Newmont Corporation (7.2%) (NEM, Financial) (NEM – $45.28 – NYSE) based in Denver, Colorado, is the largest gold mining companies in the world. Founded in 1921 and publicly traded since 1925, NEM is the only gold company included in the S&P 500 Index and Fortune 500. Newmont consummated a $10 billion stock for stock merger with Goldcorp in April of 2019 in which it acquired eight high quality gold mines in the America. We expect Newmont to produce approximately 6.5 million ounces of gold in 2020 at all-in sustaining costs of $850 per ounce. Post its acquisition of Goldcorp, Newmont is working towards turning around Goldcorp’s former underperforming assets and establishing a large, low-cost, well capitalized gold mining business which generates free cash flow at almost any gold price and has the capacity to grow production organically. As such, the company is in the process of cementing its position as the premier gold investment vehicle in the world.
From Mario Gabelli (Trades, Portfolio)'s Gabelli Value 25 Fund first-quarter 2020 shareholder commentary.
