Why Newmont Stock Collapsed in June, And What to Expect Next

Newmont stock collapsed 14.9% in June as gold plunged into bear territory, falling over 25% from record highs. The decline came as rising U.S. Treasury yields pulled capital away from the non-yielding metal, overwhelming traditional safe-haven demand from inflation and geopolitical concerns.

The selloff intensified after Newmont guided production sharply lower for 2025—5.3 million ounces versus 5.9 million ounces—while all-in sustaining costs are expected to jump to $1,680 per ounce from $1,358. The combination of lower output and rising costs creates direct margin compression at current gold prices.

Management signaled confidence in the dip by doubling the company's buyback authorization, backed by a $3.2 billion net cash position. The move suggests Newmont views current levels as attractive, though the buyback alone won't offset production headwinds if gold remains weak.