Newmont Stock Leads Gold Miners With Strong Margins As Inflation Risks Stay In Focus

Global bond yields have been pushing higher as inflation risks stay in focus, which keeps investors on alert and draws renewed attention to assets linked to inflation themes. Gold often sits on that short list. For investors who want more than just the metal price, quality gold miners can offer another way to play the story. This article highlights three stocks from the Elite Gold Stocks screener that stand out for their balance sheet strength and production costs.

The stocks covered below are just a starting sample, as the full Elite Gold Stocks screen surfaced 27 more companies with equally compelling balance sheets, cost profiles and gold exposure that are not discussed in this article. If you want to identify, compare and analyze those additional opportunities in one place, head straight to the Elite Gold Stocks screener.

Overview: Newmont is a global gold producer headquartered in Denver that also produces copper, silver, lead and zinc across a wide portfolio of mines in the United States, Latin America, Africa, Australia, Papua New Guinea and Canada. It combines over a century of operating history with a large asset base that gives investors broad exposure to precious metals production.

Operations: Newmont generates revenue across a diversified set of mines, with key contributors including NGM at about US$4.4b, Peñasquito at about US$3.7b, Boddington at about US$2.5b, Yanacocha at about US$2.3b, Cadia at about US$2.3b and Lihir at about US$2.2b.

Market Cap: US$120.0b

Newmont stands out in the Elite Gold Stocks screener because it couples a large, diversified mine portfolio with profitability metrics such as net margins above 30% and a P/E that sits below many peers. Recent results report cash generation that has funded buybacks and ongoing dividends. At the same time, you need to weigh clear risks, such as lower grade profiles at several key assets, higher planned capital spending and a relatively new management team that is still integrating major acquisitions. For investors who want scale gold exposure backed by current cash flow, this combination of strengths and pressure points may be worth further research.

Newmont’s scale, high net margins and below peer P/E can look like a simple quality story; yet the mix of lower grades, higher capex and fresh leadership raises sharper questions that the 4 key rewards and 1 important warning sign

Build your own gold cash flow shortlist

Newmont and the other two stocks in this list all came from a single screener, but the real edge is in building filters that match how you think about balance sheets, margins and valuation. Use our customisable Screener to shape your own opportunity set, or start with any of our curated Investing Ideas.

Overview: AngloGold Ashanti is a global gold producer that operates mines in Africa, Australia and the Americas, with its flagship Geita mine in Tanzania and additional production of by-products such as silver and sulphuric acid. The company traces its origins back to 1944 and is now headquartered in Greenwood Village, Colorado.

Operations: AngloGold Ashanti generates about US$11.8b in revenue from gold and other precious metals, with contributions from Africa at US$8.5b, Australia at about US$2.4b and the Americas at about US$2.3b.

Market Cap: US$48.5b

AngloGold Ashanti may be of interest to investors looking at large gold producers with a combination of profitability and active capital returns. Earnings growth has been very strong in recent years, current net margins are above 30%, and recent quarters show record cash generation that is supporting dividends and a US$2b share buyback plan. At the same time, the stock faces pressure points, including rising cash costs, higher gold price linked royalties and project timing risks in Nevada. For investors who can weigh those cost and regulatory risks against high returns on equity and a valuation that screens as good value relative to peers, AngloGold Ashanti offers a more detailed investment case than a simple focus on the gold price.

AngloGold Ashanti’s strong margins and active buybacks can make the story look straightforward, yet rising costs and royalty exposure leave a crucial twist that the 4 key rewards and 1 important warning sign

Overview: Coeur Mining is a Chicago based precious metals producer that focuses on gold and silver across mines in the United States, Canada and Mexico, while also exploring for related metals such as zinc and lead. It sells concentrates to refiners and smelters under off take agreements, giving investors exposure to both bullion prices and operating assets.

Operations: Coeur Mining generates about US$641 million from Las Chispas, US$612 million from Palmarejo, US$603 million from Rochester, US$419 million from Kensington and US$324 million from Wharf, with additional segment adjustments and a revenue mix that leans toward its Mexican and US operations.

Market Cap: US$18.97b

Coeur Mining sits in a position that may interest investors who want leverage to both gold and silver, with visible projects currently in motion. Recent quarters include record quarterly revenue and free cash flow, a first dividend in three decades and an expanded buyback program, along with a large exploration program at Palmarejo and Las Chispas that aims to extend mine life. At the same time, investors may want to monitor share dilution, slower than planned ramp ups at key sites and exposure to regulatory and currency risks in North America. For readers who prioritize production trends, margin developments and a valuation story that continues to be debated, Coeur’s mix of momentum and uncertainty may warrant further research.

Coeur Mining’s mix of record revenue, fresh dividends and active buybacks raises a bigger question: Is the current share price properly reflecting that story? The analysis report for Coeur Mining could reveal what the market is missing.

Seeking Alternatives Beyond Gold Miners?

Fresh stock ideas can move quickly once momentum builds. Do not get caught chasing when prices are already flying. Scan these under the radar lists now and look for opportunities early.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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