Newmont Corp-CDI (ASX: NEM)

Hi Gil,

We’ve already seen the move on the ASX – moves in US trade immediately translate to moves on the ASX in the morning – there are plenty of “Arbitrage” trader’s out there to ensure they don’t go too far out of sync.

The deal: Newmont and Barrick have reset their Nevada Gold Mines (NGM) JV, resolving all outstanding disputes. Barrick contributes its high-grade Fourmile discovery, while Newmont contributes Fiberline and Mike and pays Barrick US$1.95bn cash to reflect the difference in value. Newmont has also consented to Barrick’s planned North American IPO, expected by end-2026.

Why the market likes it: The key takeaway is that Newmont appears to have secured exposure to Fourmile at a significant discount to analysts’ estimates of underlying value.

• TD Cowen estimates Newmont’s 38.5% share of Fourmile is worth ~US$6.6bn, versus the US$1.95bn payment — implying ~US$4.7bn of potential value uplift.
• The transaction implies ~US$325/resource oz for Fourmile, viewed as attractive given the deposit’s high grade, location adjacent to existing NGM infrastructure and the strong gold-price environment.
• Veritas similarly values Newmont’s ~38% Fourmile interest at ~US$5.1bn, comfortably above the cash consideration.
• Importantly, the deal is readily fundable: UBS estimates Newmont’s Q2 net cash of US$3.4bn falls to ~US$1.5bn post-payment, still within management’s US$1–3bn target range.

MM believes this is a strategically and financially attractive reset for Newmont. It removes the uncertainty around the NGM disputes, adds exposure to one of the more attractive undeveloped high-grade gold discoveries in Nevada, and does so without stretching the balance sheet. The valuation asymmetry is the standout — on analyst estimates, Newmont may be paying US$1.95bn for an interest worth US$5–7bn.

• We are bullish toward NEM and are considering Newmont as an alternative to Barrick in our International Equities Portfolio.

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Newmont Corp-CDI (NEM)

LAST UPDATED 13/08/2026 10:36

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Newmont Corp-CDI (NEM)

LAST UPDATED 13/08/2026 10:36