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Newcrest Mining Limited (ASX:NCM) provided its BMO presentation on 25th February 2019. In the presentation, the company presented its operations and financial updates.
The company presented its assets and advanced projects update in which it reported the mineral and ore reserve of various projects. The company stated that Cadia ore reserves consist of 22moz of gold and 4.3mt of copper with the mineral resources of 38moz gold and 8.3mt copper. The Cadia project produces copper/gold concentrate and gold dore. The All-in-sustaining cost (AISC) for the project in H1FY19 was at $131/oz.
The ore reserves at Lihir consists of 24moz of gold with the mineral resource of 50moz of gold. The AISC for the Lihir project in H1FY19 was at $925/oz and project produce gold dore.
Apart from the major asset of Cadia and Lihir the company has various other projects. The Telfer project ore reserve consists of 2.0moz of gold, and 0.2mt copper with mineral resources of 6.4moz gold and 0.59mt copper. The project produces copper and gold concentrate and gold dore. The AISC of the project in H1FY19 was at $1,347/oz.
The Gosowong ore reserves consist of 0.37moz of gold and 0.54moz of silver with mineral resources reported at 1.1moz of gold and 1.5moz of silver. The Gosowong produces gold and silver dore.
The company also made a special mining lease application for Wafi-Golpu, which is now a development project for the company and has 5.5moz of gold and 2.5mt of copper ore reserves. The Wafi-Golpu has a mineral reserve of 13moz of gold and 4.4mt of copper, and it produces copper and gold concentrate along with gold dore.
As per the company, only Cadia and Lihir are among the projects which have more than 15Moz of ore reserves and have massive orebodies. The company also reported that it was operating at an AISC of $747/oz for the period ended 31st December 2018.
H1FY19 Highlights:
The company announced its FY19 Half-Yearly results previously on 14th February 2019.
The company reported a copper production of 52kt, up by 33% as compared to the previous corresponding period reported at 39kt. The gold production of 1,203koz was noted, up 6% as compared to the previous corresponding period reported at 1,136koz, with a net decline in 12% in TRIFR. The AISC also marked a net decline of 13% and observed at $747/oz, while it was at $860/oz in the previous corresponding year.
The Free cash flow of the company marked a rise of 31% and reported at $176 million, as compared to $134 million in the previous corresponding period. The adjusted EPS also surged by 104% and reported at $0.31 per share, as compared to $0.15 per share in the previous corresponding period.
As per the company, the dividend increased by 23% from FY17 to FY18 and company distributed an interim dividend in H19 of US 7.5 cents per share and is targeting a total dividend payment of 10â30% of the free cash flow.
The shares of the company closed the trading session at A$24.900 on 26th February 2019, down by 1.425% from its previous close. During the session, the shares marked a day's high of A$25.390 and a day's low of A$24.780.
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