Newmont (NEM) Sharpens Strategic Focus as Gold Demand Surges

Newmont Corporation (NYSE:NEM) is one of the 20 undervalued momentum stocks that are taking off. While Newmont’s recent asset sale reflects a portfolio realignment toward core operations, the firm stands to benefit from structural support for gold prices and robust demand from central banks in the medium term.

A subsidiary of Newmont Corp. recently announced the sale of a portfolio of Australian copper-gold exploration projects to Inflection Resources. Under the agreement signed on June 13, Inflection will acquire 100% ownership of assets located in New South Wales and the Northern Territory, regions considered highly prospective for copper-gold mineralization. This transaction is expected to close in the coming weeks, pending the completion of license transfers and the issuance of shares to Newmont.

A gold mine entry with a conveyor belt transporting minerals from the depths of a shaft.

At the same time, macro trends continue to support gold miners like Newmont. A recent World Gold Council survey indicated that central banks are planning record gold purchases over the next year. Motivated by geopolitical risks and concerns around the long-term status of the U.S. dollar, 95% of surveyed central banks intend to increase their gold holdings.

In contrast, 75% of respondents expect to reduce their U.S. dollar exposure over the next five years. Notably, more central banks are choosing to store gold domestically, reflecting growing caution around geopolitical issues in traditional reserve locations such as New York or London.

Newmont Corporation (NYSE:NEM) is primarily a gold producer with significant operations and assets in the United States, Canada, Mexico, and other parts of the world.

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Disclosure: None.