Gold production in the December quarter was well below UBS estimates. Costs were ahead. Weaker production is mainly because of lower output at Lihir and Telfer.
Management has signalled that the drought is unlikely to affect FY20 production but, if current conditions persist, there may be an impact by the end of 2020.
UBS retains a Sell rating and reduces the target to $28.00 from $28.50.
Sector: Materials.
Target price is $28.00.Current Price is $29.94. Difference: ($1.94) – (brackets indicate current price is over target). If NCM meets the UBS target it will return approximately -7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
