With gold prices experiencing fluctuations due to macroeconomic tensions and legal issues hindering mining projects, investors are favoring an equal-weighted long position in royalty and streaming companies like Wheaton Precious Metals and Franco-Nevada over traditional miners. This strategic pivot underscores a growing concern for project execution risk, as litigation and permitting delays limit production growth while macroeconomic factors keep gold prices buoyant. As gold approaches critical price levels, tactical plays such as call spreads on GLD are being advised to capture potential upside without direct mining exposure.
“Mining stocks sold off on Friday as copper prices fell more than -2%, gold prices fell more than -1%, and silver prices dropped more than -4%. ... Newmont Mining (NEM) ... closed down more than -4%.”
“Mining stocks sold off on Friday as copper prices fell more than -2%, gold prices fell more than -1%, and silver prices dropped more than -4%. ... Newmont Mining (NEM) ... closed down more than -4%.”
“The list is topped by Freeport-McMoRan (FCX) and Newmont Corporation (NEM), both sharing the highest growth grade of A-. These two companies represent the leading growth prospects within the top Materials holdings, with both also earning Strong Buy quant ratings.”
“At present, Newmont (NEM) would be my first choice for investment. I am highly confident that NEM will exceed its peers because of its favorable valuation relative to the sector and an attractive return on equity of over 20%.”
“I also find their margin-based approach to be extremely attractive since they are generating substantial amounts of free cash flow and utilizing substantially all of it to repurchase shares.”
“Newmont is currently the largest gold miner in the world and the only large gold miner included in the S&P 500, therefore guaranteeing substantial structural liquidity associated with passive institutional flows, including ETFs.”
“PAAS operates in the Precious Metals sector, among companies like Newmont Corp (NEM) which is off about 3.4% today, and Barrick Mining Corp (B) trading lower by about 3%.”
“Newmont Corporation is a gold producer. NEM’s expected earnings growth rate for the current year is 27.6%.”
“The Zacks Consensus Estimate for its current-year earnings has improved 24.7% over the past 60 days.”
“Newmont Corporation NEM logged a record quarterly free cash flow in the fourth quarter of 2025, underscoring its operational efficiency and the strength of its portfolio. Its free cash flow nearly doubled year over year to a record $2.8 billion in the fourth quarter and surged two-and-a-half-fold year over year to a record $7.3 billion...”
“NEM, on its fourth-quarter call, said that it expects to continue to deliver strong free cash flows in 2026, aided by its world-class portfolio.”
“Newmont stands to benefit from the strength in gold prices, which should drive its profitability and cash flow generation.”