The production numbers announced by NCM were broadly inline with market expectations and the correlation with Spot Gold remains intact.
The mining giant reported Q2 gold production of 613,000 ounces, which is a 17% increase quarter-on-quarter. The cost of production slipped slightly to US 830.00 per ounce.
We added NCM to our Top 50 Model Portfolio on December 13th at $22.10.
Technically, the share price remains tightly correlated to the price of Spot Gold.
As such, we estimate that investors will be able to buy NCM at $22.00 if the price of Spot Gold drifts back to $1320.00