Newcrest Mining beat Credit Suisse’s forecasts with respect to first-half net profit result with cash flow of US$439m setting a new record for the December half. A dividend of US15c versus the broker’s expected US7.5c was announced.
The broker is pleased with the result noting the solid earnings and strong flows. FY21 guidance is unchanged and the company expects a stronger second half led by higher production at the Cadia/Lihir operations.
Outperform retained. Target rises to $33.90 from $33.20.
Target price is $33.90.Current Price is $26.22. Difference: $7.68 – (brackets indicate current price is over target). If NCM meets the Credit Suisse target it will return approximately 23% (excluding dividends, fees and charges – negative figures indicate an expected loss).