11 Best Materials Stocks to Buy According to Hedge Funds

5. Newmont Corporation (NYSE:NEM)

Number of Hedge Fund Holders: 69

Newmont Corporation (NYSE:NEM) is the largest gold miner in the world. In 2019, it acquired Goldcorp, and later that year, it merged its Nevada mines into a joint venture with rival Barrick. In November 2023, it acquired competitor Newcrest. Its holdings in two joint ventures and 17 fully or majority-owned mines throughout the Americas, Africa, Australia, and Papua New Guinea are part of its portfolio. After selling six higher-cost, smaller mines, the business is anticipated to sell about 5.5 million ounces of gold from its core mines in 2025, most likely starting in the middle of the same year. The firm also generates significant amounts of copper, silver, zinc, and lead as byproducts. At the end of December 2024, it possessed substantial byproduct reserves in addition to roughly 20 years’ worth of gold reserves.

Newmont Corporation (NYSE:NEM) generated $2.9 billion in free cash flow in 2024, including a record $1.6 billion in Q4, due to robust cash flow management, increased sales, and high gold prices. The business paid off $1.4 billion in debt, bringing its total debt below $8 billion, maintained a healthy balance sheet with $3.6 billion in cash, and distributed $2.3 billion in dividends and stock buybacks to shareholders in 2024.

In 2024, Newmont Corporation (NYSE:NEM) exceeded its production target, producing 6.8 million ounces of gold and over 150,000 tons of copper, with 85% coming from its core portfolio. It successfully sold or secured definite agreements to sell all six of its non-core businesses, potentially generating up to $4.3 billion in pretax profits, with about $2.5 billion in cash proceeds expected in the first half of 2025.