http://cnbusinessnews.com/the-next-gold-rally-is-coming/ is an excellent read. Can't see gold returning to $1100 ever - still believe we are looking at $2000 gold by first quarter 2012.
Whilst NCM and many outstanding unhedged miners are currently pricing in $1100 to $1200 gold I think this situation will soon reverse.
For anyone considering an investment in Newcrest it's worth revisiting a recent presentation delivered at the Denver Gold Forum - http://www.newcrest.com.au//upload/830_9x19x201152717PM.pdf
Page 19 is worth revisiting - 142% increse to reserves and 169% increase to resouces over the last 4 years. Yes that includes the takeout of Lihir but look for further significant reserve growth particulaly out of Wafi Golpu/Gosowong and Lihir.
Page 20 also relevant when considering inventory valuation multiples - without doubt some of the best in the business.
Imho giving consideration to NCM's vast reserves and future gold price trends its far from "wishful thinking" to suggest at current share price levels NCM would not be an attractive candidate to a large North American miner.
NCM Price at posting:
$33.30 Sentiment: Buy Disclosure: Held
