How Fourmile Dispute Resolution At Newmont Stock Has Changed Its Investment Story

Darden Restaurants fell 6.6% after Q1 results met earnings estimates but missed revenue expectations. MGM Resorts dropped 9% as Barry Diller withdrew a buyout offer. BlackBerry rose 2% after beating Q2 earnings and revenue estimates. Meta slipped 2% following a 12% weekly gain. Knife River gained 5% on activist investor interest. Everpure rose 6.7% on positive 2028 guidance. Gold miners declined with gold futures.

UBS raised Newmont's price target to $155 from $120, citing improved capital returns outlook and resolution of a key overhang. The bank expects significant shareholder returns and production growth per share. Newmont has outperformed the GDX gold index by less than 5% since the resolution, which UBS believes does not fully reflect the improved outlook.

Newmont Corporation (NEM) stock rose 2.8% Thursday as investors reacted to a prior day's sell-off following the Fed's 0.25% interest rate hike. Gold prices, which initially dropped to $4,333, rebounded to $4,410. The Fed's move aims to combat inflation, potentially reducing gold's appeal. Newmont trades at 15.7x earnings, with analysts forecasting 15% annual growth and a 0.9% dividend.

Newmont Goldcorp (NEM) shares rose 1.5% in pre-market trading to $123.63 as gold prices recovered toward $4,300/ounce. UBS and RBC raised their price targets to $155, citing cash returns and production growth. The company resolved a dispute with Barrick Mining and has a $6B share buyback program. The broader market also gained, supporting risk assets.

U.S.-listed gold miners rose in premarket trading as bullion prices rebounded 1.4% to $4,324.39/oz. Newmont and Barrick Gold each gained 1.2%, while Harmony Gold and Gold Fields rose 3.7% and 2.3%. The dollar softened, and oil prices retreated, supporting gold's rebound after the Fed's rate hike and hawkish stance.

Newmont Mining (NEM) stock fell 2% on Wednesday after the Federal Reserve raised interest rates by 25 basis points, impacting non-interest-bearing assets like precious metals. Gold and silver prices, which had hit record highs earlier this year, partially recovered by market close. The Fed's hawkish stance is expected to limit the upside for precious metals and increase mining costs, potentially affecting Newmont's performance.