Citi says Australia's Newcrest consistently fails mine physicals, maintains 'neutral'

Iodm

29/04/2022 01:43

** Brokerage Citi says it is now accustomed to "unplanned'
outages at Newcrest Mining's  NCM.AX  flagship project Lihir,
highlighting co's consistent failures to deliver on mine
physicals
    ** Citi says Lihir would have to deliver its best quarter
since FY19 to make 700 thousand ounces (koz) for the current FY
    ** However, says co's addition of the Brucejack project
after its acquisition of miner Pretium Resources and positive
performance of its Cadia mine helped in pushing March-quarter
production higher by 10% QoQ 
    ** Citi models 1.93koz for the year at AISC US$1062/oz; the
lower end of outlook on ounces and a miss on costs
    ** Says higher gold price expectations in FY23 and FY24 
drive EBITDA hike of 7% and 3%, respectively
    ** Adds Newcrest is banking on Lihir delivering a triple
whammy of better grades, throughput and availability for year
    ** Brokerage reiterates its price target at A$29.0 per share
and stays on "neutral" rating 
    ** Nine of 17 analysts rate NCM stock "buy" or higher, eight
"hold"; stock has a median PT of A$30 – Refinitiv Eikon data
    ** Stock up 10.1% this year, as of last close, vs a 0.3%
decrease in the benchmark S&P/ASX 200 index  .AXJO  
    

 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))