5 Best Gold Stocks to Buy for Inflation

3. Newmont Corporation (NYSE:NEM)

Number of Hedge Fund Holders: 45  

Newmont Corporation (NYSE:NEM) produces and explores for gold. On March 17, the company announced that it had won approvals from the state and local authorities for the Coffee Gold Project. Nearly 9 million metric tons of ore will be extracted on an annual basis from the project. The probable mineral reserves from the project are estimated at 46.4 million tons grading 1.45 g/t gold, containing 2.15 million oz of gold. On April 12, the company had agreed to acquire a larger stake in Yanacocha, the largest gold mine in South America, in a deal worth $48 million. 

On February 28, Bank of America analyst Michael Jalonen kept a Buy rating on Newmont Corporation (NYSE:NEM) stock and raised the price target to $75 from $70, appreciating that the capital allocation priorities of the firm remained intact. 

At the end of the fourth quarter of 2021, 45 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Newmont Corporation (NYSE:NEM), compared to 48 in the preceding quarter worth $774 million. 

In its Q3 2021 investor letter, First Eagle Investment Management, an asset management firm, highlighted a few stocks and Newmont Corporation (NYSE:NEM) was one of them. Here is what the fund said:

“The largest gold miner in the world, Newmont Corporation (NYSE:NEM) shares lost ground in what was a volatile and ultimately down quarter for the price of gold. The Colorado-based company has continued to execute well in what has been a challenging environment. The company recently reaffirmed its full-year 2021 production guidance, but indicated that it was likely to come in at the mid to low point of the range provided as a result of disruptions from Covid-19 as well as severe weather events. It also noted that inflation pressures were likely to push its costs higher in 2021. None of this changes our opinion of the stock, which has historically offered steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet and proven management.”