After Newcrest Mining announced spending initiatitives and future plans, Morgan Stanley feels the company is progressing organic opportunities and there’s potential for value addition.
The analyst likes the expected fall in all-in-sustaining costs (AISC) to less than US$500. There’s also considered upside potential at Red Chris with throughput of 13.5mtpa-15mtpa or even higher.
Overweight rating and $30 price target are retained. Industry view: In-Line.
Target price is $30.00.Current Price is $24.14. Difference: $5.86 – (brackets indicate current price is over target). If NCM meets the Morgan Stanley target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).