Tap into rising gold prices

Article Excerpt

NEWMONT CORP. $52 is a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 1.15 billion; Market cap: $59.8 billion; Price-to-sales ratio: 3.6; Dividend yield: 1.9%; TSINetwork Rating: Average; www.newmont.com) acquired rival Newcrest Mining Ltd. In November 2023. Newcrest shareholders received 0.40 of a Newmont common share. That gave them roughly 31% of the combined company. In the three months ended June 30, 2024, Newmont produced a total of 1.61 million ounces of gold, up 29.8% from 1.24 million ounces a year earlier. That was largely due to the Newcrest acquisition. At the same time, the company’s average realized gold price rose 19.4%, to $2,347 an ounce from $1,965 a year earlier. As a result, revenue in the latest quarter jumped a whopping 64.1%, to $4.40 billion from $2.68 billion. Earnings before one-time items soared 118.2%, to $0.72 a share (or a total of $834 million) from $0.33 a share…