10 Best Basic Materials Stocks To Buy Now

5. NewmontCorp. (NYSE:NEM) 

Number of Hedge Fund Investors: 61

NewmontCorp. (NYSE:NEM) is the biggest gold miner in the world. It acquired rival Newcrest in November 2023 after purchasing Goldcorp in 2019 and combining its Nevada mines into a joint venture with rival Barrick later that year. Its holdings in two joint ventures in the Americas, Africa, Australia, and Papua New Guinea are among its seventeen fully or mostly owned mines.

As the largest gold miner in the world, Newmont’s portfolio includes three significant acquisitions over the past few years. In 2019, it first purchased Goldcorp, a fellow gold producer, for a negligibly little premium. In addition to avoiding paying a hefty charge, Newmont managed to get greater output at mines where Goldcorp had difficulties.

The firm is expected to generate around 6.9 million ounces of gold by 2024. Though 20% of projected sales in 2024 are expected to come from smaller, more expensive mines that Newmont is expected to sell after acquiring Newcrest. As byproducts, Newmont also generates significant amounts of lead, zinc, copper, and silver. It possessed substantial byproduct stockpiles in addition to roughly 20 years’ worth of gold reserves at the end of December 2023.

Newmont Corporation (NYSE:NEM) released its Q2 2024 results, showing $4.4 billion in revenue driven by the production of 1.6 million ounces of gold and 477,000 ounces of gold equivalent from other metals. As a result, there was strong operating cash flow of $1.4 billion and a free cash flow of $594 million.

Matthew Murphy, an analyst with Jefferies, increased the company’s price objective for Newmont shares from $54 to $63 while maintaining a Buy rating. The firm notes that gold has been trading with greater torque to falling real rates rather than cooling down, and it believes that gold can continue to rise shortly. The company raised targets on the metals and miner shares the analyst covers by an average of 13% and also revised its estimate for commodity prices.

Jean-Marie Eveillard’s First Eagle Investment Management is the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 17,108,828 shares worth $716.35 million as of Q2.