I don't own any NCM myself but I'm wondering why there was a very optimistic pop at the open and then a big selloff. Maybe some digestion of the quarterly report?
On page 8 of their report I noticed the following:
"Newcrest has previously stated it is managing the business to be free cash flow positive in the 2014 financial year (after all capital, exploration and corporate expenditure) at a gold price of A$1,450 per ounce."
However, the group all-in sustaining cost for the quarter was A$921/oz.
This seems to indicate a substantial profit so why aren't they cash flow positive already? Can anyone explain the additional cost? Interest on debt?
I guess another point is that the POG is already below A$1450, about $1400 right now.
NCM Price at posting:
$9.13 Sentiment: None Disclosure: Not Held
