2023-05-07 21:18:46 ET
Summary
- Gold prices and NEM’s stock prices are correlated strongly. Also, in the past ten months, gold prices increased as the Fed raised interest rates to combat inflation.
- I don’t expect the Fed to start decreasing the benchmark rate until 2024. Thus, NEM’s realized gold price can remain high for now.
- Newmont’s gold production in 2Q, 3Q, and 4Q 2023 is expected to be considerably higher than in 1Q 2023.
- Thus, NEM’s cash flow from operation can increase, making the company able to carry out its expanding projects and increase dividends.
For further details see:
Newmont: Higher Gold Realized Prices And Larger Gold Production