Newmont Goldcorp Corp. (NEM, Financial) (4.2%) (NEM – $37.92 – NYSE) based in Denver, Colorado, is one of 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 Goldcorp was created on April 18 when Newmont acquired fellow gold miner Goldcorp in a $10 billion stock for stock deal. We expect the newly combined company to produce approximately 6.5 million ounces of gold in 2020 at all-in sustaining costs of $850 per ounce. In acquiring Goldcorp, Newmont is aiming to turn around underperforming assets and establish 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, it is seeking to cement its position as the premier gold investment vehicle in the world.
From Mario Gabelli (Trades, Portfolio)'s Gabelli Value 25 Fund third-quarter 2019 commentary.
