At least if the gold price does drop (and it's probably overdue for a short term correction) then NCM won't be hit as hard as the others like LHG & OXR.
Nobody can accuse NCM investors of getting carried away with too much enthusiasm lately. They still haven't got over the February market report, and there still seems to be a lot of bad news priced in. NCM hasn't even been keeping up with the increases in gold. Gold has increased by more than US$100 in the past 3 months, while NCM is down $4 per share over the same timeframe.
On the upside, sooner or later investors will forget the 5Moz of hedged gold, and remember the 56Moz of low-cost, unhedged gold resources (and 5M tonnes of unhedged copper).
And if there is any truth behind the latest takeover rumours, and the link with Tony Palmer's early departure, then there is another potential upside in the short to medium term.
Don't make any trading decisions on the takeover rumours though, I'll be the first to admit that there have been plenty of other NCM takeover rumours in the past which amounted to nothing.
NCM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
