Shares in the gold miner, which merged with Newcrest last year, have fallen. But the investment bank says that should be more than overcome this year.
Already a subscriber?The soaring price of gold will provide a major tailwind to Newmont Corporation’s ASX-listed shares, and could more than offset the company’s recent poor trading, analysts at Citi have told their clients as they initiate coverage on the stock.since that time. It now controls 19 assets including the Cadia mine in NSW and the Lihir mine in Papua New Guinea.
Citi joins Barrenjoey and Macquarie, which initiated on the stock last month with similarly bullish overweight and outperform ratings respectively.“The stock has hugely underperformed gold,” Citi analysts told investors in a note on Thursday, adding that it expected elevated gold prices to begin showing up in the company’s free cash flow going forward.
Beyond the company’s fundamentals, Citi said ensuring liquidity remained on the ASX would be a key investor concern, given the stock’s CDI structure.
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