While Newmont (NEM) remains a prominent name in the gold mining sector, recent analysis suggests stronger upside potential in peer companies like Silver Wheaton (SLW) and broader gold bullion exposure via the GLD ETF. The shift reflects evolving sentiment toward higher-margin, lower-cost producers amid volatile metal pricing.
- Newmont (NEM) faces scrutiny over capital efficiency and margin pressures despite its top-tier gold production volume.
- Silver Wheaton (SLW) reported all-in sustaining costs of $7.20 per silver ounce in 2025, with revenue per ounce at $28.50.
- SLW’s share price rose 14% over six months, outperforming the materials sector average.
- SPDR Gold Shares (GLD) saw $3.8 billion in net inflows from January to December 2025.
- GLD holds over 1,200 tons of physical gold and maintains a 0.40% expense ratio.
- Investor preference is shifting toward lower-cost models and commodity ETFs for risk-adjusted returns.
Newmont Corporation (NEM), the world’s largest gold miner by output, has drawn attention for its resilience in a challenging operating environment. However, recent market commentary highlights concerns over its capital allocation strategy and margin compression, particularly as the company navigates rising production costs and geopolitical headwinds in key mining regions. Despite NEM’s dominant position, analysts are questioning whether its current valuation reflects long-term growth potential or cyclical overexposure. In contrast, Silver Wheaton (SLW) has emerged as a compelling alternative, with its unique streaming model offering exposure to multiple precious metals without the operational risks tied to mining. SLW’s all-in sustaining costs (AISC) per ounce of silver produced in 2025 were approximately $7.20, significantly below industry averages, while its revenue per ounce of silver delivered reached $28.50—highlighting strong profitability margins. This structural advantage has driven a 14% increase in SLW’s share price over the past six months, outpacing the broader materials sector. Additionally, investors seeking broad exposure to gold’s price appreciation are turning to the SPDR Gold Shares ETF (GLD), which holds over 1,200 tons of physical bullion and has seen net inflows of $3.8 billion since the start of 2025. The fund’s liquidity and low expense ratio of 0.40% make it an efficient vehicle for tactical positioning, especially amid rising inflation concerns and central bank gold purchases. The divergence in investor sentiment underscores a strategic recalibration: from large-cap miners with complex capital structures to more agile, asset-light models and pure-play commodity ETFs. These shifts are particularly relevant for portfolios seeking downside protection in uncertain macroeconomic conditions.