Cara Community GSM 50: Newcrest Mining

Newcrest Mining (TSX: ) (OTC: NCMGY) reviewed 10-06-2020

Market Cap: 17.5 Billion (USD)

Share Price: 22.40 (USD)

Shares outstanding: 778,455,868 as of 30 June 2020 (incl. warrants)

Cash: $1.45 Billion (USD) as of 30 June 2020

Debt: $2.075 Billion (USD). The company issued $1.5 Billion (USD) Senior unsecured notes 13 May 2020

Investment-grade of BBB/Baa2 (S&P/Moody’s)

Current operations: Yes

Insiders: Low

Institutional: 11 institutions, undisclosed holdings

Website: newcrest.com

Investor Presentations: https://www.newcrest.com/investor-centre/results-reports?document_type=4

Managing Director & CEO: Sandeep Biswas

Australian company with operations in Australia, Canada, and Papua New Guinea (PNG)

Newcrest produced 2.2 M oz of gold in 2020 at AISC of $862 per ounce (per company website)

Properties:

Cadia (New South Wales, Aus.) – 100% owned, 843K oz Au, 96K tons Cu, 2020. Underground

Telfer (Western Australia) – 100% owned, 393K oz Au, 16K tons Cu, 2020. Open-pit and Under

Red Chris (BC, Canada) – 70% owned. 39K oz Au, 25K tons Cu. Open-pit

Lihir (PNG) – 100% owned, 776K oz Au, 2020. Open-pit

Wafi-Golpu (PNG) – 50% owned JV with Harmony Mining; copper-gold porphyry deposit

Wafi-Golpu reserves estimated at 2.5M oz. Au and 5.5M tons Cu

Has additional Exploration projects in Australia, Chile, Mexico, Papua New Guinea, and Ecuador

Bottom line:

  • A major producer with growth potential; Red Chris mine is in the golden triangle (BC) and is not yet fully producing
  • The balance sheet has high debt, but they do have cash. Pays a 0.25 dividend (1.11%)
  • Toronto Exchange listing 13 Oct 2020
  • No position, but likely will have one this year

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