Please don't shoot the messenger here - I'm long gold and gold stocks up my Ying-Yang at the moment, but I was pondering why NCM was copping such a bashing...
Could it be that punters consider that Lihir Island is too close to the shaky ring of fire?
Whilst I was considering this, I went to www.ga.gov.au to check on the latest earthquake action in Japan, and I noticed that the most recent earthquake (at time of writing) was a 6.5 magnitude shake near Vanuatu...
Check the attached map, and consider where the Pacific Plate lies... perhaps Lihir is too close for comfort? Regardless, perhaps it is a risk that should be mitigated whilst Mother Earth is so blatantly angry...
Obviously I wish no harm to any PNG islanders, any NCM staff, or anyone at all... but I worry about NCM investors who are perhaps unaware of the possible Lihir risk...
Disclosure - Although I'm relatively happy to accept the risk, I have moved to mitigate it via options.
Further Disclosure - I was never a fan of the purchase of Lihir by NCM.
scroll picture to the right to see the map...
NCM Price at posting:
$35.59 Sentiment: Hold Disclosure: Held