5 Best Gold Stocks to Buy in 2021

3. Newmont Corporation (NYSE: NEM)

No. of Hedge Fund Holders: 50

This is a Newmont-based company that gold production operations in Mexico, Ghana, Canada, New Zealand, Indonesia, Peru, Australia, and the U.S. The company also deals with copper production in Australia and Indonesia. Hedge fund owner Bronte Capital held by John Hempton own 131,430 Newmont shares, making it one of the leading investors that owned the stock.

• Newmont revealed that its free cash flow reached record levels at $3.6 billion in Q4 2020. The company registered an impressive performance during the quarter courtesy of lower capital expenditures on account of coronavirus-related disruptions and higher metal prices.
• The gold mining company is expected to achieve better margins in FY2021 and FY2022 even as all-in-costs fall below the industry average and also if gold prices remain flat.
• Newmont recently increased its dividend by 38% with a 3.4% yield. It also managed to reduce its cost of gold production so that it will be lower than it was in the previous year.
• The company announced that drawn balances will result in positive and negative price adjustments based on criteria based on sustainability performance. S&P Global and MSCI will independently measure the criteria.

This is what First Eagle Investment Management said about the company in its investor letter:

“Given what we view as a high-quality management team and robust balance sheet, Colorado’s Newmont is a prime example of a miner that was prepared to meet the challenges of Covid19. With rigorous protocols already in place, the company has been proactive in managing its mines to protect local communities and infrastructure while at the same time mitigating the pandemic’s impact on its business. In contrast with broad market trends that have companies cutting or suspending dividend payments, Newmont recently increased its quarterly dividend by 79%.”