They are the numbers I'm using, I'm saying 1200 allin sustaining costs That is what newcrest is Targeting, just like they have been targeting lower costs all the way from 444/ ounce, just like they were targeting 3.5 mill ounces and they are doing basically the same as last year All in cost for FY 13 was 1283
Gold price 1450? No, that is what newcrest needs to be cash flow neutral, check out the presentation again, ie, if the pog aud is below 1450aud then in their own forecasts they are not cash flow group positive, current price is below that, 1388 aud per oz closing price last night
Further, cash flow group neutral is what they are targeting, but the don't control the gold price
Forecast are also based on base case numbers, refer Last two pages of presentation
Note, changes to fx copper gold oil and silver price are currently not positive for the budgets, my forecasts don't deduct anything for these...
Yes nothing refinancing till 2015, but if your cash flow negative and deep into your credit lines, that's when you want to raise capital, not when your eating up credit lines IMO
As for not being around in two years, can't say, but confident the size of the register will be larger in two years if the prices of gold and margins remain at these levels, that in theory will be negative for the share price
NCM Price at posting:
$11.18 Sentiment: Sell Disclosure: Held
