The Top in Gold?
Newmont's management is eliminating the hedges in their portfolio. Now that they are truly levered to the price of gold and unambiguously going long the commodity, is it time to fade management and call the top? Go long NEM and short gold?
posted by Odoacer at
10:11 AM
2 Comments:
What is funny is that I was under the assumption that Newmont was not hedging. Is this just a roll off from an acquisition?
What's really funny is I was under the same impression and I own the stock.
In all seriousness, their 10-K specific says:
"Newmont generally avoids gold hedging. Our philosophy is to provide shareholders with leverage to changes in the gold price by selling our gold production at market prices."
They had hedges for nominal amounts on copper and gold. What I think the issue is, is that they have a merchant banking operation that must have been short gold as part of their activities. They are getting out of this business.
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