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When a stock is up 77% YTD I start to wonder if it’s time to take some profits. But after reviewing Newmont’s (NEM) 2Q25 results after the close Thursday, I believe investors are still skeptical about gold and the gold miners.

NEM is the largest publicly traded gold miner with a $73 billion market cap and 13% weighting in the popular Gold Miners ETF (GDX). It has long been maligned because of its high cost of production but they appear to have gotten their act together – and the soaring price of gold isn’t hurting either.

NEM produced 1.48 million ounces of gold in 2Q25 and is on target to meet its full year guidance of 5.6 million. NEM’s All In Sustaining Cost for producing an ounce of gold was $1593 and their Average Realized Price per ounce was $3,320. That is a fat margin. As a result, Adjusted EBITDA soared 52% from a year ago to $3.0 billion. If the cost of gold stays high or even continues to rise and NEM can meet its 2025 full year All In Sustaining Cost guidance of $1620, profitability is poised to stay robust.

The reason I think it’s still early is valuation. I estimate NEM to have Adjusted EBITDA of ~$12 billion this year which means it’s trading at a 6x multiple of that metric. That’s a bargain. This suggests to me that investors don’t think current gold prices are sustainable. If inflation continues to remain sticky or even reasserts itself, that will prove incorrect and I think NEM can reach my $100 Price Target in 12 months from a current $66. Stay long: It’s a Gold Bug’s Paradise.

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