Newcrest Mining Trading Update

Newcrest Mining has a Hold recommendation (2H) and a retained share price target of $25.20. The first of Newcrest's large future developments, Ridgeway Deeps, has officially been approved. The A$545m project will extend the current Ridgeway mine life by ~12 years and continue to make a valuable group contribution due to cash costs of A$111/oz. The $545m was higher than expected but this was offset by a 3 year better mine life than expected and with substantially lower cash costs. Over the 12 years the mine should produce 1.6moz of gold and 210,000t of copper by-product.The current sub level cave method will be replaced by block caving that should result in lower unit mining costs. The other component of the forecast for Newcrest Mining is $111/oz cash costs is a weighted average copper price of US$1.43/lb. The analysts forecast cash costs remain well above the company’s target due to a lower copper price forecast. A weakening US$ gold price and a record A$/US$ exchange rate are presenting Aussie gold stocks with a strong headwind. In addition Newcrest's fortunes are being negatively affected by uncertainty over Telfer's final reserve base.

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 as Newmont Mining. 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. Ian Smith is the CEO of Newcrest Mining and Don Mercer the Chairman. Current operations are: Ridgeway, Cadia Valley, Telfer, Toguraci and Cracow. They have current explorations in the Cadia District, Gosowong, Telfer District, Cracow and Ashburton, WA. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade NCM. Check your charts and good luck with your share trading!