Newmont's (NEM) agreement with Barrick Mining (B) to resolve the Nevada Gold Mines dispute is positive for Newmont, removing an overhang and supporting its ability to return cash to shareholders, UBS Securities said in a note Tuesday.

The analysts said Newmont ended Q2 with $3.4 billion of net cash, above its $1 billion to $3 billion target range. After the $1.95 billion payment, net cash would fall to around $1.5 billion, still within its target range.

The analysts estimate Newmont could return more than $3 billion through buybacks and dividends in H2, bringing total 2026 cash returns to more than $7 billion while remaining within its target cash range.

The agreement also provides potential long-term growth from Barrick's Fourmile project, which UBS estimates could produce 600,000 to 750,000 ounces annually beginning in the early 2030s, with about 275,000 ounces attributable to Newmont.

The litigation between Newmont and Barrick over management of Nevada Gold Mines had weighed on sentiment toward both companies, and that resolving the disputes could lay the groundwork for a more constructive partnership, according to the note.

UBS has a buy rating and $120 price target on Newmont.

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