BUZZ - Broker's View: Analysts are optimistic about Newmont's earnings, but caution on Red Chris project costs

October 23 - ** Newmont Mining (NEM.N) reported third-quarter adjusted profit on Thursday that exceeded (link) expectations, thanks to higher gold prices and a rebound in copper production at its Cadia mine in Australia, which drove profit growth.

** Out of 27 brokers, 24 have a "Buy" or higher rating on the stock, and 3 have a "Hold" rating; the median target price is $140 — data compiled by LSEG.

Red Chris project spending raises concerns

** Scotiabank (rated "Outperform", target price: $149) believes this earnings update is mixed, noting that while profits are strong and capital expenditures in 2027 are below expectations, the significant increase in capital costs for the Red Chris project in Canada, compared to the 2021 study report, could offset these positives.

** Morningstar expects that as production increases, unit costs will decrease over time, but lower gold prices could counteract these advantages.

** Jefferies ("Buy" rating, target price: $155) points out that due to increased sustaining capital expenditure, lower by-product output, and ongoing inflationary pressures (including oil price risks), costs and capital expenditures are expected to peak in the fourth quarter.

(To facilitate non-English speakers, Reuters provides automated translations of its reporting in several languages. As automated translation may contain errors or lack required context, Reuters does not guarantee the accuracy of the automated translations and provides them solely for readers’ convenience. Reuters assumes no responsibility for any damages or losses arising from the use of the automated translation function.)