i have gone long.

I need it to be in the $16teens by end of June 05.

Newcrest Mining’s (NCM) Executive General Manager of Operations and Marketing, Mr Tony O’Neil presented at Macquarie’s ASX100 conference. Macquarie Research Equities (MRE) believe that NCM remains significantly undervalued and suggest recent share price weakness is an over-reaction to a minor Telfer production setback.


The presentation focussed on NCM's three main mining regions - Cadia Valley, Gosowong and Telfer with an emphasis on the long life and sustainability of production.
Cadia Valley operations, Cadia Hill and Ridgeway, have mine lives out to 2013 and 2018, respectively. However, with Ridgeway Deeps and Cadia East, this region is likely to be in production for over 30 years at around 700koz of gold and 60kt of copper.
Gosowong region has hosted three major deposits to date with total resources of over 3moz. NCM has already identified over half a dozen new targets with the potential to see this mine produce over 300koz per annum for around 20 years.
Telfer, while having initial teething problems, is starting to reconcile to feasibility study estimates favourably. The recent pyrite problem has meant that higher grade gold material is being stockpiled until June, when pyrite suppression is implemented. Capital estimate to completion of $1.4bn remains firm, as most costs to completion are locked in.
MRE believe NCM remains significantly undervalued in comparison to its global peers on all valuation metrics, and do not see the current issues at Telfer as having any long term negative affect. MRE also point out that with a share price below $15, NCM's corporate appeal has lifted significantly. MRE continue to rate NCM an outperform with a share price target of $20.00.