Newmont Mining Breaks Into the Top 100: A Bet on Venezuela’s Comeback?

Industry Overview - The U.S. capture of Venezuelan President Nicolas Maduro has significant implications for the oil and gas industry, particularly given Venezuela's vast oil reserves of 303 billion barrels, the largest in the world [1] - Modernizing Venezuela's energy infrastructure is projected to cost over $110 billion over the next decade, presenting both challenges and opportunities for investment [1] Government and Corporate Involvement - The U.S. government may need to finance part of the modernization efforts to attract major American oil and gas producers back to Venezuela, with President Trump indicating a willingness to consider such arrangements [2] - Meetings between leaders of oil firms and the Trump administration are expected to take place to discuss potential plans that benefit all stakeholders [2] Mineral Reserves and Investment Potential - In addition to oil and gas, Venezuela possesses significant untapped mineral reserves, including gold, copper, silver, and zinc, which could present further investment opportunities [3] - Newmont (NEM) has shown strong performance, ranking 78th on Barchart's Top 100 Stocks to Buy, with a stock price increase of over 180% in the past year, indicating potential for further growth [3] Financial Performance of Newmont - Newmont's cash flow from operations reached $9.22 billion for the trailing 12 months ending September 30, an increase from $8.57 billion in June and a 110% rise from $4.4 billion in September 2020 [5] - The company's free cash flow (FCF) for the same period was $6.12 billion, yielding an FCF margin of 28.5%, consistent with 2020 levels, although revenue generation per dollar of capital expenditure has decreased by 17% compared to 2020 [6] Valuation Metrics - Current valuation metrics for Newmont show that investor multiples are similar to those observed in September 2020, suggesting stability in investor sentiment despite market fluctuations [7]