Newmont represents an overlooked three-bagger opportunity
The guest argued that Newmont is poised to reach $400 to $500 per share if gold reaches and sustains a $7,000 level.
The argument
The guest argued that Wall Street is ignoring Newmont's massive cash-generation potential, pointing out that it currently trades at a modest free cash flow multiple of around 10x while generating billions in free cash flow.
The thesis, stress-tested
✓ What validates it
- ✓Gold price sustaining $7,000 per ounce for at least six months
- ✓Newmont free cash flow multiple expanding toward 20x-30x
▸ Risks discussed
- ▸Gold price failing to reach or sustain the $7,000 target
- ▸Rising all-in sustaining costs (AISC) eroding mining margins
Hear it yourself
"So we're borrowing $10,000,000,000,000. Right? And so that puts upward pressure on interest rates. So it's gonna be really hard to get the ten year down. And and then that puts more pressure on the bond market, and so people don't wanna own bonds. So what's happening on the treasury is they're borrowing on the short end because nobody wants the long end. That's the doom loop. So the doom loop's in play. And the only way you can get out of that situation is to get inflation down and get the economy growing again. Get back on your feet. Right? Well, we've reached a point where we can't."
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