Buying stocks is a risky strategy as it depends on a number of things including the company’s balance sheet, its position in the industry, and the economy in general. One stock that stands out for its potential is Newmont Mining Corporation (NYSE: or NEM Limited), is one of the primary gold mining firms with a substantial amount of assets and a solid financial position. The following are some of the reasons why an investor should consider investing in Newmont Mining Corp Stock.
Newmont Mining Corp is a major gold company with a geographically diversified portfolio of assets positioned in politically favorable mining environments in United States North America South America Australia and Africa. This geographical diversification helps the company to avoid concentration of risk in a one region and also improves the possibility of consistent production. Moreover, Newmont operates with diverse assets such as copper and other metals, which increases its revenue base and doesn’t expose it only to fluctuations of gold prices.
Newmont’s financial performance has always been admirable. The company records high liquidity and low debt services. Newmont have been successful in managing costs in the production process such that production costs are still low relative to others in the industry regardless of changes in the prices of gold. Owing to its significant production of free cash flow, the company continues investing in exploration and development which ensures long-term growth.
Notably, sustainable or ESG factors are critical for investors. Newmont has a sustainable and responsible mining philosophy and values. The company has received awards for promoting sustainability, responsible operations, and local and global transparency. Striving for sustainability also increases the positive perception of Newmont by the public and reduces the exposure of the company to the regulatory and community risks that are predominant in the mining sector.
Newmont’s current dividend yield makes it an attractive company for income investors. Dividends paid by the company are evidence of continued cash flow generation and the confidence in maintaining that trend. Furthermore, Newmont has pursued share buybacks that contribute to increased shareholder value by reducing the number of shares as well as boosting EPS.
Newmont is aggressively pursuing growth in our acquisitions and investments in exploration. One of the key strategic moves performed by the company was the acquisition of Goldcorp Inc. in 2019 which allowed the company to expand its resource base and operations drastically. Further exploration continues to the aim depleting existing mines and discovering new high quality resources. Initiatives like these place Newmont on the trajectory for continued growth and value.
Newmont Mining Corp Stock ****is an attractive investment option for investors interested in obtaining exposure to gold mining. Its leading market position, solid financials, dedication to sustainability, juicy dividend payments, positive outlook for the gold price, and strategic growth plans as well as good corporate governance also make one to be tempted to buy or keep Newmont stock. Prospective investors should always conduct their own due diligence and take into account their financial objectives and risk appetite to make the best investment choices