Newmont Corporation (NYSE: NEM) shares are extending their decline in premarket trading on Wednesday, October 22, 2025, following a dramatic 9% plunge during Tuesday’s regular session. The world’s largest gold mining company is facing continued pressure as investors digest the aftermath of gold’s steepest single-day decline in over a decade.
With the stock already down 4.58% to $82.35 in premarket trading as of 8:15 AM EDT, concerns are mounting about the precious metal’s volatility just ahead of Newmont’s Q3 2025 earnings call scheduled for October 23, 2025 at 5:30 PM EDT.
Historic Gold Selloff Pressures Newmont Ahead of Earnings Report
Gold prices experienced their largest single-day decline in 12 years on Tuesday, October 21, plummeting 6% to $4,120 per troy ounce. The sharp reversal came as investors pivoted away from safe-haven assets toward equities, with the Dow Jones and S&P 500 surging to record highs on strong corporate earnings optimism. This dramatic shift in market sentiment occurred after gold had rallied more than 60% year-to-date, hitting new all-time highs on over 30 separate occasions throughout 2025.
As the world’s largest gold mining company, Newmont’s profitability is directly tied to gold prices, making its stock extremely sensitive to fluctuations in the precious metal. The company closed Tuesday’s session at $86.32, down $8.57 or 9.03% from the previous close of $94.89. Despite the sharp selloff, Newmont shares remain up an impressive 125% year-to-date, having benefited substantially from the record-breaking gold rally earlier in 2025.
The timing of the gold price collapse is particularly unfortunate for Newmont, coming just two days before the company is scheduled to report its Q3 2025 financial results. Analysts expect strong numbers driven by the elevated gold prices during the quarter, with Wall Street forecasting earnings per share of $1.27, representing a 57% increase from the $0.81 reported in the same quarter last year.
Newmont’s Long-Term Strength Remains Intact Despite Recent Pullback
Despite the recent volatility, Newmont maintains solid fundamentals with a market capitalization of $99.7 billion and a trailing P/E ratio of 15.64. The company’s earnings per share stands at $5.52, and it offers a forward dividend yield of 1.16% with an annual dividend of $1.00 per share. Trading volume on Tuesday reached 16.9 million shares, significantly higher than the average volume of 11.0 million, reflecting heightened investor concern and repositioning.
Wall Street analysts remain largely bullish on Newmont despite the recent pullback. The stock carries a “Strong Buy” consensus rating based on 12 Buy recommendations and three Hold ratings issued over the last three months. The average price target of $91.20 implies approximately 6.24% upside from Tuesday’s closing price, though that target now represents even greater upside potential given the premarket decline. Most recently, UBS maintained its Buy rating on October 16, 2025, and raised its price target from $92 to $105.50.
Investors should note that Newmont’s stock performance over longer timeframes remains impressive despite the current turbulence. The company has delivered YTD returns of 135.17%, one-year returns of 52.94%, and three-year returns of 122.90%, significantly outpacing the S&P 500’s returns of 14.52%, 15.06%, and 79.48% respectively over the same periods. All eyes will be on the Q3 earnings call, where management commentary on gold price outlook and operational performance will be crucial for determining the stock’s near-term direction.