Daiwa Securities analyst Mark Pervan said the latest warning was disappointing and that Telfer had “diluted” the credibility of Newcrest’s management.
“These guys are really going to have to work hard to earn some credibility in the market by delivering three or four decent production reports,” he said.
However, he said the sell-off appeared overdone and that Newcrest remained fundamentally attractive for its long-life assets and relatively low production costs.
That meant it was still on top of the list of potential takeover targets for cashed-up foreign predators.
“Newcrest is more than just Telfer,” he said. “So you have to be careful not to wash out the takeover premium too far.”
NCM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
