Newmont (ASX:NEM) Tipped as Undervalued Amid Surging Gold Prices

February 14, 2025 11:28 AM AEDT | By Team Kalkine Media

Newmont (ASX:NEM) Tipped as Undervalued Amid Surging Gold Prices — Image source: Shutterstock

Newmont’s Position as a Gold Leader

Newmont officially joined the S&P/ASX 200 Index on 27 October 2023, following its acquisition of ASX-listed Newcrest Mining. With this deal, the company’s annual gold production now stands at six million ounces, solidifying its status as the top global gold producer.

Firetrail Sees Upside Potential

Firetrail’s Australian High Conviction Fund has taken an overweight position in Newmont, citing its defensive qualities and undervaluation. The investment firm believes that Newmont’s share price has yet to reflect the recent strength in gold prices.

According to Firetrail’s January update:
"While news flow on Trump, tariffs, and AI buffeted a number of sectors during January, one area of the market that continued to march higher was gold. The USD gold price rose another 7% to hit record levels. While gold mining stocks have followed, we believe there is more to come."

Gold Price Surge Could Boost Newmont Stock

With gold prices setting new records, Firetrail expects further gains for the precious metal and sees Newmont’s stock as well-positioned for a re-rating.

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