Newcrest Mining (NCM): Stock Tip of the Day

Newcrest Mining (NCM) has a Buy High Risk (1H) stock recommendation with a share price target of $31.80 from stock analyst Citigroup Investment Research (CIR). Newcrest is CIR's preferred gold mining company. "NCM has restructured its hedge book by rolling out 1.6Moz of the near-term commitments into the later years. The total number of ounces committed remains unchanged. By deferring these ounces NCM has reduced the percentage of production committed to the hedge book in FY07e, FY08e and FY09e. The new hedging profile is now consistent year on year. With a greater number of ounces now exposed to spot pricing, the restructure has a significant impact on cash flow in the first three years. Based on the original book, NCM was committed to delivering ~1.1Moz at US$419/oz during the remainder of FY07e. This has now been reduced to 0.4Moz at US$443/oz, resulting in an additional $100m in revenue. The deal crystallises the losses on the ounces restructured, which will lead to abnormal, non-cash charges being incurred. However, the additional revenue from increased spot exposure means that NPAT’s remain essentially unchanged."

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. Past news and stock recommendations for Newcrest Mining (NCM). Newcrest Mining Limited was formed in 1990 from the merger of Newmont Australia Limited and BHP Gold Limited. Newcrest and its predecessors have a strong history of successfully exploring, developing and operating gold mines, predominately in Australia. Newcrest's predecessor, Newmont Australia Limited was established in Australia in 1966 with "a philosophy that high standards of scientific exploration and professional mine development and management were the tried and proven avenue to the creation of shareholders wealthFind out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!