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Newcrest Mining Ltd NCMGF


Primary Symbol: A.NCM

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.


ASX:NCM - Post by User

Bullboard Posts
Comment by pathson Mar 02, 2018 12:33pm
207 Views
Post# 27652268

RE:RE:RE:RE:They won't ever see the 16.5 g/T

RE:RE:RE:RE:They won't ever see the 16.5 g/T
Including dilution properly, brings the shortfall versus life of mine average down to 35%. Nobody has every said that this deposit will be homogeneous and uniform throughout, very much not the case. When they wrote 20 - 25 %, call it 22.5%, what they are saying is that the projected grades where they have mined to date were at below life of mine average locations.

That is 8.9/0.775 = 11.5 g/t. So they have mined 210 cubes, 10 metre dimensions, which were only hoped to be 11.5 after dilution, so what they did mine was 2.1 g/t below diluted average. Thia may turn out to be reasonable, for level development and establishing the base at 1200 level, without their grade control system in place. The 22.5% difference will reduce with grade control system, and perhaps with mining higher up into more representative zones.

I
 am not saying people should invest based on an assumption the grades are going to start coming through at 13.6, matching projections, it may well happen that grades will always be 10 - 15 % below the original projections. If so then what should the share price then be. I think it should be far higher than where it is trading now, the exploration potential can also be factored into the share price as well.
Bullboard Posts