont's quarterly results exceeded even the most optimistic projections. The company reported earnings per share of $1.71, significantly surpassing analyst expectations of $1.27. Revenue climbed to $5.52 billion, comfortably ahead of the projected $5.14 billion. Most notably, free cash flow reached an astonishing $1.6 billion for the third quarter alone.

However, financial markets typically focus on future prospects rather than past accomplishments. This is where Newmont faces significant challenges. The company's production guidance for 2026 has disappointed investors, with management forecasting approximately 4.0 million ounces—positioning at the lower end of their 2025 range and substantially below market expectations. For shareholders, this signals a concerning lack of growth momentum.

Insider Selling Adds to Investor Concerns

Compounding these worries, CEO Thomas Palmer engaged in substantial stock sales during early November. He disposed of 5,000 shares at an average price of $81.34, representing a transaction value exceeding $400,000. Such insider selling activity rarely instills confidence in already nervous markets. Many investors interpret executive sales as a potential warning sign, prompting reconsideration of their own positions.

Should investors sell immediately? Or is it worth buying Newmont Mining?

The stock has entered a pronounced downward trend, declining over six percent in recent trading sessions and currently hovering around the $87 mark. Particularly concerning for shareholders is Newmont's underperformance relative to industry peers. While competitors including Perseus Mining and Evolution Mining have demonstrated periods of stability, Newmont continues to trail behind other major gold producers.

Dividend Provides Limited Consolation

Amid the market turmoil, Newmont maintains its dividend policy, offering $0.25 per share payable on December 22, 2025. This distribution represents management's effort to retain shareholder support during this challenging period. Simultaneously, the company is streamlining its portfolio by divesting non-strategic assets, including its stake in Orla Mining and the Coffee project. While this strategic repositioning may yield long-term benefits, it fails to generate immediate buying interest among investors.

The critical question remains whether $87 represents a support level for the stock or if the decline will continue. The coming trading sessions will likely prove decisive in determining Newmont's near-term trajectory.