December 2012 Resources and Reserves Statement Newcrest Mining Limited has updated its Mineral Resource and Ore Reserve estimates for the twelve month period ending 31 December 2012. Mineral Resource and Ore Reserve estimates were previously updated for the year ending 31 December 2011. Changes include updated commodity prices applied when estimating resources and reserves, normal production depletion from operating mines and other adjustments during the period from January 2012 to December 2012. December 2012 Resources and Reserves Statement Newcrest Mining Limited has updated its Mineral Resource and Ore Reserve estimates for the twelve month period ending 31 December 2012. Mineral Resource and Ore Reserve estimates were previously updated for the year ending 31 December 2011. Changes include updated commodity prices applied when estimating resources and reserves, normal production depletion from operating mines and other adjustments during the period from January 2012 to December 2012. Group Mineral Resources, after mining depletion, are estimated at 161.2 million ounces of gold and 20.98 million tonnes of copper. This represents a net increase of 11.5 million ounces of gold (7.7%) and 0.94 million tonnes of copper (4.7%). Silver Mineral Resources are estimated at 142.2 million ounces which represents a net increase 25.4 million ounces of silver (21.8%). The result was driven by additions at Lihir (7.6 million ounces of gold), Cadia East Underground (4.4 million ounces of gold, 0.95 million tonnes of copper and 16.8 million ounces of silver) and Wafi-Golpu (1.0 million ounces of gold and 7.8 million tonnes of silver) 1 . These increases largely reflect exploration success and the impact of increased metal prices on pit shells and cut-off grades respectively. Group Ore Reserves, after mining depletion, are estimated at 87.3 million ounces of gold and 12.10 million tonnes of copper. This represents a net increase of 8.1 million ounces of gold (10.3%) and 3.64 million tonnes of copper (43.0%). Silver Ore Reserves are estimated at 77.2 million ounces which represents a net increase 17.8 million ounces of silver (30.0%). This result is inclusive of the August 2012 Golpu Ore Reserve announcement2 . This result was driven by additions at Wafi-Golpu (5.5 million ounces of gold and 2.32 million tonnes of copper)1 , Cadia East (1.3 million ounces of gold and 0.55 million tonnes of copper), Lihir (1.2 million ounces of gold) and Namosi (0.8 million ounces of gold and 0.78 million tonnes of copper)3 . These increases are largely driven by the completion of the Golpu Prefeasibility Study and the impact of increased metal price assumptions. Mineral Resources are quoted inclusive of Ore Reserves. Metal price assumptions used for all Newcrest Mineral Resources are US$1350/oz for gold, US$3.10/lb for copper and US$23/oz for silver. Price assumptions for Ore Reserves are US$1250/oz for gold, US$2.70/lb for copper and US$20.00/oz for silver. In the case of Gosowong, a gold price of US$1400/oz has been used to estimate Mineral Resources and Ore Reserves, acknowledging the shorter life of the currently known deposits. Where appropriate, resources are also constrained spatially by a notional pit shell based on US$1400/oz for gold and US$4.00/lb for copper or, for underground mining, by a shape based on the marginal cut-off grade used as a conservative measure to remove non-contiguous mineralisation. Cost assumptions are based on the latest approved study for each deposit. Mineral Resources and Ore Reserves for the Morobe Mining Joint Ventures (MMJV) are based on Competent Persons’ statements provided by the Morobe Mining Joint Ventures and Harmony Gold Mining Company Limited and are quoted as Newcrest’s 50% interest. The accompanying statement of Mineral Resources and Ore Reserves conforms to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2004 Edition (The JORC Code)4 . This represents a net increase of 11.5 million ounces of gold (7.7%) and 0.94 million tonnes of copper (4.7%). Silver Mineral Resources are estimated at 142.2 million ounces which represents a net increase 25.4 million ounces of silver (21.8%). The result was driven by additions at Lihir (7.6 million ounces of gold), Cadia East Underground (4.4 million ounces of gold, 0.95 million tonnes of copper and 16.8 million ounces of silver) and Wafi-Golpu (1.0 million ounces of gold and 7.8 million tonnes of silver) 1 . These increases largely reflect exploration success and the impact of increased metal prices on pit shells and cut-off grades respectively. Group Ore Reserves, after mining depletion, are estimated at 87.3 million ounces of gold and 12.10 million tonnes of copper. This represents a net increase of 8.1 million ounces of gold (10.3%) and 3.64 million tonnes of copper (43.0%). Silver Ore Reserves are estimated at 77.2 million ounces which represents a net increase 17.8 million ounces of silver (30.0%). This result is inclusive of the August 2012 Golpu Ore Reserve announcement2 . This result was driven by additions at Wafi-Golpu (5.5 million ounces of gold and 2.32 million tonnes of copper)1 , Cadia East (1.3 million ounces of gold and 0.55 million tonnes of copper), Lihir (1.2 million ounces of gold) and Namosi (0.8 million ounces of gold and 0.78 million tonnes of copper)3 . These increases are largely driven by the completion of the Golpu Prefeasibility Study and the impact of increased metal price assumptions. Mineral Resources are quoted inclusive of Ore Reserves. Metal price assumptions used for all Newcrest Mineral Resources are US$1350/oz for gold, US$3.10/lb for copper and US$23/oz for silver. Price assumptions for Ore Reserves are US$1250/oz for gold, US$2.70/lb for copper and US$20.00/oz for silver. In the case of Gosowong, a gold price of US$1400/oz has been used to estimate Mineral Resources and Ore Reserves, acknowledging the shorter life of the currently known deposits. Where appropriate, resources are also constrained spatially by a notional pit shell based on US$1400/oz for gold and US$4.00/lb for copper or, for underground mining, by a shape based on the marginal cut-off grade used as a conservative measure to remove non-contiguous mineralisation. Cost assumptions are based on the latest approved study for each deposit. Mineral Resources and Ore Reserves for the Morobe Mining Joint Ventures (MMJV) are based on Competent Persons’ statements provided by the Morobe Mining Joint Ventures and Harmony Gold Mining Company Limited and are quoted as Newcrest’s 50% interest. The accompanying statement of Mineral Resources and Ore Reserves conforms to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2004 Edition (The JORC Code)4 . ==========================================================
The above is from NCM website......
In the $7 range, I feel argument relating to debt is immaterial......
The fact that is has the POTENTIAL is enough to stop the SP heading any LOWER.......
With 161M ounces of GOld and 21M tonnes of Copper, by any measure, NCM is cheap...
those hoping for much lower prices are dreaming......
NCM Price at posting:
$7.42 Sentiment: Buy Disclosure: Held
