Newmont Benefits from the Gold Boom and Rewards Its Shareholders
Global commodity markets are facing a profound realignment. Market observers expect that geopolitical tensions and the immense demand for resources driven by the global energy transition will fuel a long-lasting upswing in industrial and precious metals. While monetary policy decisions by the US Federal Reserve (Fed) continue to cause short-term price fluctuations, investors seek reliable safe havens, especially in uncertain times. Established industry leaders with first-class mining projects are considered essential core investments in portfolios, as their market power allows them to benefit significantly from rising prices.
In this lucrative market environment, Newmont recorded an outstanding start to the fiscal year. Consolidated revenue rose by 46% to USD 7.31 billion, while net income nearly doubled to a remarkable USD 3.3 billion. The primary driver of this success was a massive increase in the price of gold sold, which reached record highs of USD 4,900 per troy ounce. This period is particularly noteworthy because actual production volume simultaneously declined by a good eighth. This drop in production was caused not only by planned operational adjustments but also by unforeseen natural events that temporarily slowed mining operations at certain sites.
The profitability of the first few months was reflected in a historic cash inflow of over USD 3 billion. To allow shareholders to participate directly in this financial surplus, management has approved a far-reaching share buyback program totalling USD 6 billion. This capital measure is accompanied by a regular dividend per share. Despite these positive signals, management urges caution for the remainder of the year. It is expected that the upcoming quarterly financial statements will be weighed down by a noticeable increase in expenses. Rising government levies, more expensive energy sources, and the need for significant infrastructure investments are likely to significantly increase cost pressures.
Globex Mining: A Safe Haven in the Mineral Sector
Ongoing disruptions to global supply chains and geopolitical tensions are exacerbating shortages of numerous raw materials, including energy and industrial metals and strategic specialty metals. Consequently, business models that are broadly diversified and offer direct access to multiple commodity segments are gaining importance for investors.
Globex Mining embodies such an approach. The company has a portfolio of approximately 270 projects, primarily in Canada and the US. The commodity mix is broad and includes, among others, gold, silver, copper, zinc, nickel, as well as future metals such as lithium, uranium, rare earths, and antimony. This positions Globex in numerous sectors that benefit from structural supply shortages and rising demand.
At the core of the business model is the so-called “project generator” principle. Globex identifies and develops projects at an early stage and then brings them into partnerships. Currently, there are more than 100 royalty and option agreements in place. Partner companies finance exploration and development, while Globex participates through royalties, equity stakes, and potential production shares. This model significantly reduces capital requirements and limits operational risks.
The financial foundation is solid. The company is debt-free and has cash and cash equivalents, as well as securities holdings, totalling over CAD 30 million. In addition, Globex holds stakes in established producers, including Agnico Eagle and Pan American Silver. At the same time, management is independently advancing selected projects in Québec.
Operational progress is also evident at the project level. The Parbec Gold project already has a NI 43-101-compliant resource, which is to be expanded through further drilling programs. At the Bald Hill antimony project in New Brunswick, grades of 9.76% antimony over 3.15 m were recently reported. A total of approximately 25,000 m has already been drilled there, with additional programs planned to cover several thousand meters. This underscores the potential of individual assets within the broadly diversified portfolio.
Main Street Capital: Everything Is Predictable
In uncertain market phases, predictable returns increasingly come into focus. A popular strategy involves so-called monthly payers. These are companies that pay dividends monthly rather than quarterly, ensuring continuous cash flows and increased financial flexibility.
A prominent representative of this segment is Main Street Capital. The company is one of the most established business development companies and combines investments in high-growth small and medium-sized enterprises with the granting of loans. Especially in niches too risky for traditional banks, the company taps into attractive sources of returns, often combined with equity stakes that offer additional potential for value appreciation.
The long-term performance speaks for itself. Over the past 10 years, Main Street Capital has achieved a total return of approximately 274%, performing on par with the broader market. Operationally, the trend is also clearly upward. Investment income has risen from USD 138.9 million in 2016 to over USD 490 million most recently. At the same time, book value per share has risen steadily. Even crises such as the COVID-19 pandemic left only limited traces.
The dividend policy remains particularly attractive. For 2026, dividends totalling USD 4.32 per share are expected, corresponding to a yield of around 7.9%. In addition to monthly payments, investors also benefit from performance-based special dividends.
Valuation-wise, the stock is within its historical range. With an expected P/E ratio of 13.5 and a moderate discount to book value, the stock appears fairly valued. Analysts see further upside potential with a price target of USD 63.83.
Newmont impresses with high profitability, strong cash flow, and attractive returns to shareholders, making the stock a stable beneficiary of rising gold prices. Globex Mining offers broad exposure to numerous commodities with reduced risk through approximately 270 projects and over 100 royalty deals. In contrast, Main Street Capital stands out for its monthly distributions, solid performance, and attractive dividend yield, making it a predictable source of income in a volatile market environment.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as “Relevant Persons”) may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a “Transaction”). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
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