Newmont Corporation (NEM): The Best Zinc Stock to Buy According to Hedge Funds

Newmont Corporation (NEM) has emerged as a top choice among hedge funds for investing in the zinc industry, given its significant exposure, strong hedge fund interest, and diversified mining portfolio. As the global zinc market continues to grow, Newmont's impressive performance and strategic positioning make it an attractive option for investors seeking to capitalize on this trend.

Newmont Corporation's zinc production and reserves position it as a significant player in the global zinc market. In Q2 2024, the company's production of zinc in concentrate surged by 83.72%, representing a standout performance among all companies. This growth, coupled with Newmont's substantial reserves, places the company in a strong position within the global zinc market.

The global zinc market is expected to develop significantly, with a projected rise from $28.82 billion in 2024 to $41.76 billion by 2029, at an annual growth rate of 7.6%. This upward surge in the market, driven by refined market fundamentals and investor trust, presents potential growth opportunities for Newmont Corporation.

One of the key growth opportunities for Newmont lies in the increasing demand for zinc in various industries. Zinc plays a vital role in galvanizing steel to produce alloys and promote sustainable energy storage. Its uses extend to construction, automotive, healthcare, and even dietary supplements. As the globe transitions to a low-carbon economy, zinc's significance in infrastructure, energy, and agriculture continues to grow, offering profitable prospects for investors.

Moreover, technological progress in zinc recovery and recycling is moving the industry toward sustainability. Innovations in direct leaching and submerged lance technology are improving extraction efficiency while minimizing environmental impact. A significant advancement, named Kobe Steel's FASTMET process, has achieved a remarkable 95% recovery rate of zinc from steel mill waste and industrial by-products. These innovations are transforming waste into recyclable resources, fostering a circular economy that encourages zinc's sustainability in the long run.

Newmont Corporation's diversified mining portfolio has a significant impact on its overall financial performance and risk management, particularly in relation to zinc production. The company's exposure to various commodities, including gold, copper, silver, zinc, and lead, allows it to mitigate risks associated with price fluctuations and market demand for individual commodities. This diversification strategy helps Newmont maintain a stable financial performance even when one commodity's price or demand drops.

In the context of zinc production, Newmont's diversified portfolio enables it to balance the impact of zinc market dynamics on its overall financial health. For instance, in Q2 2024, while some leading zinc producers experienced declines in production or exports, Newmont's zinc in concentrate production surged by 83.72%. This increase in zinc production contributed to the company's overall financial performance, offsetting potential losses from other commodities or operations.

In summary, Newmont Corporation's strong zinc production and reserves, coupled with the growing global demand for zinc and advancements in recycling technologies, position the company well for potential growth opportunities in the global zinc market. The company's diversified mining portfolio further enhances its financial performance and risk management, making it an attractive investment option for those seeking to capitalize on the zinc industry's growth.