First Eagle Investments: “We Remain Constructive on Newmont (NEM)”

First Eagle Investments is an independent, privately owned asset management firm dedicated to serving the needs of individuals and institutions worldwide as well as the financial professionals that advise them. Recently, the fund published its “First Eagle Investments Global Fund” second-quarter 2022 investor letter – a copy of which can be downloaded here. The fund believes that the return to the conditions that prevailed in the aftermath of the Covid-19 swoon—namely, moderate inflation and a very low cost of capital—may be further away than some may think. Global Fund A Shares (without sales charge) posted a return of -10.49% in the second quarter 2022. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, First Eagle Investments Global Fund mentioned Newmont Corporation (NYSE:NEM) and explained its insights for the company. Founded in 1921, Newmont Corporation (NYSE:NEM) is a Denver, Colorado-based gold mining company with a $33.0 billion market capitalization. Newmont Corporation (NYSE:NEM) delivered a -32.81% return since the beginning of the year, while its 12-month returns are down by -30.17%. The stock closed at $41.67 per share on September 02, 2022.

Here is what First Eagle Investments Global Fund has to say about Newmont Corporation (NYSE:NEM) in its Q2 2022 investor letter:

“Shares of Colorado-based Newmont, the largest gold miner in the world, experienced weakness in the quarter as falling gold bullion prices and cost inflation hurt miners in general. More idiosyncratically, the company reported slightly disappointing earnings and production results for its most recent quarter due to pandemic-related disruptions, ongoing supply-chain constraints, and labor shortages.

It also warned that operating costs for 2022 were likely to come in at the upper end of previous guidance. We remain constructive on the stock, which offers steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet, and proven management.”

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Our calculations show that Newmont Corporation (NYSE:NEM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Newmont Corporation (NYSE:NEM) was in 56 hedge fund portfolios at the end of the second quarter of 2022, compared to 53 funds in the previous quarter. Newmont Corporation (NYSE:NEM) delivered a -38.56% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on Newmont Corporation (NYSE:NEM) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.