A strong result for NCM in Dec Q18, driven by out performance at
Cadia, (Cadia Valley NSW is one of Australia’s largest gold mining operations).
Cadia set a record for both quarterly and half year gold production.
Gold production guidance for FY19 is unchanged at 2.5mn ounces. This is around prior high levels of production reached a few years back.
The gold sector has been a hot spot for recent merger and acquisitions. The market is waiting to see if Newcrest makes a move.
In FY 19 revenue will increase 10% and EBIT should increase to US$965mn. The stock trades on a forward yield of 1.5%.