Gold goliath NEM, the recent acquirer of ASX-listed Newcrest, retreated 2.5% overnight. However, the stock was trading up ~1% in late trade following a solid Q1 earnings beat:
- 1Q revenue of $5.01bn was a beat of the $4.75bn estimate.
- 1Q EPS of $1.25 was a beat of the 0.90c estimate.
- Average realised gold price was $US2,944, up from $US301 in the previous quarter.
- 1Q free cash flow of $1.2bn enabled a 25c dividend to be declared.
This solid set of numbers makes NEM a definite candidate for MM to increase our international gold exposure into weakness – we like to buy the companies that are delivering but dragged lower by a weak market/sector.
- We can see the NEM testing $US50, or 6% lower, in the coming weeks.
MM is bullish towards NEM through 2025
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This morning, we have briefly updated our views toward four well-known ASX-listed gold names as we “stalk” purchases for the coming months.
