Its called balance sheet optionality - NCM retains a 38% stake in new entity.
In laymans terms I see it as offloading an asset which must be failing to meet NCM's profitability/size etc metrics. Going forward the focus will be on bringing to production prize assets such as Wafi Golpu - this is the sort of stuff that the majors such as ABX and NCM do all the time. Cracow only producing less than 100k ounces pa - imho don't believe the transaction is a major negative nor positive.
Near term NCM will be more influenced by asx200 movements -long term the gold bull market fundamentals will dicate that NCM will become significantly re rated.
Looks like another trading halt as I type.....
NCM Price at posting:
$37.00 Sentiment: Buy Disclosure: Held
