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

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Comment by goindeeperon Apr 18, 2018 11:06am

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Post# 27904492

RE:Grade and AISC comparison to peers

hopefully showing images now...

goindeeper wrote: indicate that PVG is already a significant and profitable gold mine, even at current numbers.

March results of 10.9 g/t place PVG it near the top 10 of underground gold mines worldwide, according to the following table from https://www.mining.com/the-worlds-highest-grade-gold-mines/

PVG’s current AISC of about $US 900 is just a bit higher than the average of $US 865 presented in the 2 tables of GDXJ companies at https://www.marketoracle.co.uk/Article61892.html , which, contrary to expectations, also includes mid-tier miners. Beyond the data, he also provides insight into the relative valuation of the gold sector. Keep in mind that PVG AISC is still going to decrease as they refine the mining process.

Also, see where PVG would fall in the following figure 9 (if we moved the mine to Australia). Assuming the presented mines are profitable, PVG should have no issue with profitability, even at the current grades and AISC.

Analysis has also been performed on Australian mines to determine the relationship of gold grade to AISC. They also looked in to the effects of mineralisation type and mine geometry etc on AISC. I’ve included the links to the slide presentations below. If you are looking at where PVG would fit in, convert current rough PVG AISC of $US 900 to $AU 1160 today.
First Presentation/Study: https://www.cet.edu.au/docs/default-source/training-courses-/gold-grades-and-gold-costs-exploding-the-high-grade-myth.pdf?sfvrsn=2
Followup Presentation/Study including 2016 data: https://www.undergroundoperators.ausimm.com.au/Media/UndergroundOperators/presentations/1650_SamUlrich.pdf