guess who? they are enjoying being negative as they push it toward their target. Maybe they get it after missing for a couple of years,,maybe after market wide shorting and year end rotations they get pipped again.
DJ More Unrest Possible at Newcrest's Lihir Mine, Says UBS -- Market Talk
0033 GMT [Dow Jones] There may be more instances of landowner unrest disrupting
operations at Newcrest Mining's (NCM.AU) Lihir mine in Papua New Guinea to come,
says UBS. On Tuesday, Newcrest said gold output was temporarily suspended at Lihir after
landowners signaled grievances in the traditional way by placing twisted ginger plants at
the mine site. "While some production will be lost, given the short hiatus, guidance
remains unchanged at 680,000-720,000 ounces for FY15," analyst Jo Battershill says.
"However, of greater concern to us are the ongoing, longer term impacts." The
negotiation of a new agreement with the indigenous landowners for the distribution of
mine benefits have been going on for more than three years, and at a time when mine
activities have been scaled back. "Subsequently, we believe local businesses, and
the community in general, will be suffering from lower cash flow," Battershill says.
"This could be the potential reasoning behind the actions over the weekend, and lead
to further outages going forward, in our view." UBS rates Newcrest at sell, with a
A$10.60/share price target. NCM last traded at A$13.60.([email protected];
@dwinningWSJ)
Editor: KLH
(END) Dow Jones Newswires
June 09, 2015 20:33 ET (00:33 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Wednesday 10 June 2015 10:33:00.000 AEST
NCM Price at posting:
$13.51 Sentiment: None Disclosure: Held
