Newmont Corporation Upgraded to A3 Rating by Moody's, Shares Rise 0.4% in US Premarket

Newmont Corporation, a leading gold mine exploration and operation company, has been upgraded to an A3 rating by Moody's. As a result, the company's shares are up 0.4% in the US premarket. Newmont's revenue breakdown includes 89.7% from gold, 4.9% from copper, 2.8% from silver, 1.8% from zinc, and 0.8% from lead. The company operates 21 production sites across North America, Australia, South America, Africa, and New Guinea.

Moody's Ratings has upgraded Newmont Corporation's backed senior unsecured ratings to A3 from Baa1, with a stable outlook. The upgrade, announced on August 27, 2025, reflects significant improvements in Newmont's credit profile, including strong credit metrics, excellent liquidity, and conservative financial policies [1].

Newmont's debt reduction and strategic divestitures have been key drivers of this rating action. The company has substantially reduced its gross debt, completing a divestiture program that generated $3.1 billion in after-tax cash proceeds in 2025 and $700 million in 2024. These proceeds, combined with operating cash flow, enabled Newmont to repay $483 million of debt in 2024 and $1.4 billion in the first half of 2025. Additionally, Newmont completed tender offers for up to $2 billion of outstanding notes in the third quarter of 2025, reducing total gross debt by nearly $3.9 billion over the period [1].

As a result of these efforts, Newmont's leverage, measured by Moody's-adjusted Debt/EBITDA, declined to 0.7x as of June 30, 2025, from 1x at year-end 2024 and 2.6x at year-end 2023. The company's Moody's-adjusted EBIT margin increased to approximately 42% from 33% and 14% respectively [1].

Newmont has also adopted a new dividend policy, fixing annual dividends at $1 per share, or about $1.1 billion annually, and increased its share repurchase program by $3 billion to $6 billion. As of June 30, 2025, Newmont had approximately $6.2 billion in cash and cash equivalents and $4 billion available under its undrawn revolving credit facility [1].

The stable outlook reflects Moody's expectation that Newmont will maintain a stable production profile, focus on cost improvements, and adhere to disciplined capital allocation strategies to maintain credit metrics in line with an A3 rating [1].

The upgrade is a significant milestone for Newmont, positioning it as a paragon of stability in the historically volatile gold sector. The company's fortress-like balance sheet, diversified commodity portfolio, and commitment to shareholder returns make it a standout long-term holding for investors navigating macroeconomic uncertainties [2].

References:
[1] https://www.investing.com/news/stock-market-news/moodys-upgrades-newmont-to-a3-rating-with-stable-outlook-93CH-4211460
[2] https://www.ainvest.com/news/newmont-corporation-a3-rating-upgrade-strategic-inflection-point-gold-sector-resilience-2508/