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Newmont: An Industry Leader To Buy On Dips

Aug. 03, 2021 9:05 AM ETNewmont Corporation (NEM), NGT:CA32 Comments
Taylor Dart profile picture
Taylor Dart
27.34K Followers

Summary

  • Newmont released its Q2 results last month, reporting revenue of ~$3.07 billion, and free cash flow of ~$580 million, translating to significant growth year-over-year.
  • Unfortunately, the company did have some setbacks in the quarter, with lower than anticipated production at several of its operations, with most of this due to COVID-19 related headwinds.
  • However, despite the challenges, Newmont had a solid quarter with 30% revenue growth, and a 50% increase in free cash flow, driven by higher metals prices.
  • Given Newmont's position as the industry leader with an attractive dividend relative to both its peers and other S&P 500 companies, I continue to see the stock as a top buy-the-dip candidate in the sector.

Mining in Northern Nevada
gchapel/iStock via Getty Images

The Q2 Earnings Season for the Gold Miners Index (GDX) has finally begun, and one of the first companies to report its results was Newmont Corporation (NYSE:NEM). Unfortunately, the company had another tough

This article was written by

Taylor Dart profile picture
27.34K Followers
"A bull market is when you check your stocks every day to see how much they went up. A bear market is when you don't bother to look anymore."- John Hammerslough - Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of GLD, NEM, SLV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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