News: NCM Newcrest Mining posts 15% drop in fourth-quarter gold output, page-17

NCM have suffered from the Icarus Syndrome in the past and the market have not forgotten. At 30 billion MC she only recently managed to surpass, the money burnt in acquiring Lihir 10 years ago ($27.55 billion in today's dollars)

On paper this company have not grown, its has gone backwards. The ROC, ROCE and ROE values shows this...

Just when I thought NCM have turned a leaf. They go and do another stupid deal and spent $US806.5 for the 70% stake on Red Chris when Imperial only had a market Cap of $US187m. Even if they went for a hostile TO, $US500 would have been sufficient to buy all of Imperial and not just 70% of it!

Don't even get me started on the fact that Imperial already missed payments on their senior debts prior to the deal which the board could have used to bargain with... Red Chris deal was a rescue package to the boards friends at imperial. Not a deal with SH accretion in mind.

Capital will flow to those that respect it, unfortunately NCM have only demonstrated capital destruction thus far... LOM, Ounces and AISC doesnt matter that much if the company doesn't grow!

Operationally I cannot fault her but the board really is a disappointment. I currently trade NCM based on technical swings but she fails the fundamental tests on growth, SH value destruction and I cringe each time these fat cats acquires an asset.