Newmont Corp. (NEM:NYSE), the largest gold mining company in the world, has experienced a good run recently, form under $55 in mid-December, and then up 6% in the last three days days.
We prefer the other two largest gold miners, Barrick and Agnico.
Barrick, in particular, is better than Newmont on virtually every valuation and other metric —cash flow, book
value, assets and so on — with only two exceptions: Newmont has a better jurisdictional risk profile. And it definitely exceeds Barrick on ESG virtue signaling.
No doubt, if gold continues to move up over the next few years, Newmont will also do well.
So this is not a “sell at any cost”.
If you have plenty of cash and are already fully exposed to Barrick and Agnico, then by all means hold on.
We are selling, as above, to make room for recent and future new buys.
We want to get this out now while the market is still open. More later.
Originally published on Mar. 3, 2022.
Adrian Day, London-born and a graduate of the London School of Economics, is editor of Adrian Day’s Global Analyst. His latest book is "Investing in Resources: How to Profit from the Outsized Potential and Avoid the Risks."
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