Newcrest Mining (NCM) Stock Recommendation

Stock analyst, UBS has rated the Newcrest Mining (NCM) stock with a Neutral 2 recommendation, and a share price target of $25 (based on a P/NPV multiple of 1.7x operating assets) and a share valuation of $9.24. In their view, Newcrest Mining has one of the best discovery records of the major gold companies as they continue to focus on greenfields exploration to fill the project timeline. "The current project focus is on the Cadia projects which should provide life extension for at least 30 years, currently in the feasibility stage, and accelerating new opportunities in the Gosowong district." "The best exploration results are coming out of Kencana, which is shaping up as one of the world's best epithermal systems. We currently only value the K1 orebody with a life of 5 years. An initial resource estimate for K2 is expected in the 2006 Annual Report, which would provide upside to our valuation, and there is further resource development work is being undertaken." "The market has been focused on the production issues at Telfer, over the last 12 months. It was therefore timely to be reminded that Newcrest has exposure to world-class mineral provinces (Cadia, Telfer and Gosowong)."

Newcrest Mining Limited is listed on the Australian Stock Exchange (ASX) under stock code NCM. You can view their investor website here. NCM was listed on the ASX on 4 June, 1987. Newcrest Mining is involved in the exploration, development, mining and the sale of gold. Find out the meaning of the recommendations in this primer. Browse for other broker recommendations. Check your charts and good luck with your share trading!