Newmont Corporation’s (NYSE: NEM) strategy of focusing on concentrated gold investments raises several interesting considerations for long-term investors. First, there’s the price of gold, its primary source of revenue. Second, the company’s strategy in maximizing profitability from its production. Third, how that strategy impacts its upside and downside exposure to the price of gold.
The confluence of these three factors will guide the company’s boom-and-bust or other scenarios over the next five years. Let’s have a closer look.
Newmont’s strategy
Its strategy is clear. Divest its non-core assets and focus on investing in its Tier 1 gold assets, such as its mines in Papua New Guinea, Australia, and Ghana. The strategy of increasing production of higher-quality assets and eschewing lower-quality ones has its downsides and upsides.
Today’s Change
(-3.88%) $-4.26
Current Price
$105.59
