Newmont Corp

We believe that gold mining stocks, particularly Newmont, are poised for significant outperformance as they have lagged the appreciation in gold itself. Newmont is currently the only gold miner in the S&P 500, and as more miners enter the index, passive flows will propel the stocks higher. With gold prices at $4,800 per ounce, gold miners are enjoying a remarkable 70% profit margin, indicating strong earnings potential. The historical trend shows that mining stocks tend to outperform the metal, and we anticipate this gap will close, making Newmont a compelling investment.

Newmont is positioned to benefit from the anticipated outperformance of gold mining stocks relative to the metal itself. The manager highlights that gold mining companies, including Newmont, are enjoying significantly higher profit margins due to the slower increase in extraction costs compared to the rising price of gold. With gold prices projected to reach $4,900 per ounce, Newmont is expected to earn a 70% profit margin on each ounce mined. The manager believes that the current valuations of gold miners are depressed and will mean revert, leading to substantial capital inflows and stock appreciation.

Newmont Corp, the world’s largest gold producer based on reserves, had a total return of 50.9% in the third quarter. The manager noted that gold producers, including Newmont, performed well, contributing 0.8% to total Fund returns. The strong performance in gold YTD has led to a strategic trimming of gold positions, but the manager believes there is still substantial upside potential in holdings like Newmont, which they have been adding to opportunistically as prices fluctuated.

Newmont Corp (NEM) was one of our strongest performers this quarter, and we continue to hold it as we view it as having attractive value relative to peers. The company has demonstrated resilience and potential for growth, making it a key component of our portfolio strategy. We believe that its fundamentals position it well in the current market environment, and we are optimistic about its future performance.

Newmont is mentioned as a key contributor to the fund's performance, particularly in the context of gold mining stocks. The fund retains a position in gold mining stocks, indicating a belief in their potential due to record-high cashflow margins and great asymmetry. However, there is no explicit bullish or bearish argument made about Newmont specifically.

We believe Newmont Corporation (NYSE:NEM) has significant upside potential as it currently trades at a multiple of 5.3X cash flow, while the long-term average is 10X cash flow. In a full-blown bull market, large profitable miners could trade at multiples of 10, 15, or even 20X cash flow, suggesting that Newmont could double, triple, or quadruple from its current level. We are not considering selling until we achieve the 10X multiple, indicating strong confidence in the company's future performance.

Newmont Corp was mentioned in the context of the Fund's performance during the quarter, particularly in relation to the gold price increase. The company had a total return of 31.4% and contributed 0.7% to total Fund returns. However, there was no explicit directional argument made regarding its future performance or valuation.