NEM may be the world’s largest gold producer, but it’s been an awful performer over the last few years. A number of Australian investors are now on the register of this US-based miner following its well-timed purchase of Newcrest Mining (NCM), i.e. NEM was trading ~$US50 while gold was struggling to punch above $US2,000. When local investors purchase NEM, they must be conscious of the added complication of FX risk with the stock primarily traded in the US, i.e. in US dollars. NEM reports results on the 25th of this month.
- We can see NEM testing $US50 over the coming few years, making it attractive ~$US37.
NB NEM in Australia closed at $A56.60 and will likely open up over 1% this morning.
MM is bullish toward NEM medium-term
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