Newmont Corporation

(New York Stock Exchange)
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Somewhat Bullish +45

Newmont stock faces higher 2027 spending as growth projects advance

Capacity expansion Development project Production update AI-generated analysis

πŸ“ˆ Newmont expects attributable gold production to return to growth in 2027 as Tanami Expansion 2 and Red Chris advance.

πŸ’° Development capital is projected to increase by approximately $500 million US dollars in 2027 compared to 2026.

πŸ—οΈ Tanami Expansion 2 shaft construction was completed in Q3, with commercial production expected by the end of H1 2027.

⛏️ Red Chris feasibility study is nearing completion with a full-funds investment decision anticipated in early 2027.

πŸ“‰ Spending on Yanacocha water-treatment plants is expected to decline by about $200 million US dollars, offsetting some of the capital increase.

🌍 Newmont owns a 70 percent stake in the Red Chris joint venture located in British Columbia.

πŸ’΅ The Red Chris project requires an estimated $4.2 billion to $4.8 billion US dollars on a 100 percent basis, net of government contributions.

πŸ“… Commercial production at Red Chris is targeted for 2033 following construction starting in 2027.

πŸ₯‡ The Red Chris mine is designed to produce 3.0 million ounces of gold and over 850 thousand tonnes of copper.

πŸ“‰ Sustaining capital spending is expected to remain broadly in line with 2026 levels.

Bullish Signals
  • Newmont expects attributable gold production to return to growth in 2027, driven by the advancement of its Tanami and Red Chris projects.
  • Tanami Expansion 2 is expected to reach commercial production toward the end of the first half of 2027, earlier than previously anticipated after completing shaft construction in Q3.
  • The company anticipates a low-to-mid single-digit percentage increase in attributable gold production compared with 2026 from its expansion projects.
  • Red Chris is designed to produce 3.0 million ounces of gold and more than 850 thousand tonnes of copper over its initial 13-year cave life.
Risk Factors
  • Development capital is expected to rise by approximately $500 million US dollars in 2027 as Red Chris and Lihir advance, creating a more capital-intensive phase.
  • The spending plan raises the importance of execution and metal prices for the portfolio given the increased development investment requirements.
Full Analysis
Newmont Corporation is entering a more capital-intensive phase in 2027 as its major growth projects, specifically Tanami Expansion 2 and the Red Chris Block Cave project, advance toward key milestones. The company anticipates that attributable gold production will return to growth next year, driven by these strategic developments despite an overall increase in development capital requirements. Development capital is expected to rise by approximately $500 million US dollars in 2027 compared to 2026 to fund construction at the Lihir Nearshore Barrier and Red Chris. This increase is partially offset by a projected decline of about $200 million in spending on Yanacocha water-treatment plants. The company maintains that sustaining capital will remain broadly in line with 2026 levels, directing investment toward projects intended to support longer-term production growth. Tanami Expansion 2 in Australia is expected to reach commercial production by the end of the first half of 2027, earlier than previously anticipated, following the completion of shaft construction in the third quarter. This project is projected to increase attributable gold production by a low-to-mid single-digit percentage compared with 2026. Meanwhile, the Red Chris feasibility study is nearing completion, with a full-funds investment decision expected in early 2027 subject to governance approval. The Red Chris project, in which Newmont owns a 70 percent stake, is estimated to require $4.2 billion to $4.8 billion US dollars on a 100 percent basis, net of an anticipated $500 million Canadian dollar contribution from the government. The mine is designed to produce 3.0 million ounces of gold and more than 850 thousand tonnes of copper over its initial 13-year life, with commercial production targeted for 2033.