NCM is one solid company!Interesting Article from Business...

NCM is one solid company!

Interesting Article from Business Spectator:

While the group’s underlying earnings fell marginally, with lower output from the Cadia Valley mines in NSW offset by higher prices, Newcrest generated over $1 billion of cash flow from its operations and, thanks to a capital raising of nearly $800 million earlier this year, has a virtually debt-free balance sheet.

With reserves rising, production costs falling and capital expenditure having peaked, Newcrest is moving into what should be a golden era. It continues to forecast a 40 per cent increase in gold production over the next five years and a 30 per cent increase in copper output. It also re-confirmed its forecast of a 30 per cent reduction in cash costs per ounce over that same period.

In a sector where the major players are struggling to offset reserves depletion with new resources, Newcrest lifted its gold reserves seven per cent and its copper reserves 13 per cent. Its gold resources rose 13 per cent and copper 56 per cent and there is substantial latent potential in its portfolio of established and emerging projects.

http://www.businessspectator.com.au/bs.nsf/Article/Good-time-gold-diggers-pd20090817-UZ566?OpenDocument&src=kgb