Newcrest Mining Ltd NCMGF

Primary Symbol: A.NCM

Metals & Mining Gold

Newcrest Mining Limited is an Australia-based mining company. The Company's principal activities are exploration, mine development, mine operations and the sale of gold and gold/copper concentrate. The Company owns and operates a portfolio of brownfields and greenfields exploration projects. The Company’s assets include Brucejack, Cadia, Havieron, Lihir, Red Chris, Telfer and Wafi-Golpu. The Brucejack asset is located approximately 950 kilometers (km) from Vancouver, Canada. The Cadia asset is located approximately 25 km from Orange, New South Wales (NSW). The Havieron asset is located approximately 45 km east of Telfer. The Lihir asset is located on the Niolam Island, approximately 900 km from Port Moresby, Papua New Guinea (PNG). The Red Chris asset is located approximately 1,700 km from Vancouver, Canada. The Telfer asset is located approximately 400 km from Port Hedland, WA. The Wafi-Golpu asset is located approximately 65 km from the city of Lae, PNG.

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Newcrest Mining Ltd

Bullboard Posts

Post by tooclassyon Jan 19, 2012 4:26pm

484 Views

Post# 19423829

re: value of Pretium warrants

Pretium announced a bought deal at about $2.75 a share above the market price that the stock had prior to today's trading. The market loved the news and the stock moved up nicely.

I discussed the leverage of the Pretium warrants here:

https://www.stockhouse.com/Bullboards/MessageDetail.aspx?s=PVG&t=LIST&m=30554734&l=0&pd=1&r=0

We had a textbook example of the power of leverage today in the Pretium warrants. The stock was up $.58, almost 4%, while the warrants were up $.46, almost 14%. The stock reached an intra-day high of $16.28 and the warrants reached an intra-day high of $3.90. Both made new all-time highs today.

So, a 4% move in the stock translated into a 14% move for the warrants. I am looking for more of the same in coming weeks. I don't have a specific target; my example of a $3.00 increase in the stock price used an arbitrary figure, other than that a $3.00 increase represented a 100% increase in the value of the warrants from the then-current $3.00 value of the warrants a few days ago. It seems that the resulting figure of $6.00 per warrant is on the low side of the projections coming from other people, and I hope they turn out to be right!

TC

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