Newmont Corporation (NEM): A Bull Case Theory
We came across a bullish thesis on Newmont Corporation (NEM) on Business Model Mastery’s Substack. In this article, we will summarize the bulls’ thesis on NEM. Newmont Corporation (NEM)’s share was trading at $52.72 as of 30th May. NEM’s trailing and forward P/E were 12.01 and 8.41 respectively according to Yahoo Finance.
A global gold powerhouse, this miner delivered 7 million ounces of gold production at an average realized price of $2,408/oz in 2024, while maintaining industry-leading cost discipline with all-in costs of just $1,126/oz. This translated into an impressive gross margin of over $1,280/oz before overhead, showcasing operational efficiency and pricing power.
Beyond gold, the company’s multi-metal profile added significant value, with co-product contributions of 338 million pounds of copper, 33 million ounces of silver, and 569 million pounds of zinc. These volumes not only diversified earnings but also helped offset gold production costs, making operations more resilient across commodity cycles.
With assets spanning 15 countries and a strong footprint in stable jurisdictions, the company benefitted from surging demand in key markets—most notably Japan and South Korea, where sales jumped over 275% and 100% respectively. Its dominance is underpinned by ownership of the largest share of Tier 1 gold mines globally, defined as assets producing over 500,000 ounces annually with 10+ year mine lives and cost structures in the lower half of the global cost curve.
This tiered structure ensures long-term cash flow durability and strategic flexibility. The company also holds a commanding 134.1 million ounces of proven gold reserves, supported by over a century of geological data, reinforcing its exploration and development advantage. Its leadership in environmental and sustainability efforts is notable, including a 2030 target to reduce emissions by 32% and issuing the industry’s first $1 billion sustainability-linked bond. Together, these factors build a compelling case for long-term value and stability.
For a comprehensive analysis of another standout stock covered by the same author, we recommend reading our summary of this bullish thesis on Harley Davidson, Inc. (HOG).
Newmont Corporation (NEM) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held NEM at the end of the first quarter which was 69 in the previous quarter. While we acknowledge the potential of NEM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article was originally published at Insider Monkey.
About The Author
