05. Newmont Corporation (NYSE:NEM)
Upside Potential: 47%
Forward P/E Ratio: 9.98
Year To Date Share Price Gain: N/A
Newmont Corporation (NYSE:NEM) is a leading name in gold production and exploration, making it a strong candidate for inclusion in any list of the best gold stocks to invest in now. With a forward P/E ratio of just 9.98 as of December 20, the stock is attractively valued. Analysts see significant upside potential, with a target price of $54.54, representing a 47% increase from its current share price of $37.02. Beyond gold, Newmont’s diversified portfolio includes copper, silver, zinc, and lead, and its operations span continents, from North and South America to Africa, Australia, and the Pacific.
The company's Q3 2024 performance underscores its strong fundamentals. Newmont produced nearly 1.7 million ounces of gold and 430,000 gold equivalent ounces from other metals, including 37,000 tons of copper. This production generated $1.6 billion in cash flow from operations and $760 million in free cash flow, reinforcing its ability to maintain a healthy balance sheet and shareholder returns. In fact, Newmont has returned $786 million to shareholders through share repurchases and dividends in the quarter, alongside reducing debt by $233 million.
Newmont’s strategic divestments are another highlight, with $1.5 billion in proceeds expected from asset sales, including the Telfer mine and Akyem mine. These moves align with the company’s commitment to optimizing its portfolio, focusing on its 11 managed Tier 1 and emerging Tier 1 operations, which are long-life and high-quality assets.
Operationally, Newmont continues to execute well. Higher grades at its Tanami and Penasquito mines are set to drive strong production in Q4, while efficiency improvements at its Lihir and Brucejack sites promise long-term gains. Additionally, its recent acquisition of Newcrest has delivered $500 million in synergies, demonstrating the company's ability to integrate and optimize assets effectively.
With a solid track record, a robust pipeline of projects, and a focus on returning value to shareholders, Newmont Corporation offers a compelling investment case in the gold sector. Its current valuation and growth prospects make it a standout choice for investors seeking exposure to gold and precious metals.