The Gabelli Value 25 Fund Inc. on Newmont Corp.
Thesis
Newmont is the world's largest gold miner and has relatively low byproduct costs, supporting strong margins at prevailing gold prices. The company is generating substantial free cash flow and returning capital through buybacks and dividends. Gabelli expects the shares to re-rate as cash flow grows and repurchases accelerate.
“We expect the stock to rerate higher as cash flow grows and buybacks accelerate.”
Key risks
- Lower gold prices