Newcrest Mining (NCM) Share Recommendation

Newcrest Mining (NCM) has a Neutral 2 share recommendation with a $25.00 share target from stock analyst and investment bank UBS. Their share price target is based on a P/NPV multiple of 1.7x operating assets which remains unchanged. UBS expects, "improving production from Telfer, strong exploration results from Kencana, and a higher gold price in CY07 to drive Newcrest to our price target of $25. Despite a slow start to the year from Telfer, the drivers that should see production improve over the year remain on track; the underground is developing as planned and recoveries are improving." Meanwhile Citigroup Investment Research (CIR) have a Buy/High Risk (1H) share recommendation. Newcrest Mining (NCM) remains CIR's preferred gold stock with further improvements anticipated at Telfer and exposure to World Class reserves. The stock analyst notes that, "Despite Telfer’s production falling to 154koz from 188koz in the previous quarter, commentary from the Telfer mine indicates that production is improving. The key to Telfer has always been running the plant in the sequential processing mode, which only commenced in August when the underground mine was commissioned. With the Telfer plant now operating as designed, the expected improvements in recoveries and concentrate quality are coming through. Production of ‘A Grade’ copper concentrate increased significantly and gold recoveries improved despite the lower head grade a. Production at the other operations remains steady and project development studies for Cadia East and Ridgeway Deeps are ongoing. A surface drilling programme at Cadia East underground should allow for a reserve update in December."

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. A previous Newcrest Mining stock recommendation. Other Newcrest Mining (NCM) stock news and share recommendations. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!