Newmont Corporation CDI

L1 Capital Long Short Fund has updated its investment thesis on Newmont Corporation CDI, following its acquisition of Newcrest, making Newmont the largest gold producer in the world by a significant margin, with nearly double the annual production of its nearest competitor, Barrick Gold. L1 Capital Long Short Fund continues to hold Newmont because it believes the company’s portfolio of tier-one, long-life mining assets provides strong growth potential. Several of these assets are development-ready, which should drive both production and free cash flow growth in the coming years. Additionally, Newmont’s exposure to copper, with annual production of approximately 150kt, further enhances its strategic value. The Fund sees Newmont’s scale and diversified resource base as key drivers of its long-term growth and stability.

L1 Capital Long Short Fund has updated its investment thesis on Newmont Corporation CDI following a recent share price decline, driven by reduced expectations for the company’s 2024 production. This was primarily due to operational setbacks, including temporary suspensions at the Telfer and Brucejack mines stemming from environmental and safety issues. Despite this, L1 Capital Long Short Fund continues to hold because it views these disruptions as largely transitory and believes they may ultimately support Newmont’s strategic focus on improving execution across its core, large-scale, low-cost assets. Following its acquisition of Newcrest, Newmont has become the world’s largest gold producer, with a diversified portfolio of tier-one operations and several development-ready projects expected to drive production growth in the coming years. The company also benefits from meaningful copper exposure, producing approximately 150kt annually, adding to its long-term resource appeal.

L1 Capital Long Short Fund continues to hold its position in Newmont Corporation (Long +19%) following the company’s strong first-quarter results, where gold production exceeded consensus estimates. The Fund believes much of Newmont’s recent operating weakness is transitory, and it is well positioned to deliver strong quarterly results moving forward. Newmont’s strategic move to sell a non-core gold asset for US$330 million aligns with its focus on optimizing its portfolio by prioritizing large, low-cost, high free cash flow-generating assets. Following its acquisition of Newcrest, Newmont is now the largest gold producer globally, with a diverse portfolio of tier-one mining assets and several growth projects to support future production expansion. Additionally, Newmont’s significant exposure to copper, with annual production around 150kt, further strengthens its long-term growth prospects. L1 Capital remains confident in Newmont's ability to restore market confidence and generate value from its high-quality asset base.

L1 Capital Long Short Fund has updated its investment thesis on Newmont Corporation CDI (Long +18%) following strong first-quarter results, where gold production exceeded consensus estimates. Additionally, Newmont's sale of a non-core gold asset for US$330 million aligns with its strategy to focus on larger, low-cost, high free cash flow-generating assets, while simplifying its portfolio by divesting smaller operations. The Fund initially became shareholders in Newmont following its acquisition of Newcrest in October 2023. However, with the recent share price rally, L1 Capital decided to exit the position and reallocate to other gold equities that offer greater near-term upside potential.