Looks good to me !, page-9

Hi durmaz,

Its definitely not for me, no order

Headlines look awesome with cashflow increasing, but that's been done by not spending on capex etc. Hence the guidance is hardly showing a monster increase in this year production.

Telfer couldn't be sold, now its written up with EBit improvement of approx. $30M. That's ok as I commented before under the new rules they can write up.

Im then surprised they didn't balance it with a writedown of Lihir to reflect is yoyoy EBIT performance which has now gone negative.........its just making less and less EBIT every year and its value is climbing

Lihir as a % of assets is very high and has a negative EBIT yet its value just keeps rising.

For me a lot of capitalised costs

Debt reduction is one thing but balance only down 4%, as per the translation.

They have indicated that there is a study showing Telfer good for a cut back, so a lot of capital will be spent there and wofu I suspect, drawing that balance down.

It should also be noted that the balances are 30/6 and we know that the benefit of POG AUD is lower so far this QTR along with AUD so balance would be higher in all probability and benefit to cadia and telfer from higher AUD is slightly declining.

Lihir imo just cant be valued there.

Profit report looks good as they compare it to the total loss last year despite comparing it to underlying at the time.

Yield remains nil as they build up money for Capex, withhold div, sell EVN down. Probably stay no div as they have Wofu Telfer and big debt repayment in 2017


I don't understand why they will be reporting in USD in 2016,,,they obviously don't want to show the AUD translations anymore,,,,I think that's odd for an AUssie company

EPS 2Cents above consensus that was 68cents, that's positive

The fall in Capex etc which resulted in the Cashflow increase shows itself by the production which isn't in growth mode.

Definitely improvement in the cashflow takes the need for Cap raising off the table for the short term which is good. .

Personally I think EVN may be better of the two with div, cash, growing production. I might start looking there as this I think ncm will remain a trading stock with 0 yield for some time yet

Sorry for any repeats...Good luck