Rhyme OR Reason?, page-46

Newcrest announced today that it will purchase its second Canadian gold mine.

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Newcrest Mining will pay $US2.8bn ($3.8bn) for Canada’s Pretium Resources in the company’s biggest deal since its acquisition of Lihir Gold a decade ago.

Pretium’s primary asset is the 300,000 ounce a year Brucejack mine, which sits 140km away from Newcrest’s Red Chris mine for which it paid $US806.5m ($1.1bn) for a 70 per cent stake in 2019.


Brucejack produced 348,000 ounces of gold in 2020 at an average all-in-sustaining cost of $US981 an ounce, and Newcrest boss Sandeep Biswas said the asset added another major production centre to the company’s portfolio of top tier assets.

It has a projected mine life of 13 years. The Australian
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Assuming a $400 miilion capex to get Pickle Crow operational, on a rough equivalent basis for the 2 million ounce resource, Auteco deserves a market cap around $A 800 million equivalent to a SP of $0.47 cents per share.