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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 Jan 29, 2019 5:40pm
163 Views
Post# 29293246

RE:Way too expensive for the risk

RE:Way too expensive for the riskThis message helps to illustrate the difficulties in putting values on mining shares. If a person has concerns about a mine having a limit on reserves, then one definitely should not use a multiple as a way to assess share value. It can lead to innacuracy as this post looks to question. That is why the analysts following this company are usually using a net present value calculation. It takes more work, and usually needs a spreadsheet to be made, but it's a good method. For a mine that has been in operation for one year and so has shown it is functioning in a reasonable way, then a 6% discount rate is reasonable, however, the current share price effectively discounts at a much higher rate than that as the market prices in a higher long term risk.

https://www.investopedia.com/terms/n/npv.asp

As for the gold price, it's looking very good, on daily the 50 day is above 200 day, first time in a long time, and the weekly is above the 200 week and making a bullish consolidation there, so that's good. 
Bullboard Posts