6. Newmont Corporation (NYSE:NEM)
Number of Hedge Fund Investors in Q1 2024: 55
Newmont Corporation (NYSE:NEM) is an American gold company with operations in North America, South America, Australia, and other regions. Since it’s a gold company, its performance is contingent on three key metrics. These are production costs, volume shipped, and volume produced. Newmont Corporation (NYSE:NEM) has to balance out these three metrics to ensure that it can continue to deliver value to investors. Apart from gold, which benefits during an economic slowdown, Newmont Corporation (NYSE:NEM) also produces substantial amounts of copper. These provide it exposure to the highly growing electric vehicle industry, and the broader industrial segment as well due to copper’s prevalence in the world’s electrical systems. Newmont Corporation (NYSE:NEM) also has to keep a keen eye on regulatory developments across its global portfolio base as any changes could either hamper production or create room for growth. Given that gold demand has risen recently particularly from central banks increasing their purchases to reduce dependency on volatile US securities and copper benefits from an uptick in the Chinese economy, Newmont Corporation (NYSE:NEM) has a balanced portfolio that can do well in different economic climates.
Newmont Corporation (NYSE:NEM)’s management also shared key details for its regulatory and performance metrics during the Q1 2024 earnings call where it outlined:
Last week, Newmont published our 20 annual sustainability report, along with our third annual taxes and royalties contribution report, both providing a detailed and transparent look at our values driven approach to sustainability and the economic contributions we made in the jurisdictions and communities that we operate in. With this sustainable foundation in place, we have created the industry’s strongest portfolio of world-class gold and copper assets in the most favorable mining jurisdictions. And from this portfolio, we produced 1.7 million ounces of gold at an all-in sustaining cost of $1,439 an ounce in the first quarter.
We continue to expect these unit costs to improve throughout the year, driven by both higher production in the second half and the delivery of synergies. I’d also note that in the first quarter, our go forward Tier 1 portfolio produced 1.4 million ounces of gold at $1,378 an ounce. Our Tier 1 portfolio also produced over 480,000 gold equivalent ounces from copper, silver lead and zinc. And included in this number is 35,000 tons of copper that we produced and sold. We generated $776 million of cash flow from operating activities in Q1, including a $666 million reduction from working capital, which Karyn will cover in a few minutes.
