Newcrest’s AGM provided an update on the new production target goal at Lihir, which is on track, and noted an intention to lift throughput at Cadia to offset declining grades. The company’s other operations offer short mine lives compared to these two, the broker notes.
The broker’s forecasts are largely in line with guidance. Ahead of Lihir and Cadia site tours later in the week the broker has eased its target back to $24 from $25 and retains Neutral.
Target price is $24.00.Current Price is $20.93. Difference: $3.07 – (brackets indicate current price is over target). If NCM meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).