Should I Buy NEM (NEM)? Finance YouTuber Analysis

The YouTuber recommends Newmont (NEM) as a blue-chip gold miner, citing gold's role as an inflation hedge and increased central bank buying. He notes that gold miners, particularly NEM as the largest, tend to outperform the metal itself during such periods, indicating strong underlying fundamentals and market momentum.

“A stock I like is called NEM new because gold's at, you know, 4,700 or something. It's up almost 50% in the last year.”

Ray Dalio has invested in Newmont, the world's largest gold miner, due to its low extraction costs ($1,600/ounce vs. $5,000 market price), 40 years of proven reserves, and high reserve replacement ratio (132%). The company is also trading at a historically low valuation of 13x earnings compared to its historical average of 20x.

“Newmont es la mayor compañía minera del mundo, además con unos costes de extracción muy bajos. A Newmont le cuesta extraer $1,600 cada onza de oro, pero vemos que el oro cotiza $5,000, con lo cual tiene un margen de seguridad muy elevado.”

The YouTuber finds Nemetschek's fundamentals slightly better than Autodesk's, with 17% annual revenue growth and 21.4% annual operating cash flow growth. Trading at 23 times free cash flow, which is one of its cheapest multiples in a decade, he believes it's a compelling price if the company can maintain its growth, despite a moderate AI disruption risk.

“But just like with Autodesk, if Nemet can continue to compound its fundamentals by 20% annually going forward, then I think that this is a very compelling price for the business.”

The YouTuber includes Newmont as a favorite in the materials sector, which has been outperforming due to a strong jobs report. He links its potential upside to a bull market in gold and copper.

“Favorites in the group include Pneumont, ticker NEM, and Freeport Magmaran, ticker SCX, on a bull market in gold and copper, along with CF Industries, ticker CF, for agricultural inputs.”

Nneumont is recommended as the world's largest gold producer, benefiting from rising gold prices due to its safe haven status. The company also produces copper and other minerals, holds significant gold reserves, and is a cash flow positive operation even with high production costs.

“Nneumont is the world's largest gold producer with mining on four continents and a strong producer of copper and those other minerals as well. The company reports over 128 million ounces of gold in reserves alone. And even at this fairly high all-in sustaining cost of production, this is a cash flow machine.”

The YouTuber suggests Newmont as a strong investment due to its position as the world's largest gold producer and its exposure to copper and other minerals. With gold prices at $3,000 an ounce and Newmont's all-in sustaining cost around $1,500 an ounce, the company is highly profitable. Additionally, as a company with international sales, its profits would jump when converted into a devalued US dollar.

“I've always liked the gold miners as a better investment though because these companies are cash flow machines at this price we see these Allin sustaining costs here cost per ounce to run the company and you can see at a current market price of $3,000 an ounce for gold these companies are making money hand over fist”

The YouTuber suggests Newmont Mining as a stock that will benefit from a weakening dollar due to its significant overseas revenue and its position as a gold miner. Both factors contribute to a positive outlook as foreign currencies strengthen against the dollar and gold prices remain high.

“As I mentioned before those companies with more Revenue overseas will benefit as stronger currencies get translated into that weaker dollar when quarterly results are reported It could be a Tailwind for some of these companies to surprise on Revenue into the end of the year and next year for this we see companies with the most overseas Revenue include Philip Morris International Newmont mining which also benefits as that gold miner.”

The YouTuber recommends Newmont, the world's largest gold producer, as a buy. He highlights the company's low all-in sustaining cost of extraction compared to surging gold prices, which has boosted shares and supported dividends and share repurchases. Despite a recent jump, the stock is still considered undervalued historically.

“with the price of gold surging to a new all-time high recently numont is collecting almost twice what it costs to dig it out of the ground”

The YouTuber recommends Newmont due to its healthy profit margins, with all-in sustaining costs at $1376 per ounce. He points to strong forecasted revenue growth of 52% and earnings growth from $2.16 to $3.17 per share over the next year. The stock trades at 1.86 times expected revenue, a 47% discount to its 5-year average, and pays a 4.3% dividend.

“Newmont Corporation took her neem is forecasted to book Revenue growth of 52% and they see earnings grow from just $216 a share to $317 over the next year that would put the shares at just 1.86 times expected Revenue a 47% discount to the average 3.6 times multiple on Revenue over the last 5 years.”

Newmont Mining is presented as a buying opportunity despite a recent dividend cut and share price drop due to lower gold prices and higher mining costs. As the world's largest gold producer, its earnings are expected to rise 17% this year, which will lower the payout ratio and secure its 3.6% yield, offering potential for price appreciation.

“this could be a great opportunity for new investors it's the world world's largest gold producer with 6 million ounces of production along with Revenue exposure and silver zinc and Lead.”

The analyst recommends buying Newmont, a major gold miner, as a way to invest in the anticipated gold super cycle driven by China's strategic gold accumulation. He prefers miners over physical gold because they offer a dividend yield while waiting for gold prices to rise, unlike physical gold which yields nothing.

“I do prefer buying the miners or the ETS that cover the miners rather than the physical old a lot of times in this case you have a miners like Newmont here ticker nem which is a major Gold Miner.”

The YouTuber suggests Newmont Corporation, the world's largest gold miner, citing its strong cash flow story. The company has substantial gold reserves and is reducing expenses, making it profitable even at lower gold prices. With gold prices expected to remain high due to market uncertainty, Newmont is generating significant free cash flow, which supports its dividend and future growth. Analysts see an 11% upside.

“Newmont Corporation ticker nem the world's largest gold miner and through acquisitions and exploration newmont has built enough reserves to produce nearly 8 million ounces of gold every year through 2030 and beyond”

Newmont, the world's largest gold miner, is recommended as an excellent long-term play on gold, especially with high inflation. The company has a robust production pipeline, significant reserves of gold, copper, and silver, and is lowering its all-in sustaining costs, leading to substantial returns for shareholders.

“Newmont is the world's largest gold miner producing over 6 million ounces of gold annually and has the production pipeline to do it through 2029 so an excellent long-term play on gold with inflation hitting multi-decade highs gold could be one of the best investments in 2022 and Newmont is primed to take advantage of that.”